OxfordAQA IGCSE Accounting: Irrecoverable debts, provisions and inventory (9215) – Practice Questions

These are original questions written for Marlbridge, for revision and practice on this content. They are not reproduced past-paper questions, and they do not replicate the exam’s exact structure, question count or mark tariffs – examination boards hold copyright in their own papers. Use these alongside the official past papers from your board or school.

These questions follow part of section 3.3 of the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for exams from May/June 2026 onwards: irrecoverable debts, provisions for doubtful debts, and opening and closing inventory at cost or net realisable value. All amounts are in dollars. Read the study guide first, or use the revision notes. The course hub, printable checklist and free diagnostics are also linked here.

Questions

1. State what is meant by an irrecoverable debt. [2]

2. Oldbury Tiles decides that B. Tanabe, a customer who owes 460, will never pay. State the two ledger entries needed, and say where the irrecoverable debts account is closed at the year end. [3]

3. Oldbury Tiles has trade receivables of 23,500 after write-offs. It keeps a provision for doubtful debts of 4% of trade receivables. The existing provision is 700. Calculate the provision needed and the amount charged to the income statement. [4]

4. Fordcombe Stationery has trade receivables of 18,000 and an existing provision of 810. It now wants a provision of 3%. Calculate the new provision and state the effect on net profit. [3]

5. Calderfield Garden Supplies holds two lines of inventory at the year end.

(a) 60 plant pots cost 14 each. They should sell for 21 each, with selling costs of 3 each. (b) 25 mowers cost 120 each. They should sell for 110 each, after repairs of 15 each and selling costs of 5 each.

Calculate the value of each line and total inventory, using cost or net realisable value. [5]

6. Sawley Audio’s closing inventory was counted as 8,400. A box of stock worth 750 at cost was missed. Explain the effect on net profit in this year and in the next year. [4]

7. Explain, using the concept of prudence, why a business creates a provision for doubtful debts. [4]

8. Sawley Audio had a provision for doubtful debts of 620 at 1 January 2025. It keeps a provision of 4% of trade receivables. Trade receivables were 15,000 at 31 December 2025 and 19,500 at 31 December 2026. Prepare the provision for doubtful debts account for 2026 only, showing the 2025 closing balance as the opening balance, and state what happened to the provision in 2025. [6]

9. Fordcombe Stationery had opening inventory of 7,200 and closing inventory of 8,650. Prepare the inventory account for the year, including the transfers to the income statement. [4]

10. Calderfield Garden Supplies has these figures for the year ended 30 June: revenue 96,400; opening inventory 6,800; purchases 58,300; wages 17,900; rent 4,800; other expenses 3,150; irrecoverable debts 620 (already written off); trade receivables 12,800; provision for doubtful debts 400 at the start. Closing inventory was counted at cost as 8,400. This includes one line that cost 650 but has a net realisable value of 200. The provision is to be 5% of trade receivables.

(a) Calculate the value of closing inventory. [2] (b) Prepare the income statement down to net profit. [6] (c) Show inventory and trade receivables in the statement of financial position. [2]

11. A trader’s draft net profit is 31,200. Trade receivables in the trial balance are 20,000 and have not yet had an irrecoverable debt of 380 written off. The provision is 700 and should be 5% of trade receivables after the write-off. Closing inventory in the draft is 5,400 at cost, including goods that cost 900 and have a net realisable value of 350.

(a) Calculate the corrected net profit. [6] (b) Calculate trade receivables net of the provision for the statement of financial position. [2]

Answers

1. A balance owed by a trade receivable [1] that the business does not expect to collect, so it is written off as an expense [1]. [2] Examiner insight: Answers that mention both the customer’s failure to pay and the write-off tend to be fuller than ones that only say “money not paid”.

2. Debit irrecoverable debts account 460 [1]. Credit B. Tanabe’s account 460 [1]. The irrecoverable debts account is closed by transfer to the income statement at the year end [1]. [3] Examiner insight: Naming the account in each entry earns credit; “debit the expense” without saying which account is too vague.

3. Provision needed: 23,500 x 4% = 940 [1]. Existing provision 700 [1]. Increase 940 - 700 = 240 [1]. This 240 is charged to the income statement as an expense [1]. [4] Examiner insight: Stating the full 940 as the charge is a very common slip; show the comparison with the existing provision.

4. New provision: 18,000 x 3% = 540 [1]. Existing 810, so the provision decreases by 270 [1]. This reduces expenses, so net profit increases by 270 [1]. [3] Examiner insight: The direction of the effect matters: a decrease in provision raises profit, and answers that call it an expense are unlikely to gain the final point.

5. (a) Plant pots: net realisable value 21 - 3 = 18 each [1]; cost 14 is lower, so value 60 x 14 = 840 [1]. (b) Mowers: net realisable value 110 - 15 - 5 = 90 each [1]; this is lower than cost 120, so value 25 x 90 = 2,250 [1]. Total inventory 3,090 [1]. [5] Examiner insight: Showing net realisable value per unit and then comparing it with cost makes your choice of basis clear.

