The Accounting Equation
Basic form
Assets = Capital + Liabilities Expanded
Assets = Owner's Equity + Liabilities Every debit entry must have a corresponding credit entry of equal value.
Cambridge IGCSE Accounting 0452
📒 IGCSE Accounting Formula Sheet 2026
Key formulas, ratios, and structures for Cambridge IGCSE Accounting — from the accounting equation to ratio analysis and depreciation calculations.
Accounting Equation Income Statement Ratio Analysis Depreciation
Our formula sheets are free to download — save this one as PDF for offline revision.
Aligned with the latest 2026 syllabus and board specifications. This sheet is prepared to match your exam board’s official specifications for the 2026 exam series.
All the Core IGCSE Accounting Formulas & Ratios in One Place
This formula sheet covers every calculation you need for Cambridge IGCSE Accounting (0452), from the fundamental accounting equation through to profitability, liquidity, and efficiency ratios. Use it as a quick reference during revision and exam practice.
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Accounting equation and double-entry rules
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Income statement formulas for profit calculations
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Balance sheet structure and key items
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All key ratios with formulas and interpretation
Accounting Equation & Double Entry
Every transaction must keep the accounting equation in balance.
Double-Entry Rules
Debit
Increase in assets | Decrease in liabilities | Decrease in capital | Expenses increase Credit
Decrease in assets | Increase in liabilities | Increase in capital | Revenue/income increase Owner's Equity (Capital)
Closing Capital = Opening Capital + Net Profit − Drawings Income Statement Formulas
Work top-down: Revenue → Gross Profit → Net Profit.
Cost of Sales
Cost of Sales = Opening Inventory + Purchases − Closing Inventory Gross Profit
Gross Profit = Revenue (Sales) − Cost of Sales Net Profit
Net Profit = Gross Profit − Expenses Expenses include wages, rent, electricity, depreciation, etc.
Mark-up vs Margin
Mark-up
Mark-up = (Gross Profit / Cost of Sales) × 100% Gross Profit Margin
Gross Profit Margin = (Gross Profit / Revenue) × 100% Mark-up is calculated on cost; margin is calculated on selling price.
Balance Sheet Structure & Key Items
The balance sheet shows financial position at a specific point in time.
Balance Sheet Equation
Total Assets = Total Liabilities + Owner's Equity (Capital) Non-Current Assets
Assets held for more than one year — land, buildings, machinery, vehicles.
Net Book Value = Cost − Accumulated Depreciation Current Assets
Assets expected to be converted to cash within one year.
Inventory + Trade Receivables + Cash + Bank + Prepaid expenses Current Liabilities
Obligations due within one year.
Trade Payables + Accrued expenses + Bank overdraft + Short-term loans Working Capital
Working Capital = Current Assets − Current Liabilities Ratio Analysis
Calculate the ratio, state the formula, interpret the result, and compare to prior year or industry benchmark.
Gross Profit Margin
Measures profitability before deducting expenses.
Gross Profit Margin (%) = (Gross Profit / Revenue) × 100 Net Profit Margin
Net Profit Margin (%) = (Net Profit / Revenue) × 100 Return on Capital Employed (ROCE)
ROCE (%) = (Net Profit / Capital Employed) × 100 Capital Employed = Total Assets − Current Liabilities (or Owner's Equity + Long-term Liabilities).
Current Ratio (Liquidity)
Ideal ratio typically around 2:1 — indicates ability to pay short-term debts.
Current Ratio = Current Assets : Current Liabilities Liquid (Acid Test) Ratio
Ideal ratio typically around 1:1 — excludes inventory as it may be slow to convert to cash.
Liquid Ratio = (Current Assets − Inventory) / Current Liabilities Trade Receivables Collection Period
Lower = faster collection; too high indicates credit control issues.
Collection Period (days) = (Trade Receivables / Revenue) × 365 Trade Payables Payment Period
Payment Period (days) = (Trade Payables / Cost of Sales) × 365 Inventory Turnover
Inventory Turnover (times) = Cost of Sales / Average Inventory Alternative
Inventory Turnover (days) = (Average Inventory / Cost of Sales) × 365 Depreciation Methods
Depreciation allocates the cost of a non-current asset over its useful life.
Straight-Line Method
Equal depreciation charge each year.
Annual Depreciation
Depreciation = (Cost − Residual Value) / Useful Life (years) Simple and consistent — best when asset is used evenly over its life.
Reducing Balance Method
Depreciation charged as a percentage of the net book value each year.
Annual Depreciation
Depreciation = Net Book Value × Depreciation Rate (%) Higher charge in early years; better reflects assets that lose value faster when new (e.g., vehicles, technology).
Net Book Value
Net Book Value = Cost − Accumulated Depreciation How to Use This Formula Sheet
Boost your Cambridge exam confidence with these proven study strategies from our tutoring experts.
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Always Balance Your Accounts
Check every T-account and trial balance — if it doesn't balance, find the error before moving on.
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State the Formula First
In ratio questions, write the formula, substitute the values, then state the result with correct units or % sign.
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Practise Full Financial Statements
Work through complete income statements and balance sheets from past papers under timed conditions.
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Interpret, Don't Just Calculate
Many questions ask you to comment on ratios — compare to a prior year or benchmark and explain what the change means for the business.
Formula Sheet FAQ
Quick answers about this free PDF and how to use it for exam revision and active recall.
Is the IGCSE Accounting Formula Sheet 2026 free to download as a PDF?
Yes. This Tutopiya formula sheet is free to use and you can download it as a PDF from this page for offline revision. There is no payment or account required for the PDF download.
What Accounting topics and equations does this formula sheet cover?
This page groups key Accounting formulas in one place for revision. Master Cambridge IGCSE Accounting (0452) with this 2026 formula sheet. Covers the accounting equation, income statement, balance sheet, ratio analysis, and depreciation methods. Always cross-check with your official syllabus and past papers for your exam session.
Can I use this instead of the official exam formula booklet in the exam?
No. In the exam you must follow only what your exam board allows in the hall—usually the official formula booklet or data sheet where provided. This page is a revision and teaching aid, not a replacement for board-issued materials.
Who is this formula sheet for (Secondary)?
It is written for students preparing for assessments at Secondary in Accounting, including classroom revision, homework support, and independent study. Teachers and tutors can also share it as a quick reference.
How should I revise with this formula sheet?
Work through past paper questions, quote the correct formula before substituting values, and check units and notation every time. Pair this sheet with timed practice and mark schemes so you see how examiners expect working to be set out.
Where can I get more help with Accounting revision?
Explore Tutopiya’s study tools, past paper finder, and revision checklists linked from our tools hub, or book a trial lesson with a subject specialist for personalised support alongside this formula reference.
Need Help with IGCSE Accounting Formulas?
Work through financial statements, ledger accounts, and ratio analysis with an experienced IGCSE Accounting tutor. We focus on accuracy, layout, and interpretation.
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This formula sheet aligns with Cambridge Assessment International Education IGCSE Accounting (0452) syllabus content.
Always present financial statements in the correct format and include all workings for ratio calculations.