Accounting (0452) · May/June 2019 · 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 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.
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0452/21

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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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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

0452/21
Question

Answer

1(a)(i)

Sabelo
Petty Cash Book
Total
received
$
18
102

Date
2019
April 1

Details
b/d

3
11
15
24

Balance
Bank
Kenneth
Taxi fare
Stationery
Bus fare

30

Balance

c/d

15

2019
May 1

Balance

b/d

Marks

Total
paid
$
(1)
(1)
(1)
(1)
(1)

120
(1) OF

+ (1) dates
+ (1) OF totalling analysis columns
+ (1) OF totalling total columns

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Page 4 of 16

58
14
24
9
105
15
120

9

Travel
$

Postage and
stationery
$

Ledger
accounts
$
58

14
24
9
23

24

58

0452/21

May/June 2019
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)(ii)

Sabelo
Cash Book
Date
2019
April 1
8
28
29
30

Details
Balance b/d
Elijah
Rent receivable
Sales
Balance c/d

Disc.
$
(1)
(1)
(1)

7
20
7

2019
May 1

Balance

b/d

Cash
$
250

270
270
(1) OF

Bank
$

Date
2019
April 1

343
100
800
678
1921

19
27
30

10

Details
Balance b/d
Petty cash
(1)
Office expenses (1)
Ziningi
(1)
Balance c/d

Disc.
$

2019
May 1

Page 5 of 16

Balance

b/d

Cash
$

15
15

+ (1) OF totalling discount columns
+ (1) dates

© UCLES 2019

Marks

270
270

Bank
$
1119
102
115
585
1921
678
(1) O
F

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Question

Answer

Marks

1(b)

Sabelo
Bank Reconciliation Statement at 30 April 2019
$
Balance in cash book
Cheques not yet presented
Office expenses
Ziningi

115 (1)
585 (1)
OF

7

$
(678) (1) OF
700
22

Amounts not yet credited
Rent receivable
Sales
Bank error
Balance on bank statement

100 (1)
800 (1)
240 (1)
$

Alternative presentation
Balance on bank statement
Amounts not yet credited
Rent receivable
Sales
Bank error

100 (1)
800 (1)
240 (1)

Cheques not yet presented
Offices expenses
Ziningi

115 (1)
585 (1)
OF

Balance in cash book

© UCLES 2019

(1140)
(1118) (1)
$
(1118) (1)

1140
22
(700)
(678)

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(1) OF

0452/21
Question
1(c)

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Answer
1

2

No (1)
Either
OR

Marks
4

Application of the realisation principle (1)
Revenue is recognised when the legal liability to pay passes to the customer (not when goods are ordered) so no
entry will be made when an order is received (1)

Yes (1)
Either Application of the going concern principle (1)
Or
When it is known that the business is going to be discontinued it may be necessary to adjust the value of some
assets to their expected sale values (1)

Question

Answer

Marks

2(a)(i)

Jade (1)
To request a reduction in the invoice/to notify Adil of goods returned (1)

2

2(a)(ii)

Adil (1)
To notify of a reduction in the invoice (1)

2

2(a)(iii)

Adil (1)
To notify Jade of the amount owing at the end of the month (1)

2

2(b)

Jade
Adil account
Date
2019
April 4
20
30

Details
Bank
Discount
Returns
Balance c/d

$
(1)
(1)
(1)

429
11
75
345
860

6

Date
2019
April 1
12

Details
Balance b/d
Purchases

May 1

Balance

$
(1)
(1)

860
345

b/d
(1) OF

© UCLES 2019

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440
420

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Question

Answer

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Marks

2(c)

2 800 365
} (1) = 35 days (1)
×
29 600
1

2

2(d)

Will not have to allow cash discount
May be able to charge interest on overdue amount
Or other suitable advantage
Any advantage (1)

1

OR – if answer to (c) is less than 29 days
Receive money quicker than previously
May favourably affect cash flow
Reduced risk of bad debts
Or other suitable advantage
Any advantage (1)
2(e)

