Accounting (0452) · May/June 2017 · Mark scheme 23

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/23

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 12 printed pages.
© UCLES 2017

[Turn over

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)

Shiromi
General Ledger
Rent and Account
2017
April 4
2017
April 10

Bank

Bank

2017
April 30

© UCLES 2017

Cash

Total for Month

Marks
13

$
495 (1)
Motor Vehicle Account
$
5 500 (1)
Sales Account
2017
April 21

2017
April 26

May/June 2017
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Cash
Bank

$
600 }(1)
6 000 }

Drawings Account
$
150 (1)
Purchases Account
$
7 460 (1)
Purchases Returns Account
2017
April 30
Total for month

$
560 (1)

Discount received Account
2017
April 30
Total for month

$
156 (1)

Page 2 of 12

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2017
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Answer

2017
April 7
April 18

2017
April 24

Returns
Bank
Discount

Purchases Ledger
Lincy account
$
2017
560 (1) April 5
3 234 }(1)
66 }

Bank
Discount

Gail Account
$
2017
3 510 }(1) April 16
90 }

Marks

Purchases

$
3 860

(1)

Purchases

$
3 600

(1)

+ (1) dates
1(b)

Decrease in inventory
Decrease in bank/cash balance or increase in overdraft
Increase in trade payables
Increase in short term loans
Increase in other payables
Decrease in other receivables
Purchase of non-current assets
Increase in drawings
Repayment of long term liabilities
Note: Not decrease in trade receivables as sells for cash only
Any two reasons (1) each

2

1(c)

May not be able to pay debts when they fall due
May not be able to take advantage of cash discounts
May not be able to take advantage of business opportunities as they arise
May have difficulty in obtaining further supplies
May not be able to take drawings
May not have sufficient funds to pay for day to day expenses
Any two points (1) each

2

© UCLES 2017

Page 3 of 12

0452/23

May/June 2017
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Cambridge IGCSE – Mark Scheme
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Question

Answer

1(d)

Marks
increase

decrease

Take out a short-term bank loan

no effect

4

9(1)

Repay a long-term bank loan

9(1)

Sell goods on credit terms instead of for cash
Obtain a higher rate of cash discount

9(1)
9(1)

1(e)

These are goods for re-sale/These goods are purchased for re-sale not for business use/The inventory would increase/
These are short-term assets

1

1(f)

Lower profit for the year
Higher capital employed/Higher owner's capital(Equity)/Higher long term loans
Any 2 reasons (1) each

2

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Page 4 of 12

0452/23

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(a)

Marks
4

Book of prime (original) entry
Discount allowed

Cash book (1)

Bad debts

General journal (1)

Contra

General journal (1)

Returns

Sales returns journal (1)

2(b)

Meaning
A contra entry is one which appears on the debit side of the purchases ledger control account and the credit side of the sales
ledger control account. (1)
Reason
The entry is made when a sales ledger account is set off against a purchases ledger account of the same person/business. (1)

2

2(c)

Waheed
Sales ledger control account

10

2017
March 1
March 31

Balance b/d
Bank (dis.chq)
Sales
Balance c/d

$
2 346
350 (1)
2 748 (2)CF/(1)OF
86

2017
March 1
March 31

$
140
2 145
55
276
182
62
2 670
5 530

Balance b/d
Bank
Discount
Returns
Contra
Bad debts
Balance c/d

5530
2017
April 1
2(d)

© UCLES 2017

Balance b/d

$
2 670 (1)

2017
April 1

Overpayment by customer
Payment made by customer without deducting cash discount
Goods returned by customer after payment of balance due
Payment made in advance by customer
Any two points (1) each
Page 5 of 12

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

$
Balance b/d

86 (1)
2

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

May/June 2017
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Marks

2(e)

Satisfied (1)
Credit customers are now paying earlier/within credit period allowed/other valid answer (1)

2

2(f)

Do not have to allow Waheed cash discount
May charge interest on overdue account

1

2(g)

Have to wait longer for payment/Adversely affects liquidity position
Increase risk of bad debt
Any 1 point (1)

1

2(h)

Waheed has the use of the funds for other purposes for 17 days
Waheed does not need to use his existing liquid funds to pay suppliers
Improved liquidity position
Or other suitable comment
Any 2 comments (1) each

2

© UCLES 2017

Page 6 of 12

0452/23

Question

Answer

3(a)
2017
April 30

3(c)

© UCLES 2017

Marks

A1 Sports Club
Receipts and Payments Account for the year ended 30 April 2017
$
2016
$
Subscriptions
7 140 (1)
March 1
3 180
Sales of
430 (1)
2017
equipment
Café sales
5 280 } (2)CF
April 30
Café suppliers
3 796
Rates
960
} (1)OF
Balance c/d
2 626
General expenses
910
Café wages
1 040
Loan Repaid
1 500
Loan interest
90
Equipment
4 000
15 476
15 476
2017
May 1

