Question Simulator

AS & A Level Accounting (9706)

Incomplete records Banker

18 questions · about 3% of the marks we indexed · examined in 8 of 9 sessions.

Questions by year

2026

  • 2026 May/June · Paper 22 · Q1 (a, b)10 marksMissing figures and statements from incomplete records
  • 2026 May/June · Paper 22 · Q2 (a(i), a(ii))3 marksMark-up and margin

2025

  • 2025 May/June · Paper 22 · Q3 (a, b)8 marksMissing figures and statements from incomplete records

2024

  • 2024 Oct/Nov · Paper 12 · Q161 markMissing figures and statements from incomplete records
  • 2024 Oct/Nov · Paper 12 · Q221 markMark-up and margin
  • 2024 Oct/Nov · Paper 22 · Q1 (a)17 marksMissing figures and statements from incomplete records
  • 2024 May/June · Paper 12 · Q131 markMissing figures and statements from incomplete records
  • 2024 May/June · Paper 12 · Q141 markMark-up and margin
  • 2024 May/June · Paper 22 · Q1 (a, b(i), b(ii))8 marksMark-up and margin · Missing figures and statements from incomplete records

2023

  • 2023 Oct/Nov · Paper 12 · Q21 markFull versus incomplete records
  • 2023 Oct/Nov · Paper 12 · Q121 markMissing figures and statements from incomplete records
  • 2023 May/June · Paper 12 · Q141 markMark-up and margin
  • 2023 May/June · Paper 22 · Q3 (a, b, c, d)15 marksFull versus incomplete records · Missing figures and statements from incomplete records

2022

  • 2022 Oct/Nov · Paper 12 · Q121 markMissing figures and statements from incomplete records
  • 2022 Oct/Nov · Paper 12 · Q131 markMissing figures and statements from incomplete records
  • 2022 May/June · Paper 12 · Q121 markMark-up and margin
  • 2022 May/June · Paper 12 · Q131 markMissing figures and statements from incomplete records
  • 2022 May/June · Paper 12 · Q201 markMark-up and margin

References only, not question text. Open Official paper ↗ where Cambridge publishes the paper, or see the official Cambridge past-papers page; for other papers, ask your school. “Paper 42” means Paper 4, variant 2.

Practice questions

Original questions written by HomiLabs in the style of the exam, with answers and mark schemes. They are not Cambridge past paper questions and have not been reviewed by Cambridge. Try each one before opening the answer.

Q1Missing figures and statements from incomplete records · Core · Paper 1 style · 1 mark
  1. (a) Rukhsana does not keep full accounting records. Her business net assets were $25,000 at the start of the year and $31,400 at the end. During the year she took drawings of $8,200 and paid $3,000 of her own savings into the business bank account. What was her profit for the year? [1]
Show answer
  1. (a) C $11,600
    Profit = closing capital − opening capital + drawings − capital introduced = 31,400 − 25,000 + 8,200 − 3,000 = $11,600. D adds the capital introduced instead of deducting it; the extra $3,000 came from Rukhsana's savings, not from trading.
Q2Missing figures and statements from incomplete records · Core · Paper 1 style · 1 mark
  1. (a) An electronics wholesaler in Karachi keeps incomplete records. Trade receivables were $7,420 at the start of the year and $8,950 at the end. During the year it received $61,300 from credit customers, allowed cash discounts of $1,150 and wrote off irrecoverable debts of $480. What were the credit sales for the year? [1]
Show answer
  1. (a) C $64,460
    Credit sales = receipts + discounts allowed + irrecoverable debts + closing receivables − opening receivables = 61,300 + 1,150 + 480 + 8,950 − 7,420 = $64,460. B ignores discounts allowed and irrecoverable debts, which also reduce what customers owe.
Q3Missing figures and statements from incomplete records · Core · Paper 2 style · 5 marks

Zara runs a tailoring shop in Lahore and keeps only a bank statement file. At 1 January 2026 she gives this information:Equipment: $18,500Delivery van: $12,000Inventory: $6,240Trade receivables: $3,180Cash at bank: $2,960Cash in hand: $340Trade payables: $4,710Rent accrued: $600Loan from brother (repayable 2030): $5,000

