OxfordAQA IGCSE Accounting: Sole traders and other organisations (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 section 3.4 of the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for exams from May/June 2026 onwards (first teaching 2024, first examined 2026): concepts and adjustments, sole traders’ statements, and comparing business types. All amounts are in dollars. Revise first with the study guide and revision notes. See also the subject hub, the checklist and the free diagnostics.

Questions

1. State the accounting concept that best explains each treatment. (a) The owner of Fernlowe Bakery Supplies pays a personal bill from the business bank account and it is recorded as drawings. (b) A depreciation method is kept the same from year to year. (c) Inventory whose selling price is below its cost is valued at the lower figure. [3]

2. The owner of Quenhurst Garden Centre takes plants that cost 340 for use at home. Show the double entry and explain why the plants are valued at cost. [4]

3. Tolbrook Print Services paid rent of 11,400 in the year, including 950 for the next year. It paid electricity of 3,060; 540 was owing at the end and 420 had been owing at the start. Commission received was 2,100, with 300 more due. Calculate the rent charge, the electricity charge and the commission income, and state where the 300 appears in the statement of financial position. [5]

4. Ramsden Joinery bought a machine for 18,000. Calculate the depreciation charge for year 1 by the straight line method (residual value 3,000, five years) and for years 1 and 2 by the reducing balance method at 30%. State the net book value after two years under reducing balance. [6]

5. Isolde Florists has trade receivables of 18,400 before writing off an irrecoverable debt of 400. The provision for doubtful debts was 520 and is to be 4% of remaining trade receivables. Calculate the total charge to the income statement for these two items and the trade receivables figure for the statement of financial position. [6]

6. Pendrell Cameras counts closing inventory at cost of 14,800. It includes 20 damaged cameras that cost 60 each and can be sold for 35 each net. Calculate the value of closing inventory, the effect on profit of using cost, and name the concept applied. [4]

7. A sole trader who owns Aldwyn Kitchens wants 150,000 to open a second showroom and is deciding whether to form a limited company. Evaluate the decision, giving two advantages, two disadvantages and a reasoned conclusion. [6]

8. State two advantages and two disadvantages of a partnership compared with a sole trader. [4]

9. Sunniva Tutoring is a service business with a year end of 30 April 2026.

Trial balance	Debit	Credit
Wages	22,400
Rent	7,200
Telephone	1,350
Equipment at cost	16,000
Trade receivables	3,800
Bank	5,900
Drawings	12,000
Fees		58,000
Provision for depreciation		4,000
Capital		6,650

Adjustments: telephone owing 150; rent paid in advance 600; fees earned but not yet billed 700; an irrecoverable debt of 200; depreciation at 25% reducing balance. Prepare the income statement and the statement of financial position. [10]

10. Kelmscott Bikes is a trading business. Balances at 31 March 2026: sales 96,000; sales returns 1,500; purchases 58,200; purchases returns 900; opening inventory 7,400; carriage inwards 800; wages 14,600; advertising 2,100; insurance 1,500; rates 2,400; equipment at cost 20,000; provision for depreciation 5,000; trade receivables 9,800; trade payables 6,300; bank 4,100; drawings 11,000; capital 25,200. Adjustments: closing inventory 8,100; goods that cost 600 taken by the owner (still in purchases); insurance prepaid 300; rates owing 400; irrecoverable debt 400; depreciation at 20% reducing balance. Prepare the income statement and calculate closing capital. [11]

11. Harbury Tile Supplies had revenue of 120,000, cost of sales of 78,000 and expenses of 28,800 in year 1. In year 2 these were 138,000, 96,600 and 24,840. Drawings were 15,000 and 21,000. Calculate the gross profit percentage and net profit percentage for both years, then comment on performance and on the owner’s drawings. [8]

12. Orsett Stationery’s draft net profit is 24,500. It has not yet recorded: electricity owing 380; insurance paid in advance 260; goods that cost 450 taken by the owner (still in purchases); an irrecoverable debt of 300; depreciation of 1,900. Calculate the corrected net profit. [6]

Answers

1. (a) Business entity [1]. (b) Consistency [1]. (c) Prudence [1]. [3] Examiner insight: Name the concept itself; describing the treatment again does not show you know which concept it is.

2. Debit drawings 340 [1]; credit purchases 340 [1]. Goods are valued at cost because that is what the business paid and what was recorded in purchases [1]; the owner is separate from the business (business entity), so the cost is a withdrawal of capital, not an expense [1]. [4] Examiner insight: A reason for the valuation needs a link to the concept; “it is the rule” does not explain anything.

3. Rent charge 11,400 - 950 = 10,450 [1]. Electricity 3,060 + 540 - 420 = 3,180 [2]. Commission 2,100 + 300 = 2,400 [1]. The 300 is other receivables, within current assets [1]. [5] Examiner insight: The opening balance on electricity is easy to ignore, so show the three-term working so partial credit is available if the final figure is wrong.

4. Straight line: (18,000 - 3,000) / 5 = 3,000 [2]. Reducing balance year 1: 30% of 18,000 = 5,400 [1]. Year 2: 30% of (18,000 - 5,400) = 3,780 [2]. Net book value 18,000 - 5,400 - 3,780 = 8,820 [1]. [6] Examiner insight: Reducing balance uses net book value, not cost, in year 2; write the base figure so the method is visible.

5. Receivables after write-off 18,400 - 400 = 18,000 [1]. New provision 4% x 18,000 = 720 [1]. Increase 720 - 520 = 200 [1]. Total charge 400 + 200 = 600 [1]. Receivables on statement of financial position 18,000 - 720 = 17,280 [2]. [6] Examiner insight: Charging 720 instead of the increase is the usual slip; label which figure is the change.

