Accounting (0452) · May/June 2012 · Mark scheme 13

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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education

MARK SCHEME for the May/June 2012 question paper
for the guidance of teachers

0452 ACCOUNTING
0452/13

Paper 1, maximum raw mark 120

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 must be read in conjunction with the question papers and the report on the
examination.

• Cambridge will not enter into discussions or correspondence in connection with these mark schemes.

Cambridge is publishing the mark schemes for the May/June 2012 question papers for most IGCSE,
GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level
syllabuses.

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Page 2
1

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

Syllabus
0452

Paper
13

Key
(a) C

[1]

(b) D

[1]

(c) D

[1]

(d) A

[1]

(e) B

[1]

(f) B

[1]

(g) D

[1]

(h) C

[1]

(i) A

[1]

(j) A

[1]
[Total: 10]

2

(a) Invoice

[1]

(b) To show the financial position of a business on a certain date.

[1]

(c)
Asset

Liability

(1)

Inventory
Rent receivable prepaid

(1)

Trade payables

(1)
[3]

(d) To calculate how much it has cost the business to manufacture the goods (1) produced in the
financial year (1).
[2]

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Page 3

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

Syllabus
0452

Paper
13

(e) (i) Money measurement (1)
(ii) Relevance (1)

[2]

(f) (300 × $10.30) (1) = $3090 – 4% = $3090 – $123.60 = $2966.40 (1)

[2]

(g) Land, buildings, machinery, equipment, fixtures, motor vehicles, goodwill
Any 2 (1) each

[2]

(h) The business is treated as being completely separate from the owner. (1)
The accounting records relate only to the business, (1)

[2]

(i) (200 × $100) (1) = $20 000 × 3% × ½ = $300 (1)

[2]

(j) Payments
Less opening accrual
Plus closing accrual
Charge for the year

$2100
350 (1)
1750
470 (1)
2220 (1)
[3]
[Total: 20]

3

(a) To assist in the preparation of financial statements
To check for arithmetical accuracy/errors (must include arithmetical)
Any 1 reason (1)

© University of Cambridge International Examinations 2012

[1]

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Page 4

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

(b)

Syllabus
0452

Paper
13

Hans Lee
Trial Balance at 30 April 2012
Dr
$

Cr
$

Revenue

110 000

Purchases

65 000

Inventory (1 May 2011)

11 500

Trade receivables

(1)

1 300

Trade payables
Machinery

7 400

Expenses

31 600

Bank overdraft
Capital

}
1 900

}(1)

3 100

(1)

11 500

}

Drawings

7 600

}(1)

Suspense (1)

2 100

(1) OF

126 500

126 500

(1)
[7]

(c)

Hans Lee
Journal
Debit
$
1
2
3

Purchases
Suspense

1 600

Suspense
John Tan

300

Drawings
Suspense

200

Credit
$
1 600

(1)
(1)

300

(1)
(1)

200

(1)
(1)
[6]

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Page 5

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

Syllabus
0452

Paper
13

(d)
Increase

Decrease

No effect

(1)

Error 1
Error 2

(1)

Error 3

(1)
[3]

(e) All the errors have NOT YET been discovered. (1)
There is a balance remaining on the suspense account/Trial Balance. (1)

[2]
[Total: 19]

4

(a) To avoid recording small cash payments in the main cash book (2)
To reduce the number of entries in the main cash book (2)
Any one reason (2)

[2]

(b) The petty cashier starts each month with the same amount of money. (1)
At the end of the period the amount spent is reimbursed so the cash remaining is equal to
the imprest amount. (1)
[2]
(c) Refer to next page
(d)
2012
April 30 Petty cash

[12]
Postages and stationery account
$
2012
60 (1)
April 30 Petty cash

2012
April 30 Petty cash

Motor expenses account
$
38 (1)

2012
April 30 Petty cash

Catering supplies account
$
12 (1)

2012
April 30 Petty cash

Cleaning account
$
70 (1)

$
4

(1)

[5]
(e) $24 (1) O/F from (c)

[1]
[Total: 22]

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Page 6
4

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

continued

Total
Received
$
97
103 (1)
4 (1)