  1. (a) State what is meant by a statement of affairs. [1]
  2. (b) Prepare Zara's statement of affairs at 1 January 2026 to find her capital. [4]
Show answer
  1. (a) A statement listing the assets and liabilities of a business at a date, used to find the owner's capital (capital = assets − liabilities) when full records are not kept.
    1 mark: list of assets and liabilities at a date to find capital.
  2. (b) Zara: Statement of affairs at 1 January 2026 $ $AssetsEquipment 18,500Delivery van 12,000Inventory 6,240Trade receivables 3,180Cash at bank 2,960Cash in hand 340 43,220Less liabilitiesTrade payables 4,710Rent accrued 600Loan from brother (repayable 2030) 5,000 (10,310)Capital at 1 January 2026 32,910
    Total assets 43,220 (1); total liabilities 10,310 (1); loan included as a liability (1); capital $32,910 (1OF).
Q4Missing figures and statements from incomplete records · Core · Paper 2 style · 5 marks

Haider owns a stationery shop in Hyderabad. He does not keep double-entry records. His capital, found from statements of affairs, was $41,300 at 1 April 2025 and $47,850 at 31 March 2026. During the year he took $900 cash each month for personal use and took stationery costing $1,250 for his children. In January 2026 he paid $6,000 he had inherited into the business bank account.

  1. (a) Calculate Haider's profit for the year ended 31 March 2026. Show your workings. [4]
  2. (b) State one reason why the profit calculated in (a) may not be accurate. [1]
Show answer
  1. (a) $ $Capital at 31 March 2026 47,850Less capital at 1 April 2025 (41,300)Increase in capital 6,550Add drawings: cash 10,800 goods 1,250 12,050 18,600Less capital introduced (6,000)Profit for the year 12,600
    Increase in capital 6,550 (1); drawings 10,800 + 1,250 added (1); capital introduced deducted (1); profit $12,600 (1OF).
  2. (b) Any one: asset values in the statements of affairs may be estimates; some drawings or capital introduced may have been forgotten; there is no double entry to check accuracy.
    1 mark for any valid reason.
Q5Missing figures and statements from incomplete records · Core · Paper 2 style · 6 marks

Mehwish runs a bakery in Quetta. During 2025 she paid rent of $14,300 and electricity of $5,180.At 1 January 2025: rent prepaid $1,100; electricity accrued $420.At 31 December 2025: rent accrued $1,300; electricity accrued $510.

  1. (a) Calculate the rent expense for the year ended 31 December 2025. [2]
  2. (b) Calculate the electricity expense for the year ended 31 December 2025. [2]
  3. (c) State how the rent and electricity balances at 31 December 2025 will appear in the statement of financial position. [2]
Show answer
  1. (a) 14,300 + 1,100 + 1,300 = $16,700
    M1 add opening prepayment and closing accrual to the amount paid; A1.
  2. (b) 5,180 − 420 + 510 = $5,270
    M1 deduct opening accrual, add closing accrual; A1.
  3. (c) Rent accrued $1,300 and electricity accrued $510: both shown as current liabilities (other payables).
    1 mark each.
Q6Missing figures and statements from incomplete records · Core · Paper 2 style · 6 marks

Ayesha owns a beauty salon in Lahore. For the year ended 31 December 2025:- She took $650 cash from the business each month.- The business bank paid for her family holiday, $2,300.- She took salon products for her own use; they cost $480 and would have sold for $720.- The business paid her son's school fees of $1,900.- She paid the salon's insurance of $1,200 from her personal bank account.Her capital at 1 January 2025 was $35,600 and the profit for the year was $16,050.

  1. (a) Calculate Ayesha's total drawings for the year. [3]
  2. (b) Calculate Ayesha's capital at 31 December 2025. [3]
Show answer
  1. (a) 7,800 + 2,300 + 480 + 1,900 = $12,480
    Cash drawings 12 × 650 = 7,800 (1); goods at cost 480, not selling price (1); total (1).
  2. (b) 35,600 + 1,200 + 16,050 − 12,480 = $40,370
    Capital introduced (insurance paid privately) added (1); profit added and drawings deducted (1); A1 OF.
Q7Missing figures and statements from incomplete records · Core · Paper 2 style · 6 marks

Bushra runs a courier business in Rawalpindi. Her financial year ends on 31 March.- On 1 October 2025 she borrowed $20,000 at 6% interest per year. Interest paid by 31 March 2026 was $450.- At 1 April 2025 insurance of $640 was prepaid for April–June 2025. On 1 July 2025 she paid $2,880 for insurance for the year to 30 June 2026.

