Accounting (0452) · Feb/March 2017 · Mark scheme 22

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/22

Paper 22

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®,
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This document consists of 13 printed pages.
© UCLES 2017

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0452/22

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Question

Answer

1(a)

Mandeep – Cash Book
Cash
Bank
Date
Details

Date

Details

Discount
allowed
$

2016

$

Dec 1 Balance b/d
11 Jabin

(1)

27 Sales

(1)

$

150
6

Marks
10

Discount
received
$

2016

Bank

$

$

Dec 1 Balance b/d
294

4 Repairs

6 795

2 590
(1)

15 Rama

(1)

387
18

702

31 Cash c (1)OF

1 745

29 Drawings

(1)

5 000

Balance c/d

1 640

31 Bank c

(1)

1 745

Balance c/d
6

6 945

2017
Jan 1 Balance b/d

3 679

200
18

6 945

3 679

2017
200

Jan 1 Balance b/d

(1)

1 640
(1)OF

+(1) dates

© UCLES 2017

Cash

Page 2 of 13

0452/22

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Question

Answer

1(b)

Mandeep
Inventory account
$
2016
Jan 1 Balance b/d
Dec 31 Income Statement
2017
Jan 1 Balance b/d

2016
Dec 31 Balance c/d

2016
Dec 31 Total payments
Balance c/d

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Marks
14

$

12 650
13 420 (1)

2016
Dec 31 Income Statement
Dec 31 Balance c/d

12 650 (1)
13 420

13 420 (1)

Provision for depreciation of office fixtures account
$
2016
4 636
Jan 1 Balance b/d
Dec 31 Income Statement
4 636
2017
Jan 1 Balance b/d
General expenses account
$
2016
Dec 31
9 475
375
Income Statement
9 850
2017
Jan 1 Balance b/d

Page 3 of 13

$
3 420
1 216 (1)
4 636
4 636 (1)OF
$
9 850 (1)
9 850
375 (1)

0452/22

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Question

March 2017
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Answer

Marks

Rent receivable account
$

$

2016
Dec 31
Income Statement
2017
Jan 1 Balance b/d

5 520 (1)
5 520

2016
Jan 1 Total receipts
Dec 31 Balance c/d

5 060
460
5 520

460 (1)
Drawings account
$

2016
Dec 31 Total drawings

$
2016
Dec 31 Capital

8 950
8 950

8 950 (1)
8 950

Capital account
$
2016
Dec 31 Drawings
Balance c/d

$

8 950 (1)
91 650

2016
Jan 1 Balance b/d
Dec 30 Motor vehicle
31 Profit for year

100 600
2017
Jan 1 Balance b/d

© UCLES 2017

Page 4 of 13

63 000
16 000 (1)
21 600 (1)
100 600
91 650 (1)OF

0452/22

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Question

March 2017
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Answer

Marks

2(a)(i)

A statement in which the profit or loss for the year is calculated

1

2(a)(ii)

A statement showing the assets and liabilities of a business on a certain date

1

2(a)(iii)

Assets which are purchased for use not for resale
Assets whose values do not fluctuate frequently
Assets which will be kept by the business for more than 12 months
Assets which are acquired to aid the business earn revenue
Any two statements (1) each

2

2(a)(iv)

Liabilities which are not due for repayment within 12 months

1

2(a)(v)

Either The amount the business owes the owner of that business
Or
Any resources provided for a business by the owner of that business

1

2(b)

Goodwill/patents/trademarks/other suitable example

1

2(c)

The current assets are more than three times the current liabilities/it is much higher than the “benchmark” of 2 : 1
The current liabilities can easily be paid from the current assets
Funds are not being used very effectively
Any two comments (1) each

2

2(d)

Inventory is excluded from the calculation of the quick ratio (1)
Either Inventory is not regarded as a liquid asset (1)
Or
The ratio shows whether the business would have surplus liquid funds if the current liabilities were paid
immediately from the liquid assets (1)

2

2(e)

Introduce more cash as capital
Obtain long term loans
Sell surplus non-current assets
Reduce drawings
Reduce inventory level
Any two points (1) each

2

© UCLES 2017

Page 5 of 13

0452/22

Question

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Answer

March 2017
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Marks

2(f)(i)

Transactions are recorded at actual cost (1)
It is difficult to compare transactions taking place at different times (1)

2

2(f)(ii)

Only information which was be expressed in monetary terms is recorded (1)
Many important factors which affect the business are not recorded (1)

2

© UCLES 2017

Page 6 of 13

0452/22

Question
3(a)

Answer

Marks

Doshi Manufacturing Company
Manufacturing Account for the year ended 31 January 2017
$
$
Cost of materials consumed
Opening inventory of raw materials
49 500
Purchases of raw materials
394 600
Less Purchases returns
16 400
378 200 (1)
Closing inventory of raw materials
Direct factory wages
Prime cost
Factory overheads
Factory supervisors' wages
(152 000 (1) + 12 000 (1))
General expenses (3/5 × 160 000)
Depreciation factory machinery
(20% × (250 000 – 122 000)
Depreciation loose tools
(21 150 – 19 050)

12

$

427 700
41 100
386 600 (1)OF
297 100 (1)
683 700 (1)OF

164 000
96 000 (1)
25 600 (1)
2 100 (1)

