Accounting (0452) · Feb/March 2019 · Mark scheme 22

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/22

Paper 2

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 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

1(a)

Narinder
General Ledger
Purchases account
Date
2019
Jan 5

Details
Bank

$
(1)

Marks
13

Date

Details

$

Details

$

1 890

Sales account
Date

Details

$

Date
2019
Jan 30
31

Cash
(1)
Total for month (1)

1 620
1 980

Wages account
Date
2019
Jan 31

Details
Cash

$
(1)

Date

Details

$

Details

$

Details

$

Details

$

1 334

Drawings account
Date
2019
Jan 31

Details
Cash

$
(1)

Date

120

Sales returns account
Date
2019
Jan 31

Details

$

Total for month (1)

Date

140

Discount allowed account
Date
2019
Jan 31

© UCLES 2019

Details
Total for month (1)

$

Date
26

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0452/22

Question

Answer

1(a)

Sales Ledger
Amrik account
Date
2019
Jan 1
17

Details

$

Sales
(1)
Bank (dis chq) (1)

Date
2019
540 Jan 10
540

Marks

Details
Bank

$
(1)

540

Noor account
Date
2019
Jan 16

1(b)

Details
Sales

$

(1)

Date
2019
1 440 Jan 18
28

Details
Returns
Bank
Discount

$
(1)
}(1)
}

140
1 274
26

1 February 2018 Balance b/d
This is the amount of the provision for doubtful debts at the start of the financial year
(1)
Name of account: provision for doubtful debts account for the previous year }(1)
Debit or credit: debit
}

4

31 January 2019 Balance c/d
This is the total of the provision for doubtful debts at the end of the year/the provision
required for the following financial year (1)
Name of account: provision for doubtful debts account for the following year }(1)
Debit or credit: credit
}
1(c)(i)

This is the difference between the opening and closing provision for doubtful
debts/the amount which is needed to increase the provision to the required amount
(1)

1

1(c)(ii)

Decrease profit

1

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0452/22

Question

Answer

2(a)

Aysha
Rent payable account
Date
2018
Feb 1
Apl 30
Oct 31

Details
Balance b/d (1)
Bank
}(1)
Bank
}

2019
Feb 1

Balance b/d

Date
2019
1 000 Jan 31
3 000
3 500
7 500

Marks
9

$

Details

$

Income statement
(1)
Balance c/d

6 000
1 500
7 500

1 500
(1)OF
Aysha
Rent receivable account

Date
2018
Feb 1
2019
Jan 31
2019
Feb 1

Details

$

Balance b/d

(1)

Income
statement

(1)

Balance b/d

Date
2018
600 Mar 31
May 1
2019
2 400 Jan 31
3 000

Details
Cash
Bank

$
}(1)
}

Balance c/d

800
2 000
200
3 000

200
(1)OF

+ (1) dates
2(b)

2(c)

February 6

Invoice (1)
Aysha (1)

12

Debit note (1)
Ravi (1)

14

Credit note (1)
Aysha (1)

6

Statement of account (1)
Remind Ravi of the amount due/show the balance owing at the month end
Summarise the transactions for the month
Allow Ravi to check his records against it
Any 1 reason (1)

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2

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0452/22

Question

Answer

2(d)

Ravi
Aysha account
Date
2019
Feb14
21
28

Details
Returns
(1)
Bank
}(1)
Discount
}
Balance c/d

Date
2019
160 Feb 1
390 6
10
425
985

Marks
6

$

2019
Mar 1

Details
Balance b/d
Purchases
Carriage

$
(1)
(1)
(1)

400
560
25
985

Balance b/d

425
(1)OF

2(e)

Ravi
Journal

3
Debit
$

Aysha (purchases ledger account)
Aysha (sales ledger account)

(1)
(1)

Transfer of balance on a sales ledger to an
account in the purchases ledger
(1)

© UCLES 2019

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Credit
$

230
230

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0452/22

Question

Answer

3(a)

Bari and Nada
Draft Statement of Financial Position at 31 December 2018
Assets
Non-current assets
Premises
Other non-current assets

$

Marks

$

13

$
220 000
92 650
312 650 (1)

Current assets
Trade receivables
Less Provision for doubtful debts
Other receivables
Bank

25 500
510

Total assets

24 990 (1)
910
21 890
47 790 (1)
360 440

Capital and liabilities
Capital accounts
Current accounts
Balance 1 Jan 2018
Interest on capital
Partner’s salary
Share of profit
Drawings
Interest on drawings

Bari
150 000
950
7 500
20 000
2 718
31 168
11 000
660
11 660
19 508

Non-current liabilities
Loan (repayable 2025)

Total
250 000 (1)

(150)
5 000
1 812
6 662
13 000
780
13 780
(7 118)

(1)
(1)
(1)
(1)
(1)
(1)
12 390 (1)
262 390
80 000 (1)

