Accounting (0452) · May/June 2018 · Mark scheme 21

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/21

Paper 2

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 18 printed pages.
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0452/21

Cambridge IGCSE – Mark Scheme
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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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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 18

0452/21
Question

Answer

1(a)

Marks
2

Book of prime (original) entry
Returns by credit customers

Sales returns journal

(1)

Bad debts written off

Journal

(1)

1(b)

Lydia
Purchases ledger control account
Date
2018
Apl 30

May 1

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Details
Returns
Discount received
Contra/SLCA
*Bank
Balance c/d
Balance b/d

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

(1)

113
95
250
4 685
4 237
9 380
100

Date
2018
Apl 1
30

9

Details
Balance b/d
Purchases
Carriage inwards
Balance c/d

$
(1)
(1)
(1)

4 215
4 855
210
100
9 380

May 1

Page 4 of 18

Balance b/d

(1)

4 237

0452/21
Question

Cambridge IGCSE – Mark Scheme
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May/June 2018
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Answer

Marks

1(c)

Overpayment of amount owing to credit supplier
Return of goods to credit supplier after payment made
Cash discount not deducted when payment was made to credit supplier
Payment made to credit supplier in advance
Any 2 reasons (1) each

2

1(d)

Ensures that the profit for the year is not overstated by anticipating losses (1)
Ensures that the trade receivables are shown at a realistic level in the statement of financial position (1)

2

1(e)(i)

Liquidity
If trade receivables take up the offer Lydia will receive the money earlier
This money could then be used within the business
Will receive a lower amount than previously
Or other relevant point
Any 2 relevant points (1) each

2

1(e)(ii)

Profitability
Profit for the year will decrease because of the extra cash discount
This policy may reduce bad debts so may increase profit
Or other relevant points
Any 2 relevant points (1) each

2

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Page 5 of 18

0452/21
Question

Answer

2(a)

Nabil
Journal
Date
2017
Mar 1

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Marks
5

Details
Premises
Fixtures and fittings
Inventory
Bank
Loan – AB Loans
Capital

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

Assets, liabilities and capital at this date

(1)

Page 6 of 18

Debit
$
200 000
22 000
5 500
7 500

Credit
$

80 000
155 000
235 000

235 000

0452/21
Question
2(b)

2(c)

Answer

Marks

Correction of errors
Purchase/sale of non-current assets on credit
Year-end transfers
Transactions not entered in any other book of prime (original) entry
Accept other relevant points.
Any 2 uses (1) each

2

Nabil
Corrected Trial Balance at 28 February 2018
$
Revenue
Purchases
Capital
Loan – AB Loans
Premises
Fixtures and fittings
Trade receivables (7 500 – 140)
Trade payables (6 850 – 150)
Bank overdraft (3 950 + 210)
Wages (32 300 – 10 000)
General expenses
Inventory 1 March 2017
Drawings
Purchases returns
Bad debts
Bank charges
Petty cash

72 000
200 000
22 000
7 460
22 300
25 400
5 500
10 000
140
210
100
365 110

*(1) position + (1) amount
** (1) provided closing inventory not included
*** (1) matching OF totals

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Page 7 of 18

13

$
119 100 }
}(1)
155 000
80 000
(1)
6 700 (2)*
4 160 (1)
(1)**
(1)
(1)
150 (1)
(1)
(1)
(1)
365 110 (1)***

0452/21

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Question

Answer

3(a)

Amina account
Date
2017
April 1

Details
Balance

$

b/d

160

Date
2018
Mar 1

Marks
12

Bank/cash
Bad debts

Details

$

(1)
(1)

120
40
160

Details

$

160

Bad debts account
Date
2018
Feb 28
Mar 1

Details

$

Total written off
Amina
(1)OF

Date
2018

135
40
175

Income statement

(1)OF

175
175

Fixtures and fittings account
Date
2017
April 1
2018
Jan 4
2018
April 1

© UCLES 2018

Details
Balance

4 000

b/d

Office Traders
Balance b/d

$

(1)
(1)

Date
2018
Mar 31

2 000
6 000
6 000

Page 8 of 18

Details
Balance c/d

$
6 000
6 000

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Question

Answer

3(a)

Provision for depreciation of fixtures and fitting account
Date
2018
Mar 31

Details

$

Balance c/d

2 800

Date
2017
April 1
2018
Mar 31

Marks

Details

$

Balance

b/d

1 600

Income statement

(1)

1 200
2 800

Balance b/d

(1)OF

2 800

2 800
2018
April 1

Discount allowed account
Date
2018
Feb 28
Mar 31

Details

$

Total to date
Total from cash book (1)

Date
2018

3590
55
3645

Details
Income statement

$
(1)

3645
3645

Discount received account
Date
2018
Mar 31

Details
Income statement

$
(1)

4 198

Date
2018
Feb 28
Mar 31

4 198

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Page 9 of 18

Details
Total to date
Total from cash book (1)

$
4 130
68
4 198

0452/21

Cambridge IGCSE – Mark Scheme
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Question
3(b)

Answer
February 1 Motor vehicles
Explanation
Double entry

Double entry

Original cost of the motor vehicle disposed of/sold (1)
Credit motor vehicles account (1)

Total depreciation written of the motor disposed of/sold up to the
date of sale (1)
Debit provision for depreciation of motor vehicles account (1)

February 1 M6Vans
Explanation

Price M6Vans agreed to pay for the motor vehicle (1)
Double entry Debit M6Vans account (1)

