Accounting (0452) · Feb/March 2017 · Mark scheme 12

www.dynamicpapers.com

Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/12

Paper 1

March 2017

MARK SCHEME
Maximum Mark: 120

Published

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 2017 series for most Cambridge IGCSE®,
Cambridge International A and AS Level components and some Cambridge O Level components.

® IGCSE is a registered trademark.

This document consists of 8 printed pages.
© UCLES 2017

[Turn over

0452/12

Question

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED
Answer

Marks

Glossary for Q1
(c) 62 = 70 + 10 – 18
78 = 70 – 10 + 18
(e) A
B
C
D

120 × 0.85 = 120 – 18
128 – 18
selling price
cost

(g) A
B
C
D

–200 + 2100 + 50
200 + 2100 – 90
200 + 2100 + 50
200 + 2100 + 90

(i)

A
B
C
D

8000 + 4800 (prime cost)
8000 + 4800 + 4100 – 450
8000 + 4800 + 4100
8000 + 4800 + 4100 + 450

(j)

A
B
C
D

(3000 × ½) – 700 + 400
(3000 × 2/3) – 700 + 400
(3000 × ½) + 700 – 400
(3000 × 2/3) + 700 – 400

1(a)

C (1)

1

1(b)

A (1)

1

1(c)

C (1)

1

1(d)

B (1)

1

1(e)

A (1)

1

1(f)

A (1)

1

1(g)

C (1)

1

1(h)

B (1)

1

1(i)

D (1)

1

1(j)

D (1)

1

© UCLES 2017

Page 2 of 8

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED

0452/12

Question
2(a)
2(b)

Answer
Person issuing
Person receiving

Amitav
Barry

Marks
1

(1) for both

If goods are returned
If goods are reported faulty
If there has been an overcharge on an invoice

1

Any one reason for (1)
2(c)

Purchases returns journal (1)

1

2(d)

To record business transactions
To be able to prepare financial statements
To know balances of credit customers and suppliers or bank

1

Any one reason for (1)
2(e)

Every transaction has a two-fold aspect (1)

1

2(f)

An expense account usually has a DEBIT (1) balance. At the end of the financial year the
cost for the year is transferred to the INCOME STATEMENT (1). This transfer is recorded
with an entry on the CREDIT (1) side of the expense account. Any balance remaining on
the account is included in the STATEMENT OF FINANCIAL POSITION. (1)

4

2(g)

A financial report must be capable of being understood by the users of that report. (1)

1

2(h)

By narrowing areas of difference in financial statements (1)

1

2(i)

Interested party

Reason

To see progress of business
To check on tax payable
To check on likelihood of receiving money
To decide on whether to give/continue overdraft
To check on viability of business for continued supply
of goods
To see potential rewards for investment
Potential partner
To see progress of business
Manager
Any two related reasons for (1) each
Any two for (1) each
Reasonable alternatives may be rewarded
Owner
Government department
Trade payables
Bank manager
Customer

© UCLES 2017

Page 3 of 8

4

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED

0452/12

Question
3(a)(i)

Answer

Marks
3

current assets = 800 + 1300 + 180 + 250 = $2530 (1)
current liabilities = 830 + 510 = $1340 (1)
working capital = 2530 – 1340 = $1190 (1)OF

3(a)(ii)

2

Simran’s capital = 1190 + 7200 (1) = $8390 (1)OF

3(b)

account debited

$

account credited

$

1

drawings

100

cash

100

2

bank

150 (1)

cash

150 (1)

3

vehicle

4

Neel

5

wages

2500 (1)
50 (1)
350 (1)

capital

9

2500 (1)

bank
discount received

48 (1)
2 (1)

bank

350 (1)

3(c)(i)

4 (1)

1

3(c)(ii)

3 (1)

1

3(c)(iii)

4 (1)

1

item – other payables (1)
section – current liabilities (1)

2

3(d)
3(e)

Date
Feb 1

Details

Simran
Cash book (bank column only)
$
Date
Details

Balance b/d

180 } (1)

Cash

150 }

Balance c/d

Feb 1

Neel
Wages

Feb 28

Mar 1

© UCLES 2017

Balance b/d

Simran
Sales ledger control account for February 2017
$
2017
Balance b/d
1 300 (1)
Feb
Bank
28
Sales returns
Sales
6 300 (1)
Bank
95 (1)
Cash
Bad debts
Balance c/d
7 695
Balance b/d

48 } (1)
350 }
398

Feb 2

2017
Feb 1

$

68
398

3(f)

3

1 580 (1)OF

Page 4 of 8

68 (1)OF

8

$
5 830 (1)
190 (1)
20 (1)
75 (1)
1 580
7 695

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED

0452/12

Question

Answer

4(a)

