Accounting (0452) · May/June 2018 · Mark scheme 11

www.dynamicpapers.com

Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/11

Paper 1

May/June 2018

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 International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the May/June 2018 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 17 printed pages.
© UCLES 2018

[Turn over

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2018
www.dynamicpapers.com

These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
•
•
•

the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.

GENERIC MARKING PRINCIPLE 2:
Marks awarded are always whole marks (not half marks, or other fractions).
GENERIC MARKING PRINCIPLE 3:
Marks must be awarded positively:
•
•
•
•
•

marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.

GENERIC MARKING PRINCIPLE 4:
Rules must be applied consistently e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.

© UCLES 2018

Page 2 of 17

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2018
www.dynamicpapers.com

GENERIC MARKING PRINCIPLE 5:
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
GENERIC MARKING PRINCIPLE 6:
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.

© UCLES 2018

Page 3 of 17

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1

May/June 2018
www.dynamicpapers.com
Marks
10

1(a)

D

1

1(b)

B

1

1(c)

B

1

1(d)

D

1

1(e)

A

1

1(f)

A

1

1(g)

B

1

1(h)

C

1

1(i)

D

1

1(j)

C

1

© UCLES 2018

Page 4 of 17

0452/11

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(a)

noncurrent
assets

Marks

current
assets

noncurrent
liabilities

3

9

trade payables
9

5 year loan
9

inventory
loose tools

current
liabilities

9
9

bank overdraft
9

rent receivable accrued
Any 2 correct items (1)
2(b)(i)

Share losses
Share responsibilities
Share risks
Share decision-making
Additional finance available
Additional skills and experience available
Accept other valid points.
Any 1 advantage (1)

1

2(b)(ii)

Share profits
Decisions must be recognised by all partners
Decisions may take longer to implement
One partner’s actions can bind other partners
Disagreements can occur
All partners are responsible for the debts of the business
Accept other valid points.
Any 1 disadvantage (1)

1

© UCLES 2018

Page 5 of 17

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(c)

interested party

reason for their interest

credit suppliers

check on likelihood of being paid

bank/lender

check on suitability for overdraft/loan
to check collateral in case of bankruptcy

manager

check on efficiency and progress

government

for tax calculation/government statistics

employees/trade union

check on likelihood of continued employment

customers

check on likelihood of supplies being continued

competitor

comparison of profitability

potential partner

check on profitability and prospects

takeover bidder

check on profitability and prospects

potential investor

check on profitability and prospects

May/June 2018
www.dynamicpapers.com
Marks
6

Not business owner – this is excluded by question
Naming interested party – any 3 (1) each
Appropriate reason for their interest – any 3 (1) each
2(d)

© UCLES 2018

Physical deterioration
Economic reasons
Passage of time
Obsolescence
Depletion
Any 2 (1) each

2

Page 6 of 17

0452/11

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

2(e)

2(f)

True or False
When the straight line (equal instalment) method is used the depreciation
is calculated on the cost price less residual value.

True

(1)

When the reducing (diminishing) balance method is used the percentage
rate of depreciation decreases each year.

False

(1)

The provision for depreciation of a non-current asset is deducted from the
cost price in the statement of financial position.

True

(1)

A provision for depreciation is a means of providing a fund to purchase a
replacement non-current asset

False

(1)

Comparability
Relevance
Reliability
Understandability
Any 1 objective (1)

1

2(g)

4

Accounting principle
The same accounting treatment is applied to similar items at
all times.