  1. (a) Calculate the loan interest expense for the year and the amount owing at 31 March 2026. [3]
  2. (b) Calculate the insurance expense for the year and the prepayment at 31 March 2026. [3]
Show answer
  1. (a) Interest = 20,000 × 6% × 6/12 = $600; owing = 600 − 450 = $150
    M1 six months only; A1; A1 accrual.
  2. (b) Expense = 640 + 2,880 × 9/12 = $2,800; prepaid = 2,880 × 3/12 = $720
    M1 include opening prepayment; A1 expense; A1 prepayment.
Q8Missing figures and statements from incomplete records · Standard · Paper 1 style · 1 mark
  1. (a) [1]
Show answer
  1. (a) D $51,155
    Debit side: bank 48,270 + discounts received 940 + returns 1,120 + contra 350 + balance c/d 6,105 = 56,785. Credit side: balance b/d 5,630 + purchases. Purchases = $51,155. A leaves out the returns; returns reduce the amount owed, so they must be added back to find the goods bought.
Q9Missing figures and statements from incomplete records · Standard · Paper 1 style · 1 mark
  1. (a) All of a grocer's sales are for cash. In the year, cash sales were $38,600. From the takings he paid wages of $9,800 and cash purchases of $2,370, and paid $22,150 into the bank. He took the rest as drawings, apart from the cash in the till: $420 at the start of the year and $510 at the end. What were his cash drawings? [1]
Show answer
  1. (a) A $4,190
    Drawings = opening cash + takings − wages − bankings − cash purchases − closing cash = 420 + 38,600 − 9,800 − 22,150 − 2,370 − 510 = $4,190. C reverses the till balances: the opening cash is available to spend and the closing cash was not taken.
Q10Missing figures and statements from incomplete records · Standard · Paper 2 style · 8 marks

Ali runs a hardware shop in Faisalabad and keeps incomplete records. For the year ended 31 December 2025:Trade receivables: 1 January 2025 $4,860; 31 December 2025 $5,390Cheques received from credit customers and banked $52,740 (this includes a cheque for $450 later dishonoured by the customer's bank)Discounts allowed $1,310; irrecoverable debts written off $620Cash takings banked $18,900, after paying wages of $3,600 and drawings of $2,400 out of the takingsCash in the till: 1 January 2025 $300; 31 December 2025 $250

  1. (a) Prepare the total trade receivables account for the year ended 31 December 2025, showing credit sales as the balancing figure. [5]
  2. (b) Calculate the cash sales for the year. [2]
  3. (c) Calculate the total revenue for the year. [1]
Show answer
  1. (a) Total trade receivables account $ $Balance b/d 4,860 Bank 52,740Credit sales 54,750 Discounts allowed 1,310Bank (dishonoured cheque) 450 Irrecoverable debts 620 Balance c/d 5,390 60,060 60,060
    Balance b/d 4,860 and c/d 5,390 on correct sides (1); bank 52,740, discounts 1,310, irrecoverable debts 620 on credit side (1); dishonoured cheque 450 on debit side (1); credit sales $54,750 (2).
  2. (b) 18,900 + 3,600 + 2,400 + 250 − 300 = $24,850
    M1 adding wages and drawings paid from takings and adjusting for the till balances; A1.
  3. (c) 54,750 + 24,850 = $79,600
    1 mark OF.
Q11Missing figures and statements from incomplete records · Standard · Paper 2 style · 8 marks

Wanjiru owns a building-supplies shop in Nairobi. Her records for the year show:Trade payables at start $9,240; at end $8,615Paid to suppliers by bank transfer $71,580Discounts received $1,460Goods returned to suppliers $2,030Amount owed by a customer set off against the amount owed to the same firm as supplier $780Cash purchases $3,900