Current Liabilities
Trade payables
Other payables

17 250
800
18 050 (1)

Total capital and liabilities

© UCLES 2019

Nada
100 000

360 440

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0452/22

Question
3(b)

Answer
Capital expenditure
Money spend on acquiring, improving and installing non-current assets (1)
Example
Purchase of any non-current asset, legal costs for purchase of premises,
cost of installation of non-current asset, cost of carriage on delivery of non-current
asset, etc.
Any suitable example (1)

Marks
8

Capital receipt
Amounts received which do not form part of the day-to-day trading activities (1)
Example
Receipt of loan, additional capital, proceeds of sale of non-current asset at book
value, etc.
Any suitable example (1)
Revenue expenditure
Money spent on the running of a business on a day-to-day basis (1)
Example
Any expense such as wages, rent, insurance, etc.
Any suitable example (1)
Revenue receipt
Amounts received in the day-to-day trading activities and other items of income(1)
Example
Sales, commission received, interest received, rent received, etc.
Any suitable example (1)
3(c)(i)
Cost of premises
Legal fees
Decoration costs

$
89 000
5 050
1 650
95 700

Profit for the year
Legal fees
Decoration costs
Insurance

$
35 590
(250)
(1 650)
(1 200)
32 490

3(c)(ii)

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3
(1)
(1)
(1)OF
4
(1)
(1)
(1)
(1)OF

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0452/22

Question

Answer

Marks

4(a)

Jai
Corrected Trial Balance at 31 December 2019
Debit
$
Revenue
Purchases
Inventory 1 January 2018
Purchases returns
Premises at cost
Fixtures and fittings at cost
Motor vehicle at cost (16 190 – 190)
Provision for depreciation of fixtures
and fittings
Provision for depreciation of motor
vehicle
Bank overdraft (1180 + 34)
Trade receivables (18 000 – 100)
Trade payables
Office expenses
Discount received
Discount allowed
Drawings
Capital 1 January 2018
Motor expenses
Bank charges
Bad debts
Suspense

116 500
9 410

(1)
4 320 (1)
7 000
1 214 (1)
(1)
9 383

17 900
16 121

2 100 (1)
1 900
3 100

(1)
79 100

190
34
100

(1)
(1)
(1)
138 (1)
303 755 (1) OF

7

Entry required to correct the error
Error

Debit
Account

© UCLES 2019

(1)
4 500 (1)

110 500
12 000
16 000

303 755

4(b)

Credit
$
196 000

Credit
$

Account

$

Error 4

Office expenses

Error 5

Suspense

Error 6

Purchases returns

450 (1)

Suspense

450 (1)

Error 7

Suspense

600 (1)

Sales

300 (1)

K Limited

300 (1)

21
9 (1)

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Suspense
Meena

21
9 (1)

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0452/22

Question

Answer

4(c)

Marks

effect on profit for the year
overstated
4

understated

7

Question

overstated

understated

9(1)

no effect
9(1)

5
6

no effect

8

effect on assets

9(1)

9(1)

9(1)

9(1)
9(1)

9(1)

Answer

Marks

5(a)

Inventory not sold as quickly in second year/inventory turnover reduced/
decreased/went down/fell from 9.45 to 8.17
May be the result of a slowing of sales activity/falling demand
May be as a result of holding increased levels of inventory
Money tied up in inventory for longer
Or other suitable comments
Any 2 comments (1) each

2

5(b)

Will not obtain cash discount
May be charged interest on late payment
Relationship with suppliers damaged
May be using the funds for other purposes
Or other suitable comments
Any 2 comments (1) each

2

5(c)

Credit customers taking longer to pay their accounts
Affects ability to pay credit suppliers
Money is not available for other purposes
Credit customers will not qualify for cash discount
May be result of poor credit control
Greater risk of bad debts
Can charge interest on late payments
Or other suitable comments
Any 2 comments (1) each

2

5(d)(i)

(31 200 + 30 900 + 14 000 + 100) : (32 000 + 10 000)
76 200 : 42 000 (1)
1.81 : 1 (1)

2

5(d)(ii)

(30 900 + 14 000 + 100) : (32 000 + 10 000)
45 000 : 42 000 (1)
1.07 : 1 (1)

2

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0452/22

Question
5(e)

Answer

Marks

Increase in inventory
Increase in current liabilities
Decrease in trade receivables
Increased expenditure on non-current assets
Repayment of long-term liabilities
Decrease in bank balance/decrease in cash
Increase in dividends
Any 1 reason (1)

1

5(f)

4
increase
Proposal 1

decrease

no effect

9(1)

Proposal 2

9(1)

Proposal 3

9(1)

Proposal 4

9(1)

5(g)(i)

Current ratio will increase (1)
Current liabilities decrease: no change in current assets (1)

2

5(g)(ii)

Current ratio will increase (1)
Current liabilities decrease: current assets decrease by a smaller amount (1)

2

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