Accounting (0452) · May/June 2017 · Mark scheme 11

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/11

Paper 1

May/June 2017

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 2017 series for most Cambridge IGCSE®,
Cambridge International A and AS Level and Cambridge Pre-U components, and some Cambridge O Level
components.

® IGCSE is a registered trademark.

This document consists of 11 printed pages.
© UCLES 2017

[Turn over

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

May/June 2017
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Marks

1(a)

A (1)

1

1(b)

C (1)

1

1(c)

D (1)

1

1(d)

C (1)

1

1(e)

D (1)

1

1(f)

C (1)

1

1(g)

D (1)

1

1(h)

A (1)

1

1(i)

A (1)

1

1(j)

B (1)

1

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Page 2 of 11

0452/11

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

2(a)

capital = assets – liabilities (1),
or assets = capital + liabilities (1), or liabilities = assets – capital (1)

1

2(b)

asset – something a business owns or which is owed to the business (1) (need all)
liability – something which a business owes to a third party (1)
inventory – goods bought for resale not yet sold (1)

3

2(c)

duality (1)

1

2(d)

debit account

credit account

bank (1)

Michael (1)

bad debts (1)

Zoe (1)

Taha receives a
cheque from Michael,
a credit customer
Taha writes off of a
debt owed by Zoe
2(e)

1

sales (ledger) (1) or Trade receivables (ledger) (1)

2(f)

true

false

it will increase the total of the non-current
assets

√

it will increase the total of current assets

√ (1)

it will decrease cash and bank

√ (1)

it will require a credit entry in the provision
for doubtful debts account
it will have no effect on profit for the year

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4

Page 3 of 11

√ (1)
√ (1)

4

0452/11

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(g)

Marks
5

Andy
Factory Street
Toptown

Invoice no 1001

Fred
Shop Road
Toptown
Quantity
20
10

22 May 2017
Details

Unit
price
$50
$75 (1)

Standard chair
Luxury chair
10% trade discount

Amount
$
1000 (1)
750 (1)
1750
175 (1) OF
1575 (1) OF

2(h)

$1575 (1) OF

1

2(i)

credit note (1)

1

2(j)

Andy’s business buys or manufactures goods which it then sells. (1)
A service business provides a service to its customers or clients. (1)

2

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Page 4 of 11

0452/11

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

3(a)

Any reasonable comment for (1) mark e.g.
Because purchases represent costs to the business
Purchases are amounts which reduce profit
Purchases are amounts paid by the business

1

3(b)

Book of prime (original) entry (1)

1

3(c)
Feb 21 Balance b/d
28 Purchases
for the week

8

Zameer
Purchases account
$
67 210 (1) Feb 28 Income
statement
960 (1)

$
68 170 (1) OF

68 170

68 170

Rent payable account
$
$
Feb 21 Balance b/d 6 600 (1)
25 Bank

1 800
8 400
Mar 1 Balance b/d 1 200 (1) OF

Feb Income
28 statement
Balance c/d

7 200 (1) OF
1 200 (1)
8 400

+(1) for dates
3(d)

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2

Revenue (1)
Revenue (1)

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0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(e)

Answer
sales
commission received
rent received
interest received
any one for (1) mark.

(ii)

capital introduced
proceeds of sale of non-current asset
receipt of loan
any one for (1) mark
Answer

Marks
1

at the lower of cost and net realisable value (1)

4(b)

$
2 000 (1)
112 200 (1) OF
114 200 (1) OF

50×$40
1870 (1)×$60
total
4(c)

$
Revenue
Inventory at 1 January
2016
Purchases

$
114 200 (1) OF

2 400 (1)
48 000 (1)
50 400
4 320 (1)

Inventory at 31 December
2016
Cost of sales
Gross profit
accept alternative presentation

© UCLES 2017

Marks
2

(i)

Question
4(a)

May/June 2017
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46 080
68 120 (1) OF

4

5

0452/11

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

4(d)

Marks
$

Trade receivables at 1 Jan 2016
Sales
Bad debts
Trade receivables at 31 Dec 2016
Receipts
accept alternative presentation

200 (1)
9 100 (1)

$
7 900 (1)
114 200 (1) OF
122 100

5

9 300
112 800 (1) OF

4(e)