Has to wait longer to receive the money
May adversely affect cash flow position
Increased risk of bad debts
Or other suitable disadvantage
Any disadvantage (1)
OR – if answer to (c) is less than 29 days
May have to allow cash discount
Will not be able to charge interest in overdue amount
Or other suitable disadvantage
Any disadvantage (1)

1

2(f)

2 800 365
} (1) = 29 days (1)
×
29 600
1

2

© UCLES 2019

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Question
2(g)

Answer
Satisfied (1)
Jade paid more quickly than in the previous year/Jade paid within the credit period allowed (1)
Or other suitable comment
OR – if answer to 2(f) is more than 35 days
Unsatisfied (1)
Jade is taking longer to pay her accounts than in the previous year (1)
Or other suitable comment
OR – if answer to 2(f) is between 31 days and 35 days
Satisfied (1)
Jade is paying quicker than previously (1)
OR
Unsatisfied (1)
Is still outside the credit period allowed (1)
Or other suitable comment

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Marks
2

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Question

Answer

3(a)

Marks

Calculation of credit purchases

5

Payments to credit suppliers
Cash discount received
Returns to credit suppliers
Amount owing to credit suppliers 31 December 2018
Credit purchases

$
14
62
5
37
5
21
40
14
34
18
57
4

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

Alternative presentation
Total trade payables account
Date
2018
Dec 31

Details
Bank
Discount recd
Returns
Balance c/d

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

14 625
375
2 140
1 434
18 574

Date
2018
Dec 31

*Purchases

$
18 574

(1) OF
18 574
2019
Jan 1

© UCLES 2019

Details

Page 10 of 16

Balance

b/d

1 434

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Question

Answer

Marks

Calculation of amount received from credit customers

3(b)

6
$

Credit sales
Less Returns from credit customers
Bad debits
Cash Discount allowed
Amount owed by credit customers
Amount received from credit customers

2 042
380
338
1 980

$
21 640 (1)
(1)
(1)
(1)
(1)

4 740
16 900 (1) OF

Alternative presentation
Total trade receivables account
Date
2018
Dec 31

Details
Sales

$
(1)

21 640

Date
2018
Dec 31

21 640
2019
Jan 1

© UCLES 2019

Balance b/d

1 980

Page 11 of 16

Details

$

*Bank
(1) OF
Discount alld
(1)
Returns
(1)
Bad debts
(1)
Balance c/d
(1)

16 900
338
2 042
380
1 980
21 640

0452/21
Question

Answer

3(c)

Min
Bank account
Date
2018
Jan 1
Dec 31

Details

$

Capital
(1)
Loan
(1)
Trade receivables
(1) OF

65 000
5 000

Date
2018
Dec 31

16 900
86 900

2019
Jan 1
3(d)

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Balance b/d

Marks
7

Details
Non-current
assets
(1)
Trade payables (1)
*Expenses
(1) OF
Balance c/d
(1)

$
64 000
14 625
2 883
5 392
86 900

5 392

Full details are available about the assets, liabilities, revenues and expenses
The preparation of financial statements is easier/more accurate
The calculation profit or loss for the year is likely to be more reliable
More informed decision-making is possible
A greater degree of control can be exercised
The possibility of fraud is reduced
Detailed records are available for reference purposes
Information required by a bank/lender is readily available
Or other suitable points
Any 3 advantages (1) each

3

3(e)(i)

Check security available for any loan/overdraft
Check the ability of the business to repay any overdraft/loan when due
Check the ability of the business to pay any interest when due
Any 2 reasons (1) each

2

3(e)(ii)

Check the liquidity position
Check the likelihood of the account being paid
Check the trade payables payment period
To help determine the credit limit/the length of credit allowed
Any 2 reasons (1) each

2

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0452/21
Question
4(a)(i)

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Answer

Marks
1

425 100
×
= 5% (1)
8 500
1

Or can be calculated on other partner’s drawings to arrive at same percentage
4(a)(ii)

