Accounting (0452) · May/June 2019 · Mark scheme 13

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/13

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 16 printed pages.
© UCLES 2019

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0452/13

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.

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Page 2 of 16

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

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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 2019

Page 3 of 16

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2019
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Answer

Marks

1(a)

C

1

1(b)

D

1

1(c)

C

1

1(d)

A

1

1(e)

D

1

1(f)

B

1

1(g)

C

1

1(h)

B

1

1(i)

A

1

1(j)

D

1

Glossary
1(d) A (103 650 + 4960 + 130 + 100 + 5120) – (5380 + 240 + 2900)
B counting rent prepaid as asset (103 650 + 4960 + 130 + 100 + 5120 + 240) – (5380 + 2900)
C crossing trade payables and trade receivables (103 650 + 4960 + 130 + 100 + 5380) – (5120 + 240 + 2900)
D counting overdraft as asset (103 650 + 4960 + 130 + 100 + 5120 + 2900) – (5380 + 240)
1(f) A and C 340 – 260

© UCLES 2019

1(g) A and C 2830 – 100 – 45

B and D 2830 + 100 – 45

1(h) A and C (47 600 + 12 500 – (7500 + 51 250)
1(j) A and B (250) – 96 + 183

B and D (47 600 + 7500) – (51 250 + 12 500)
C and D (250) + 96 – 183

Page 4 of 16

0452/13
Question
2(a)

2(b)

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Answer

Marks

Payment of annual insurance premium

revenue expenditure

Purchases of goods for re-sale

revenue expenditure

(1)

Proceeds of sale of old shop fittings at book value

capital receipt

(1)

Cost of new shop fittings

capital expenditure

(1)

Delivery charge on new shop fittings

capital expenditure

(1)

Cash sales

revenue receipt

(1)

Loan from bank

capital receipt

(1)

transaction

6

account(s) debited
$
18 000

(1)

capital

44

(1)

bank

490

Vijay

200

Nabil transferred his private motor vehicle,
$18 000 to the business.

motor vehicles

Purchased stationery, $44, on credit from
Tahir.

stationery

Paid office cash, $490, into the business
bank account.
Settled Vijay’s account of $200 by bank
transfer after deducting 2% cash discount.

Page 5 of 16

9

account(s) credited
$
18 000

(1)

Tahir

44

(1)

(1)

cash

490

(1)

(1)

bank
discount
received

196

(1)

4

(1)

0452/13
Question

Answer

2(c)

debit
column
rent and rates

Marks

9

motor vehicle at cost

9

motor expenses

9

purchases returns

9

discount received

9

Tarek, a credit supplier

9

insurance

9
9

bank overdraft
operating expenses

6

credit
column

given

capital

9
9

5 year bank loan

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drawings

9

carriage outwards

9

Page 6 of 16

Any 2 correct
items (1)

0452/13
Question

Answer

3(a)

Marks

Hamila
Safiya account
Date
2019
Feb 1
16
18

$

Details
Balance b/d
Sales
Bank

(1)
(1)
(1)

3(b)

320
200
320
840

Date
2019
Feb 12
24
27

6

Details
Bank
Cash
Bad debts

(1)
(1)
(1OF)

$
320
400
120
840

Hamila
Bad debts account
Date
2019
Feb 27

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Details

$

Total to date
Safiya
(1OF)

674
120
794

Date
2019
Feb 28

2

Details

$

Income statement *
(1OF)

794
__
794

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0452/13

Cambridge IGCSE – Mark Scheme
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Question
3(c)(i)

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Answer
1 March 2018 Balance b/d
This is the amount of the provision for doubtful debts at the start or brought down or initial provision (of the financial year).
(1)

Marks
4

Double entry: provision for doubtful debts }
debit
}(1)
28 February 2019 Balance c/d
This is the total of the provision for doubtful debts at the end of the year or to be brought down or new provision
Or This is the amount of provision for doubtful debts required for the following financial year (1)
Double entry: provision for doubtful debts }
credit
}(1)
3(c)(ii)

This is the difference between the opening and closing provision for doubtful debts. (1) This is the surplus provision which is
transferred to the income statement. (1)
There is a decrease or reduction in provision (1) and this is added to gross profit or additional income (1)

2

3(d)

Hamila’s profit for the year is shown at a more realistic figure (1)
Hamila’s trade receivables (current assets) are not overstated (1)

2

3(e)

The sales for which Hamila is unlikely to be paid (1) are regarded as an expense of the year in which those sales are
made (1) providing for potential losses (1) recognise that some accounts may not be paid (1)

2

3(f)

Reduce credit sales/sell on cash basis only
Obtain references from new credit customers
Fix or reduce credit limit for each customer
Improve credit control/ reduce credit period
Issue invoices and monthly statements promptly
Refuse further supplies until outstanding balance is paid
Allow cash discount (for prompt payment)
Charge interest on overdue accounts
Any 2 points (1) each

2

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Page 8 of 16

0452/13
Question
4(a)

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Answer

Marks

2 years’ depreciation = Year 1 4000 × 20% = 800
2 (4000 – 800) × 20% = 640
Profit/loss on disposal
Cost
Less Depreciation to date (800 (1) + 640 (1)
Less Proceeds of sale
Loss (on sale) (1)

4(b)

5

$
4000 (1)
1440
2560
1900
660 (1) OF

Sam
General Journal
Date
2018
Jan 1

Details

3

Debit
$

Office equipment
C Limited
Purchase of office equipment on credit

Credit
$

8000
8000

(1)
(1)
(1)

