Accounting (0452) · Feb/March 2016 · Mark scheme 22

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CAMBRIDGE INTERNATIONAL EXAMINATIONS
Cambridge International General Certificate of Secondary Education

MARK SCHEME for the March 2016 series

0452 ACCOUNTING
0452/22

Paper 22, maximum raw mark 120

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of
the examination. It shows the basis on which Examiners were instructed to award marks. It does not
indicate the details of the discussions that took place at an Examiners’ meeting before marking began,
which would have considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner
Report for Teachers.
Cambridge will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the March 2016 series for most Cambridge IGCSE®
and Cambridge International A and AS Level components.

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Page 2
1

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(a)
Abhinav – Petty Cash Book
Total received
$

Date

Total
paid

Details

2016

24.00

Feb 1

96.00

4.00 (1)

$
Balance

$

Travel
$

Cleaning

Ledger
accounts

$

$

b/d

Bank
4

Stamps

14.00

14.00 } (1)

7

Copy paper and cartridges

33 00

33.00 }

10

Refund from stationery

13

Train fare

15

Office Supply Ltd

21

Taxi fare

26

Window cleaner

9.50

29

Balance

9.50 (1)

29.00

29.00 (1)

9.90

c/d

124.00

9.90 (1)

17.00
112.40

11.60 (1)

Postage and
stationery

17.00 (1)
47.00

19.40

17.00

29.00

11.60
124.00

Mar 1

Balance

b/d
(1) Dates
(1) OF Totalling analysis columns
(1) OF Totalling total columns
[10]

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Page 3

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(b) (i) $108.40 (1)OF

[1]

(ii)
debit

credit

Petty cash

(1) Cash/bank/cash book

(1)
[2]

(c)

2016
Feb 29

Abhinav
Postage and stationery account
$
2016
47 (1) Feb 29
Petty cash

Petty cash

$
4 (1)
[2]

(d) (i) Consistency (1)

[1]

(ii) Money measurement (1)

[1]

(iii) Realisation (1)

[1]

(iv) Going concern (1)

[1]
[Total: 19]

2

(a)

2016
Jan 1

Error correction
Balance
c/d

Aireville Limited
Cash Book (bank columns only)
$
2016
1 000 (1)
Jan 1 Balance
b/d
2 940
Bank charges
PB Limited
(Dis. Chq.)
3 940
2016
Jan 1 Balance
b/d

$
3 420
190 (1)
330 (1)
3 940
2 940 (1of)
[4]

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Page 4

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(b)
Aireville Limited
Bank Reconciliation Statement at 31 December 2015
$
(1 800)
1 560)
(240)
2 700)
(2 940)

Balance on bank statement
Amounts not yet credited – cash sales (1)
Cheques not yet presented – M Raja (1)
Balance in cash book

(1)
(1)
(1)
(1of)

Alternative presentation
Aireville Limited
Bank Reconciliation Statement at 31 December 2015
$
(2 940)
2 700)
(240)
1 560)
(1 800)

Balance in cash book
Cheques not yet presented – M Raja (1)
Amounts not yet credited – Cash sales (1)
Balance on bank statement

(1of)
(1)
(1)
(1)
[6]

(c)
Aireville Limited
Statement of Changes in Equity for the year ended 31 December 2015
Ordinary
share
capital
$
On 1 January 2015

300 000

Share issue

General
reserve

Retained
earnings

$

$

24 000

45 000

50 000

Profit for the year

49 000

Total
$
369 000

(1)

50 000

(1)

49 000

(1)

Dividend paid (for 2014)

(25 000)

(25 000) (1)

Dividend paid (for 2015)

(15 000)

(15 000) (1)

10 000

(10 000)

(1)

34 000

44 000

Transfer to general reserve
On 31 December 2015

350 000

428 000

(1of)
[7]

(d) Prior claim on the profits of the company
Interest must be paid irrespective of whether there is a profit
Prior claim on the assets of the company in a winding-up
Funds must be available when repayment is due
Or other relevant point
Any 2 points (1) each

[2]
[Total: 19]

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Page 5
3

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(a)
Daksha
Statement of Affairs at 31 January 2016
$
$

Assets
Non-current assets

Cost

Premises
Fixtures and fittings
Motor vehicle

90 000
27 200
8 000
125 200

Depreciation
to date
5 440 (1)
1 600 (1)
7 040

Current assets
Inventory
Trade receivables
Less Provision for doubtful debts
Other receivables
Petty cash

$
Book
value
90 000 (1)
21 760 (1of)
6 400 (1of)
118 160
3 300 (1)

3 900
117 (1)

Total assets

3 783 (1)
327 (1)
100 (1)
7 510
125 670

Capital and liabilities
Capital
Balance

93 200 (1of)

Non-current liabilities
Loan

30 000 (1)

Current liabilities
Trade payables
Other payables
Bank overdraft

1 950 (1)
160 (1)
360 (1)
2 470

Total liabilities

125 670
[15]

(b)
Daksha
Capital account
$
2016
Jan 31

Drawings
Loss for year
Balance c/d

4 200 (1)
11 800 (1of)
93 200 (1of)
109 200

$
2015
Feb 1
2016
Jan 31

Bank/Cash

2016
Feb 1

Balance b/d

Balance

97 200 (1)
12 000 (1)
109 200
93 200
[5]
[Total: 20]

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Page 6
4

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(a)