1

3 600 100
×
= 6% (1)
60 000
1

Or can be calculated on other partner’s capital to arrive at same percentage
4(b)

Liam and Mia
Current accounts
Date

Details

2018
Feb 1
Aug 1
2019

Balance b/d
Capital

Jan 31

Drawings

Liam
$

Mia
$

Date

2 140
(1)
(1)

Interest on drawings
(1)
Share of loss
(1)
Balances c/d

14 000
19 100

8 500

955
2 120
18 525
54 700

425
1 060
6 475
18 600

2018
Feb 1
2019
Jan 31

2019
Feb 1

+(1) dates

© UCLES 2019

Page 13 of 16

9

Details

Liam
$

Balance b/d

44 500

Interest on capital
(1)
Salary
(1)

10 200

Balances b/d

Mia
$

3 600
15 000

54 700

18 600

18 525
(1) OF

6 475
(1) OF

0452/21

Cambridge IGCSE – Mark Scheme
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Question

May/June 2019
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Answer

Marks

4(c)

(38 440 + 42 060) : (36 250 + 14 150)
= 80 500 : 50 400 (1) whole formula
= 1.60 : 1 (1)

2

4(d)

42 060 : (36 250 + 14 150)
= 42 060 : 50 400 (1) whole formula
= 0.83 : 1 (1)

2

4(e)(i)

Method
Obtain long-term loan
Sell non-current assets
Introduce a new partner
Or other suitable method – excluding increase capital
Any 1 method (1)
Reason
There would be an decrease in the current liabilities (bank overdraft) so both the current ratio and the quick ratio will increase(1)

2

4(e)(ii)

Current ratio – no change as inventory decreases and trade receivables/bank increase by same amount (1)
Quick ratio – increases as the decrease in inventory does not affect liquid assets, but increase in trade receivables/bank does
affect the liquid assets (1)

2

How much capital will he contribute?
Will the annual profit be increased/loss reduced with the injection of more capital?
What share of profit/loss will he be offered?
Will he be offered a salary?
How will the workload/responsibilities be shared?
Will three partners be too many for the size of the business?
What areas of expertise will he bring to the partnership?
Will they be able to work together without disputes arising?
Or other relevant factors
Any 4 factors (1) each

4

4(f)

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Question

Answer

5(a)

Nadia
Journal
Details
Bank charges
Bank

Debit
$
21

Zahoor
Sales
5(b)

Marks
4

Credit
$
21

(1)
(1)

100

(1)
(1)

100

Nadia
Statement of corrected profit for the year ended 31 March 2019
$
3 330

Data profit for the year before corrections
Increase
in profit
$
Error 1
Error 2
Error 3
Error 4
Error 5
Error 6
Error 7
Error 8

100

400

Decrease
in profit
$
21
(1)
(1)
10
199
62
90

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

960
1 342

(1)

(1)

500
Corrected profit for the year

© UCLES 2019

9

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842
2 488

(1) OF

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Question

Answer

5(c)

Nadia
Corrected Statement of Financial Position at 31 March 2019

Assets
Non-current assets
Premises
Other non-current assets
Current assets
Inventory (3170–199)
Trade receivables (3000 + 100)
Less Provision for doubtful
debts
Other receivables
Cash

$

$

$

Cost

Accumulated
depreciation

Book value

31 000
9 600
40 600

31 000
8 640
39 640

960
960

2 971
3 100
62

(1)
(1) OF

(1) OF
(1) OF if have headings for the 3 columns
(1) OF

3 038
400
200
6 609

Total assets

(1) OF

46 249

Capital
Opening balance
Plus Profit for the year

50 000
2 488
52 488
10 350
42 138

Less Drawings
Current liabilities
Trade payables
Bank (1410 + 21)

2 680
1 431
4 111

Total capital and liabilities

© UCLES 2019

Marks

46 249

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(1) OF
(1) OF
(1)

9