  1. (a) Prepare the total trade payables account for the year, showing credit purchases as the balancing figure. [5]
  2. (b) Calculate the net purchases figure that will appear in the statement of profit or loss. [2]
  3. (c) State why a contra entry arises. [1]
Show answer
  1. (a) Total trade payables account $ $Bank 71,580 Balance b/d 9,240Discounts received 1,460 Credit purchases 75,225Purchases returns 2,030Sales ledger contra 780Balance c/d 8,615 84,465 84,465
    Bank, discounts and returns on debit side (1); contra 780 on debit side (1); balances b/d and c/d (1); credit purchases $75,225 (2).
  2. (b) 75,225 + 3,900 − 2,030 = $77,095
    M1 add cash purchases and deduct returns; A1 OF.
  3. (c) A business both buys from and sells to the same firm; the amount it owes that firm is set off against the amount the firm owes it.
    1 mark.
Q12Missing figures and statements from incomplete records · Standard · Paper 2 style · 7 marks

Tomasz runs a printing shop in Gdańsk. His bank summary for the year is incomplete. Balance at start of year: $3,250 in the bank. Balance at end of year: overdrawn $1,180.Payments: Paid to suppliers $46,900; Wages $12,600; Rent $7,200; Drawings $6,000; New equipment $4,500.Receipts: Cash sales banked $31,400; Loan from bank $5,000; receipts from credit customers (not known).Trade receivables were $4,100 at the start of the year and $3,640 at the end. Discounts allowed were $550.

  1. (a) Calculate the amount received from credit customers during the year. [4]
  2. (b) Calculate the credit sales for the year. [3]
Show answer
  1. (a) Total payments 77,200. Opening balance 3,250 + cash sales 31,400 + loan 5,000 + receipts from customers − 77,200 = −1,180 (overdraft). Receipts from credit customers = 77,200 − 1,180 − 3,250 − 31,400 − 5,000 = $36,370
    M1 total payments; M1 treat closing overdraft as a negative balance; M1 balancing; A1.
  2. (b) 36,370 + 550 + 3,640 − 4,100 = $36,460
    M1 add discounts allowed; M1 adjust for receivables; A1 OF.
Q13Missing figures and statements from incomplete records · Standard · Paper 2 style · 5 marks

A furniture workshop in Chiniot keeps incomplete records. The carrying amount of its machinery was $42,000 at 1 January 2025 and $51,300 at 31 December 2025. Depreciation for the year was $8,900. During the year a machine was sold for $3,200, making a profit on disposal of $700. All other machinery bought was paid for by bank transfer.

  1. (a) Calculate the carrying amount of the machine sold. [2]
  2. (b) Calculate the cost of machinery bought during the year. [3]
Show answer
  1. (a) 3,200 − 700 = $2,500
    M1 proceeds less profit; A1.
  2. (b) Opening 42,000 − disposal 2,500 − depreciation 8,900 + additions = closing 51,300; additions = 51,300 − 42,000 + 8,900 + 2,500 = $20,700
    M1 add back depreciation; M1 add back carrying amount of disposal; A1 OF.
Q14Missing figures and statements from incomplete records · Standard · Paper 2 style · 7 marks

A tyre dealer in Gujranwala keeps incomplete records. For the year:Trade receivables: start $12,800; end $14,500Cheques received from credit customers $96,500, including one of $300 that was later dishonouredIrrecoverable debts written off $1,050; discounts allowed $1,700The allowance for irrecoverable debts is kept at 3% of trade receivables at each year end.

  1. (a) Calculate the credit sales for the year. [4]
  2. (b) Calculate the change in the allowance for irrecoverable debts and state its effect on profit. [2]
  3. (c) State the figure for trade receivables in the statement of financial position. [1]
Show answer
  1. (a) 14,500 + 96,500 + 1,050 + 1,700 − 12,800 − 300 = $100,650
    M1 receipts, discounts and irrecoverable debts added; M1 closing less opening; M1 dishonoured cheque deducted (it increases the amount owed); A1.
  2. (b) Closing allowance 435 − opening 384 = increase of $51; profit is reduced by $51.
    1 mark amount; 1 mark effect.
  3. (c) 14,500 − 435 = $14,065
    1 mark OF.
Q15Missing figures and statements from incomplete records · Standard · Paper 2 style · 5 marks

Nikhil runs a mobile food van in Colombo. His capital at 1 January 2025 was $27,400. For 2025 his profit was $18,250 and his drawings were $13,600. At 31 December 2025 his other balances were:Furniture $9,800Motor vehicle $17,500Inventory $7,350Trade receivables $4,120Trade payables $5,930Electricity owing $290He has lost his bank statements.