Marks
debit side
9

equipment
provision for depreciation of equipment
4(b)

9 (1)for both

vehicle A

vehicle B

equipment

$

$

$

depreciation charge for
the year ended
31 December 2015

7 500 (1)

2 800 (1)

net book value at
31 December 2015

22 500 (1)

25 200 (1)

depreciation charge for
the year ended
31 December 2016

5 625 (1)

5 000 (1)

4 600 (1)

accumulated
depreciation at
31 December 2016

13 125 (1)OF

5 000 (1)OF

7 400 (1)OF

net book value at
31 December 2016

16 875 (1)OF

15 000 (1)OF

38 600 (1)OF

4(c)

4(d)

1

credit side

Sonia
Statement of Financial Position (extract) at 31 December 2016
Cost
Accumulated
Net book
depreciation
value
$
$
$
Vehicles
50 000 (1)
18 125 }
31 875 }
7 400 }(1)OF
38 600 }(1)OF
Equipment
46 000 (1)
96 000
25 525
70 475 (1)OF

5

1

Non-current assets (1)

© UCLES 2017

13

Page 5 of 8

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED

0452/12

Question

Answer

5(a)

LMN Chess Club
Receipts and Payments Account for the year ended 31 December 2016
2016
Receipts
$
2016
Payments
$
Jan 1
Loan
1 000 (1) Dec 31 Loan
500 (1)
Equipment
2 500
Dec 31 Subscriptions
4 100
Entry fees
1 600
Rent
2 100
Coach travel
980
Travel
1 020 (1)
Trophies and prizes
670 (1)
Other expenses
450
Balance c/d
440
7 680
7 680
2017
Jan 1
Balance b/d
440 (1)

5(b)
2016
Dec 31

2017
Jan 1

Income and
expenditure
account
Balance c/d
Balance b/d

Marks

5

Subscriptions account
$
2016
3 800 (1)OF Dec 31 Bank

$
4 100 (1)

400
4 200

Balance c/d

100
4 200

Balance b/d

400

100 (1)

2017
Jan 1

5

(1)

+(1) for dates
5(c)

© UCLES 2017

LMN Chess Club
Income and Expenditure Account for the year ended 31 December 2016
Income
$
$
Subscriptions
3 800 (1)OF
Tournaments [ 1600 (1) – 610 (1) ]
990
Surplus on coach travel [ 980 + 80 (1) – 1020 (1) ]
40
4 830
Expenditure
Depreciation – equipment [ 2500 – 300 (1) / 10 ]
220
(1)OF
Rent [ 2100 + 200]
2 300
(1)
Other expenses
450
(1)
2 970
Surplus
1 860 (1)OF

Page 6 of 8

10

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED

0452/12

Question

Answer

5(d)

Marks

Reason

Example

Only the receipts and payments account contains
capital receipts

Loan received

Only the receipts and payments account contains
capital expenditure

Equipment
Loan repayment

Only the income and expenditure account contains
non-cash items

Depreciation

Figures in the income and expenditure account are
adjusted for prepayments and accruals

Rent owed
Subscriptions in advance
Subscriptions in arrears
Money owed for coach travel

4

Any two reasons for (1) each with a related example for (1) each
Question

Answer
$
80 000
(1)
78 600
(1)
(36 000)
(1)
(10 000)
(1)
112 600 (1)OF

5

D Limited
Statement of Financial Position at 30 June 2016
Capital and reserves
$
Ordinary shares of $0.50
200 000
(1)
Retained earnings
112 600 (1)OF
General reserve
35 000
(1)
347 600 (1)OF

4

6(a)
At 1 July 2015
Profit for the year
Dividend paid
Transfer to general reserve
At 30 June 2016
6(b)

Marks

6(c)

To distribute profit to shareholders (1)
OR To reward shareholders for their investment (1)

1

6(d)

Because insufficient cash was available to pay more (1)
To retain cash/profits for investment in the business (1)

2

6(e)

6(f)

ROCE =

78 600 (1)
100
×
= 17.56% (1of)
347 600 (1of) + 100 000 (1)
1

Profit has fallen
Selling price has decreased
Worse control of expenses
Worsening credit control/increased bad debts
Poorer control of inventory
Capital employed has increased/non-current liability created
Any two reasonable comments for (1) each

© UCLES 2017

Page 7 of 8

4

2

0452/12

Question
6(g)

Cambridge IGCSE – Mark Scheme
March 2017
www.dynamicpapers.com
PUBLISHED
Answer

It may not be easy to sell the shares.
There will be loss of control by existing shareholders.
Dividends payable may increase.
If the interest rate is variable interest payable could increase.
The company would have to pay interest irrespective of profit made.
The bank may require security.
Any three reasonable comments for (1) each

© UCLES 2017

Page 8 of 8

Marks
3