6. Closing inventory is understated by 750 [1]. Cost of sales is overstated, so this year’s net profit is understated by 750 [1]. Next year’s opening inventory is 750 too low [1], so that year’s cost of sales is understated and its net profit overstated by 750, other things being equal [1]. [4] Examiner insight: Answers that cover both years and give the amount tend to earn the later points; saying only “profit is wrong” does not.

7. Some trade receivables may not pay [1], but the business does not yet know which ones [1]. Prudence means not overstating assets or profit [1], so an estimate of the loss is charged now and deducted from trade receivables [1]. [4] Examiner insight: Linking the concept to the actual adjustment (the deduction and the charge) is stronger than defining prudence alone.

8. In 2025 the provision fell from 620 to 600 (15,000 x 4%), a decrease of 20 [1]. In 2026 the provision needed is 19,500 x 4% = 780, so the increase is 180 [1].

Date	Details	Debit	Date	Details	Credit
31 Dec 2026	Balance c/d	780	1 Jan 2026	Balance b/d	600
			31 Dec 2026	Income statement	180
		780			780

Opening balance 600 on the credit side [1]; 180 credited from the income statement [1]; balance c/d 780 [1]; both sides totalled 780 [1]. [6] Examiner insight: Opening balances on a provision account go on the credit side; check that your totals agree before moving on.

9.

Date	Details	Debit	Date	Details	Credit
1 Jan	Balance b/d	7,200	31 Dec	Income statement	7,200
31 Dec	Income statement	8,650	31 Dec	Balance c/d	8,650
		15,850			15,850

Opening inventory 7,200 transferred to the income statement on the credit side [1]; closing inventory 8,650 debited from the income statement [1]; balance c/d 8,650 [1]; totals 15,850 on both sides [1]. [4] Examiner insight: Dates, details and both totals are part of a full ledger layout, so leaving them out risks losing presentation credit.

10. (a) Line value is 200, a write-down of 650 - 200 = 450 [1]. Closing inventory 8,400 - 450 = 7,950 [1]. (b) Cost of sales: 6,800 + 58,300 - 7,950 = 57,150 [1]. Gross profit 96,400 - 57,150 = 39,250 [1]. Irrecoverable debts 620 included in expenses [1]. Provision 12,800 x 5% = 640, so increase 240 [1]. Total expenses 17,900 + 4,800 + 3,150 + 620 + 240 = 26,710 [1]. Net profit 12,540 [1]. (c) Inventory 7,950 [1]. Trade receivables 12,800 less provision 640 = 12,160 [1]. [10] Examiner insight: A clear layout with labelled subtotals helps your method to be seen even if one figure is wrong.

11. (a) Irrecoverable debt reduces profit by 380 [1]. Trade receivables after write-off 20,000 - 380 = 19,620 [1]. New provision 19,620 x 5% = 981 [1]. Increase 981 - 700 = 281, reducing profit [1]. Inventory write-down 900 - 350 = 550, reducing profit [1]. Corrected net profit 31,200 - 380 - 281 - 550 = 29,989 [1]. (b) Net trade receivables 19,620 - 981 [1] = 18,639 [1]. [8] Examiner insight: Take each adjustment separately and state whether it raises or lowers profit; one combined sum hides your method.

Where marks are usually lost

• Crediting the expense account and debiting the customer when writing off a debt.
• Calculating the provision before writing off the irrecoverable debt.
• Charging the full provision instead of the increase or decrease.
• Treating a decrease in provision as an expense.
• Using net realisable value when it is higher than cost.
• Forgetting repair or selling costs when calculating net realisable value.
• Adding closing inventory into expenses rather than deducting it in cost of sales.
• Putting the provision on the wrong side of the provision account.
• Defining a concept without linking it to the adjustment in the question.

Next steps

• Recap with the revision notes and the study guide.
• Go to the course hub or the printable checklist.
• Try all the free 10-minute diagnostics.
• Book a free trial class.

Frequently asked questions

Where do students usually lose marks on irrecoverable debts and provision questions? Common losses are reversing the write-off entry, calculating the provision before writing off the irrecoverable debt, charging the full provision instead of the change, and treating a decrease in the provision as an expense.

What mistakes are common with inventory valuation in this topic? Using net realisable value when it is higher than cost, forgetting repair or selling costs when calculating net realisable value, and adding closing inventory into expenses rather than deducting it in cost of sales.

How should I answer a question asking me to explain a concept behind an adjustment? Name the concept and link it to the adjustment in the question. Defining the concept without that link loses marks.

Which part of the 9215 specification do these questions cover? Part of section 3.3 of OxfordAQA International GCSE Accounting 9215: irrecoverable debts, provisions for doubtful debts, and opening and closing inventory.

Official syllabus

OxfordAQA International GCSE Accounting (9215), specification version 1.2, for exams from May/June 2026 onwards, published by OxfordAQA. These questions cover part of section 3.3.