© UCLES 2018

4

consistency

(1)

Accounting assumes that a business will continue to operate
indefinitely.

going concern

(1)

Transactions are expressed in monetary terms.

money measurement

(1)

Revenue is recognised as earned when ownership of goods
passes to the customer.

realisation

(1)

Page 7 of 17

0452/11
Question

Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer

May/June 2018
www.dynamicpapers.com
Marks

3(a)

Reduces 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 valid points.
Any 1 reason (1)

1

3(b)

Control/limit petty cash expenditure
The cash remaining and the vouchers received should equal the imprest
Can help to reduce fraud
Accept other valid points.
Any 1 advantage (1)

1

© UCLES 2018

Page 8 of 17

0452/11

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

3(c)

Amira
Petty Cash Book
Total
received
$
80

Date
2018
April 1
4
7
11
19
22
29

Marks
10

Total paid

Postage

$

$

Details

Cash
Stamps
Printing paper
Ink cartridges
Window cleaner
KK Limited
Flowers

80

30

Balance c/d

5

May 1

Balance b/d

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

3
8
12
10
35
7
75
5

Computer
supplies
$

General
expenses
$

Ledger
accounts
$

3
8
12
10
35
3

20

7
17

35

80
(1)
+ (1) Totalling analysis columns
(1) Totalling total columns
(1) Dates

3(d)

3
debit
petty cash (book) (1)
+ (1) for 2 equal OFs from (c)

© UCLES 2018

$

credit
75 cash/bank/cash book (1)

Page 9 of 17

$
75

0452/11
Question

Answer

3(e)

Amira
Computer supplies account
Date
2018
April 30

3(f)

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Details
Petty cash

$

Marks

Date

(1)

1

Details

$

20

Obtain the correct bank balance
Identify errors in the bank account
Identify errors on the bank statement
Assist/helps in discovering fraud and embezzlement
Identify amounts not credited
Identify cheques not presented
Identify any stale cheques or dishonoured cheques

2

Accept other valid points.
Any 2 reasons (1) each
3(g)

Amira
Cash Book (bank columns) only
Date
2018
April 30

Details

$

Date
2018
17 620 April

Balance b/d
(Cash book) error*

(1)

100

17 720
2018
May 1

© UCLES 2018

Balance b/d

(1)OF

17 444

Page 10 of 17

30

5

Details

$

Bank charges

(1)

28

Jabir(dis.chq)
Rates
Balance c/d

(1)
(1)

153
95
17 444
17 720

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

3(h)

3(i)

Marks

Amira
Bank Reconciliation Statement at 30 April 2018
$
Balance shown on bank statement
17 695 (1) OF
Add Cheque not credited – Shadya
824 (1)
Less Cheque not presented – Abasi

18 519
1 075

(1)

Balance shown in cash book

17 444

(1) OF

Alternative presentation
Balance shown in cash book
Add Cheque not presented – Abasi
Less Cheque not credited – Shadya

$
17 444
1 075
18 519
824

Balance shown on bank statement

17 695

$17 444 (1) OF

May/June 2018
www.dynamicpapers.com

4

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

Current assets (1) OF
3(j)

© UCLES 2018

Not enough money in account
Cheque unsigned
Amount in words and figures disagree
Takes account into unauthorised overdraft
Accept other valid points.
Any 2 acceptable reasons (1) each

2

Page 11 of 17

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2018
www.dynamicpapers.com

Answer

4(a)
Date
Details
2018
Mar
4 Bank
Discount (received)
17 Purchases returns
31 Balance c/d

(1)
(1)
(1)

Marks

Harry
AX Limited account
$
Date
Details
2018
2 425 Mar
1 Balance b/d
75
15 Purchases
360
2 240

12
$
(1)

5 100

5 100
2018
Apl

Date
Details
2018
Mar 28 Purchases returns
30 Bank

(1)
(1)

1 Balance b/d

FM Limited account
$
Date
Details
2018
Mar
1 Balance b/d
170
24 Purchases
2 127
2 297

© UCLES 2018

2 500
2 600

Page 12 of 17

(1)OF

2 240

$
(1)

750
1 547
2 297

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2018
www.dynamicpapers.com

Answer

4(a)
Date
Details
2018
Feb 28 Total to date
Mar 31 Credit purchases for
month

Purchases account
$
Date
Details
2018
43 000 Mar 31 Income statement
4 147

Marks

$
(1)

(1)
47 147

Date
Details
2018
Mar 31 Income statement

47 147

Purchases returns account
$
Date
Details
2018
(1)
5 550 Feb 28 Total to date
Mar 31 Returns for month
5 550