204
24 (1)
176 (1)
O/F

Syllabus
0452

Paper
13

Theba – Petty Cash Book
Date

Details

4
12
17
21
24
29

Balance
b/d
Bank
Postage stamps
Stationery
Fuel
Stationery refund
Catering supplies
Cleaning

30

Balance

April 1

c/d

Total Paid

Postages and stationery

$

$
24
36
38

Motor
expenses

Cleaning
$

$

$
24 (1)
36 (1)
38 (1)

12 (1)

12
70
180
24

Catering
supplies

70 (1)
60

38

12

70

204

May 1
Balance
Bank/Cash

b/d

Totals of analysis columns (1);
Totals of total columns (1)
Dates (1)

[12]

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Page 7
5

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

Syllabus
0452

Paper
13

(a) Additional finance
Additional knowledge and skills
Sharing of responsibilities
Sharing of risks
Discussions can take place before taking decisions
Any 2 (1) each

[2]

(b) Profits have to be shared
Decisions have to be recognised by all partners/disagreements may arise
Decisions may take longer to put into effect
One partner’s actions are binding on all partners
All partners are responsible for the debts of the business
Any 2 (1) each

[2]

(c)

Raoul and Hassan
Journal
Debit
$
Bank
Capital Raoul

6000

Inventory
Capital Hassan

4000

Rent
Shop fittings
Bank ( or Cash Book )

Credit
$
6000

(1)
(1)

4000

(1)
(1)

1350

(1)
(1)
(2)

600
750

[8]
(d)

Raoul and Hassan
Profit and Loss Appropriation Account for the year ended 31 March 2012
$
$
Profit for the year
Less Interest on capital – Raoul
180 (1)
Hassan
120 (1)
300
Partner’s salary – Rauol
3000 (1)
Profit shares – Raoul
Hassan

2200 (2)(1) OF
3300 (2)(1) OF

$
8800

(1)

3300
5500
5500
[8]

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Page 8

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

(e)
2012
Mar 31 Balance c/d

Syllabus
0452

Raoul
Current account
$
2012
5380
Mar 31 Interest on cap
Salary

Profit share
5380
April 1 Balance b/d

Paper
13

$
180
3000
2200
5380
5380

(1)O/F
(1)
(1)O/F
(1)O/F
[4]

(f) Increase Raoul’s salary
Allow commission on sales
Change the profit-sharing ratio
Any 1 (2)

[2]
[Total: 26]

6

(a) (i) Current assets – current liabilities (1)
(36 000 + 60 000) – (63 000 + 17 000) = 96 000 – 80 000 (1)
= $16 000 (1) OF

[3]

(ii) Current assets : current liabilities (1)
96 000 : 80 000 (1) = 1.2 : 1 (1) OF

[3]

(iii) Current assets – inventory : current liabilities (1)
60 000 : 80 000 (1) = 0.75 : 1 (1) OF

[3]

(b) (i) Cole Limited (1)
Cole Limited can pay the immediate liabilities from the current assets and/or Fanza
Limited’s ratio is lower than is usually acceptable (2)
[3]
(ii) Cole Limited (1)
Cole Limited can meet the immediate liabilities from the liquid assets but Fanza may
have difficulty in paying current liabilities when they fall due/Fanza Limited’s ratio is lower
than is usually acceptable (2)
[3]
(c) Receive a fixed rate of dividend
The dividend is paid before ordinary share dividend
Capital is returned before ordinary share capital in a winding up
Do not usually carry voting rights
Preference shares are part of the capital of the company
Preference shareholders are members of the company
Any 2 (2) each

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[4]

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Page 9

Mark Scheme: Teachers’ version
IGCSE – May/June 2012

Syllabus
0452

Paper
13

(d) Receive a fixed rate of interest
Interest is paid irrespective of the profit of the company
Are long term loans
Are often secured on the assets of the company
Debentures are repaid before share capital in a winding up
Debenture holders are not members of the company
Do not carry voting rights
Any 2 (2) each

[4]
[Total: 23]

© University of Cambridge International Examinations 2012