4(c)(i)

(8000 − 2000) (1)
= 1200 (1)
5 years

2

4(c)(ii)

20% × 8000 = 1600 (1)

1

© UCLES 2019

Page 9 of 16

0452/13
Question

Answer

Marks

Sam
General Journal

4(d)

Date
2018
Dec 31

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Details

3

Debit
$

Income statement
Provision for depreciation of office equipment
Depreciation on (office) equipment (transferred
to income statement)

Page 10 of 16

Credit
$

1600
1600

(1)OF
(1)OF
(1)

0452/13

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Question

Answer

4(e)

Sam – Petty Cash Book
Total
received
$
150

5

Date

Details

Total
paid
$

2019
April 1
3
6
11
18
21
30

Cash
Taxi fare
Parcel post
Cleaner (refund)
Kelly
Printer paper
Cleaner

May 1

Balance b/d
Cash/bank

Office
expenses
$

10
Travel

Cleaning

$

$

Ledger
accounts
$

12
(1)
(1)
(1)
(1)

Balance c/d
155
26
124

Marks

3
35
23
56
129
26
155

3

}
12
}(1)*
}

35

23
26

12

56
56

35

(1)OF
(1)OF

* for entering both items in the appropriate analysis columns
(1) Dates
(1) Totalling analysis columns
(1) Totalling total columns

Question
5(a)

© UCLES 2019

Answer
To reward the partner investing the highest capital
To encourage partners to invest in the business
Any 1 reason (1)

Marks
1

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Question

Answer

Marks

5(b)

To discourage partners from making excessive drawings
To ‘penalise’ the partner who makes high drawings
Any 1 reason (1)

1

5(c)

To compensate for extra workload/responsibilities, running the business, more experience, working or active partner

1

5(d)

Mostafa and Salma
Profit and Loss Appropriation Account for the year ended 30 April 2019
$
Profit for the year
Interest on drawings Mostafa
Salma
Interest on capital

Partner’s salary

Share of loss

© UCLES 2019

Mostafa
Salma
*Mostafa
9 mths x 12 000 9000 (1)
3 mths x 15 000 3750 (1)
Mostafa
Salma

$
14 820
600 (1)
480 (1)

1 080
15 900

2 250 (1)
1 250 (1)
3 500
12 750
210 (1)OF
140 (1)OF

Page 12 of 16

(16 250)
(350)
(350)

8

0452/13
Question

Answer

5(e)

Mostafa and Salma
Mostafa Current account
Date
2019
Apl 30

Details
Drawings
}(1)
Int on draw OF }
Loss share (1)OF
Balance c/d

$

Date
2018
10 000 May 1
600 2019
210 Apl 30
7 440
18 250
2019
May 1

(1) Dates

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Page 13 of 16

Marks
5

Details
Balance b/d

$
3 250

Int on Cap OF}(1)
Salary
OF}

2 250
12 750
18 250

Balance b/d(1)OF

7 440

0452/13

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Question

Answer

Marks

6(a)
Wages accrued at 30 April 2019

Income statement
Statement of financial position

Ordinary share capital

Statement of changes in equity
Statement of financial position

(1)
(1)

Creation of general reserve

Statement of changes in equity
Statement of financial position

(1)
(1)

Payment of interim ordinary share dividend on 31 October 2018

Statement of changes in equity

(1)

Proposed ordinary share dividend at 30 April 2019

No entry

(1)

Debenture interest accrued on 30 April 2019

Income statement
Statement of financial position

(1)
(1)

6(b)

true

false

9

debenture holders receive interest
debentures holders receive a variable rate of interest

9(1)

debentures are usually included in the non-current liabilities section of the statement
of financial position

9(1)

debentures have a prior claim in the event of the company being wound up.

9(1)

debenture holders are entitled to vote at the annual general meeting
debentures are often secured on the non-current assets of the company

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8

financial statement

Page 14 of 16

9(1)
9(1)

5

0452/13
Question
6(c)

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Answer

Marks

Reduction in profit available for the ordinary shareholders or receive less dividends or receive dividends later

2

Debenture holders or debentures have prior claim on the assets of the company in the event of a winding-up
Or other relevant points
Any 2 points (1) each
6(d)

(27 400 + 25 200) : (28 700 + 10 800) = 52 600 : 39 500 (1 whole formula) = 1.33 : 1 (1)

2

6(e)

25 200 : (28 700 + 10 800) = 25 200 : 39 500 (1 whole formula) = 0.64 : 1 (1)

2

6(f)

Quick ratio does not include inventory (1)
Either
Inventory is the least liquid current asset – a buyer has to be found and then the money collected (1)
Or
The quick ratio shows whether the business would have any surplus liquid funds if all the current liabilities were paid
immediately from the liquid assets (1)

2

6(g)

increase
issue additional debentures

no effect

9(1)

pay operating expenses by cheque

9(1)

sell goods for cash instead of on credit

9(1)

delay paying credit suppliers

9(1)

sell unused non-current assets

9(1)

reduce credit period for credit customers

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decrease

9(1)

Page 15 of 16

6

0452/13
Question
6(h)

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Answer
Unable to pay debts (day to day expenses) when they fall due or current liabilities
Unable to take advantage of cash discounts
Unable to take advantage of business opportunities when they arise or expand
May have difficulty in obtaining further supplies
May not be able to pay dividends
Poor relationship with supplier or may be charged interest for late payment
Difficult to obtain bank loan
Or other suitable points
Any 2 points (1) each

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Marks
2