Accounting (0452) · Feb/March 2019 · Mark scheme 12

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/12

Paper 1

March 2019

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 2019 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 16 printed pages.
© UCLES 2019

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Generic Marking Principles

March 2019
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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.

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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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0452/12

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Question

Answer

March 2019
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Marks

1(a)

C

1

1(b)

D

1

1(c)

C

1

1(d)

C

1

1(e)

A

1

1(f)

A

1

1(g)

B

1

1(h)

B

1

1(i)

D

1

1(j)

D

1

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Question

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Answer

Marks

Glossary
(b) A 52 400 – (1950 + 50)
B 52 400 – 1950
C 52 400 – 50
D 52 400 + 50
(d) A (14 220 + 80 + 1500) – (2250 + 2150)
B (2250 +14 220 + 80) – (2150 +1500)
C (14 220 + 80 + 2150 + 1500) – 2250
D (14 220 +80 +2150 +2250) – 1500
(f) A GP = 25/125 × 60 = 12
B GP = 25% × 60 = 15
C 25/125 × 60 = 12
D 25% × 60 = 15

C of S = 48
C of S = 45

Opening inventory + Purchases = 50
Opening inventory + Purchases = 50

(h) Profit = 32 – 17 = 15
A 15/(48 + 32 + 17) × 100 = 15.46%
B 15/(48 + 32) × 100 = 18.75%
C 15/(32 + 17) × 100 = 30.61%
D 17/48 × 100 = 35.42 %

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Page 5 of 16

Closing inventory = 2
Closing inventory = 5

0452/12
Question
2(a)

March 2019
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Cambridge IGCSE – Mark Scheme
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Answer

Marks

Work can be shared amongst several people
Easier for reference as the same type of accounts are kept together
Easier to introduce checking procedures
May reduce fraud
Accept other valid points.

1

Any 1 advantage (1)
2(b)

Any asset, liability, revenue or expense account (i.e. any account apart from trade payables and trade receivables)
Any 2 accounts (1) each

2(c)

debit

credit

opening balance owed to credit suppliers

9(1)

credit purchases

9(1)

cash purchases

9(1)

cash refund received from credit supplier

9(1)

cash discount received from credit suppliers

9(1)

trade discount received from credit suppliers

9(1)

interest charged on overdue account

9(1)

contra entry to sales ledger control account

© UCLES 2019

no entry

9(1)

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2
8

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Question

Answer

2(d)

Gurdeep
Journal

Marks
3
Debit
$

Bad debts

(1)

Sasha

(1)

Debt owed by Sasha written off as
irrecoverable

(1)

Credit
$

54
54

2(e)

Money received from a credit customer in payment/part payment of a debt after it has been written off as a bad debt. (1)

1

2(f)

Prudence
Accruals (matching)
Consistency
Any 2 principles (1) each

2

2(g)

Assessment of liquidity position/check whether he can meet his debts on time
Identify how long it takes him to pay credit suppliers
Identify future prospects of the business
Establish a credit limit
Accept other valid reasons.
Any 2 reasons (1) each

2

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0452/12
Question
2(h)

Question
3(a)

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Cambridge IGCSE – Mark Scheme
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Answer
Bank manager
Lender
Manager
Employee
Government
Competitor
Take-over bidder
Potential partner
Investor
Customer
Owner
Or other suitable interested parties but NOT suppliers (which are in (g))
Any 2 parties (1) each

Answer
Allows chief cashier to control/limit/keep track of petty cash expenditure
The cash remaining and the vouchers received should equal the imprest amount
Can help to reduce/prevent fraud
Accept other suitable advantage
Any 2 advantages (1) each

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Marks
2

Marks
2

0452/12

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Question

Answer

3(b)

Sarah
Petty Cash Book
Total
received
$
38
212
10

Date

2019
Jan 1
6
8
13
18
21
24
31

Details

Total
paid
$

Balance
b/d
Bank
Cleaner repayment
Eva
Refreshments
Olivia
Taxi fare
Flowers
Cleaner
Balance

c/d

Balance

b/d

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

62
9
43
14
10
80
218
42
260

(1)

260
42

2019
Feb 1

Marks
11
Office
expenses
$

Travel

Cleaning

$

$

Ledger
accounts
$

62
9
43
14
10
19

80
80

14

105

(1)OF

+ (1) dates
+ (1) OF totalling analysis columns
3(c)

Sarah
Cleaning account
Date
(2019)
Jan 31

Details

$

Petty cash

Date
(2019)
80 Jan 31

(1)
3(d)

© UCLES 2019

2
Details

$

Petty cash

10
(1)

Debit Eva’s account with $62
(1)
Debit Olivia’s account with $43 (1)

2

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0452/12
Question
3(e)(i)

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Cambridge IGCSE – Mark Scheme
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Answer

Marks

250 – 42 OF = 208 (1)OF

1

3(e)(ii)

2
debit

credit

petty cash

(1) bank

Question

(1)

Answer

Marks

4(a)

5
Subscriptions received
Add Opening prepayment
Less Opening accrual
Less Closing prepayment
Subscriptions for the year

$
5 940
275
6 215
550
5 665
165
5 500

(1)
(1)
(1)
(1)
(1)OF

Alternative presentation
Subscriptions account
Date
2018
Mar 1
2019
Feb 28

© UCLES 2019

Details
Balance b/d

$
(1)

