Accounting (0452) · Feb/March 2018 · Mark scheme 22

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/22

Paper 2

March 2018

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 International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the March 2018 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 11 printed pages.
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0452/22

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Generic Marking Principles

These general marking principles must be applied by all examiners when marking candidate answers.
They should be applied alongside the specific content of the mark scheme or generic level descriptors
for a question. Each question paper and mark scheme will also comply with these marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
•
•
•

the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.

GENERIC MARKING PRINCIPLE 2:
Marks awarded are always whole marks (not half marks, or other fractions).
GENERIC MARKING PRINCIPLE 3:
Marks must be awarded positively:
•
•
•
•
•

marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit
is given for valid answers which go beyond the scope of the syllabus and mark scheme,
referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these
features are specifically assessed by the question as indicated by the mark scheme. The
meaning, however, should be unambiguous.

GENERIC MARKING PRINCIPLE 4:
Rules must be applied consistently e.g. in situations where candidates have not followed
instructions or in the application of generic level descriptors.
GENERIC MARKING PRINCIPLE 5:
Marks should be awarded using the full range of marks defined in the mark scheme for the question
(however; the use of the full mark range may be limited according to the quality of the candidate
responses seen).
GENERIC MARKING PRINCIPLE 6:
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should
not be awarded with grade thresholds or grade descriptors in mind.

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0452/22

Question

Answer

Marks

1(a)

Assist in the location of errors
Provide an instant total of trade receivables
Prove the arithmetical accuracy of the sales ledger
Enable a statement of financial position to be prepared quickly
Provide a summary of transactions relating to trade receivables
Help reduce fraud
Any 2 advantages (1) each

2

1(b)

Overpayment by a credit customer of the amount owing
Credit customer failing to deduct available cash discount
Credit customer returning goods after settling account
Credit customer making payment in advance
Any 2 reasons (1) each

2

1(c)

debit

credit

opening balance owed to credit
suppliers

9 (1)

credit purchases

9(1)

cash purchases

9(1)

cash discount received

9(1)

trade discount received

9(1)

cheques paid to credit suppliers

9(1)

interest charged by credit suppliers

© UCLES 2018

no entry

9(1)

returns to credit suppliers

9(1)

contra between sales and purchases
ledgers

9(1)

Page 3 of 11

9

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0452/22

Question

Answer

Marks

1(d)

6

principle
Kamika uses the double entry system of bookkeeping when recording transactions in her ledgers

Duality (1)

Kamika adjusted the charge for insurance in the
income statement for an amount prepaid at the
year-end

Accruals (matching) (1)

Kamika adjusts her provision for doubtful debts at
the end of each year so it is always 3% of her trade
receivables

Prudence
Or Consistency (1)

Kamika intends to trade for several years and
values her premises at net book value not expected Going concern (1)
sales value in her statement of financial position
Kamika did not make any entry in her accounting
records when a competitor reduced his prices even
though it may affect her sales

Money measurement (1)

Kamika did not make any entry in her accounting
records when a customer asked for goods to be put
aside for him to collect sometime in the future

Realisation (1)

1(e)

Kamika
Fuel2go account
Date
2017
Mar 31
2018
Jan 31

Details
Bank
Discount
received

$

(1)

Date
2017
780 Feb 1
20 Dec 10

9

Details

$

Balance b/d
Fuel expenses (1)

800
3200

(1)

Balance c/d

3200
4000

4000
2018
Feb 1

Balance b/d

3200
(1)OF

Date
2017
Feb 1
Jun 4
Dec 10
2018
Feb 1

Fuel expenses account
Details
$
Date
Details
2018
Balance
950 Jan 31 Income
statement(1)OF
(inventory) b/d
Bank
(1)
210
Balance
Fuel2go
(1)
3200
(inventory) c/d
4 360
Balance
(inventory) b/d (1)

1100

+ (1) Dates

© UCLES 2018

Page 4 of 11

$
3260
1100
4360

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0452/22

Question
2(a)

Answer

Marks

Ensures that the profit for the year is not overstated in the income statement (1)
Ensures that the non-current assets are not overstated in the statement of financial
position(1)

2(b)

Dipak
Journal

2

Debit
$
Motor vehicles

Credit
$

50 000

ZY Motors

(1)
50 000 (1)

2(c)

$
40 000
14 400
25 600
5 120 (1)
20 480
4 096 (1)