3(b)

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Balance b/d

2626

A1 Sports Club
Café Income Statement for the year ended 30 April 2017
$
$
Revenue
5 280 (1) OF
Cost of Sales
Opening Inventory
298 (1)
Purchases (3796 (1) – 311 (1) + 393 (1))
3 878
4 176
Closing inventory
216 (1)
3 960
Café wages
1 040 (1)
5 000
Café profit
280 (1) OF
$7000 (1)
This is the amount of subscriptions which relates to this financial year (1)

Page 7 of 12

12

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

8

2

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(d)

Answer

Marks

Opening bank balance/closing bank balance
Purchase of equipment
Proceeds of sale of equipment
Repayment of loan
Café sales
Payments to café suppliers
Café wages
Subscriptions accrued at the start of the year
Any five items (1) each

5

Question

Answer

Marks

4(a)

1
Premises
Fixtures and fittings
Inventory
Trade receivables
Trade payables
Loan
Bank overdraft
Capital

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May/June 2017
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$
58 500
9 400
9 700
8 120
7 100
15 000
5 300

Page 8 of 12

$

85 720
27 400
58 320 (1)

0452/23

Question

Answer

4(b)
Assets

Marks

Virat - Statement of Affairs at 31 January 2017
$
$

Non-current assets
Premises
Fixtures and Fittings
Motor Vehicle

Cost
58 500
9 400
15 200
83 100

Current Assets
Inventory (12 900 × 100/120)
Trade receivables (8120 + 3310)
Less Bad debts written off
Less Provision for doubtful debts
Cash

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PUBLISHED

Accumulated
depreciation
1 880 (1)
3 800 (1)
5 680

14
$
Book
value
58 500
7 520 (1)OF
11 400 (1)OF
77 420 (1)OF
10 750 (1)

11 430
130
11 300 (1)
226 (1)

11 074 (1) OF
100 (1)

Total Assets

21 924

Capital and Liabilities
Capital
Balance

99 344
73 418 (1)OF

Non-current liabilities
Loan – A Singh (repayable 2019)

10 000 (1)

Current Liabilities
Trade Payables (7100 + 6%)
Bank overdraft (5300 + 3100)

7 526 (1)
8 400 (1)
15 926

Total Liabilities

99 344

Page 9 of 12

0452/23

Question

Answer

4(c)
2017
Jan 31

4(d)

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Drawings
Balance c/d

Virat
Capital account
$
2016
11 320 (1)
Feb 1
Balance b/d
73 418 (1) OF
2017
Jan 31
Motor Vehicle
Profit
84 738
2017
Feb 1
Balance b/d

Should compare with a business in the same trade
Should compare with a business of approximately the same size
Should compare with a business of the same type (sole trader)
The financial statements may be for one year which will not show trends
The financial statements may be for one year which is not a typical year
The financial year may end on different dates (when inventories are high/low)
The businesses may operate different accounting policies
The statements do not show non-monetary factors
It may not be possible to obtain all the information needed to make comparisons
Or other suitable points
Any 2 points (1) for basic statement and (1) for development

Page 10 of 12

Marks
5
$
58 320
15 200
11 218
84 738

(1)OF
(1)
(1)OF

4

0452/23

May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

5(a)

Duality (1)

1

5(b)

To ensure that the totals of the trial balance agree
To allow draft financial statements to be prepared
To facilitate the correction of errors
To make sure that all the errors are discovered
Any 2 reasons (1) each

2

5(c)
2016
Dec 31

5(d)

© UCLES 2017

Balance
General exp
Purchases Returns
Balance c/d

Heng
Suspense account
$
2016
430 (1)
Dec 31
90 (1)
454 (1)
200 (1)OF
1 174
2017
Jan 1

Either
All the errors have not been found (1)
There is still a balance on the suspense account (1)
Or – if the suspense account in (c) is closed –
All the errors have been discovered (1)
There is no balance remaining on the suspense account (1)

Page 11 of 12

6
Petty Cash
Discount alld

$
150 (1)
1 024 (1)
1 174

Balance b/d

200
2

0452/23

Question
5(e)

Answer
Error

Profit for the year
$

Non-current assets
$

1

281 overstated

281 overstated

2

100 overstated

3

No effect

4

90 understated

5

1024 overstated

6

No effect

7

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May/June 2017
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Cambridge IGCSE – Mark Scheme
PUBLISHED

454 understated

(1)

Marks
Current assets
$
No effect

No effect

No effect

100 overstated

(1)

No effect

No effect

150 understated

(1)

No effect

(1)

No effect

No effect

No effect

(1)

No effect

No effect

No effect

No effect

4 120 overstated
Or
2 060 overstated

(1)

No effect

No effect

Page 12 of 12

10

Current liabilities
$

(2)
(1)

4 120 overstated
Or
2 060 overstated
No effect

(2)
(1)