Accounting (0452) · May/June 2019 · Mark scheme 23

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/23

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 14 printed pages.
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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.
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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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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0452/23

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Question

Answer

1(a)

Annabel
Cash Book
Date
2019
April 1
8
21
25
30

Details
Balance
Ellie
Caleb
Bank
Carly
Balance

Disc.
$00
b/d
(1)
(1)
(1)
(1)

9
200
6

c/d
15

2019
May 1

Balance

Cash
$00
150

b/d

350
54
(1)OF

Bank Date
$00 2019
April 1
441
15
310
25
27
294
30
1 003

Marks
13

Details

Disc.
$00

Balance
b/d
Ed
Cash
Operating expenses
Caleb (dis chq)
Bank charges
Balance
c/d

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

2 048

12

Balance

Bank
$00
988
468
200

296
310
82
12

2019
May 1

Cash
$00

54
350

b/d

2 048
1003
(1)OF

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

1(c)

document

person issuing the document

invoice

Ed

(1)

debit note

Annabel

(1)

credit note

Ed

(1)

statement of account

Ed

(1)

A debit note is sent by the customer to the supplier (1) to ask for a reduction in an invoice/when goods are returned (1)
A credit note is sent by the supplier to the customer (1) to notify of a reduction in an invoice/accept returns/accept request for
reduction in an invoice (1)

© UCLES 2019

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4

4

0452/23
Question
1(d)

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Answer

Marks

To notify the customer of the amount outstanding/to remind the customer of the amount due
To summarise the transactions for the month
To provide the customer with a copy of their account for checking purposes

1

Any 1 reason (1)

Question

Answer

2(a)

NS Musical Society
Subscriptions account
Date
2018
Feb 1
2019
Jan 31

Details
Balance

b/d

(1)

Income and
expenditure
Balance
c/d

(1)

$00 Date
2018
100 Feb 1
2019
Jan 31
3 000
200
3 300
2019
Feb 1

+ (1) dates

© UCLES 2019

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Marks
7

Details
Balance

$00
b/d

*Bank/Cash

(1)

250

(1)
(1)

3 050
3 300

Balance

b/d

(1)

200

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Question

Answer

2(b)

NS Musical Society
Receipts and Payments Account for the year ended 31 January 2019
Date
2019
Jan 31

Details
Subscriptions
(1)OF
Concert tickets
(1)
Disposal of non-current
assets
(1)
Balance
c/d

$00 Date
2018
3 050 Feb 1
2 560 2019
Jan 31
100
2 430

Marks

Details
Balance

$00
b/d

(1)

780

Rates

(1)

2 000

Insurance
Concert expenses
Musical Instruments
*Missing amount

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

700
1 610
1 050

8 140
2019
Feb 1

11

Balance

b/d

2 000
8 140
2 340

+ (1) dates
2(c)

Item

$00

Concert

950 (1)

Insurance

2 400 (1)

Rates

600 (1)

Depreciation of musical
instruments
10% × (3600 + 2100 – 120(1))

558 (1)OF

Sale of musical instrument

© UCLES 2019

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20 (1)

6

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Question
2(d)

Answer
The total amount receivable from members each year would increase by $600
The annual surplus for the year would increase by $600
This total receipts would increase by $600 per annum if all the members paid their subscription in full each year
This would reduce the overdraft by $600
The existing overdraft would have only been $430 if the theft had not occurred
Membership may fall if the annual subscription is increased
Or other suitable comments
Any 3 comments (1) each

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Marks
3

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Question

Answer

Marks

3(a)

Jamal
Manufacturing Account for the year ended 28 February 2019
$00
Cost of materials consumed
Purchases of raw materials
Less Purchases returns
Carriage on raw materials

45 680
1 030 (1)

Closing inventory of raw materials
Direct wages 29 750 (1) + 3040 (1)
Prime cost
Factory overheads
Indirect factory wages
Operating expenses (8250 + 550) (1) × 75% (1)
Insurance (3200 – 800) (1) × 75% (1)
Depreciation – factory machinery
loose tools
Closing work in progress
Cost of production

© UCLES 2019

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18 750
6 600
1 800
8 800 (1)
330 (1)

15

$00
44 650
3 240 (1)
47 890
4 150
43 740 (1)
32 790
76 530 (1)OF

36 280
112 810 (1)OF
3 310 (1)
109 500 (1)OF

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Question

Answer

3(b)

