Accounting (0452) · May/June 2017 · Mark scheme 21

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/21

Paper 2

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 13 printed pages.
© UCLES 2017

[Turn over

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
1(a)

May/June 2017
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Answer
The bank statement is a copy of the account of the business as it appears in the books of the bank / the bank statement is
prepared from the viewpoint of the bank (1)
The bank account in the cash book is prepared from the viewpoint of the business (1)

© UCLES 2017

Page 2 of 13

Marks
2

0452/21

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(b)
Date

Details

Discount
allowed
$

2017

Cash

Amjad
Cash Book
Bank
Date

$

$

38

2750

13

2017

Mar 1

Balances
b/d

13

XY Limited

(1)

29

Sales

(1)

30

Cash

(1)

2000

31

Idris

(1)

474

4

Marks

March 6

Discount
received

Cash

$

$

(1)

790

Repairs to office
equipment

(1)

160

21

Furniture Store

(1)

30

Bank c

(1)

31

Bank charges

(1)

29

Insurance

(1)

50

196

9

351
2000

Balances c/d
2186

5420

Balances
b/d

186

4040

+(1) dates

(1)OF

(1)OF

2017
April 1

© UCLES 2017

$

Office Equipment

2148

4

Bank

Page 3 of 13

4040
9

2186

5420

0452/21

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(c)

Marks

Amjad
Bank Reconciliation Statement at 31 March 2017
$
Balance in cash book
4 040 (1) OF
Cheques not yet presented
351 (1)
(1)
4 391
Amounts not yet credited
2 000 (1)
(1)
Balance on bank statement
2 391 (1) OF
Alternative presentation
Balance on bank statement
Amounts not yet credited
Cheques not yet presented
Balance in cash book

(1)
(1)

$
2 391
2 000
4 391
351
4 040

6

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

1(d)(i)

The financial transactions are recorded at the actual cost (1)
Because of this it is difficult to compare transactions taking place at different times (1)

2

1(d)(ii)

The accounting records only show information which can be expressed in monetary terms/non-monetary items cannot be
recorded (1)
There are many other factors which affect the performance of the business (1)

2

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Page 4 of 13

0452/21

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

2(a)

Sales invoice (1)
Credit note (1)

2

2(b)

Cash book (1)
General journal (1)

2

2(c)

Harum
Kalgi account

6

$
2017
Mar 1 Balance b/d
4 Sales
18 Bank (dis chq)

$

520
224 (1)
520 (1)

2017
Mar 10
12
28
30

1264
2(d)

Reduce credit sales/sell on a cash basis
Obtain references from new credit customers
Fix a credit limit for each customer
Improve credit control
Issue invoices and monthly statements promptly
Refuse further supplies until outstanding balance is paid
Allow cash discount for prompt payment
Charge interest on overdue accounts
Any 2 points (1) each

© UCLES 2017

Bank
Returns
Cash
Bad debts

520
96
600
48
1264

(1)
(1)
(1)
(1)
2

Page 5 of 13

0452/21

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(e)

Error

Marks

Debit
$

Account

$

Ali

310

Alam

310

Wages paid in cash, $1200, had
been correctly entered in the
cash book but posted to the
wages account as $2100.

Suspense

900

(1)

Wages

900

(1)

The total of the general expenses
column in the petty cash book,
$48, had not been posted to the
general expenses account.

General
expenses

48

(1)

Suspense

48

(1)

The total of the discount received
column in the cash book, $114,
had been debited to the discount
allowed account

Suspense

228

(1)

Discount
allowed

114

(1)

Discount
received

114

(1)

Comparability (1)
Reliability (1)
Understandability (1)

© UCLES 2017

Credit

Account
Goods returned, $310, to Ali, a
credit supplier entered into the
account of Alam.

2(f)

7

Entry required to correct the error

3

Page 6 of 13

0452/21

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

3(a)

Meena and Rafah
Profit and Loss Appropriation Account for the year ended 30 April 2017
$
$
Profit for the year
7 534
Interest on drawings –
Meena
292
Rafah
204
496 (1)
8 030
Interest on capital –
Meena
1 200 (1)
Rafah
3% × 20 000 × 6 / 12 = 300 (1)
750
3% × 30 000 × 6 / 12 = 450 (1)
1 950
Partner’s salary –
Meena
(1)
6000 × 6 / 12 = 3000
6 500
8 450
(1)
7000 × 6 /12 = 3500
(420)
Share of loss –
Meena
280 (1) OF
Rafah
140 (1) OF
(420)

8

Alternative calculations *3% × 20 000 = 600 (1) + 3% × 10 000 × 6 / 12 = 150 (1)
** 6000 (1) + (100 × 6 / 12) = 500 (1)
3(b)

Meena
Current account

5

$
2016
May 1
2017
April 30

2017
May 1
© UCLES 2017

Balance b/d
Drawings
Int on drawings
Share of loss
Balance b/d

$
2017
April 30

1 490
7 300 }
292 }(1)
280 (1) OF
9 392
1 662 (1) OF

Page 7 of 13

Interest on
capital
Salary
Balance c/d

1 200 (1) OF
6 500 (1) OF
1 662
9 362

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2017
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Answer

Marks

3(c)

Inventory is not included in the calculation of the quick ratio (1)
Either The quick ratio shows whether the business would have any surplus liquid funds if all the current liabilities were paid
immediately from the liquid assets (1)
OR Shows the ability of the business to pay immediate / current liabilities from immediate/liquid assets (1)

2

3(d)

Change from positive bank balance to overdraft
Increased level of inventory
Purchases of non-current assets
Repayment of long-term loan
Increase in current liabilities/increase in trade payables/increase in bank overdraft
Decrease in trade receivables
Increase in drawings
Any 2 points (1) each