March 31 Income statement
Explanation
Double entry

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Marks
8

February 1 Provision for depreciation of motor vehicles
Explanation

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Loss on disposal of motor vehicle (1)
Debit income statement (1)

Page 10 of 18

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

4(a)

Asim
Income Statement for the year ended 31 January 2018

Marks

$
Fees from clients (28 350 (1) + 2 400 (1))
Rent receivable (5 600 – 800)
Wages
General expenses
Motor expenses (970 (1) + 110 (1) × ¾ (1))
Rates & Insurance (2 280 (1) × 12/15 (1))
Provision for doubtful debts (2% × 2 400)
Depreciation
Motor vehicle (20% × (15 000 – 5 400))
Office equipment (6 180 – 5 500)
Profit for the year
4(b)

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13
$
30 750
4 800 (1)
35 550

19 000 }
1 358 }(1)
810
1 824
48 (1)
1 920 (1)
680 (1)

25 640
9 910 (1)OF
1

Profit for the year 100
×
whole formula (1)
Capital employed
1

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0452/21

Cambridge IGCSE – Mark Scheme
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Question
4(c)

Answer

May/June 2018
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Marks
2

9 910
100
OF ×
(1)OF whole formula = 8.26% (1)OF
120 000
1

4(d)

Higher profit for the year
Lower capital employed
Or other suitable reason
Any 2 reasons (1) each

2

4(e)

Financial statements only include information which can be expressed in monetary
terms (1)
This means that many important factors which affect the performance of a business
are not included in the financial statements (1)

2

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Page 12 of 18

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

5(a)

Ravi
Income Statement (Trading Account section) for the year ended
31 March 2018
$
Revenue (8 750 + 34 450)
Cost of sales
Opening inventory
Purchases
Less Purchase returns

© UCLES 2018

Marks

$

8

$
43 200 (1)

2 900 (1)
38 400 }(2)CF
}(1)OF
950 (1)

Less Closing inventory
Gross profit
5(b)

May/June 2018
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37 450
40 350
4 350 (1)

36 000 (1)OF
7 200 (1)OF
1

Cost of sales
(1)
Average inventory

Page 13 of 18

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Question

Answer

Marks

5(c)

Higher inventory levels
Lower sales activity
Or other suitable reason
Any 2 reasons (1) each

2

5(d)

Lower of cost and net realisable value (1)

1

5(e)

Prudence (1)

1

5(f)

Overstated
9

current assets at 31 March 2018
cost of sales for the year ended 31 March 2018

4

9(1)

gross profit for the year ended 31 March 2018

9(1)

cost of sales for the year ending 31 March 2019

9(1)

profit for the year ending 31 March 2019

9(1)

5(g)

Increase
Reduce the rate of trade discount allowed to
credit customers

Decrease

No effect

9(1)

Reduce the rate of cash discount allowed to
credit customers

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Understated

Page 14 of 18

9(1)

2

0452/21
Question
5(h)

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Answer

Marks

Increase in selling price so possibility of greater gross profit (1)
Customers may go to cheaper suppliers, so sales and profit may decrease (1)

2

Accept other valid points

Question

Answer

6(a)

Debentures

Ordinary shares

Receive interest

Receive dividends

Receive fixed interest

Receive variable dividends

Interest paid irrespective of profit

Dividends depend on profit

Do not carry voting rights

Carry voting rights

Are lenders/loans/(non-current)
liabilities/creditors

Are members of the company/equity/capital

Priority for repayment in winding-up

Last to be repaid in winding-up

Any two comparative statements (2) each

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Marks

Page 15 of 18

4

0452/21
Question

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Answer

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Marks

6(b)

Transfers made in the statement of changes of equity from the retained earnings (1)

1

6(c)

In situations where there is not enough cash to pay a dividend
To retain cash within the business rather than using it for dividends
To use in future when the profits may be low/there may be a loss
Or other acceptable comments
Any 2 acceptable comments (1) each

2

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Question

Answer

6(d)

Income
statement

Statement of
changes in
equity

Marks
Statement of
financial
position

1 September 2017
Repayment of long term
loan
1 November 2017
Payment of half year
interest on debentures

9(1)

9(1)

9(1)

9(1)

30 April 2018
Proposed ordinary share
dividend
6(e)

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5

9

31 December 2017
Payment of interim
ordinary share dividend
30 April 2018
Half year interest on
debentures accrued

No entry

9(1)

Will not dilute their stake in the company
Will not dilute their voting power
If expansion profitable, potential for higher dividend as debenture holders receive fixed interest
Or other acceptable comment
Any 1 comment (1)

Page 17 of 18

1

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Question

Answer

Marks

6(f)

Annual profit reduced because of debenture interest
Reduced profit available for ordinary shareholders
Prior claim on assets in a winding-up
Or other acceptable comment
Any 1 comment (1)

1

6(g)

Current assets : current liabilities(1)

1

6(h)

Increase

Decrease

9

Sell surplus non-current assets for cash
Sell goods on cash terms only

9(1)

Obtain a further long-term loan

9(1)

Buy additional non-current assets on credit
rather than paying immediately

9(1)

Persuade trade receivables to pay half of
their debts immediately in return for
3% cash discount

9(1)

Pay trade payables after 2 months instead
of after 1 month

© UCLES 2018

No effect

Page 18 of 18

9(1)

5