Jamal
Income Statement (Trading section) for the year ended 28 February 2019

109 500 (1)OF
12 400 (1)
121 900
8 900 (1)
113 000 (1)OF
28 250 (1)OF

Closing inventory of finished goods
Gross profit
Error
Returns of finished goods to the
supplier, $1 200, had not been
recorded
Operating expenses accrued
were $850 not $550
Salesman’s commission, $1 850,
had been included in indirect
factory wages

© UCLES 2019

7

$00
$00
143 500 (1)OF
2 250 (1)
141 250

Revenue
Less Sales returns
Cost of sales
Cost of production
Purchases of finished goods

3(c)

Marks

effect on cost of
production

effect on gross
profit

effect on profit
for the year

no effect

understated

understated

understated (1)

overstated (1)

overstated (1)

overstated (1)

understated (1)

no effect (1)

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Question

Answer

4(a)

Shen
Rates account
Date
2018
Mar 31
Oct 31

Details
Bank
Bank

} (1)

$00 Date
2018
640 Feb 1
720 2019
Jan 31

Marks
9

Details
Balance

$00
b/d

Income statement
Balance
c/d

(1)

240

(1)

960
160
1 360

1 360
2019
Feb 1

Balance

b/d (1)OF

160

Commission receivable account
Date
2018
Feb 1
2019
Jan 31
2019
Feb 1

Details

Income statement
(1)OF

$00 Date
2018
210 Mar 1
Aug 31
2019
209 Jan 31
419

Balance

114

Balance

b/d

(1)

b/d (1)OF

Details

$00

Bank
Cash
Balance

}(1)
c/d

210
95
114
419

+ (1) dates
4(b)

© UCLES 2019

(25 850 − 5150)
20 700 (1)
=
= 10.53 times (1)
(1890 + 2040) / 2
1965 (1)

3

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Question
4(c)

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Answer
If answer to 4(b) is below 11.50 times
Unsatisfied (1)
Goods are not being sold as quickly as in the previous year/lower sales/increased inventory (1)

Marks
2

If answer to 4(b) is above 11.50 times
Satisfied (1)
Goods are being sold more quickly than in the previous year/increased sales/decreased inventory (1)
4(d)

Increase sales activity/higher sales
Reduce level of inventory

2

Or other suitable point
Any 2 points (1) each
4(e)

To apply the principle of prudence
To ensure that the profit for the year is not overstated
To ensure that the inventory/current assets are not overstated
To apply the principle of consistency
To apply the principle of accruals (matching)
Any 2 reasons (1) each

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2

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Question

Answer

4(f)

Marks
overstated

4

understated

current assets at 31 January 2019

9

gross profit for the year ended 31
January 2019

9

(1)

capital at 31 January 2019

9

(1)

cost of sales for the year ending 31
January 2020

9

(1)

profit for the year ending 31 January
2020

Question

Answer

9

(1)

Marks

5(a)(i)

7250
365
×
} (1) whole formula = 22.43 = 23 days (1)
1
118 000

2

5(a)(ii)

Improve credit control
Issue invoices and statements promptly
Offer cash discount for prompt payment
Charge interest on overdue accounts
Refuse further supplies until outstanding balance is paid
Invoice discounting and debt factoring

2

Any two methods (1) each

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Question

Answer

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Marks

5(b)(i)

6600
365
×
} (1) whole formula = 25.63 = 26 days(1)
1
94 000

2

5(b)(ii)

If answer to 5(b)(i) is less than 30 days
Is deprived of the use of the money within the business earlier than previously
Relationship with trade payables may be improved
May be entitled to cash discount
Will avoid being charged interest on overdue accounts

2

If answer to 5(b)(i) is more than 30 days
Has use of money for a longer period
Relationship with trade payables may deteriorate
Will lose cash discount
May be charged interest on overdue accounts
Any 2 points (1) each
5(c)(i)

(118 000 − 94 350)
100
23 650
100
×
=
×
} whole formula (1) = 20.04% (1)
1
1
118 000
118 000

2

5(c)(ii)

9900
100
×
} whole formula (1) = 8.39% (1)
1
118 000

2

Either

100
14100
×
= 5.20% (1)
1
271000 (1)

2

Or

100
9900
×
= 3.65% (1)
1
271000 (1)

5(c)(iii)

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Question

Answer

Marks

5(d)

Raj
Statement of corrected profit for the year ended 31 March 2019
$00
8 550

Draft profit for the year before corrections
Increase
in profit
$00
Error 1

Decrease
in profit
$00

180 (2)*

Error 2

2 400 (2)*

Error 3

300 (2)*
180

Corrected profit for the year

2 700

2 520
6 030 (1)OF

* (1) for position and (1) for amount

© UCLES 2019

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