Accounting (0452) · May/June 2016 · Mark scheme 23

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/23
May/June 2016

Paper 2
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®,
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® IGCSE is the registered trademark of Cambridge International Examinations.

This document consists of 11 printed pages.
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Page 2
1

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(a) Reduce the number of entries in the main cash book
Removes the small cash payments from the main cash book
Reduces the number of entries in the ledger
Allows the chief cashier to delegate some of the work
Provides training for junior staff members
Accept other suitable reasons
Any 2 reasons (1) each

[2]

(b) (i)

Total
received
$
23
77

100

Date
2016
April 1

Details

$

4
16
19
23

Balanceb/d
Bank(1)
Tea and coffee(1)
Stationery(1)
Taxi fare(1)
T Nhete(1)

30

Balancec/d

2016
May1

Carol
Petty Cash Book
Total
paid

11
25
8
38
82
18

Postage &
stationery

General
expenses

Ledger
accounts

$

$

$

11
25
8
38
25

19

38

100
Balanceb/d(1)OF

18
(1) Dates
(1) OF Totalling analysis columns
(1) OF Totalling total columns

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Page 3

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(ii)

Date
2016
Apl1
20
28
29

Details

Discount
allowed
$

Balanceb/d
B Mamba(1)
Sales(1)
Cashc(1)OF

$
210

$

2970
3080

Balancesb/d

2016
Apl1

897

23

23
2016
May 1

Cash

Carol
Cash Book
Date
Bank

3180
100 (1)

9
29
30

Details
Balanceb/d
Petty cash(1)
K Mzolo(1)
Bankc(1)
Balancec/d

3977

Discount
received
$

Cash

Bank

$

$
1437
77
441

9

9

3080
100

2022

3180

3977

2022
(1)OF

+ (1)OF totalling discount columns
+ (1) dates

[10]
[Total: 21]

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Page 4
2

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(a)
$
61 230
1 570
2 070
260
16 190
81 320

Receipts from credit customers
Cash discount allowed
Returns from credit customers
Bad debts
Amount owing by customers 29 February 2016
Credit sales

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

Alternative presentation
Total trade receivables account
Date

Details

2016
Feb 29

*Sales(1)OF

$

Date

Details

81 320 2016
Feb 29

Bank
Discount alld
Returns
Bad debts
Balance c/d

81 320
2016
Mar1

Balance b/d

$
61 230
1 570
2 070
260
16 190
81 320

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

16 190

*Balancing figure

[6]

(b)
$
Credit purchases
Less Returns to credit suppliers
Cash discount received
Amount owing to credit suppliers
29 February 2016
Amount paid to credit suppliers

$
70 150 (1)

1 110
1 860

(1)
(1)

7 040

(1)

10 010
60 140 (1)OF

Alternative presentation

Date
2016
Feb 29

Total trade payables account
$
Details
Details
Date
2016
1 110 Feb 29 Purchases(1)
Returns(1)
Discount recd (1)
1 860
*Bank(1)OF
60 140
Balance c/d(1)
7 040
70 150
2016
Balance b/d
Mar1

$
70 150

70 150
7 040

*Balancing figure
[5]

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Page 5

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(c)
Aneela
Bank account
Date
2015
Mar1
2016
Feb 29

Details
Capital(1)
Loan(1)
Trade receivables
(1)

$

Date
2016
45 000 Feb 29
10 000
61 230

116 230

2016
Mar1

Balance b/d

Details
Non-current assets
(1)
Trade payables
(1)OF
*Expenses(1)OF
Balance c/d(1)

$
20 500
60 140
18 620
16 970
116 230

16 970

*Balancing figure
[7]
[Total: 18]
3

(a) Share losses
Share responsibilities
Share risks
Share decision-making
Additional finance may be available
Additional skills and experience are available
Any 1 advantage (1)

[1]

(b) Share profits
Decisions must be recognised by all partners
Decisions may take longer to implement
One partner’s actions can bind the other partners
Disagreements can occur
All partners are responsible for the debts of the business
Any 1 disadvantage (1)
(c) Greater security than capital

[1]
[1]

Repaid before capital in a winding-up
Extra funds may be required for a limited period only
Or other suitable comment
Any 1 comment (1)
(d) To be able to meet debts when they fall due
To be able to take advantage of cash discounts
To be able to take advantage of business opportunities as they arise
To ensure that there is no difficulty if obtaining supplies/services on credit
Or other suitable explanation
Any 2 points (1) each

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Page 6

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(e) Alternative presentation of current accounts
Current accounts
Abid
$
2015
Apl 1
2016
Mar 31

Balance
b/d
Drawings
(1)
Interest
on
drawings
(1)
Balance
c/d

Faiz
$
2015
Apl 1

110
6 000

120

7 000

140
1 770

6 230

Abid
$

2016
Mar 31

Balance
b/d(1)
Interest
on
Capital(1)

800

2 400

Salary (1)
Profit
share (1)
Balance
c/d

8 910

Faiz
$

1 650
5 000

2 920

1 460

910
6 230

8 910

+ (1) OF for each balance if shown in statement of financial position making a total of
(8) for the current accounts
[13]

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Page 7

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

Abid and Faiz
Statement of Financial Position at 31 March 2016

$

$

$

Assets
Non-current assets
Fixtures and equipment (book
value)
Motor vehicles (book value)

