Edexcel IGCSEAccountingGeneral Applications8 Marks
The following information relates to PQR Ltd for the year ended 31 December 2025:
- (a)(i)Non-current assets had a carrying amount of $80 000 on 1 January 2025. Depreciation is charged at 20% per annum using the reducing balance method. Calculate the depreciation charge for the year ended 31 December 2025.[2]
- (a)(ii)The balance of trade receivables was $15 000 on 31 December 2025. The provision for irrecoverable debts is to be maintained at 5% of trade receivables. On 1 January 2025, the provision for irrecoverable debts was $600. Calculate the irrecoverable debts expense for the year.[2]
- (b)Prepare an extract from the Income Statement for PQR Ltd for the year ended 31 December 2025, showing only the expenses calculated in (a)(i) and (a)(ii).[4]
Mark scheme
Marking points from the official mark scheme. The mark or mark type is shown in brackets.
- (a)(i) M1 for $80 000 x 20% (or equivalent calculation)
- A1 for $16 000
- (a)(ii) M1 for (15 000 x 5%) - 600
- A1 for $150
- (b) PQR Ltd (1)
- Income Statement (Extract) (1)
- For the year ended 31 December 2025
- Depreciation expense (1) $16 000 (1)
- Irrecoverable debts expense (1) $150 (1)
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