Please write clearly in block capitals.
Centre number Candidate number
A-level
Surname
Forename(s)
ACCOUNTING
Candidate signature
I declare this is my own work.
7127/1
Paper 1 Financial Accounting
A-level Mark scheme
ACCOUNTING June 2026
Paper 1 Financial Accounting Version: 1.0 Final
Friday 22 May 2026 Morning Time allowed: 3 hours
Materials For Examiner’s Use
For this paper you must have:
Section Mark
• a calculator.
A
Instructions B
• Use black ink or black ball-point pen. C
• Fill in the boxes at the top of this page.
• Answer all questions. TOTAL
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at
the end of this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any work you
do not want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 120.
*JUN *
IB/M/Jun26/G4006/V7 7127/1
, 2
MARK SCHEME – A-LEVEL ACCOUNTING – 7127/1 – JUNE 2026
Do not write
outside the
Section A box
Answer all questions in this section. Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant
questions, by a panel of subject teachers. This mark scheme includes any amendments made at the
standardisation events which all associates participate in and is the scheme which was used by them in
this examination. The standardisation process ensures that the mark scheme covers the students’
For multiple-choice questions only one answer per question is allowed. responses to questions and that every associate understands and applies it in the same correct way.
As preparation for standardisation each associate analyses a number of students’ scripts. Alternative
For each question completely fill in the circle alongside the appropriate answer. answers not already covered by the mark scheme are discussed and legislated for. If, after the
standardisation process, associates encounter unusual answers which have not been raised they are
CORRECT METHOD WRONG METHODS
required to refer these to the Lead Examiner.
If you want to change your answer you must cross out your original answer as shown. It must be stressed that a mark scheme is a working document, in many cases further developed and
expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark
If you wish to return to an answer previously crossed out, ring the answer you now wish to schemes on the basis of one year’s document should be avoided; whilst the guiding principles of
select as shown. assessment remain constant, details will change, depending on the content of a particular examination
paper.
No student should be disadvantaged on the basis of their gender identity and/or how they refer to the
0 1 What is the formula for profit in relation to revenue? gender identity of others in their exam responses.
[1 mark]
A consistent use of ‘they/them’ as a singular and pronouns beyond ‘she/her’ or ‘he/him’ will be credited in
Gross profit exam responses in line with existing mark scheme criteria.
A × 100
Revenue
Profit for the year (before tax) Further copies of this mark scheme are available from
B × 100
Revenue
Revenue
C × 100
Gross profit
Revenue
D × 100
Profit for the year (before tax)
0 2 What is the formula for interest cover?
[1 mark]
Interest payable
A
Profit before interest and tax
Interest receivable
B
Profit before interest and tax
Profit before interest and tax
C
Interest payable
Profit before interest and tax
D
Interest receivable information
retains the on all its publications. However, registered schools/colleges for are permitted to copy material from this booklet for their own
internal use, with the following important exception: cannot give permission to schools/colleges to photocopy any material that is acknowledged to a third
party even for internal use within the centre.
and its licensors. All rights reserved.
*02*
2
IB/M/Jun26/7127/1
, 3
MARK SCHEME – A-LEVEL ACCOUNTING – 7127/1 – JUNE 2026
Do not write
outside the
0 3 During the year ended 30 April 2026 a business paid £1 650 for electricity. This box
included a payment of £430 for the year ended 30 April 2027.
Level of response marking instructions
What amounts will be shown in the financial statements for the year ended
30 April 2026? Level of response mark schemes are broken down into levels, each of which has a descriptor. The
[1 mark] descriptor for the level shows the average performance for the level. There are marks in each level.
Before you apply the mark scheme to a student’s answer read through the answer and annotate it (as
Income statement Statement of financial position instructed) to show the qualities that are being looked for. You can then apply the mark scheme.
