Accounting (0452) · Feb/March 2020 · Mark scheme 22

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Cambridge IGCSE™
ACCOUNTING

0452/22

Paper 22

March 2020

MARK SCHEME
Maximum Mark: 100

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 2020 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 14 printed pages.
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0452/22

Cambridge IGCSE – Mark Scheme
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Generic Marking Principles

March 2020
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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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0452/22

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March 2020
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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.

© UCLES 2020

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0452/22

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)

Amara
Petty Cash Book
Total
received

Date

Details

$

Marks
10

Total
paid

Travel

$

$

Postage
and
stationery
$

Ledger
accounts
$

2020
65
135

200
13

Jan 1
3
7
14
22
29

Balance b/d
Bank
Stationery
Travel
Razvan
Taxi fare
Postage

31

Balance c/d

Feb 1

Balance b/d

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

(1)

+ (1) dates
+ (1) OF totalling analysis columns
+ (1) OF for 2 matching totals

© UCLES 2020

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24
49
85
18
11
187
13
200

24
49
85
18
67

11
35

85

0452/22

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(b)

Razvan
Amara account
2020
Jan 1 Balance b/d
19 Sales

$
85 (1)
180 (1)

Feb 1 Balance b/d

265
144 (1)OF

Marks
6

2020
Jan 14 Petty cash
28 Sales returns
31 Balance c/d

$
85 (1)
36 (1)
144
265

+ (1) dates
1(c)

debit

© UCLES 2020

(1)



}


Discount received account
1(d)

2

no entry



Amara account
Discount allowed account

credit

}(1)
2

Direct debit (1)
Credit card/Debit card (1)
Online/electronic payment (1)
Telephone transfer (1)
Credit transfer (1)
Accept other valid points
Max (2)

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0452/22

Cambridge IGCSE – Mark Scheme
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Question

March 2020
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Answer

2(a)
2019
Nov 30 Purchases returns
Discount received
Bank
Sales ledger
Balance c/d

GHB Limited
Purchases ledger control account
$
2019
1 160 (1)
Nov 1 Balance b/d
650 (1)
30 Purchases
11 420 (1)
Interest
250 (1)
Bank
13 195
26 675
Dec 1 Balance b/d

Marks
9
$
12 050
14 200
95
330

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

26 675
13 195 (1)

The purchases ledger control account does not include capital expenditure/non-current assets (1)
The purchases ledger control account only includes purchases of goods for resale (1)
The purchases ledger control account only includes transactions relating to trade payables (1)
Accept other valid points
Max (2)

2

2(c)(i)

Reducing balance method (1)

1

2(c)(ii)

More depreciation is charged in the early years of its life (1)
Most of the benefit of the asset is gained in the early years (1)
The net book value is more likely to relate to the amount which will be realised on sale (1)
The vehicle may become out-of-date quickly depending on the vehicle type (1)
As repair costs are likely to be minimal in the early years, the overall charge to the income statement each year is more likely
to be fairly constant if the reducing balance method is used (1)
Accept other valid points
Max (3)

3

2(b)

© UCLES 2020

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0452/22

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
2(d)

Answer
Ordinary shares
Advantages:
Shares could be sold to new or existing shareholders (1)
Shares are permanent capital/do not have to be repaid (1)
Dividends vary according to the profit (1)
Accept other valid points
Max (1)
Disadvantages:
It may take longer to raise the funds (1)
Increased dividends may have to be paid (1)
All the shares need to be sold in order to raise the amount required (1)
Less control for existing shareholders (1)
Accept other valid points
Max (1)
Bank loan
Advantages:
Easier to set up/quicker to obtain funds (1)
May be repaid early (1)
Accept other valid points
Max (1)
Disadvantages:
A fixed rate of interest needs to be paid each year (1)
The interest would be payable irrespective of profit (1)
Must be re-paid in full within a fixed period (1)
Security would have to be provided (1)
Accept other valid points
Max (1)
Recommendation (1)

© UCLES 2020

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Marks
5

0452/22

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

3(a)

Tia and Sarna
Income Statement for the year ended 31 December 2019
$
Revenue
Cost of sales
Opening inventory
Purchases

$
124 000

5 390
55 440
60 830
5 165

Less Closing inventory

55 665 (1)
68 335 (1)OF
1 385 (1)
69 720

Gross profit
Discount received
Less Expenses
Discount allowed
Carriage outwards
Insurance (7 920 – 1 080)
General expenses
Wages
Depreciation on Furniture (20% × 24 000)
Profit for the year
3(b)

2 400
6 160
6 840
8 100
9 600
4 800

}
}(1)
(1)
}
}(1)
(1)

37 900
31 820 (1)OF

Tia and Sarna
Appropriation Account for the year ended 31 December 2019
$
Profit for the year
Less Interest on capital Tia
Sarna

© UCLES 2020

8

Salary

Tia

4 000
2 000
6 000 (1)
6 000 (1)

