Accounting (0452) · May/June 2019 · Mark scheme 11

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/11

Paper 1

May/June 2019

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 2019 series for most
Cambridge IGCSE™, Cambridge International A and AS Level and Cambridge Pre-U components, and
some Cambridge O Level components.

This document consists of 17 printed pages.
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0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2019
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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.
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).
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0452/11

Cambridge IGCSE – Mark Scheme
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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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0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

May/June 2019
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Marks

1(a)

B

1

1(b)

B

1

1(c)

C

1

1(d)

D

1

1(e)

A

1

1(f)

A

1

1(g)

C

1

1(h)

D

1

1(i)

C

1

1(j)

B

1

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Question

Answer

2(a)

Marks
4

book of prime (original) entry
returns to credit suppliers

purchases returns journal

(1)

cheques received from credit
customers

cash book

(1)

contra entry

general journal

(1)

bad debts written off

general journal

(1)

2(b)
debit

credit

9

credit sales

(1)
9

cash sales
cash refund to credit customer

9
9
9

9

(1)
(1)

9

trade discount allowed to credit customers
interest charged on credit customer’s
overdue account

(1)
(1)

cash discount allowed by credit suppliers
contra entry

7

no
entry

(1)
(1)

2(c)(i)

A bad debt is an amount owing to a business which will not be paid by the credit customer

1

2(c)(ii)

A bad debt recovered is when a credit customer pays some or all of the amount owed after the amount was written off as a
bad debt.

1

2(c)(iii)

A provision for doubtful debts is an estimate of the amount which a business will lose in a financial year because of bad debts.

1

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Question

Answer

2(d)

Olivia
Ben account
Date
2019
Jan 2

Details

$00 Date
2019
360 Apr 30

Sales

Marks
4
Details

$00

Cash
Bad debts

200 (1)
160 (1)
360

360
Bad debts account
Date
2019
Apr 30

Details
Total to date
Ben
(1) OF

$00 Date
2019
384 Apr 30
160

Details

$00

Income statement
(1) OF
544
544

544
2(e)

Olivia
Provision for doubtful debts account
Date
2019
Apr 30

Details
Income statement*
(1) OF
Balance c/d

(1)

$00 Date
2018
May 1

Details
Balance b/d

$00
(1)

21
384
405

405

405
2019
May 1

© UCLES 2019

4

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Balance b/d (1) OF

384

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Cambridge IGCSE – Mark Scheme
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Question

Answer

May/June 2019
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Marks

3(a)

To check the arithmetical accuracy of / check for errors in the double entry (book-keeping) (1)
To assist with the preparation of financial statements (1)

2

3(b)

Commission
Example: debiting Khan instead of Kean with cash paid to Kean

6

Complete reversal
Example: debiting sales and crediting cash with cash sales
Compensating
Example: sales and purchases accounts overcast by same amount
Principle
Example: debiting motor vehicles account with motor expenses
Omission
Example: drawings completely omitted from accounting records
Original entry
Example: amount of sales invoice entered incorrectly in sales journal
Any three – (1) each for naming error
(1) for a suitable example

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Question

Answer

Marks

3(c)

Kadar
Trial Balance at 31 March 2019
Debit
$00
Revenue
Purchases
Sales Returns
Carriage outwards
Fixtures and fittings (at cost)
Provision for depreciation of
fixtures and fittings
Motor vehicle (at cost)
Discount allowed
Discount received
Trade payables
Trade receivables
Operating expenses
Rent payable
Commission receivable
Bank overdraft
Capital
Inventory 1 April 2018

9

Credit
$00
146 000 (1)

137 300
1 400
2 970
45 000

(1)
(1)
18 000

16 850
190

(1)
230
14 600

12 900
17 190
5 200

12 000
251 000

(1)
2 000 (1)
5 170
65 000 (1)
(1)
251 000

(1) Matching totals

© UCLES 2019

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0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(d)

Answer
1 year’s insurance
Revenue (expenditure) (1)
This is a day-to-day cost of running the business (1)

Marks
6

Delivery charge
Capital (expenditure) (1)
This is a cost incurred in the purchase of the non-current asset (1)
Fuel
Revenue (expenditure) (1)
This is a day-to-day cost of running the business (1)

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

4(a)

YK Club
Shop Income Statement for the year ended 31 January 2019
$00
Revenue
Cost of sales
Opening inventory
Purchases
(4150 – 420 (1) + 470 (1))
Closing inventory
Profit on shop

896
4 200
5 096
960 (1)*

*For both inventories

© UCLES 2019

$00
5 170 (1) OF

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4 136
1 034 (1) OF

5

0452/11
Question

Answer

4(b)

Balance at bank on 1 February 2018

Marks

Receipts and
payments
account
$

$
460

Income and
expenditure
account
$

Statement of
financial
position
$

720 (1)

360 (1)

given

Insurance paid on 1 February 2018 for
18 months to 31 July 2019

1 080

1 080 (1)

Purchase of new sports equipment by
cheque in 31 December 2018

3 500

3 500 (1)

Subscriptions received in January 2019
for the year ending 31 January 2020

350

350 (1)

Accumulated depreciation of sports
equipment at 31 January 2019

850

850 (1)

Cost of sports equipment at 31 January
2019

8 500

8 500 (1)

Profit from club shop for the year ended
31 January 2019
(calculated in (a))

?