2

3(e)

(19 400 + 15 100) : (17 350 + 2300 + 100)
34 500 : 19 750 (1)
1.75 : 1 (1)

2

3(f)

Cannot meet debts when they fall due
Cannot take advantage of cash discounts
Cannot take advantage of business opportunities as they arise
May have difficulty in obtaining further supplies on credit/cannot replace inventory
Cannot meet day-to-day expenses
May not be able to take cash drawings
Or other suitable points
Any 2 points (1) each

2

3(g)

Introduce more cash as capital/admit another partner
Reduce drawings
Obtain long-term loan
Sell surplus non-current assets
Increase profit
Or other acceptable points
Any 2 points (1) each

2

© UCLES 2017

Page 8 of 13

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
4(a)
4(b)(i)

May/June 2017
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Answer

Marks

Costs which can be traced to a product/the cost of the essentials necessary for production (1)
It is the total of the direct materials, direct labour and direct expenses (1)

2

The costs involved in operating the factory/factory indirect expenses (1)

2

They cannot be directly linked with/traced to the product being manufactured (1)
4(b)(ii)

Any specific factory expense such as factory indirect wages, factory rates, depreciation of factory machinery, etc.
Any 2 suitable examples (1) each

2

4(c)(i)

Goods which are partly completed (1)

1

4(c)(ii)

Greater (1)

1

© UCLES 2017

Page 9 of 13

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

4(d)

Msamati Manufacturing
Income Statement for the year ended 31 January 2017
$
$

Marks

Revenue
Opening inventory
Cost of production
Purchases of finished goods
Less goods for own use

10
$
816 370

56 120
669 950 }
17 200 } (1)
687 150
1 620 (1)

Less Closing inventory
Gross profit
Commission receivable (2700 + 130)
Administration expenses
Selling expenses
Loan interest (5% × 15 000 × 10 / 12)
Depreciation
Office equipment
(15% × 32 000)
Delivery vehicles
(25% × (68 000 – 17 000)
Profit for the year
4(e)

May/June 2017
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685 530
741 650
61 340 * (1) both

685 530
741 650
680 310
136 060 (1)OF
2 830 (1)
138 890

38 160 }
28 270 } (1)
625 (1)
4800 (1)
12 750 (1)

Either The expenses of the year were matched against the revenue of the same period (1)
Or Only the expenses for the year were included in the income statement (1)

84 605
54 285 (1)OF
2

Example – Either Commission receivable outstanding was added (1)
Or Loan interest outstanding was added (1)
Or Depreciation for the year was included (1)
4(f)(i)

Will increase revenue and so increase gross profit (1)
Customers may find cheaper suppliers so revenue and gross profit may decrease (1)
Or other suitable comments

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Page 10 of 13

2

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
4(f)(ii)

4(g)

May/June 2017
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Answer

Marks

Will reduce cost of production and so increase gross profit (1)
Factory workers may take industrial action resulting in reduction of production/reduction of revenue and so gross profit may
decrease (1)
Or other suitable comment

2

Reduce/control expenses
Increase other income
Increase profit margin
Reduce costs of manufacturing
Increase sales activity
Any two points (1) each

2

5(a)
2015
Jan 1
Oct 1
2016
Jan 1
July 1
2017
Jan 1

© UCLES 2017

Balance A b/d
BANK b
Balance b/d
A 35 000
B 40 000
XZ Motors C
Balance b/d
A 35 000
B 40 000
C 28 000

Bradley
Delivery vehicles account
$
2015
35 000
Dec 31
40 000 (1)
75 000
2016
Dec 31
75 000 (1)
28 000 (1)
103 000

103 000 (1)

Page 11 of 13

12
$
Balance c/d

75 000
75 000

Balance c/d

103 000
103 000

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2017
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Answer

2015
Dec 31

2016
Dec 31

Provision for depreciation of delivery vehicles account
$
$
2015
Balance c/d
24 375 Jan 1
Balance A c/d
13 125
Dec 31
Income
75 000
Statement
A 8 750 (1)
B 2 500 (1) 11 250
24 375
24 375
2016
Balance b/d
Balance c/d
46 625 Jan 1
A 21 875
24 375
B 2 500
Dec 31
Income Statement
A 8 750 (1)
B 10 000 (1)
C 3 500 (1) 22 250
46 625
2017
Jan 1
Balance b/d
A 30 625
B 12 500
C 3 500
46 625

+ (1) dates

© UCLES 2017

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Marks

(1) OF

(1) OF

0452/21

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

5(b)

Bradley
Journal

Disposal of delivery vehicle

Marks
6
Debit

Credit

$

$

28 000

Delivery vehicles

(1)
28 000

Provision for depreciation of delivery vehicles

3 500

Disposal of delivery vehicle

(1) OF
3 500

DDE Transport

25 500

Disposal of delivery vehicle

(1)
(1) OF
(1)

25 500

(1)

5(c)

Increase in rate of cash discount allowed
Improvement in credit control
Introduction of interest charge on overdue accounts
Refusal of further supplies until outstanding balance cleared
Any two points (1) each

2

5(d)

Cash discount will be received
No/less interest will be charged on late payments
Improve relationship with suppliers
Reduction in liquid funds earlier
Deprived of use of money for other things earlier
Any two points (1) each

2

5(e)

If credit customers continue to pay before 30 days the money received can be used to pay the credit suppliers
Will not have the use of the money from credit customers as long as previously, before it is required to pay the credit suppliers
If the credit customers delay paying, the business will have to use existing money to pay the credit suppliers
If the business is unable to pay the credit suppliers within 30 days no cash discount will be received
Any two points (1) each

2

© UCLES 2017

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