104 000
28 520
132 520 (1)

Current assets
Trade receivables
Bank

19 320
16 080
35 400 (1)

Total assets

167 920

Capital and liabilities
Capital accounts
Current accounts
Opening balance
Interest on capital
Salary
Profit share
Drawings
Interest on drawings
Closing balance

Abid
80 000
(110)
2 400
2 920
5 210
6 000
120
6 120
(910) (1) OF

Faiz
55 000 (1) both
800
1 650
5 000
1 460
8 910
7 000
140
7 140
1 770

Total
135 000

(1) both
(1) both
(1)
(1) both
(1)
(1) both
(1) OF
860
135 860

Non-current liabilities
Loan – Abid

20 000 (1)

Current liabilities
Trade payables
Other payables

11 900 }
160 }(1)
12 060

Total liabilities

167 920
[13]

(f)

13170
100 }
(1) whole formula OF= 8.45% (1) OF
×
(167 920 − 12 060)
1 }

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Page 8

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(g) Shows the profit earned for each $100 used in the business (1)
The higher the percentage the more efficiently the capital is being employed (1)
Or other acceptable answer
Any 2 points (1) each

[2]
[Total: 22]

4

(a)
Yasmin
Manufacturing Account for the year ended 30 April 2016
$
$
Cost of materials used
Purchases of raw materials
28 600 (1)
Carriage on raw materials
1 500 (1)
30 100
Less Closing inventory of raw materials
3 150
26 950
Direct wages
32 300
Prime cost
59 250
Factory overheads
Indirect factory wages
11 860 (1)
General factory expenses
3 340 (1)
4 500 (1)
Rates (¾ × 6000)
7 000 (1)
Depreciation – Machinery (35 000 × 20%)
26 870
Tools (1000 – 830)
170 (1)
86 120
Less Closing work in progress
2 920
Cost of production
83 200

(1)
(1)
(1)

(1) OF
(1)
(1) OF
[13]

(b) (i)
Cost of production
Purchases of finished goods
Less Closing inventory of finished goods
Cost of sales

83 200 (1) OF
15 700 (1)
98 900
6 800

(1)
92 100 (1) OF
[4]

(ii)
Revenue
Cost of sales
Gross profit

113 640
92 100 OF
21 540 (1) OF
[1]

(c) (i)

21540
100 }
(1)OF whole formula = 18.95% (1) OF
OF ×
113 640
1 }

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Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(ii) Increase selling price
Increase mark-up
Reduce trade discount allowed to customers
Reduce cost of manufacturing
Purchase cheaper raw materials
Buy in bulk to obtain trade discount
Reduce factory wages
Reduce factory overheads
Or other suitable methods
Any 2 ways (1) each

[2]
[Total: 22]

5

(a) Work can be shared amongst several people
Easier for reference as same types of account are kept together
Easier to introduce checking procedures
Reduce the possibility of fraud
Or other suitable advantage
Any 1 advantage (1)

[1]

(b) (i) Purchases ledger (1)
(ii) Nominal (general) ledger (1)
(iii) Nominal (general) ledger (1)

[3]

(c) Paul
Date
2015
Jan1
Apl1
May1
Dec 31
2016
Jan1

Details
Balance b/d
Rates900
Rent3200
Bank (rates)(1)
Bank (rent)(1)
Balance c/d
(rent)
Balance b/d
(rates)(1)OF

Rent and rates account
Details
$
Date
2015
Dec 31 Income statement
Rates3870 (1)
Rent9600 (1)
4 100
3 960
Balance c/d
4 800
(rates)
1 600
14 460

13 470
990

14 460

2016
Jan1
990

$

Balance b/d
(rent)(1)OF
1 600

+ (1) dates

[7]

(d) This is an application of the principle of prudence
Over-valuing the inventory causes the profit for the year to be overstated
Over-valuing the inventory causes the current assets to be overstated
Any 2 points (1) each
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Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(e)
overstated
Profit for the year ended
31 December 2014

understated

no effect

(1)

(1)

Profit for the year ended
31 December 2015
Cost of sales for the year ended
31 December 2015

(1)

Current assets at
31 December 2014

(1)

(1)

Current assets at
31 December 2015

[5]
[Total: 18]

6

(a) (i)

3 500
100 }
(1) whole formula = 4.64% (1)
×
(59 600 + 15 800)
1 }

[2]

(ii) Increase in expenses/not controlling expenses as well
Decrease in other income
Change in type of expense
Decrease in gross profit percentage
Any 2 reasons (1) each

[2]

(b) David
Journal
Debit Credit
$
$
Office expenses
Cash
Correction of error of omission

114

Suspense
Sales
Correction of error of transposition

900

114

(1)
(1)
(1)

900

(1)
(1)
(1)
[6]

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Page 11

Mark Scheme
Cambridge IGCSE – May/June 2016

Syllabus
0452

Paper
23

(c)
David
Statement of corrected profit for the year ended 31 January 2016
$
3 500

Profit for the year before corrections
Increase
in profit
$
Error 1
Error 2
Error 3
Error 4
Error 5

Decrease
in profit
$
114

900 (2)
600 (2)
1 628 (2)
24 (2)

900
Corrected profit for the year

2 366

For each error – (1) for position and (1) for figure

1 466
2 034 (1)OF
[9]
[Total: 19]

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