A £1 220 expense £430 current asset Step 1 Determine a level
B £1 220 expense £430 current liability Start at the lowest level of the mark scheme and use it as a ladder to see whether the answer meets the
descriptor for that level. The descriptor for the level indicates the different qualities that might be seen in
the student’s answer for that level. If it meets the lowest level then go to the next one and decide if it
C £2 080 expense £430 current asset meets this level, and so on, until you have a match between the level descriptor and the answer. With
practice and familiarity you will find that for better answers you will be able to quickly skip through the
D £2 080 expense £430 current liability lower levels of the mark scheme.
When assigning a level you should look at the overall quality of the answer and not look to pick holes in
small and specific parts of the answer where the student has not performed quite as well as the rest. If
0 4 A payment of £420 for insurance has been debited to the bank account and credited
the answer covers different aspects of different levels of the mark scheme you should use a best fit
to the insurance account.
approach for defining the level and then use the variability of the response to help decide the mark within
the level, ie if the response is predominantly level 3 with a small amount of level 4 material it would be
What is the double entry to correct this error?
placed in level 3 but be awarded a mark near the top of the level because of the level 4 content.
[1 mark]
Step 2 Determine a mark
Debit Credit
Once you have assigned a level you need to decide on the mark. The descriptors on how to allocate
marks can help with this. The exemplar materials used during standardisation will help. There will be an
A Bank £420 Insurance £420
answer in the standardising materials which will correspond with each level of the mark scheme. This
answer will have been awarded a mark by the Lead Examiner. You can compare the student’s answer
B Bank £840 Insurance £840 with the example to determine if it is the same standard, better or worse than the example. You can then
use this to allocate a mark for the answer based on the Lead Examiner’s mark on the example.
C Insurance £420 Bank £420
You may well need to read back through the answer as you apply the mark scheme to clarify points and
D Insurance £840 Bank £840 assure yourself that the level and the mark are appropriate.
Indicative content in the mark scheme is provided as a guide for examiners. It is not intended to be
exhaustive and you must credit other valid points. Students do not have to cover all of the points
mentioned in the Indicative content to reach the highest level of the mark scheme.
An answer which contains nothing of relevance to the question must be awarded no marks.
Turn over ►
*03*
3
IB/M/Jun26/7127/1
, 4
MARK SCHEME – A-LEVEL ACCOUNTING – 7127/1 – JUNE 2026
Do not write
outside the
0 5 A sales ledger control account showed the following for October 2025: box
Marking guidance question 11.2
£
This question is only testing Assessment Objective 1.
Balance at 1 October 2025 12 580
You should apply the level of response mark scheme to the explanation.
Contra with the purchase ledger 350
Read each answer as a whole and decide if it is clear, partial, fragmented or nothing worthy of credit.
Credit sales 91 600
When you have made your decision, award the appropriate level by using L3, L2, L1 or L0 and show this
Discounts allowed 730
on the answer by using the drop-down comment box.
Receipts from trade receivables 64 240
Then put the appropriate mark for the question in the mark box.
What is the balance on the sales ledger control account at 31 October 2025?
[1 mark] Marking guidance for questions 14.3 & 15.2
These questions are testing Assessment Objectives 2 and 3.
A £38 860
Be clear on the focus of the question.
B £39 560
Read the whole question and decide which level should be awarded, then add the appropriate level to
C £40 320 the script from the comment box, eg L3, L2, L1 or L0.
D £41 020 Then put the marks awarded for the question in the mark box.
Remember that the indicative content provides possible answers but there may be others that are
equally valid, and you should give credit to other lines of argument.
0 6 A business purchased machinery and incurred the following costs:
A good response does not need to include all the indicative content.
£
Annual maintenance contract 750
Delivery 380
Installation 5 900
Insurance 3 400
Purchase cost of the machinery 46 100
What is the total capital expenditure for the machinery?
[1 mark]
A £52 000
B £52 380
C £53 130
D £56 530
*04*
4
IB/M/Jun26/7127/1
Centre number Candidate number
A-level
Surname
Forename(s)
ACCOUNTING
Candidate signature
I declare this is my own work.