6. Damaged cameras cost 20 x 60 = 1,200 [1] and net realisable value 20 x 35 = 700 [1]. Value is 14,800 - 1,200 + 700 = 14,300 [1]. Using cost would overstate profit by 500 (prudence) [1]. [4] Examiner insight: Apply the lower figure only to the damaged items, not to the whole count.

7. Advantages: limited liability protects the owner’s personal assets [1]; shares can raise a large sum such as 150,000 more easily [1]. Disadvantages: more rules and costs to follow [1]; the owner may lose some control to other shareholders [1]. Conclusion: a company suits a large investment, but only if the owner accepts less control and the extra rules [2]. [6] Examiner insight: A one-sided list stops short; a stated judgement tied to the 150,000 figure is what completes the evaluation.

8. Advantages (any two): more capital [1]; shared skills or workload [1]. Disadvantages (any two): profit is shared [1]; partners are usually liable for the business debts and may disagree [1]. [4] Examiner insight: Each point must stay distinct; “more money” and “more capital” count as one idea.

9. Income statement: Revenue 58,000 + 700 = 58,700 [1]; rent 7,200 - 600 = 6,600 [1]; telephone 1,350 + 150 = 1,500 [1]; irrecoverable debt 200 [1]; depreciation 25% x (16,000 - 4,000) = 3,000 [1]. With wages of 22,400, expenses total 33,700, so net profit 25,000 [1]. Statement of financial position: net book value 16,000 - 7,000 = 9,000 [1]. Current assets: trade receivables 3,600, other receivables 1,300 (600 + 700), bank 5,900, total 10,800 [1]. Other payables 150 [1]. Net assets 9,000 + 10,800 - 150 = 19,650, equal to capital 6,650 + 25,000 - 12,000 = 19,650 [1]. [10] Examiner insight: A tidy layout with sub-headings lets a marker find each figure; the matching totals confirm the statement is right.

10. Revenue 96,000 - 1,500 = 94,500 [1]. Purchases 58,200 - 900 - 600 = 56,700 [1]. Cost of sales 7,400 + 56,700 + 800 - 8,100 = 56,800 [1]. Gross profit 37,700 [1]. Insurance 1,500 - 300 = 1,200 [1]. Rates 2,400 + 400 = 2,800 [1]. Depreciation 20% x (20,000 - 5,000) = 3,000 [1]. Irrecoverable debt 400, wages 14,600, advertising 2,100, total expenses 24,100 [1]. Net profit 13,600 [1]. Drawings 11,000 + 600 = 11,600 [1]. Closing capital 25,200 + 13,600 - 11,600 = 27,200 [1]. [11] Examiner insight: Show the adjusted purchases and drawings figures separately; own goods affect both.

11. Year 1: gross profit 42,000, 35.0% [1]; net profit 13,200, 11.0% [1]. Year 2: gross profit 41,400, 30.0% [1]; net profit 16,560, 12.0% [1]. Comment: gross profit percentage fell, possibly through lower selling prices or higher purchase costs [1]; net profit percentage rose because expenses fell [1]. Drawings of 21,000 exceed net profit of 16,560 [1], so capital falls by 4,440 and the owner is withdrawing more than is earned [1]. [8] Examiner insight: Comments that quote the calculated percentages and give a possible reason are stronger than “it went up”.

12. 24,500 - 380 = 24,120 [1]; + 260 = 24,380 [1]; + 450 = 24,830 [1] (cost of sales was overstated); - 300 = 24,530 [1]; - 1,900 = 22,630 [1]. Corrected net profit 22,630 [1]. [6] Examiner insight: Decide for each item whether profit rises or falls before calculating; own goods is the one that increases profit.

Where marks are usually lost

• Charging the whole provision for doubtful debts instead of the change.
• Adding prepaid expenses to the charge rather than deducting them.
• Forgetting to take own goods out of purchases, or putting them in expenses.
• Using the cost base each year under reducing balance.
• Showing inventory at cost when net realisable value is lower.
• Leaving out sub-headings, so current and non-current items are mixed.
• Describing figures in comments without explaining what they mean for the owner.
• Listing features of a business type without linking them to the case.

Next steps

• Re-read the study guide for any question you missed.
• Use the revision notes for a quick recap.
• Check the subject hub and tick off the checklist.
• Try the free diagnostics.
• Book a free trial class.

Frequently asked questions

How should you set out a sole trader’s income statement in an exam? Start with revenue, deduct cost of sales (opening inventory plus purchases less closing inventory) to find gross profit, then add other income and deduct expenses, adjusted for accruals and prepayments, to reach profit for the year. A clear heading with the business name and the period earns presentation marks.

How is the provision for doubtful debts treated in the income statement? Only the increase or decrease in the provision is charged or credited to the income statement for the year. The full provision is deducted from trade receivables in the statement of financial position.

Why does each year-end adjustment affect two statements? Every adjustment changes an income or expense figure in the income statement and creates or changes an asset or liability in the statement of financial position. For example, an expense owing is added to the expense and shown as a current liability.

How do you answer a question comparing business types for OxfordAQA 9215? Match each advantage or disadvantage to the case in the question, such as limited liability for an owner who wants to protect personal assets or shared skills and capital for a partnership. Generic lists with no link to the scenario usually earn fewer marks than applied points.

Official syllabus

OxfordAQA International GCSE Accounting (9215), specification version 1.2, section 3.4, for exams from May/June 2026 onwards. Published by OxfordAQA.