Accounting (0452) · May/June 2016 · Mark scheme 11

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/11
May/June 2016

Paper 1
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 will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the May/June 2016 series for most Cambridge IGCSE®,
Cambridge International A and AS Level components and some Cambridge O Level components.

® IGCSE is the registered trademark of Cambridge International Examinations.

This document consists of 9 printed pages.
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Page 2
1

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(a) A
(b) A
(c) D
(d) C
(e) B
(f) A
(g) C
(h) B
(i) C
(j) B

2

(a) capital at start of year plus profit for the year plus capital introduced minus drawings

[1]

= capital at end of year (1)
(b)
Account(s) debited$

Account(s) credited$

1

Purchases

1 000 Pamela

2

Delivery van

3

Wages

250 (1) Bank

250 (1)

4

Ali

960 (1) Sales

960 (1)

5

Cash

110 (1) Bank

110 (1)

17 000 (1) Bank
AM Motors

1 000
12 000 (1)
5 000 (1)

[9]
(c) Transaction 3 (1)

[1]

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Page 3

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(d) Transaction 4 (1)

[2]

$360 (1)
(e) Transaction 5 (1)

[1]

(f) capital employed = owner’s capital + non-current liabilities (1)

[1]

OR
capital employed = total assets – current liabilities (1)
(g) cash book (1)

[1]

(h) general journal (1)

[1]

(i)
asset

liability

expense

income

premises

accrued wages

decrease in provision for doubtful debts

bank loan
depreciation charge

carriage outwards

Any two items correct for (1) mark

[3]
[Total: 20]

3

(a)
It contains details of the quantity and price of goods
supplied.

False (1)

It shows the value of trade discount given.

False (1)

It shows the balance owing at the start of the period.

True (1)

It is sent to remind the customer of the amount owed.

True (1)
[4]

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Page 4

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(b)
Dilip
invoice

(1)

credit note

(1)

James

(1)

debit note

[3]
(c) Dilip – sales returns journal (1)
James – purchases returns journal (1)

[2]

(d) Invoice – when goods are sold (1)
Credit note – when goods are returned (1)
Statement of account – at end of the period, usually a month (1)

[3]

(e)
2016
Mar 1 Balance b/d
6 Sales

$
300
496

796
352

Apr 1 Balance b/d
+(1) for dates

Dilip
James account
2016
(1)
Mar 3 Bank
(1)
Discount allowed
13 Sales returns
31 Balance c/d

$
291
9
144
352
796

(1)
(1)
(1)

(1of)
[7]

(f) Item – trade receivables (1)
Section – current assets (1)

[2]

(g) For early payment (1)

[1]
[Total: 22]

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Page 5
4

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(a)
Name of accounting
principle or policy

Explanation

Duality

Every transaction has a two-fold aspect

Prudence (1)

Profits should not be overstated

Money measurement (1)

Financial statements only include items which can be
expressed in monetary terms

Going concern

Accounting assumes that a business will continue to
operate indefinitely (1)

Business entity

A distinction is made between the financial transactions of
a business and those of its owner(s) (1)

Reliability (1)

Accounting information should be free from error and bias

Consistency

The same accounting treatment should be applied to
similar items at all times (1)
[6]

(b) different accounting policies
different locations
different capital structures
different type of business
different type of goods sold
different year end
non-monetary items
different size of business
Accept other reasonable answer
Any two for (1) mark each

[2]

(c)
User

Reason

Bank manager

To make decision regarding loan or overdraft (1)

Credit supplier

To ensure credit worthiness of customer (1)
To establish credit limit (1)

Investor

To see the return on his investment (1)

Other reasonable answers accepted.
[3]

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Page 6

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

(d) Prime cost = direct materials plus direct labour (1) plus direct expenses (1)

Paper
11
[2]