Opening work in progress
Closing work in progress
Cost of production

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Page 7 of 13

287 700
971 400
28 750
1 000 150
31 250
968 900

(1)OF
*
*(1) both
(1)OF

0452/22

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Question

Answer

3(b)

Doshi Manufacturing Company
Income Statement for the year ended 31 January 2017
$
$

Marks

Revenue
Less returns inwards
Cost of sales
Opening inventory of finished goods
Cost of production
Purchases of finished goods
Carriage inwards

© UCLES 2017

11

$
1 246 850
12 250
1 234 600 (1)

63 100
968 900 (1)OF
21 700 (1)
1 500 (1)

Closing inventory finished goods
Gross profit
Less Wages of office & sales staff
(108 700 (1) + 4 300 (1))
General expenses
(2/5 × 160 000)
Depreciation office equipment
(15% × 72 000)
Profit for the year
3(c)

March 2017
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23 200
1 055 200
59 100

996 100 (1)OF
238 500 (1)OF

113 000
64 000 (1)
10 800 (1)

187 800
50 700 (1) OF

Low value items which are not easy to depreciate separately/Not practical to keep detailed records of such assets/other
suitable comment.

Page 8 of 13

1

0452/22

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Question

Answer

Marks

4(a)

Purchases ledger

1

4(b)

Lahiru has returned goods to Nusrath (1)
Credit purchases returns (returns outwards) account (1)

2

4(c)(i)

2½%

1

4(c)(ii)

Prompt payment/payment within the specified period

1

Set off the amount Lahiru owes Nusrath against the amount Nusrath owes Lahiru/other suitable explanation

1

4(d)
4(e)

3

Nusrath
Journal
Debit
$
Lahiru (purchases ledger)
Lahiru (sales ledger)
Contra entry to set balance in purchases
ledger against balance in sales ledger

Credit
$

68
68

(1)
(1)
(1)

4(f)(i)

$564

1

4(f)(ii)

Current assets

1

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Page 9 of 13

0452/22

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Question

March 2017
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Answer

4(g)
2017
Feb 28 Balance c/d

Lahiru
Provision for doubtful debts account
$
2016
716
Mar 1 Balance b/d
2017
Feb 28 Income statement
716
2017
Mar 1 Balance b/d

Marks
4

$
500 (1)
216 (1)
716
716 (1)OF

+ (1) dates
4(h)

The profit for the year is not overstated (1)
The trade receivables (current assets) are not overstated (1)

2

4(i)

Either The sales for which a business is unlikely to be paid (1) are regarded as an expense of the year in which those
sales are made (1)
Or
The provision for doubtful debts is an expense (1) and is matched against the revenue for the year in which
those debts are incurred (1)

2

© UCLES 2017

Page 10 of 13

0452/22

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Question

Answer

5(a)

Marks
$
32 725
640
5 350
4 600

Payments to credit suppliers
Cash discount received
Trade payables 31 January 2017
Less Trade payables 1 February 2016
Interest on overdue account
Purchases for the year

$
(1)
(1)
(1)
(1)

15 (1)

6

38 715
4 615
34 100 (1) OF

Alternative calculation

2017
Jan 31 Bank
Discount
Balance c/d

5(b)

5(c)

© UCLES 2017

Total trade payables account
$
2016
32 725 (1)
Feb 1 Balance b/d
640 (1)
2017
5 350 (1)
Jan 31 Interest
Purchases
38 715

$
4 600 (1)
15 (1)
34 100 (1)OF
38 715

Jai
Income Statement (Trading account section) for the year ended 31 January 2017
$
$
Revenue
42 000 (1) OF
Cost of sales
Inventory 1 February 2016
2 900 (1)
Purchases
34 100 (1)
OF
37 000
Less Inventory 31 January 2017
3 400 (1)
33 600 (1) OF
Gross profit
8 400 }(2) CF/(1) OF

7

2

} (1) 33 600
33 600 OF
=
= 10.67 times (1) OF
(2900 + 3400) / 2 }
3150

Page 11 of 13

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Question

Answer

Marks

5(d)

Reduce inventory levels
More sales activity
Or other suitable points
Any 2 points (1) each

2

5(e)

Prudence

1

5(f)

overstated
Profit for the year ended 31 January 2017
Profit for the year ending 31 January 2018

© UCLES 2017

2

9

Current assets at 31 January 2017

5(g)

understated

9(1)
9(1)
2

Increase selling price
Reduce trade discount allowed to customers
Reduce purchase price
Find cheaper supplier
Obtain better trade discount
Any 2 comments (1) each

Page 12 of 13

0452/22

Question

Answer

6(a)

Amina
Journal

Marks
7

Debit

Credit

$

S

Sales returns

960

(1)

Purchases returns

960

(1)

Suspense

1 920
–

No entry
Suspense

330

Suspense
6(b)

(1)
(1)

3 000

AK Stores

(1)
(1)

330

(1)
7

Effect on draft profit for the year of correcting the error
Error

Increase
$

1

1 000

Decrease
$

No effect
(1)

2

484

(2)*

3

1 920

(2)*

4

9

(1)

5

9

(1)

* (1) position + (1) amount

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