Accounting (0452) · Feb/March 2021 · Mark scheme 22

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Cambridge IGCSE™
ACCOUNTING

0452/22

Paper 2

March 2021

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 2021 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 19 printed pages.
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Generic Marking Principles

March 2021
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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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Cambridge IGCSE – Mark Scheme
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Social Science-Specific Marking Principles
(for point-based marking)

March 2021
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Components using point-based marking:
• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer
shows confusion.
From this it follows that we:
a
b
c
d
e
f
g

2

DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
DO credit alternative answers/examples which are not written in the mark scheme if they are correct
DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)

Presentation of mark scheme:
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

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Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark
for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

4

Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners
who marked that paper.

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0452/22
Question

Answer

1(a)

Shilpa
Sales journal
Date
2021
Jan 6
20
26
31

Marks
4

Details

$
160
150
62
372

Kabir (200 – 40)
Pari
Yash
Transfer to sales account

1(b)

(1)
(1)
(1)
(1) OF
11

Shilpa
Cash Book
Disc.
Alld
$

2021
Jan 1
9
15
21
24
Feb 1

Balance b/d
Disposal
of office fittings
Sales
Kabir
Pari
Balance b/d

Cash

Bank

$

$

200
(1)
(1)
(1)
(1)

12
9
21
(1)OF

___
200
150
(1)OF

Disc.
Recd
$

2021

814 Jan 2
11
110
17
85
148
31
141
1298
818
(1)OF

+ (1) dates

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Rent
Dilip
Office
expenses
Balance c/d

(1)
(1)

Cash
$

Bank
$
450

50

(1)
150
___
200

30
818

1298

0452/22
Question

Answer

1(c)

Shilpa
Dilip account
Date
2021
Jan 10
11
31

$

Details
Purchases returns
(20–5)
Cash
Balance c/d

(1)
(1)

Marks
4
$

Details

Date
2021
15 Jan 3

Purchases
(120 – 30)

(1)

90

Balance b/d

(1)OF

90
25

50
25
90
Feb

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1

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Question
1(d)

Answer

Marks
1

Debit note
Credit note

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(1)

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0452/22

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Question

Answer

Marks

2(a)

Zamir
Income Statement for the year ended 31 December 2020
$
Fee income
Less Expenses
*Rent and rates
(26 000 – 4 000 (1) + 1 260 (1))
Salaries
Stationery and advertising
Electricity
Bank charges
Irrecoverable debts
Loss on disposal of office equipment
(1 000 – (1 260) (1)
Depreciation of office equipment
(60 000 – 1 800 = 58 200 × 15% (1)
Profit for the year

23 260
55 000
6 450
8 000
4 100
1 885

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

260 (1)OF
8 730 (1)OF

* Rent and rates alternative calculation
rent 4 000 × 4
16 000 (1)
rates 6 000 + (2/12 × 7 560)
7 260 (1)
23 260

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$
151 750

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107 685
44 065 (1)OF

10

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Question

Answer

2(b)

Zamir
Statement of Financial Position (assets section) at 31 December 2020
$
Assets
Non-current Assets

Cost

*Office equipment

58 200 (1)

Current Assets
Trade receivables (15 600 – 1 885)
Other receivables

Marks

$
Accumulated
depreciation
30 690 (1)OF

3
$
Net book
value
27 510 OF

13 715 } (1)
4 000 }
17 715
45 225

Total assets
* workings: cost 60 000 – 1800 = 58 200
acc dep (22 500 – 540) = 21 960 + 8730 OF = 30 690 OF
2(c)

© UCLES 2021

High level of drawings (1)
High level of trade receivables/trade receivables slow to settle debts (1)
Expenses not controlled efficiently (1)
To meet short-term debts when they fall due (1)
To improve cash flow/liquidity (1)
To be able to take advantage of business opportunities as they arise (1)
To purchase additional non-current assets/expand the business (1)
Accept other valid answers
Max (2)

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Question
2(d)

Answer
Salary increase – advantages
Sharif would only be entitled to his salary and not a share of the profit (1)
Zamir would not need to consult Sharif before making decisions (1)
Disagreements about decisions etc. would not arise (1)
Sharif’s motivation and commitment may improve (1)
No changes would be required to the (legal) structure of the business (1)
Accept other valid points
Max (2)
Partnership offer – advantages
Sharif may be required to introduce capital (1)
The risks/losses and responsibilities would be shared (1)
The decision-making would be shared (1)
Sharif’s salary as an employee would not need to be paid (1)
Sharif may be more committed (1)
Accept other valid points
Max (2)
Recommendation (1)

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Marks
5

0452/22
Question
3(a)

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Answer

Marks

The suspense account balance is entered on the trial balance (1)
This means that there are equal debits and credits on the trial balance/the trial balance will balance (1)

3(b)

Rachel
Journal
Error
number

Details

2
11

Debit
$

1

Premises repairs
Premises

220 (1)

2

Motor vehicles
Neil’s Wheels

3400 (1)

3

Sales
Purchases

100 (1)

4

Sales returns
Suspense

19 (1)

Suspense
Bank interest received
Bank charges

50 (1)

5

Credit
$
220 (1)
3400 (1)
100 (1)
19 (1)
25 (1)
25 (1)

3(c)(i)

Error 3 (1).

1

3(c)(ii)

Error 2 (1).