  1. (a) Calculate Nikhil's capital at 31 December 2025. [2]
  2. (b) Calculate the bank balance at 31 December 2025 and state whether it is an asset or a liability. [3]
Show answer
  1. (a) 27,400 + 18,250 − 13,600 = $32,050
    M1; A1.
  2. (b) Capital = assets − liabilities. Assets other than bank 38,770; liabilities 6,220. Bank = 32,050 − 38,770 + 6,220 = −500: an overdraft of $500, a current liability.
    M1 use of accounting equation; A1 amount; 1 mark liability (overdraft).
Q16Missing figures and statements from incomplete records · Standard · Paper 2 style · 7 marks

Sana runs a gift shop in Kuala Lumpur and keeps no double-entry records.At 1 July 2025: Shop fittings $11,000; Inventory $4,750; Trade receivables $1,960; Bank $2,380; Trade payables $2,640.At 30 June 2026: Shop fittings $9,900; Van $8,000; Inventory $5,820; Trade receivables $2,410; Bank overdraft $1,150; Trade payables $3,090; Bank loan $6,000.The van was bought during the year using the bank loan and $2,000 from the business bank account. Sana's drawings for the year were $9,600. She introduced no new capital.

  1. (a) Calculate Sana's capital at 1 July 2025. [2]
  2. (b) Calculate Sana's capital at 30 June 2026. [3]
  3. (c) Calculate Sana's profit or loss for the year ended 30 June 2026. [2]
Show answer
  1. (a) 20,090 − 2,640 = $17,450
    M1 assets − liabilities; A1.
  2. (b) Assets 26,130 − liabilities 10,240 = $15,890
    Van and loan included (1); overdraft as liability (1); A1.
  3. (c) 15,890 − 17,450 + 9,600 = $8,040 profit
    M1 change in capital + drawings; A1 OF.
Q17Missing figures and statements from incomplete records · Standard · Paper 2 style · 6 marks

The inventory records of a pottery shop in Multan for last year were lost. Revenue was $45,000, purchases were $31,600 and closing inventory was $6,900. All goods are sold at a mark-up of 50%.

  1. (a) Calculate the cost of sales. [2]
  2. (b) Calculate the opening inventory. [2]
  3. (c) Calculate the rate of inventory turnover, correct to two decimal places. [2]
Show answer
  1. (a) 45,000 × 100/150 = $30,000
    M1; A1.
  2. (b) 30,000 + 6,900 − 31,600 = $5,300
    M1 cost of sales + closing − purchases; A1 OF.
  3. (c) Average inventory = (5,300 + 6,900) ÷ 2 = 6,100; turnover = 30,000 ÷ 6,100 = 4.92 times
    M1 average inventory; A1.
Q18Missing figures and statements from incomplete records · Challenge · Paper 1 style · 1 mark
  1. (a) Goods were stolen from a shoe shop in Peshawar shortly before the year end. Opening inventory was $14,200, purchases were $63,800 and revenue was $84,000. All goods are sold at a mark-up of 40% on cost. The inventory remaining at the year end cost $9,450. What was the cost of the goods stolen? [1]
Show answer
  1. (a) B $8,550
    Cost of sales = 84,000 × 100/140 = 60,000. Expected closing inventory = 14,200 + 63,800 − 60,000 = 18,000. Stolen = 18,000 − 9,450 = $8,550. C treats 40% as a margin (cost of sales 50,400), but a mark-up is a percentage of cost.
Q19Missing figures and statements from incomplete records · Challenge · Paper 2 style · 7 marks

Gulnaz owns a fabric shop in Sialkot. On 15 June 2026 a fire destroyed most of her inventory. Her records for 1 January to 15 June 2026 show:Inventory at 1 January 2026 (at cost) $22,600Purchases $48,350; purchases returns $1,150Sales $72,500; sales returns $2,500Her gross margin is always 30% of net sales. Goods saved from the fire cost $3,480.