7127/1
Paper 1 Financial Accounting
A-level Mark scheme
ACCOUNTING June 2026
Paper 1 Financial Accounting Version: 1.0 Final
Friday 22 May 2026 Morning Time allowed: 3 hours
Materials For Examiner’s Use
For this paper you must have:
Section Mark
• a calculator.
A
Instructions B
• Use black ink or black ball-point pen. C
• Fill in the boxes at the top of this page.
• Answer all questions. TOTAL
• You must answer the questions in the spaces provided. Do not write
outside the box around each page or on blank pages.
• If you need extra space for your answer(s), use the lined pages at
the end of this book. Write the question number against your answer(s).
• Do all rough work in this answer book. Cross through any work you
do not want to be marked.
Information
• The marks for each question are shown in brackets.
• The maximum mark for this paper is 120.
*JUN *
IB/M/Jun26/G4006/V7 7127/1
, 2
MARK SCHEME – A-LEVEL ACCOUNTING – 7127/1 – JUNE 2026
Do not write
outside the
Section A box
Answer all questions in this section. Mark schemes are prepared by the Lead Assessment Writer and considered, together with the relevant
questions, by a panel of subject teachers. This mark scheme includes any amendments made at the
standardisation events which all associates participate in and is the scheme which was used by them in
this examination. The standardisation process ensures that the mark scheme covers the students’
For multiple-choice questions only one answer per question is allowed. responses to questions and that every associate understands and applies it in the same correct way.
As preparation for standardisation each associate analyses a number of students’ scripts. Alternative
For each question completely fill in the circle alongside the appropriate answer. answers not already covered by the mark scheme are discussed and legislated for. If, after the
standardisation process, associates encounter unusual answers which have not been raised they are
CORRECT METHOD WRONG METHODS
required to refer these to the Lead Examiner.
If you want to change your answer you must cross out your original answer as shown. It must be stressed that a mark scheme is a working document, in many cases further developed and
expanded on the basis of students’ reactions to a particular paper. Assumptions about future mark
If you wish to return to an answer previously crossed out, ring the answer you now wish to schemes on the basis of one year’s document should be avoided; whilst the guiding principles of
select as shown. assessment remain constant, details will change, depending on the content of a particular examination
paper.
No student should be disadvantaged on the basis of their gender identity and/or how they refer to the
0 1 What is the formula for profit in relation to revenue? gender identity of others in their exam responses.
[1 mark]
A consistent use of ‘they/them’ as a singular and pronouns beyond ‘she/her’ or ‘he/him’ will be credited in
Gross profit exam responses in line with existing mark scheme criteria.
A × 100
Revenue
Profit for the year (before tax) Further copies of this mark scheme are available from
B × 100
Revenue
Revenue
C × 100
Gross profit
Revenue
D × 100
Profit for the year (before tax)
0 2 What is the formula for interest cover?
[1 mark]
Interest payable
A
Profit before interest and tax
Interest receivable
B
Profit before interest and tax
Profit before interest and tax
C
Interest payable
Profit before interest and tax
D
Interest receivable information
retains the on all its publications. However, registered schools/colleges for are permitted to copy material from this booklet for their own
internal use, with the following important exception: cannot give permission to schools/colleges to photocopy any material that is acknowledged to a third
party even for internal use within the centre.
and its licensors. All rights reserved.
*02*
2
IB/M/Jun26/7127/1
, 3
MARK SCHEME – A-LEVEL ACCOUNTING – 7127/1 – JUNE 2026
Do not write
outside the
0 3 During the year ended 30 April 2026 a business paid £1 650 for electricity. This box
included a payment of £430 for the year ended 30 April 2027.
Level of response marking instructions
What amounts will be shown in the financial statements for the year ended
30 April 2026? Level of response mark schemes are broken down into levels, each of which has a descriptor. The
[1 mark] descriptor for the level shows the average performance for the level. There are marks in each level.
Before you apply the mark scheme to a student’s answer read through the answer and annotate it (as
Income statement Statement of financial position instructed) to show the qualities that are being looked for. You can then apply the mark scheme.