47 147

$
(1)

5 020
530
5 550

4(b)(i)

Buying in bulk/buying large quantity
In the same trade
To enable Harry to make a profit when goods are sold
Loyal / regular customer
Accept other valid points.
Any 1 reason (1)

1

4(b)(ii)

650 100
×
= 20% (1)
3250
1

1

4(c)(i)

Sales invoice

1

4(c)(ii)

Debit note

1

4(c)(iii)

Statement of account

1

© UCLES 2018

Page 13 of 17

0452/11

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

5(a)(i)

Goods remaining (at the year-end) which were purchased for converting into finished goods (1)
Example – fabric, thread, buttons, zips, etc. (1)

2

5(a)(ii)

Goods which are partly made (at the end of the year) (1)
Example – partly made shirt/blouse/jeans/etc. (1)

2

5(a)(iii)

Completed clothes which are awaiting sale (1)
Example – completed shirt/blouse/jeans/etc. (1)

2

5(b)

Addae
Manufacturing Account for the year ended 31 January 2018
$
$
Cost of materials used
Purchases of raw materials
Carriage inwards
Less Closing inventory of raw materials
Direct factory wages
Prime cost
Factory overheads
Indirect factory wages
General factory expenses
Factory heat and light
Factory insurance
Depreciation (factory) machinery

48 400
1 950

27 140
3 150
1 110
1 860
15 000

(1)

}*
}*
}*
}*
(1)

Less Closing work in progress
Cost of production

© UCLES 2018

Page 14 of 17

50 350
5 150
45 200
38 800
84 000

(1)
(1)
(1)

48 260
132 260
7 260
125 000

(1)
(1)
(1)

10

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

May/June 2018
www.dynamicpapers.com
Marks

5(c)

Buy in bulk to get trade discount/look for cheaper suppliers
Reduce wages
Reduce/control factory / general expenses
Reduce factory heat and light
Look for cheaper carriage on raw materials
Reduce rate of depreciation
Accept other valid points.
Any 2 ways (1) each

2

5(d)

(179 250 − 119 500) 100
(1) whole formula = 33.33% (1)
×
179 250
1

2

5(e)

(59 750 − 34 750) 100
(1) whole formula = 13.95% (1)
×
179 250
1

2

5(f)

Increase gross profit margin or increase selling price / reduce COS
Reduce/control administration and selling expenses not factory expenses
Increase other income
Accept other valid points.
Any 2 ways (1) each

2

© UCLES 2018

Page 15 of 17

0452/11
Question
6(a)

Answer

2

6

entries required to correct the error
debit

error

credit

account
1

$

account

$

motor expenses, $150,
debited to motor vehicles
account

motor expenses

150

motor vehicles

150

carriage inwards, $120,
debited to carriage
outwards account

carriage inwards

120 (1)

carriage outwards

120 (1)

3

sales journal overcast by
$1000

sales
not sales journal

1000 (1)

4

wages, $460, debited to
wages account as $640

suspense

2

180 (1)

All errors have not been discovered (1)

suspense
wages

1000 (1)
180 (1)
2

The suspense account will not be closed (1)
($650 + $180 on debit and $1000 on credit)
Accept alternative answers depending on entries in (b)

© UCLES 2018

Marks

To balance the trial balance
Because there are errors on the trial balance
To allow draft financial statements to be prepared
Accept other valid points.
Any 2 reasons (1) each

6(b)

6(c)

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Page 16 of 17

0452/11

May/June 2018
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

6(d)

Mai
Statement of corrected profit for the year ended 31 March 2018

6
$

Profit for the year before corrections

4150
Increase
in profit
$

Error 1
Error 2

No effect

180
180

Corrected profit for the year

1 000

(1)

(2)*
1 150

970
3 180

* (1) position + (1) amount

© UCLES 2018

(1)

(1)

Error 3
Error 4

Decrease
in profit
$
150

Page 17 of 17

(1)OF