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Subjects · Leaving Cert Accounting

Leaving Cert Accounting: Accruals and prepayments

How often Accruals and prepayments comes up on the Accounting papers, every year it was asked, and questions to try.

HL Asked on 10 of the last 10 Higher Level papers, most recently in 2026. banker

OL Asked on 10 of the last 10 Ordinary Level papers, most recently in 2026. banker

Accruals and prepayments, Higher Level(6 marks)

Quick ones on Accruals and prepayments.

(a)Wages owing at year end are a…
  1. Current asset
  2. Current liability
  3. Fixed asset
(b)Rates paid in advance at year end are a…
  1. Revenue reserve
  2. Current liability
  3. Current asset
(c)Rent paid €5,500, of which €500 is prepaid at year end. P&L charge?
  1. €5,000
  2. €5,500
  3. €6,000
Show the answers

(a) Current liability

(b) Current asset

(c) €5,000

Your turn: Higher Level questions on Accruals and prepayments.

Higher Level

Asked on 10 of the last 10 Higher Level papers, most recently in 2026. banker

Every paper, year by year

YearWhere it came up
2026Q1
2025Q1
2024Q1
2023Q1
2022Q1
2021Q1
2019Q1
2018Q1
2017Q1
2016Q1

Links open the State Examinations Commission’s paper for that year.

More Accruals and prepayments questions

Accruals and prepayments, 2 marks

Unused stationery on hand at year end is treated as…

  1. An expense
  2. A current liability
  3. A current asset
Show the answer

A current asset

It will be used next year, so it is a prepayment: deduct it from this year's stationery expense and show it as a current asset.

Ordinary Level

Asked on 10 of the last 10 Ordinary Level papers, most recently in 2026. banker

Every paper, year by year

YearWhere it came up
2026Q1
2025Q1
2024Q1
2023Q1
2022Q1
2021Q1
2019Q1
2018Q1
2017Q1
2016Q1

Links open the State Examinations Commission’s paper for that year.

More Accruals and prepayments questions

Accruals and prepayments, 3 marks

Insurance paid €3,600 includes €600 for next year. Profit and loss charge?

  1. €4,200
  2. €3,600
  3. €3,000
Show the answer

€3,000

Deduct a prepayment: €3,600 − €600 = €3,000. The €600 belongs to next year.

Accruals and prepayments, 3 marks

Commission received €5,000 includes €800 for next year. Commission income in the profit and loss account?

  1. €5,000
  2. €4,200
  3. €5,800
Show the answer

€4,200

Income received in advance is deducted: €5,000 − €800 = €4,200. The €800 is a current liability.

Accruals and prepayments, 2 marks

An expense owing but not yet paid at the year end is called an…

  1. Accrual
  2. Prepayment
  3. Bad debt
Show the answer

Accrual

Accrual = expense due but unpaid, e.g. wages owing. Prepayment = expense paid in advance for next year.

Other Accounting topics

All of Leaving Cert Accounting