A £1 220 expense £430 current asset Step 1 Determine a level
B £1 220 expense £430 current liability Start at the lowest level of the mark scheme and use it as a ladder to see whether the answer meets the
descriptor for that level. The descriptor for the level indicates the different qualities that might be seen in
the student’s answer for that level. If it meets the lowest level then go to the next one and decide if it
C £2 080 expense £430 current asset meets this level, and so on, until you have a match between the level descriptor and the answer. With
practice and familiarity you will find that for better answers you will be able to quickly skip through the
D £2 080 expense £430 current liability lower levels of the mark scheme.
When assigning a level you should look at the overall quality of the answer and not look to pick holes in
small and specific parts of the answer where the student has not performed quite as well as the rest. If
0 4 A payment of £420 for insurance has been debited to the bank account and credited
the answer covers different aspects of different levels of the mark scheme you should use a best fit
to the insurance account.
approach for defining the level and then use the variability of the response to help decide the mark within
the level, ie if the response is predominantly level 3 with a small amount of level 4 material it would be
What is the double entry to correct this error?
placed in level 3 but be awarded a mark near the top of the level because of the level 4 content.
[1 mark]
Step 2 Determine a mark
Debit Credit
Once you have assigned a level you need to decide on the mark. The descriptors on how to allocate
marks can help with this. The exemplar materials used during standardisation will help. There will be an
A Bank £420 Insurance £420
answer in the standardising materials which will correspond with each level of the mark scheme. This
answer will have been awarded a mark by the Lead Examiner. You can compare the student’s answer
B Bank £840 Insurance £840 with the example to determine if it is the same standard, better or worse than the example. You can then
use this to allocate a mark for the answer based on the Lead Examiner’s mark on the example.
C Insurance £420 Bank £420
You may well need to read back through the answer as you apply the mark scheme to clarify points and
D Insurance £840 Bank £840 assure yourself that the level and the mark are appropriate.
Indicative content in the mark scheme is provided as a guide for examiners. It is not intended to be
exhaustive and you must credit other valid points. Students do not have to cover all of the points
mentioned in the Indicative content to reach the highest level of the mark scheme.
An answer which contains nothing of relevance to the question must be awarded no marks.
Turn over ►
*03*
3
IB/M/Jun26/7127/1
, 4
MARK SCHEME – A-LEVEL ACCOUNTING – 7127/1 – JUNE 2026
Do not write
outside the
0 5 A sales ledger control account showed the following for October 2025: box
Marking guidance question 11.2
£
This question is only testing Assessment Objective 1.
Balance at 1 October 2025 12 580
You should apply the level of response mark scheme to the explanation.
Contra with the purchase ledger 350
Read each answer as a whole and decide if it is clear, partial, fragmented or nothing worthy of credit.
Credit sales 91 600
When you have made your decision, award the appropriate level by using L3, L2, L1 or L0 and show this
Discounts allowed 730
on the answer by using the drop-down comment box.
Receipts from trade receivables 64 240
Then put the appropriate mark for the question in the mark box.
What is the balance on the sales ledger control account at 31 October 2025?
[1 mark] Marking guidance for questions 14.3 & 15.2
These questions are testing Assessment Objectives 2 and 3.
A £38 860
Be clear on the focus of the question.
B £39 560
Read the whole question and decide which level should be awarded, then add the appropriate level to
C £40 320 the script from the comment box, eg L3, L2, L1 or L0.
D £41 020 Then put the marks awarded for the question in the mark box.
Remember that the indicative content provides possible answers but there may be others that are
equally valid, and you should give credit to other lines of argument.
0 6 A business purchased machinery and incurred the following costs:
A good response does not need to include all the indicative content.
£
Annual maintenance contract 750
Delivery 380
Installation 5 900
Insurance 3 400
Purchase cost of the machinery 46 100
What is the total capital expenditure for the machinery?
[1 mark]
A £52 000
B £52 380
C £53 130
D £56 530
*04*
4
IB/M/Jun26/7127/1
