Accounting (0452) · May/June 2018 · Mark scheme 12

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/12

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 14 printed pages.
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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2018
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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.

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0452/12

Cambridge IGCSE – Mark Scheme
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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.

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1

May/June 2018
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Marks
10

1(a)

B

1

1(b)

A

1

1(c)

A

1

1(d)

A

1

1(e)

D

1

1(f)

C

1

1(g)

D

1

1(h)

B

1

1(i)

C

1

1(j)

B

1

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Page 4 of 14

0452/12
Question
2(a)

May/June 2018
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Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer

Marks

Reduces the number of entries in the ledger
Acts as an aid for posting to the ledger
Helps to gather and summarise accounting information e.g. total credit purchases
Helps in the preparation of control accounts
Groups together similar types of transactions
Allows work to be divided between several people/train junior accountants
To see as a list of transactions/reference purposes
Accept other valid points.

Max 2

Any 2 reasons – 1 mark each
2(b)

1

Cash Book

1

2

Purchases returns journal

1

3

General journal or journa

1

2(c)

2(d)
2(e)(i)
© UCLES 2018

Account(s) debited

$

Account(s) credited

$

1

Cash

220

Sales

220

2

Jane

440 (1) Purchases returns

3

Motor vehicles
Motor vehicle
expenses

4

Bank
Discount allowed

392 (1) Tan
8 (1)

400 (1)

5

Drawings

120 (1) Purchases

120 (1)

12 100 (1) Speedy Motors
300 (1) Can have 2 entries
here which add up to
12 400

10

440 (1)
12 400 (1)

(838) + 220 (1) + 392 (1) = 226 overdrawn/Cr or / (226) (1)

3

Sales ledger or trade receivables ledger

1
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0452/12
Question
2(e)(ii)

May/June 2018
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Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer

Marks
1

General or nominal ledger

Question

Answer

3(a)

Kumu
Purchase ledger control account
Date
2018
Apr 30

Details
Discount received
Bank
Contra sales ledger
Balance c/d

$
(1)
(2) CF (1) OF
(1)
(1)

330
177 862
400
22 200
200 792

Marks
8

Date
2017
May 1
2018
Apr 30

Details

$

Balance b/d

(1)

19 800

Interest charged
Credit purchases

(1)
(1)

May 1

Balance b/d

122
180 870
200 792
22 200

3(b)

Trade payables
× 365
Credit purchases

1

3(c)


22 200
× 365  (1) = 45 days (1)
180 870


2

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Question
3(d)

Answer
Not satisfied (1) OF

May/June 2018
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Marks
2

The payment period is longer than the standard terms allowed (1) OF
3(e)

An unsatisfactory payment period might make it difficult to obtain credit in the future
Might get a poor credit rating/reputation
Could affect the ability to make purchases from chosen suppliers
If unable to make purchases may not be able to satisfy own customers
May be charged interest for late payment
Can’t take advantage of cash discounts/discount received
May refuse to supply

Max 2

Accept other valid points.
Max 2, 1 mark per point
3(f)

3(g)

2

92 250 
 x 100 (1) = 45% (1)
205 000 

($205 000 + $35 000) (1) – (26 400 + 180 870) (1) = $32 730 (1) OF
If answer = $59 130 (2)

3

Accept alternative calculations
3(h)

Cost of sales
Average inventory

1

3(i)


205 000
 (1) OF = 6.05 times (1) OF
(32 730 OF + 35 000) ÷ 2 

2

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
4(a)

May/June 2018
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Answer
An accrual is an amount owing (1) for an expense incurred in the current (1) financial period. It will be included in the
statement of financial position as a current liability (1).

Marks
6

Accrued income is an amount earned (1) which will be received in the next (1) financial period. It will be included in the
statement of financial position as a current asset (1).
4(b)

(4 + 6 + 2) (1) × $20 (1) = $240 (1)

3

Accept alternative calculations
4(c)

$20 200 – $240 (1) OF = $19 960 (1) OF

2

4(d)

Chandra has received income in advance which he has not yet earned
It is a liability to Chandra as he owes the learners
Chandra has prepaid income at the year-end
Chandra has received other income
Application of accruals (matching) principle/application of prudence/advance payments must be deducted from actual income

2

Accept other valid points.
Any 2 comments × 1 mark each

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0452/12

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PUBLISHED

Question

Answer

4(e)

Statement of revised profit for the year ended 31 January 2018
No Effect

Marks

Increase
$

Decrease
$

Draft profit
100 (1)

Error 2

600 (1)

Error 3

89 (1)
9 (1)
189

Business entity (1)

(411)