Income and
Expenditure (1)OF
Balance c/d
(1)
No aliens for o/f

Date
2018
550 Mar 1
2019
5 500 Feb 28
165
6 215

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Details

$

Balance b/d

(1)

275

Bank

(1)

5 940
6 215

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Question

Answer

Marks

4(b)

W Athletics Club
Income and Expenditure Account for the year ended 28 February 2019
$
Income
Subscriptions

9

$
5 500 (1)OF

Expenditure
(Loan) interest
General expenses (890 (1) + 30 (1))
Rent and insurance (4280 (1) – 240 (1))
(Net cost of) competitions
Depreciation of (equipment) (4500 + 1650 – 5900)

100
920
4 040
310
250

(1)
(1)
(1)
5 620
120 (1)OF

Deficit

4(c)(i)

Bank balance (opening or closing)
Repayment of loan
Purchase of equipment
Insurance prepaid
Subscriptions prepaid (at 28 February 2019)
Any 2 items (1) each

2

4(c)(ii)

Deficit
Depreciation of equipment
Accrued general expenses (at 28 February 2019)
Any 2 items (1) each

2

4(d)

$165 (1)
Liability (1)

2

4(e)

$6880 – $120 OF = $6760 (1)OF

1

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Question

Answer

Marks

5(a)(i)

The cost of the essentials necessary for production
OR The total of direct materials, direct labour and direct expenses

1

5(a)(ii)

The total cost of manufacturing the finished products
OR The prime cost plus factory overheads

1

5(a)(iii)

The goods which are partially completed

1

5(b)

Hari
Manufacturing Account for the year ended 31 December 2018
$
Cost of materials consumed
Opening inventory of raw materials
Purchases of raw materials
Carriage on raw materials

$
13 500 (1)* both inventories

142 500
1 680

Closing inventory of raw materials
Direct factory wages
Prime cost
Factory overheads
Indirect factory wages
Factory rent, rates and insurance
(14 000 (1) + 1500 (1) – 690 (1))
Depreciation – Factory machinery
(20% × (95 000 – 34 200))
Loose tools (7140 – 6310)

(1)
*
(1)
(1)OF

42 570 (1)
14 810
12 160 (1)
830 (1)

Opening work in progress
Closing work in progress
Cost of production

© UCLES 2019

144 180
157 680
14 200
143 480
86 250
229 730

Page 12 of 16

70 370
300 100
15 100
315 200
14 200
301 000

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

13

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Question
5(c)

March 2019
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Answer

Marks

}
302800
whole formula (1) = 13.1 times(1)
(24 000 + 22 200) / 2 }

2

5(d)(i)

Cost

1

5(d)(ii)

Prudence
OR Accruals (matching)

Net realisable value

1

5(e)

overstated

Cost of production for the year ended 31 December 2018

5(f)

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4

9

Cost of materials consumed for the year ended 31 December 2018

9 (1)

Gross profit for the year ended 31 December 2018

9 (1)

Current assets at 31 December 2018

9 (1)

Profit for the year ending 31 December 2019

understated

9 (1)

Increase selling price
Reduce cost of production/reduce factory overheads/reduce direct wages/reduce cost of materials consumed/reduce cost of
sales
Or other suitable suggestion
Any 2 suggestions (1) each

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2

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Question

Answer

Marks

6(a)(i)

The total amount of capital a company has requested from its shareholders

1

6(a)(ii)

That part of the called-up capital for which a company has actually received the money from its shareholders

1

6(a)(iii)

The shareholders of a company are only liable for the debts of the company up to the amount they have agreed to pay for
their shares

1

6(b)
debentures

The holders are entitled to vote at the annual general meeting.

9(1)

The holders receive a variable rate of dividend.

9(1)
9(1)

If the company is wound-up the holders are repaid after all other
investors.

© UCLES 2019

5

9(1)

The holders receive a fixed rate of dividend.

6(c)

ordinary
shares

9

The holders receive dividend before ordinary share dividend.
They are a long-term loan.

preference
shares

Get a fixed return
Have priority over ordinary shareholders for the interest/dividend
Have priority over ordinary shareholders in a winding-up
Neither have voting rights
Not members of the company
Or other suitable comment
Any 2 comments (1) each

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9(1)

2

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Question

Answer

Marks

6(d)
Income
statement
Half year interest on debentures paid on 1 July 2018
Half year interest on debentures owing at 31 December
2018

Statement
of changes
in equity

Statement
of financial
position

9(1)

9(1)
9(1)

Payment of final ordinary share dividend for the year
ended 31 December 2017

9(1)

Proposed ordinary share dividend at 31 December
2018

6(e)

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9(1)
9(1)

Bank overdraft not suitable for long-term borrowing
Bank may require overdraft to be repaid at short notice
Interest may be more than that on a loan
Overdraft facility may be withdrawn at short notice
Or other suitable comments
Any 2 comments (1) each

No entry

9

Payment of interim ordinary share dividend on 1 July
2018

Creation of general reserve

7

9(1)
2

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Question

Answer

6(f)

Marks
increase
$

total of current assets at 1 January 2019

decrease
$

30 000

total equity at 1 January 2019

9(1)

total of non-current liabilities at 1 January 2019

30 000 (1)

total profit for the year ending 31 December 2019

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no effect

1 500 (1)

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3