  1. (a) Calculate the cost of sales for the period 1 January to 15 June 2026. [2]
  2. (b) Calculate the cost of the inventory destroyed by the fire. [3]
  3. (c) The insurance company agrees to pay 75% of the loss. Calculate the amount Gulnaz must bear herself and state how it is treated in her statement of profit or loss. [2]
Show answer
  1. (a) Net sales 72,500 − 2,500 = 70,000; cost of sales = 70,000 × 70% = $49,000
    M1 net sales × (100 − 30)%; A1.
  2. (b) Expected inventory = 22,600 + 48,350 − 1,150 − 49,000 = 20,800; destroyed = 20,800 − 3,480 = $17,320
    M1 opening + net purchases − cost of sales; M1 deduct salvaged goods; A1.
  3. (c) Claim 12,990; loss borne 17,320 − 12,990 = $4,330; shown as an expense (loss of inventory by fire).
    1 mark amount; 1 mark treatment as an expense.
Q20Missing figures and statements from incomplete records · Challenge · Paper 2 style · 7 marks

Kwame runs a market stall in Accra. All sales are for cash and he sells all goods at a mark-up of 25% on cost. For the year:Inventory: start $11,500, end $12,800; purchases (all paid by bank) $97,300Cash in hand at start $650Paid from takings: wages $14,400, sundry expenses $2,150, drawings $7,800Takings banked $93,200At the year end only $480 was in the cash box. The rest of the missing cash was stolen.

  1. (a) Calculate the cost of sales. [1]
  2. (b) Calculate the sales revenue for the year. [2]
  3. (c) Calculate the amount of cash stolen. [3]
  4. (d) State how the cash stolen is shown in the statement of profit or loss. [1]
Show answer
  1. (a) 11,500 + 97,300 − 12,800 = $96,000
    1 mark.
  2. (b) 96,000 × 125/100 = $120,000
    M1 cost of sales × 1.25; A1 OF.
  3. (c) Expected cash = 650 + 120,000 − 14,400 − 2,150 − 7,800 − 93,200 = 3,100; stolen = 3,100 − 480 = $2,620
    M1 opening cash + sales; M1 less payments and bankings; A1 OF.
  4. (d) As an expense (loss of cash by theft), deducted from gross profit.
    1 mark.
Q21Missing figures and statements from incomplete records · Challenge · Paper 2 style · 8 marks

Farah owns a clothes boutique in Islamabad. She keeps a cash book but no ledgers. For the year ended 30 June 2026:Trade receivables: 1 July 2025 $6,300; 30 June 2026 $7,150Received from credit customers $82,400; discounts allowed $900Cash sales $19,600Purchases for the year (from suppliers' invoices) $63,050; discounts received $700Inventory: 1 July 2025 $9,400; 30 June 2026 $10,250General expenses paid $8,300; $400 was owing at 30 June 2026 (nothing owing a year earlier)Rent paid $9,600, which includes $800 for July 2026Shop fixtures cost $24,000 and are depreciated at 10% per year using the straight-line method.

  1. (a) Calculate the total revenue for the year. [2]
  2. (b) Prepare Farah's statement of profit or loss for the year ended 30 June 2026. [6]
Show answer
  1. (a) Credit sales = 7,150 + 82,400 + 900 − 6,300 = 84,150; revenue = 84,150 + 19,600 = $103,750
    M1 credit sales; A1 total revenue.
  2. (b) Farah: Statement of profit or loss for the year ended 30 June 2026 $ $Revenue 103,750Less cost of sales Opening inventory 9,400 Purchases 63,050 72,450 Less closing inventory (10,250) (62,200)Gross profit 41,550Add discounts received 700 42,250Less expenses General expenses 8,700 Rent 8,800 Discounts allowed 900 Depreciation of fixtures 2,400 (20,800)Profit for the year 21,450
    Cost of sales 62,200 (1); gross profit 41,550 (1OF); discounts received added (1); general expenses 8,700 and rent 8,800 (1); discounts allowed and depreciation 2,400 (1); profit $21,450 (1OF).
Q22Missing figures and statements from incomplete records · Challenge · Paper 2 style · 8 marks

Kamal repairs bicycles in Multan. He has no bank statements for the last month and wants his statement of financial position at 31 March 2026. He gives you:Equipment at cost $30,000; accumulated depreciation at 1 April 2025 $9,000. Depreciation is 20% per year, reducing balance.Inventory $5,620; trade receivables $2,840; rent prepaid $350Trade payables $3,910; electricity owing $260Bank loan $8,000, repayable in 2030Capital at 1 April 2025 $18,400; profit for the year (after depreciation) $14,700; drawings $11,200