To apply the matching (accruals) principle (1)
Because the income statement accounts for sales made during the year (1)
Because receipts may not arise in the same year as the sale is made (1)
accept other suitable answers
[maximum 2]

2

4(f)

cash discount (1)

1

4(g)

increase

no effect
√ (1)

gross profit

© UCLES 2017

decrease

profit for the year

√ (1)

working capital

√ (1)

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3

0452/11

Question

Answer

5(a)

JW Limited
Trial Balance at 30 April 2017

Marks

debit
$
Gross profit
Distribution costs
Administrative expenses
Interim dividend paid
Debenture interest
Ordinary shares of $1 each
General reserve
Retained earnings
Equipment at cost
Provision for depreciation of equipment
Inventory
Trade receivables
Bank
Trade payables
10% debentures (repayable 2025)

24 000
16 000
6 000 }
3 000 } (1)

260 000

9

credit
$
63 000 }
}
} (1)
100 000 }
50 000 } (1)
23 700 (1) OF
}
65 000 } (1)

33 000 }
14 000 } (1)

356 000
5(b)
Gross profit
Expenses [24 000 + 16 000] (1) + 13 000 (1)]
Debenture interest
Profit for the year

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May/June 2017
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6 800
17 500
30 000
356 000

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

$
63 000
53 000
3 000 (1)
7 000 (1) OF

4

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(c)

May/June 2017
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Answer

Marks

JW Limited
Statement of Changes in Equity for the year ended 30 April 2017
Total
Retained
General
Share
Details
earnings
reserve
capital
$
$
$
$
100 000

On 1 May 2016

50 000 (1)

23 700 (1of)

173 700 (1) OF

Interim dividend paid

(6 000) (1)

(6 000)

Profit for the year

7 000 (1of)

7 000

10 000 (1)

(10 000) (1)

0

60 000

14 700

Transfer to general reserve
On 30 April 2017

5(d)

100 000

7 000 (1 OF)
174 700 (1 OF)+30 000 (1)

×100=3.42% (1) OF

(7 000+3 000) (1 OF)
174 700 (1 OF)+30 000 (1)

×100=4.89% (1) OF

8

174 700
(1) OF row

4

OR

5(e)

© UCLES 2017

2

mark up applied to goods for resale is lower
poorer control of expenses
profit is lower
higher interest payable
poorer utilisation of resources
capital used less efficiently
capital employed is higher
any two for (1) mark

Page 9 of 11

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(f)

Answer

6(a)

Marks
3

increase sale (1)
reduce cost of sales/find cheaper supplier (1)
reduce expenses (1)
reduce interest payments (1)
reduce capital employed (1)
reduce loans and debentures (1)
any three for (1) mark

Question

Answer

Marks
1

Subscriptions paid in advance at the year-end (1)

6(b)

May/June 2017
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4

current assets
cash and cash equivalents/bank
inventory
subscriptions in arrears

$6120 (1)
$710 (1)
$980 (1)

current liabilities
subscriptions in advance
6(c)
Sales
Purchases
Increase in inventory
(710 – 440)
Rent
Loss

© UCLES 2017

$395 (1)
$
13 610 }
(15 240) } (1)
270
(1)

(1 360)
(1 200)
2 560
accept alternative formats

Page 10 of 11

(1)
(1) OF

4

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

6(d)

The Hi-Jump
Income and Expenditure Account for the year ended 31 December 2016
$
$
Income
Subscriptions
52 905 (1)
Less expenditure
Shop loss
2 560 (1) OF
Rent
10 800 (1)
Club expenses
34 200 (1)
Bad debts
250 (1)
50 110
Depreciation - equipment
2 300 (3) *
Surplus
2 795 (1) OF
* 17 100 (1)+5 100 (1)–19 900 (1) =2 300

May/June 2017
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Marks
9

6(e)

to provide a service to members
because the club can still make a surplus
because the loss is small in relation to subscriptions
because it encourages members to join this club rather than another one
because the rent would still be payable even if the shop closed
any two reasons for (1) mark each

2

6(f)

the surplus would not change (1)
plus development
the shop’s loss would decrease (1)
OR rent in the income and expenditure account would increase (1)
[maximum 2]

2

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