2

Cost
Depreciation to 30 November 2015
Book value at 30 November 2015
Depreciation for the year ended 30 November 2016
Book value at 30 November 2016
Depreciation for the year ended 30 November 2017

2

Cost
Depreciation for the year ended 30 November 2016
Book value 30 November 2016
Depreciation for the year ended 30 November 2017

$
50 000
10 000 (1)
40 000
8 000 (1)

2(d)

2(e)

Dipak
Journal

2

Debit
$
Income statement (4096 + 8000)

12 096

Provision for depreciation of
motor vehicles

Credit
$
(1) OF
12 096 (1) OF

2(f)
Depreciation to 30 November 2015
Depreciation for the year ended 30 November 2016
Depreciation for the year ended 30 November 2017

© UCLES 2018

2

Page 5 of 11

$
14 400
5 120 }
4 096 } (1)OF
23 616 (1)OF

2

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0452/22

Question

Answer

2(g)

Dipak
Journal

1

2

Disposal of motor vehicle
Motor vehicles
Transferring cost of motor vehicle to
disposal account
Provision for depreciation of motor
vehicles
Disposal of motor vehicle
Transferring the accumulated
depreciation on motor vehicle sold to
the disposal account

Marks
6
Debit
$
40 000

23 616

Credit
$
(1)
40 000 (1)
(1)
(1) OF
23 616 (1) OF
(1)

Question

Answer

3(a)

ND Sports Club
Café Income Statement for the year ended 31 December 2017
$
$
Revenue (sales)
9 520
Purchases (5760 (1) + 130 (1))
5 890
Closing inventory
970
4 920
Wages of assistant (4000 + 160 (1))
4 160
Rent and insurance (3700 – 1200/12 (1)
x ¼ (1)
900
Depreciation – fixtures and fittings
700 (1)
10 680
(20% × 3500)
Loss for the year
1 160 (1)OF

7

3(b)

ND Sports Club
Income and Expenditure Account for the year ended 31 December 2017
$
$
Subscriptions ((14 850 + 500(1)) – 350 (1))
15 000
(Or 300 (1) × 50 (1))
Net income from competition
710 (1)
15 710
Loss on café
1 160 (1) OF
Wages of sports coach
6 000 }
General club expenses
540 }(1)
Rent and insurance (3700 – 1200/12 (1)
x ¾(1))
2 700
Depreciation – sports equipment
1 240 (1)
11 640
(20% × 6200)
Surplus for the year
4 070 (1) OF

9

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Marks

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0452/22

Question
3(c)

Answer
Receipts from café sales
Café suppliers
Wages of café assistant
Interest-free loan
Sports equipment
Café fixtures and fittings
Any 1 item (1)

Marks
2

Reason: For any of first three items –
It relates to the café and appears in the café income statement (1)
Reason: For any of the last three items –
It is an asset/liability and appears in the statement of financial position (1)
3(d)

Depreciation of sports equipment
Subscriptions accrued
Loss on café
Surplus/deficit
Any 1 item (1)

2

Reason –
The depreciation is a non-monetary expense
No money was received in respect of the subscriptions accrued
The loss on the café was calculated in the income statement
The surplus/deficit was calculated in the income and expenditure account
Any 1 suitable reason for the item selected (1)
3(e)

The members of the club have not invested any capital/are not owners/are not
shareholders (1) so there can be no dividends/profit share which represent a return on
the amount invested (1)

2

3(f)

These would not raise the required amount within the time limit
Or other suitable reason
Any suitable reason (1)

1

3(g)

Long-term loan
Mortgage
Sponsorship
Grants
Donations
Or other suitable source of long term funds
Any 1 source (1)

1

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0452/22

Question

Answer

4(a)

Amaira
Corrected Statement of Financial Position at 31 January 2018
Assets

Non-current assets
Premises
Fixtures and fittings
Motor vehicle

$

Marks

$

Cost

Depreciation
to date

85 000
40 000
11 000
136 000

19 520
1 375 (1)
20 895

Current assets
Inventory (18 000 + 2 000)
Trade receivables
Less Provision for doubtful debts
(3% × 14 000)
Petty cash

15
$

Book
value
85 000
20 480 (1)
9 625 (1)OF
115 105
20 000 (1)

14 000
420 (1)