1

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Question

Answer

Marks

3(d)

4
Gross Profit

Profit for the year

Error
number
No effect

No effect

Understated
$

Overstated
$



2





(1)

3





(1)

5

© UCLES 2021

Overstated
$

1

4

3(e)

Understated
$

220

19


19
50

The accounting records may contain other errors which have not yet been found (1)

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(1)
(1)
1

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Question

Answer

4(a)

4(b)(i)

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ratio

Marks
working

answer

gross margin

51 480 100
(1) whole formula
×
114 400
1

45% (1)

trade receivables
turnover (days)
(round up to next whole day)

15 400 365
(1) whole formula
×
114 400
1

50 days (1)

current ratio
(correct to two decimal places)

2 850 + 15 400 18 250
(1) whole formula
=
7 430 + 6 190 13 620

1.34:1 (1)

If Chaaya’s trade receivables turnover (in answer to (a)) is greater than Sara’s (Sara’s was 28 days)
Chaaya’s trade receivables turnover is slower than Sara’s (1)
Chaaya may be allowing her credit customers longer to pay (1)
Chaaya’s credit customers may not be paying within a stated credit period (1)
Chaaya’s credit control policy may not be efficient (1)
This may be causing Chaaya to have more cash flow problems than Sara (1)
This may result in Chaaya having more irrecoverable debts than Sara (1)
Accept other valid points
Max (3)
If Chaaya’s trade receivables turnover (in answer to (a)) is less than Sara’s (Sara’s was 28 days)
Chaaya’s trade receivables turnover is faster than Sara’s (1)
Chaaya may be allowing her credit customers less time to pay (1)
Chaaya’s customers may be paying within a stated credit period (1)
Chaaya is less likely to have irrecoverable debts than Sara (1)
Chaaya’s credit control policy is more efficient than Sara’s (1)
This may be causing Chaaya to have fewer cash flow problems than Sara (1)
Accept other valid points
Max (3)

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Question
4(b)(ii)

4(c)

Answer

Marks

Chaaya and Sara may allow different credit periods (1)
Chaaya and Sara may use different accounting policies (1)
Chaaya and Sara may have different year-ends (1)
The figures relate to one year only. It would be more meaningful to look at trends (1)
Accept other valid points
Max (2)

2

Advantages
Cash would be received quicker (1)
The bank overdraft may be reduced (1)
Overdraft interest may be reduced (1)
There would be no irrecoverable debts (1)
There would be fewer administration costs (1)
Accept other valid points
Max (2)

5

Disadvantages
May lose customers who prefer to buy on credit / damage relationship with customers (1)
Less profit due to trade discount/reduction in selling price/reduction in sales(revenue) (1)
If sales are usually one-off rather than regular, the trade discount may have little effect (1)
Increased risk of fraud or theft/ increased security measures required (1)
Accept other valid points
Max (2)
Recommendation (1)

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0452/22
Question

Cambridge IGCSE – Mark Scheme
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Answer

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Marks

4(d)(i)

If the business has sufficient profitability/liquidity to continue to offer them employment (1)
Whether Chaaya could afford to pay them an increase in wages (1)

2

4(d)(ii)

Bank manager (1)
Trade payables (1)
Customers (1)
Government departments/tax office (1)
Potential buyers of Chaaya’s business/potential partner (1)
Investors/potential investors (1)
Accept other valid answers
Max (2)

2

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0452/22
Question
5(a)

Answer

Marks
2

(70 + 2) (1) × 130 = 9360 (1)OF

5(b)

Maira
Income Statement (trading section) for the year ended 31 December 2020
$
Revenue
Cost of sales
Purchases (1 400 × 70)
Carriage inwards (1400 × 2)
Less Goods taken for own use
Less Closing inventory

$
150 000 (1)

98 000
2 800
100 800
1 440
99 360
9 360

(1)
(1)
(2)CF/(1)OF
(1)OF from (a)
90 000 (1)OF
60 000 (1)OF (40% × revenue)

Gross profit
Revenue
2 × 10 800 = 21 600
8 × 12 000 = 96 000
2 × 16 200 = 32 400
150 000

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Question
5(c)

Answer
Advantages
Maira would have all the necessary figures e.g. balances of individual ledger accounts (1)
If the business grows, it will be more difficult to prepare financial statements from incomplete records (1)
Detailed records would be available for future reference (1)
More accurate comparisons year-on-year/with other businesses is possible (1)
More informed decision making will be possible (1)
The government/tax office may require an adequate amount of accounting records (1)
If Maira wishes to sell the business, a potential buyer may wish to see full accounting records (1)
Lenders/potential lenders can be provided with adequate information (1)
Maira should be able to prepare financial statements more easily (1)
Maira should be able to prepare financial statements more accurately (1)
Assist in location of errors/checking procedures, e.g. control accounts may be used (1)
The possibility of fraud would be minimised (1)
Accept other valid points
Max (2)
Disadvantages
Maira’s financial statements may be prepared from incomplete records (1)
Maira is busy so she may not have time for book-keeping (1)
It may take Maira time to learn double-entry book-keeping (1)
Any spare time which Maira can find may be better spent on e.g. marketing (1)
If Maira pays a book-keeper to write up her books, the cost of this will reduce her profits (1)
Accept other valid points
Max (2)
Recommendation (1)

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Marks
5

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Question

Answer

5(d)

Cash book
Discount received from a
supplier for prompt payment

Marks
Purchases
journal

Purchases
returns journal

(1)

Credit note received from a
supplier
Direct debit paid to a supplier
5(e)

 (1)
(1)
Comparability

Relevance

Maira’s inventory valuation should be free
from significant errors.

Reliability
(1)

Maira’s financial statements should be
provided in time for her to use them when
making decisions about her shop.

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3

(1)

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