2016
Jan 31

Lodi Sports Club
Receipts and Payments Account for the year ended 31 January 2016
$
$
2015
Subscriptions
14 700 (1)
Feb 1
Balance b/d
210
Sale of equipment
275 (1)
2016
Balance c/d
739
Jan 31 Rent
3 900
General expenses
1 454
Insurance
1 550
Equipment
7 200
Bank loan
1 250
Bank interest
150
15 714
15 714
2016
1 Feb
Balance b/d
739

(b) 150 (1) × $100 (1) = $15 000
OR ($14 700 – ($200 + $500)(1) + $1000 (1)) = $15 000
OR $14 000 (1) + $1000 (1) = $15 000

(1)
(1)
(1)
(1)
(1)
(1)

(1of)
[9]

[2]

(c)
Statement of financial position
section

amount ($)

Bank loan

Non-current liabilities

(1)

3750

(1)

Interest on bank loan

Current liabilities

(1)

50

(1)

Rent

Current assets

(1)

300

(1)
[6]
[Total: 17]

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Page 7
5

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(a)

2014
Jan 1
July 1
2015
Jan 1

2016
Jan 1

2014
Dec 31

2015
Dec 31

Balance b/d
A – 12 000
B – 13 000
Bank C

Balance b/d
A – 12 000
B – 13 000
C – 15 000

Balance b/d
A – 12 000
B – 13 000
C – 15 000

Mohan
Motor vehicles account
$
2014
Dec 31 Balance c/d
25 000
15 000 (1)
40 000

$
40 000

40 000
2015
Dec 31

Balance c/d

40 000 (1)
40 000

40 000

40 000

40 000 (1)

Provision for depreciation of motor vehicles account
$
2014
Balance c/d
17 600
Jan 1
Balance b/d
A – 7 200
B – 3 900
Dec 31 Income statement
A – 2 400 (1)
B – 2 600 (1)
C – 1 500 (1)
17 600
2015
Balance c/d
25 600
Jan 1
Balance b/d
A – 9 600
B – 6 500
C – 1 500
Dec 31 Income statement
A – 2 400}
B – 2 600}(1)
C – 3 000 (1)
25 600
2016
Jan 1
Balance b/d
A –12 000
B – 9 100
C – 4 500

+ (1) dates

$

11 100

6 500
17 600

17 600 (1of)

8 000
25 600

25 600 (1of)
[11]

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Page 8

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(b)
Mohan
Extract from Statement of Financial Position at 31 December 2015
Book
Accumulated
Non-current assets
Cost
value
depreciation
$
$
$
Motor vehicles
40 000 of
25 600 (1of)
14 400 (1of)
(c)

3900
(1)
+ 2600 of}
2600 of} (1)
9100 of

[2]

(d)
account debited

account credited

transferring the original cost of the motor
vehicle from the asset account

Disposal

(1) Motor vehicles

(1)

transferring the accumulated depreciation on
the motor vehicle from the provision account

Provision for
depreciation of
motor vehicles

Disposal

(1)

(1)

recording the proceeds of sale of the motor
vehicle

Cash

(1) Disposal

(1)

[6]
[Total: 21]

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Page 9
6

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(a)
Ratio

Annie

Rate of inventory turnover to two decimal
places

7.26 times

(2)

Percentage of profit for the year to capital
employed (ROCE) (to two decimal places)

4.13%

(2)

40 days

(2)

Trade receivables collection period
(rounded up to the next whole day)
Calculations to show the breakdown of marks:

Rate of inventory turnover
30 500
(1) whole formula = 7.26 times (1)
(3 600 + 4 800) ÷ 2
Percentage of profit for the year to capital employed
3 800 (1) 100
×
= 4.13% (1)
92 000
1
Trade receivables collection period
4 350 365
(1) whole formula = 39.69 = 40 days (1)
×
40 000
1

[6]

(b) Different type of goods (1)
EITHER
Food has a lower gross profit margin than clothing (1)
OR
The food store is cutting prices to sell more goods (1)

[2]

(c) Total revenue from sales may increase so profit may increase (1)
Customers may look for cheaper suppliers, so profits may actually fall (1)

[2]

(d) Mark and Tony (1)
Annie’s expenses/revenue is 14.25%: Mark and Tony’s ratio is 5.15% (1)

[2]

(e) Different type of goods (1)
EITHER
Food sells more quickly than clothing (1)
OR
Food is in greater demand than clothing
OR
Food store will probably have a lower value of inventory
OR
Food is cheaper than clothing (1)

[2]

(f) EITHER
OR

[1]

Reduce inventory levels (1)
Increase sales activity (1)

(g) Increase profit for the year/increase efficiency/use resources more effectively
Reduce long term liabilities
Any 1 (1)
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[1]

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Page 10

Mark Scheme
Cambridge IGCSE – March 2016

Syllabus
0452

Paper
22

(h) Mark and Tony (1) OF
They take an average of 34 days to collect debts whereas Annie takes an average of 40
days (1) OF

[2]

(i) The businesses should be of approximately the same size/same capital
The results are for one year only and will not show trends
The financial year may end at different times of the trading cycle
The businesses may operate different accounting policies
The businesses may have different types of expenses
The statements do not show non-monetary factors
It may not be possible to obtain all the information needed to make comparisons
Or other valid points
Any 2 (1) each
Not the following which are given in the question
Type of goods
Type of business (sole trader/partnership)
Life of business

[2]

(j)
Increase

Decrease

(1)

Create a provision for doubtful debts

(1)

Delay payments to credit suppliers
Obtain a long term loan

No effect

(1)

Obtain permission from the bank to
increase the overdraft

(1)
[4]
[Total: 24]

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