  1. (a) Calculate the depreciation charge for the year and the carrying amount of the equipment at 31 March 2026. [2]
  2. (b) Prepare Kamal's statement of financial position at 31 March 2026. The bank balance is the balancing figure. [6]
Show answer
  1. (a) Depreciation = (30,000 − 9,000) × 20% = $4,200; carrying amount = $16,800
    1 mark each.
  2. (b) Kamal: Statement of financial position at 31 March 2026 $ $Non-current assets Equipment at cost 30,000 Less accumulated depreciation (13,200) 16,800Current assets Inventory 5,620 Trade receivables 2,840 Other receivables (rent prepaid) 350 Cash at bank 8,460 17,270Total assets 34,070Capital and liabilitiesCapital at 1 April 2025 18,400Add profit for the year 14,700 33,100Less drawings (11,200) 21,900Non-current liability: bank loan 8,000Current liabilities Trade payables 3,910 Other payables (electricity) 260 4,170Total capital and liabilities 34,070
    Non-current assets section (1OF); current assets other than bank (1); capital section 21,900 (1); loan as non-current liability (1); current liabilities 4,170 (1); bank $8,460 (1).
Q23Missing figures and statements from incomplete records · Challenge · Paper 2 style · 8 marks

Ramón runs a sports shop in Buenos Aires. He did not count inventory at 30 September 2026. His gross margin is 35% on all sales. For the year to 30 September 2026:Opening inventory $8,200; purchases $52,600; revenue $76,000Wages paid $21,450. Wages owing: start of year $380; end of year $470.The wages paid include $1,200 that Ramón paid to himself.

  1. (a) Calculate the value of closing inventory at 30 September 2026. [3]
  2. (b) Calculate the wages expense for the year. [3]
  3. (c) Explain one reason why the closing inventory found in (a) may differ from the true figure. [2]
Show answer
  1. (a) Cost of sales = 76,000 × 65% = 49,400; closing inventory = 8,200 + 52,600 − 49,400 = $11,400
    M1 cost of sales; M1 opening + purchases − cost of sales; A1.
  2. (b) 21,450 − 380 + 470 − 1,200 = $20,340
    M1 accrual adjustments; M1 remove owner's amount (drawings, not wages); A1.
  3. (c) The 35% margin is an average; if some goods were sold at a discount, damaged, stolen or sold at different margins, actual inventory will differ from the estimate.
    1 mark reason; 1 mark development.
Q24Mark-up and margin · Core · Paper 1 style · 1 mark
  1. (a) [1]
Show answer
  1. (a) A 20%
    Cost 100, selling price 125, gross profit 25. Margin = 25 ÷ 125 = 20%. B confuses margin with mark-up: the mark-up is profit as a percentage of cost, but margin is profit as a percentage of selling price.
Q25Mark-up and margin · Core · Paper 2 style · 5 marks

A craft shop in Jaipur buys hand-painted lamps for $64 each and sells them at a mark-up of 35%.

  1. (a) Calculate the selling price of one lamp. [1]
  2. (b) Calculate the gross margin on one lamp, correct to two decimal places. [2]
  3. (c) Calculate the selling price needed to earn a gross margin of 30%, correct to two decimal places. [2]
Show answer
  1. (a) 64 × 1.35 = $86.40
    1 mark.
  2. (b) (86.40 − 64) ÷ 86.40 × 100 = 25.93%
    M1; A1.
  3. (c) 64 ÷ 0.70 = $91.43
    M1 cost ÷ (1 − 0.30); A1.
Q26Mark-up and margin · Standard · Paper 2 style · 4 marks

Leila sells kitchenware in Dubai. Her gross margin is 37.5% and her cost of sales for the year was $55,000.

  1. (a) Calculate the revenue and the gross profit for the year. [2]
  2. (b) Calculate the mark-up percentage that gives this margin. [2]
Show answer
  1. (a) Revenue = 55,000 ÷ 62.5% = $88,000; gross profit = $33,000
    1 mark each.
  2. (b) 33,000 ÷ 55,000 × 100 = 60%
    M1 gross profit ÷ cost of sales; A1.
Q27Mark-up and margin · Challenge · Paper 2 style · 7 marks

A shop in Karachi sells mobile phones at a mark-up of 20% and accessories at a mark-up of 60%. Last year it sold phones for $96,000 and accessories for $24,000. Opening inventory was $14,000 and purchases were $92,500. The inventory count at the year end found goods costing $10,300.