Bank overdraft on 31 January 2019

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1 250

Page 11 of 17

350 (1)

1 034 (1)OF
1 250 (1)

1 250 (1)

11

0452/11

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
4(c)

Answer
Increase subscriptions / membership
Reduce expenses / obtain discounts
Seek donations
Obtain loans
Seek other forms of income e.g. renting out sports ground
Increase prices in club shop
Or other suitable methods (excluding fund-raising activities)
Any two (1) each

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Marks
2

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Question

Answer

Marks

5(a)

Krishna
Income Statement for the year ended 30 April 2019
$00
Fees (from clients) (35 270 (1) + 2150 (1))
Commission receivable (1820 (1) + 60 (1))
Wages
Operating expenses
Rent and rates (7750 (1) + 1200 (1) – 550
(1) = 8400 × ¾ (1)
Motor expenses
Depreciation of office fixtures and
equipment (18 900 – 17 320)
Provision for depreciation of motor vehicles
(20% × 17 500 – 6300)
Loss for the year

© UCLES 2019

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$00
37 420
1 880
39 300

24 300
(1)
4 260
6 300
720 (1)
1 580 (1)
2 240 (1)

39 400
100 (1) OF

13

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Question

Answer

5(b)

Krishna
Drawings account
Date
2019
Apr 30

Details
Total cash drawings
Rent and rates (1) OF

$00 Date
2019
9 150 Apr 30
2 100
11 250

Marks
5

Details
Capital

$00
(1) OF

11 250
11 250

Capital account
Date
2019
Apr 30

Details
Drawings
(1) OF
* Income statement
(1) OF
Balance c/d

$00 Date
2018
11 250 May 1

Details
Balance b/d

38 000
(1) OF

26 650

Will have to pay interest on loan (1) of $2400 per annum (1)
No rent will be payable (1) so expenses decrease (1)
Other expenses may increase (1) as expenses such as repairs, maintenance and insurance will be payable (1)
The bank loan will have to be repaid in 5 years (1) Will the necessary funds be available? (1)
Alternative uses of the capital of 40k (1) could she gain more through investing elsewhere? (1)
Or other valid points e.g. does she have adequate security?
Any three factors (1) + basic statement (1) for development

© UCLES 2019

38 000

100
26 650 2019
38 000 May 1
Balance b/d

5(c)

$00

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6

0452/11
Question

Answer

6(a)

Marks
True

The reward given to ordinary shareholders for
investing in the company is known as a dividend.

9

The amount of issued shares for which payment has
been received by the company from shareholders is
known as paid-up share capital.

9

Ordinary shareholders receive a fixed percentage of
the profit each year.
In the event of the company being wound up the
ordinary shares are the last to be repaid.

Any ordinary share dividend paid during the financial
year is entered in the statement of changes of equity
irrespective of the year to which it relates.

Page 15 of 17

(1)

9

(1)
(1)

9

9

5

False

9

Ordinary shareholders are personally liable for the
debts of the company.

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(1)

(1)

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Question

Answer

6(b)

ML Limited
Statement of Changes in Equity for the year ended 31 December 2018

On 1 January 2018
(1)
Profit for the year
(1)
Dividend paid – final
(1)
interim
(1)
Transfer to general reserve (1)
On 31 Dec 2018
(1)OF

Ordinary
share
capital
$00
200 000

200 000

Marks

Retained
earnings
$00
16 500
28 000
(8 000)
(6 000)
(3 000)
27 500

General
reserve
$00
8 000

3 000
11 000

6

Total
$00
224 500
28 000
(8 000)
(6 000)
238 500

6(c)

6000 × 100
(1) whole formula = 3% (1)
200 000

2

6(d)

Carry a fixed rate (of dividend)
Dividend may not be paid if there is not enough profit
Dividend is paid before ordinary share dividend
Do not usually carry voting rights
Capital is repaid before ordinary share capital in a winding-up
Are not secured on the assets of the company

3

Or other valid answers
Any three (1) each

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Question
6(e)

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Answer

Marks

Are long-term loans
Debenture holders are not members of the company
Do not carry voting rights
Carry a fixed rate (of interest)
Interest is not dependent on the company’s profit
Are often secured on the assets of the company
Debenture holders are repaid before shareholders in a winding-up

3

Other valid answers
Any three (1) each
6(f)

Increase
$
Effect on balance at bank

100 000

effect on non-current liabilities

100 000 (1)

effect on working capital

100 000 (1)

Decrease
$

effect on equity at 1 January 2019

9(1)

effect on annual profits

© UCLES 2019

No Effect

5 000 (1)

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