Cambridge 0452 and 0985 · Sub-topic 4.4
Irrecoverable debts and allowance for irrecoverable debts
The 4 skills the syllabus asks for, the slips that cost marks, and how our teachers explain it.
What students must be able to do
- Explain irrecoverable debts and irrecoverable debts recovered.
- Record them with ledger accounts and journals.
- Explain why an allowance is maintained.
- Record the creation of, and changes to, the allowance.
Official wording: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), page 15; Cambridge IGCSE Accounting 0452: syllabus for examination in 2026 (Version 2, December 2025), page 14. See all sources.
How our teachers teach it
These two ideas are different and students must keep them apart. A debt that has definitely failed is written off. An allowance is an estimate against debts that might fail. Our teachers draw the allowance account with the opening balance first and ask whether it needs to go up or down. Only the change goes through the income statement.
If any of these slips sound familiar, we can help. A teacher can mark your child's answers on irrecoverable debts and allowance for irrecoverable debts line by line and show where the marks go. Book a trial class.
How the wording changed for 2027
The 2027-2029 syllabus uses the terms allowance for irrecoverable debts and irrecoverable debts recovered. The 2026 syllabus titles the topic irrecoverable debts and provision for doubtful debts, and speaks of recovery of debts written off.
Where it is examined
Irrecoverable debts and allowance for irrecoverable debts can appear in either paper, as a short question or as part of a longer task. Cambridge bases both papers on the whole syllabus. See the guides to Paper 1 and Paper 2 for the format.
Sources: Cambridge IGCSE Accounting 0452: syllabus for 2027-2029 (Version 1), pages 9, 22. See all sources.
Practise it
- Key terms: Irrecoverable debt, Provision for doubtful debts, Bad debt recovered, Trade receivable
- Skills: How to write off an irrecoverable debt, How to record a provision for doubtful debts
- Layouts: Provision for doubtful debts account format
- Worked examples: provision for doubtful debts
- Practice questions: provision for doubtful debts practice
- One-to-one Cambridge 0452 tuition
Other sub-topics in topic 4
Irrecoverable debts and allowance for irrecoverable debts: questions
Will marks be lost for using the older term provision for doubtful debts?
Does the 0985 (9 to 1) syllabus cover irrecoverable debts and allowance for irrecoverable debts too?
Which syllabus numbering should I use?
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