2

Owner’s transactions should be kept separate from those of the business (1)

© UCLES 2018

600

8 349
(2) CF (1) OF

Corrected profit

4(f)

$
8 760

Error 1

Error 4

6

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0452/12

Cambridge IGCSE – Mark Scheme
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Question
4(g)

Answer
Chandra is a sole trader, LQ is a limited company
Different capital structure
Different size, economies of scale
Chandra is a new business, LQ is established
The financial statements of Chandra will be for only one year, which will not show trends
The financial statements may be for a year which is not typical
The businesses may have different accounting policies/methods
The businesses may have different operating policies
The businesses may have different year ends
The financial statements do not show non-monetary factors
It may not be possible to obtain all the information needed to make comparisons
Accept other valid points
1 mark per point, maximum 2

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Marks
2

0452/12

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PUBLISHED

Question

Answer

5(a)

WB Sports Club
Subscriptions account
Date
2018
Mar 31

Apr 1

Details
Income and expenditure

$
(1)

5 000

Date
2017
Apr 1
2018
Mar 31

Marks
5

Details

$

Balance b/d

(1)

120

Bank/cash
Balance c/d

(1)
(1)

4 740
140
5 000

5 000
140

Balance b/d

+ 1 dates
5(b)

WB Sports Club
Receipts and Payments Account for the year ended 31 March 2018
Date
2017
Apr 1
2018
Mar
31

Apr 1

© UCLES 2018

Details

$

Balance b/d

(1)

960

Subscriptions
Competition entry fees
Donations

(1)
(1)
(1)

4 740
900
350

(1) OF

6 950
858

Balance b/d

Date
2018
Mar 31

Page 11 of 14

Details
Rent
Competition prizes
General expenses
Insurance
Sports equipment
Balance c/d

10

$
(1)
(1)
(1)
(1)
(1)

2 000
220
682
430
2 760
858
6 950

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Cambridge IGCSE – Mark Scheme
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Question

Answer

Marks

5(c)

WB Sports Club
Statement of Financial Position at 31 March 2018
$
Non-current assets
Sports equipment at valuation
Current assets
Subscriptions owing
Other receivables
Bank
Total assets
Accumulated fund
Opening balance
Surplus for the year

15 563
1 568

Current liabilities
Other payables
5(d)

© UCLES 2018

$
15 760

140
500
858

7

(1)
(1)
(1) OF

(1)

(1)

1 498
17 258

17 131

(1)

127
17 258

(1)

It is the total of all the surpluses (1) made by the club less all the deficits (1) since the start of the club

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2

0452/12

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PUBLISHED

Question

Answer

6(a)

Assets
Equipment
Motor vehicle
Inventory
Other receivables
Trade receivables
Bank

Marks

$
(18 000 – 3 600)

$
14 400
5 500
2 934
120
1 942
209
25 105

(2 042 – 100)

Liabilities
Trade payables
Other payables
Capital at 31 December 2017

1 495
98

6(b)

(1)

$
20 300
5 500
25 800
(2 700)
23 100
(23 552)
452

Opening capital
Add: Capital introduced
Less: Drawings
Less: closing capital
Profit for the year

1 553
23 552

7
(1)
(1)
(1)
(1)
(1)

(1) OF

5
(1)
(1)
(1)
(1) OF
(1) OF

Alternative presentation
Date
2017
Dec 31

Drawings
Balance c/d

Details

$

(1)
(1) OF

2 700
23 552

Date
2017
Jan 1
Dec 31

26 252
Accept alternative calculations

© UCLES 2018

Page 13 of 14

Details
Balance b/d
Motor vehicle
Profit of the year

$
(1)
(1)
(1) OF

20 300
5 500
452
26 252

0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

May/June 2018
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Marks

6(c)

It shows the profit earned for each $100 used in the business
Or
It shows how efficiently the capital is being employed
Profit received as a % of capital employed

1

6(d)

Profit (for the year) 100
×
Capital employed
1

1

6(e)

452 OF 100
×
(1) = 2.23% (1) OF do need %
20 300
1

2

6(f)

Siegfried started charging depreciation on non-current assets
Siegfried wrote off more bad debts this year
Increase in other expenses
Decrease in other income

1

Accept any valid reason.
1 mark per point, Max 1
6(g)

Easier/quicker/used to prepare financial statements/calculate profit
Helps to check accuracy/arithmetic errors or detect/locate errors
Helps to prevent fraud
Easy reference
Balances are more easily available
More detail available in income statement
Easier to calculate accounting ratios/measure performance
Cheaper accountancy fees
Maintains the principle of duality
Accept other valid points
1 mark per point , Max 3

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Max 3