(e)
manufacturing
account

income
statement

depreciation of factory machinery

depreciation of delivery van
royalties

factory rent

salesman’s commission

factory supervisor’s salary

sales returns
closing inventory of work in progress

(1) mark for any two items correct

[4]

(f) Items of production which are partial completed (1)

[1]

(g) Because a boat takes longer to make than a bread roll (1)

[1]
[Total: 19]

5

(a)
Rohinton
Cash book (bank columns only)
2016
Feb 1 Balance b/d

$
3 188

(1)

Feb 1 Balance b/d

3 188
2 468

(1of)

2016
Feb 1 Insurance
Balance c/d

$
720
2 468
3 188

(1)

[3]

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Page 7

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(b)
Rohinton
Bank reconciliation statement at 31 January 2016
$
$
Balance per updated cash book (1)
2 468 (1of)
Add: unpresented cheques – Arun
402
(1)
– Charles
780
(1)
1 182
3 650
Less: uncredited deposit – Ling
(195) (1)
(1)
Balance per bank statement (1)
3 455
OR
Rohinton
Bank reconciliation statement at 31 January 2016
$
$
Balance per bank statement (1)
3 455
(1)
Less: unpresented cheques – Arun
402
(1)
– Charles
780
(1)
(1 182)
2 273
Add: uncredited deposit – Ling
195
(1)
Balance per updated cash book (1)
2 468 (1of)
[7]
(c)
Rohinton
Statement of affairs at 31 January 2016
$
Non-current assets
Fixtures and fittings – cost
– depreciation4000 × 0.15 ÷ 12
Current assets
Inventory
Trade receivable
Other receivables – rent
– insurance
Bank
Cash

2 000
660

(1)
(1)

4 000
(50)

(1)
(1)

1 211
70

(1)
(1)

2 660
2 468
710

(1of)
(1)

$
3 950

7 119

Current liabilities
Trade payable
Net assets

(550)
10 519

(1)

Capital

10 519

(1of)
[10]

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Page 8

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(d)
Capital – at 31 January 2016
– at 1 January 2016
Profit for the month

$
10 519
10 000
519

(1of)
(1)
(1of)
[3]
[Total: 23]

6

(a) Annual depreciation $3720 (1)
11 160(1) / 3720 = 3 years (1)

[3]

(b)
David and Harold
Income Statement for the year ended 31 March 2016
$
Revenue (sales)
Inventory at 1 April 2015
Purchases
Inventory at 31 March 2016
Cost of sales
Gross profit
Depreciation
Rent
Wages
Other operating expenses

$
142 000

36 000
83 100
119 100
26 800

(1)

(1)
92 300 (1)
49 700 (1of)

3 720 (1of)
12 000 }
16 500 }(1)
11 300
(1)
43 520
6 180 (1of)

Profit for the year

[8]
(c)
David and Harold
Appropriation Account for the year ended 31 March 2016
$
6 180
(12 000)
(5 820)

Profit for the year
Salary – David
Share of residual loss – David
– Harold

(3 880)
(1 940)

(1of)
(1)

(5 820) (1of)
[3]

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Page 9

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
11

(d)
$
12 000
(3 880)
8 120

Salary
Share of loss
Total

(1of)
(1of)
(1of)
[3]

(e) Interest on drawings might encourage partners to reduce drawings. (1)

(f)

49 700
100
(1of) ×
= 35% (1of)
142 000
1

[1]

[2]

(g) Cost of sales = [142 000 (1) × (1 – 0.45)(1)] = $78 100 (1)
(36 000 + 83 100) (1) – 78 100 = 41 000 (1)
OR
Opening inventory
Purchases
Cost of sales
Expected closing inventory

$
36 000 }
83 100 }(1)
(78 100)* (3)
41 000 (1of)

*142 000 (1) – 63 900 (1) = $78 100 (1)

[5]

(h) Any reasonable answer for (1) mark

[1]

E.g. Theft, pilferage, damage, obsolescence, more/higher sales activity
[Total: 26]

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