  1. (a) Calculate the cost of sales for each product line. [2]
  2. (b) Calculate the overall gross margin, correct to two decimal places. [2]
  3. (c) Calculate the value of the inventory missing at the year end. [3]
Show answer
  1. (a) Phones 96,000 × 100/120 = $80,000; accessories 24,000 × 100/160 = $15,000
    1 mark each.
  2. (b) Gross profit = 16,000 + 9,000 = 25,000; margin = 25,000 ÷ 120,000 × 100 = 20.83%
    M1 total gross profit; A1.
  3. (c) Expected inventory = 14,000 + 92,500 − 95,000 = 11,500; missing = 11,500 − 10,300 = $1,200
    M1 total cost of sales used; M1 expected inventory; A1.
Q28Full versus incomplete records · Core · Paper 2 style · 6 marks

Tariq sells second-hand books from a small shop in Lahore. He keeps a cash book and files his invoices, but has no ledgers.

  1. (a) State two reasons why a small trader might keep incomplete records rather than a full double-entry system. [2]
  2. (b) Explain two disadvantages to the trader of keeping incomplete records. [4]
Show answer
  1. (a) Any two: lack of bookkeeping knowledge; saves time; saves the cost of a bookkeeper or software; the business is small with few transactions.
    1 mark each.
  2. (b) Any two, developed: (1) no trial balance, so arithmetical errors are hard to find; (2) no detailed statement of profit or loss, so the trader cannot see which expenses are rising; (3) theft or loss of cash or goods may go unnoticed; (4) harder to get a bank loan or satisfy tax authorities without reliable statements.
    1 mark for each disadvantage and 1 mark for each explanation, max 2 disadvantages.
Q29Full versus incomplete records · Standard · Paper 1 style · 1 mark
  1. (a) [1]
Show answer
  1. (a) B the owner's capital at each year end
    Capital = assets − liabilities, so a statement of affairs at each date gives the capital. C is wrong because profit from the change in capital also needs the drawings and any capital introduced, which the lists of assets and liabilities do not show.
Q30Full versus incomplete records · Challenge · Paper 2 style · 7 marks

Idris owns a furniture workshop in Chiniot. Five years ago he had four customers who paid in cash; now he has 35 credit customers and six employees. He keeps a cash book only, and an accountant prepares his statements from statements of affairs each year. Last year cash differences of $1,800 could not be explained. Idris wants a bank loan of $40,000 to buy a new machine. A part-time bookkeeper would cost $3,000 per year.

  1. (a) Advise Idris whether he should change to a full double-entry bookkeeping system. Justify your answer. [7]
Show answer
  1. (a) A reasoned recommendation, e.g. Idris should change to full double entry (or computerised accounts): the business has grown, a bank loan is wanted and the cost is small compared with the benefits. Either decision accepted if justified.
    For (max 4): bank needs reliable statements for the $40,000 loan; full detail of expenses lets him control costs; control accounts and trial balance help find errors and fraud (cash differences of $1,800 last year); detailed receivables records help chase the 35 credit customers; accounting software can automate entries. Against (max 4): cost of a bookkeeper ($3,000 per year) or software and training; time taken from running the workshop; incomplete records have produced a profit figure so far; an accountant could still prepare statements from his records at year end. Decision with justification linked to the figures (1). Max 7: at most 5 for one-sided answers.

Similar questions

Questions that test the same subtopic in different years, grouped so you can work on one skill at a time.

References only: find each question in its paper (official link where available, otherwise through your school).

Missing figures and statements from incomplete records Banker11 questions · 8/9 sessions
Mark-up and margin 7 questions · 5/9 sessions
Full versus incomplete records Rare2 questions · 2/9 sessions

Subtopics

Our analysis of how often each subtopic was examined and how many marks it carried, 2022 to May/June 2026.

SubtopicMarks indexedSessions
Missing figures and statements from incomplete records Banker598/9
Mark-up and margin 95/9
Full versus incomplete records Rare52/9

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