Profit share

Tia
Sarna

9 910 }(1) OF
9 910 }
Page 8 of 14

$
31 820 (1) OF

12 000
19 820
19 820

4

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Cambridge IGCSE – Mark Scheme
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Question

Answer

3(c)
2019
Dec 31 Drawings

2020
Jan 1 Balance b/d
3(d)

March 2020
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Tia and Sarna
Sarna Current account
$
2019
17 000 (1)
Jan 1 Balance b/d
Dec 31 Interest on capital
Profit
Balance c/d
17 000

Marks
4
$
1 600
2 000 (1)OF
9 910 (1)OF
3 490
17 000

3 490 (1)OF

Advantages
It would reduce cash sitting idle in the business bank account (1)
The levels of trade receivables and trade payables suggest that there will be future net cash inflow (1)
Interest would be earned on the amount transferred (1)
Accept other valid points
Max (2)
Disadvantages
It may not be possible to withdraw money from the deposit account without giving notice (1)
Cash may not be available if Tia decides to draw the full amount to which she is entitled at the end of the year (1)
Will decrease working capital/will reduce liquidity (1)
Tia and Sarna may be considering other uses for the cash (1)
Accept other valid points
Max (2)
Max (3) for advantages and disadvantages
Recommendation (1)

© UCLES 2020

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4

0452/22

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

4(a)

Arjun
Journal

Marks
9

Error
number

Details

Debit
$

1

Commission receivable
Discount received
Correction of error – cash book total for discount received incorrectly posted (1)

135 (1)

Fixtures and fittings
Disposal of fixtures and fittings
Correction of error – proceeds of sale of fittings incorrectly posted (1)

200 (1)

Purchases
Cash
Correction of error – cash drawings posted in error to purchases (1)

40 (1)

2

3

4(b)

Credit
$
135 (1)

200 (1)

40 (1)

Arjun
Suspense account
2020
Jan 31 Difference on trial
balance
Office expenses

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March 2020
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$
1 077 (1)OF

2020
Jan 31 Equipment repairs
Equipment

73 (1)
1 150

Page 10 of 14

4
$
575 (1)
575 (1)
1 150

0452/22
Question
4(c)

Answer
Error number
3

Increases
capital

No effect
on capital

4


(1)

5

 (1)

6

 (1)

7

© UCLES 2020

Marks

Decreases
capital

4

4(d)

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Cambridge IGCSE – Mark Scheme
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(1)
3

Full control of the business (1)
Decisions can be taken quickly (1)
Profits do not have to be shared/distributed (1)
Book-keeping and accounting are simpler (1)
Financial statements do not have to be published (1)
Accept other valid points
Max (3)

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Cambridge IGCSE – Mark Scheme
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Question

Answer

5(a)

Marks
8

profit margin
workings

answer
15% (1)

27 900 100 (1) whole formula
×
186 000
1

Trade payables turnover (days)
workings

answer
37 days (1)

9 435 365 (1) whole formula
×
93 075
1

Trade receivables turnover (days)
workings

answer
28 days (1)

14 010 365 (1) whole formula
×
186 000
1

Liquid ratio
workings

answer

14 010 : 11 675 (1) whole formula

© UCLES 2020

1.2 : 1 (1)

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0452/22

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(b)

Answer
Bank
May damage relationship with bank (1)
Already has a bank loan as well as the overdraft (1)
Has nearly reached his overdraft limit (1)
Bank may charge increased interest if overdraft limit is exceeded (1)
Accept other valid points
Max (2)

March 2020
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Marks
5

Trade payables
Relationship with suppliers may be damaged if he delays paying them (1)
Is taking longer to pay trade payables than he did last year (1)OF
May already be taking longer to pay than the credit period allowed (1)
Trade payables may refuse future supplies (1)
Interest may be charged on the overdue amount/cash discount will be forfeited (1)
Accept other valid points
Max (2)
Recommendation (1)
5(c)

© UCLES 2020

3

Sell surplus non-current assets (1)
Increase bank loan/additional bank loan (1)
Obtain loan from another source (1)
Convert to a partnership/limited company (1)
Introduce additional capital (1)
More efficient credit control (1)
Sell on a cash basis (1)
Reduce drawings (1)
Accept other valid points
Max (3)

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0452/22

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

March 2020
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Answer

Marks

5(d)(i)

To calculate the profit for the year (1)
To assess progress of the business (1)
To provide information for calculation of ratios (1)
For comparison purposes (1)
To indicate where corrective action is required (1)
To assist planning (1)
To provide required information for the tax authorities (1)
Accept other valid points
Max (2)

2

5(d)(ii)

Non-monetary items cannot be recorded/only items which can be expressed in monetary terms can be recorded (1)
Money is a widely used/understood unit of measure (1)
Transactions are traditionally recorded in money terms (1)
Subjectivity/personal opinion is avoided (1)
Easier to make comparisons year-on-year/with other businesses (1)
Accept other valid points
Max (2)

2

© UCLES 2020

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