13 580 (1)OF
90 (1)
33 670

Total assets

148 775

Capital and liabilities
Capital
Opening balance
Plus Profit for the year (14 735 (1) – 1375 (1)
– 150(1) + (450 – 420) (1))
Less Drawings
Current liabilities
Trade payables
Bank overdraft (7 241 + 150)
Loan – EasyLoans

13 240 *
113 240
7 000 (1)
106 240 (1)OF
15 144
7 391 (1)
20 000 (1)
42 535

Total capital and liabilities

148 775

* Accept calculation outside Statement

© UCLES 2018

100 000

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0452/22

Question

Answer

4(b)

Amaira
Capital account
Date
2018
Jan 31

Details
Drawings (1)
Balance c/d

$

Date
2017
7 000 Feb 1
106 240 2018
Jan 31

Marks
5

Details
Balance b/d (1)
Profit for year
(1)OF

113 240
2018
Feb 1

Balance b/d
(1)OF

$
100 000
13 240
113 240
106 240

+ (1) Dates
4(c)

To see if the business is likely to continue operating
To assess job security
To assess likelihood of wage increases
Or other suitable reason
Any 2 reasons (1) each

2

4(d)

Any points listed in (c) above provided not awarded in that section
To compare results with previous years
To compare results with other businesses
To assess past performance
To see where improvements can be made/take remedial action
To compare with budgets and forecasts
Or other suitable reason
Any 2 reasons (1) each

2

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0452/22

Question

Answer

5(a)

ABC Limited
Statement of Changes in Equity for the year ended 31 December 2017
Ordinary
share
capital
$
On 1 January 2017
Share issue

Marks

General
reserve

Retained
earnings

6

Total

$

$

25 000

9 500

20 000

20 000 1

180 000

$
214 500

Profit for the year

21 000

21 000 1

Final dividend paid for year
ended 31 December 2016

(7 200)

(7 200)

Interim dividend for the year
ended 31 December 2017

(6 000)

(6 000)

Transfer to general reserve

2 000

200 000

27 000

At 31 December 2017

1
1
(2 000) 1
15 300

242 300 1

5(b)

Increase in gross profit
Decrease in expenses/better control of expenses
Increase in other income
Different type of expenses
Or other suitable reason
Any 2 reasons (1) each

2

5(c)

2017 (1)
In 2016 the percentage of expenses to revenue was 20%: in 2017 the percentage of
expenses to revenue was 16% (1)s

2

5(d)

effect on percentage of profit for the
year to revenue

4

proposal

increase

© UCLES 2018

reduce number of employees to reduce
the wages bill

9 (1)

purchase supplies in bulk to get trade
discount

9 (1)

decrease

no effect

purchase supplies on a cash basis only

9 (1)

delay payment of rent of premises

9 (1)

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0452/22

Question

Answer

5(e)

The company had to wait longer to receive the money from the trade receivables.
Delay in receiving the money may be the reason why company took longer to pay trade
payables.
Company would not qualify for cash discount in 2017.
Company would not have to allow cash discount in 2017.
Company may be charged interest on late payments in 2017.
Company may charge interest on late receipts in 2017.
In both years the company was paying the trade payables before receiving money from
the trade receivables
Or other suitable comment
Any 2 comments (1) each

2

5(f)

Offer cash discount for prompt payment
Charge interest on overdue accounts
Improve credit control
Issue invoices and monthly statements promptly
Refuse further supplies until outstanding balance is paid
Invoice discounting and debt factoring
Any 2 points (1) each

2

5(g)

Reduce credit sales/sell for cash only
Obtain references from new credit customers
Fix a credit limit for each customer
Improve credit control
Issue invoices and monthly statements promptly
Refuse further supplies until outstanding balance is paid
Offer cash discount for prompt payment
Charge interest on overdue accounts
Any 2 points (1) each

2

5(h)

Have to wait longer for the money
Increased risk of bad debts
Or other suitable disadvantage
Any 1 disadvantage (1)

1

5(i)

Do not have to allow cash discount
May charge interest on overdue accounts
Or other suitable advantage
Any 1 advantage (1)

1

5(j)

The profit earned for every $100 used in the business

1

5(k)

effect on return on capital employed
(ROCE)
increase
reduce cost of insuring motor
vehicles

decrease

no effect

9 (1)

issue more ordinary shares

9 (1)

obtain a short-term interest-free loan
from a director

© UCLES 2018

Marks

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9 (1)

3