Accounting (0452) · May/June 2020 · Mark scheme 21
Cambridge Accounting (0452) mark scheme for paper 21, May/June 2020 — 0452/21/M/J/20, file 0452_s20_ms_21.pdf.
Text of this paper
www.dynamicpapers.com
Cambridge IGCSE™
ACCOUNTING
0452/21
Paper 2
May/June 2020
MARK SCHEME
Maximum Mark: 120
Published
Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.
This mark scheme is published to support teachers and students and should be read together with the
question paper. It shows the requirements of the exam. The answer column of the mark scheme shows the
proposed basis on which Examiners would award marks for this exam. Where appropriate, this column also
provides the most likely acceptable alternative responses expected from students. Examiners usually review
the mark scheme after they have seen student responses and update the mark scheme if appropriate. In the
June series, Examiners were unable to consider the acceptability of alternative responses, as there were no
student responses to consider.
Mark schemes should usually be read together with the Principal Examiner Report for Teachers. However,
because students did not sit exam papers, there is no Principal Examiner Report for Teachers for the June
2020 series.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.
This document consists of 18 printed pages.
© UCLES 2020
[Turn over
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles
May/June 2020
www.dynamicpapers.com
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.
© UCLES 2020
Page 2 of 18
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
May/June 2020
www.dynamicpapers.com
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 2020
Page 3 of 18
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
1(a)
Marks
$
Sales
Cost of sales
Opening inventory
Purchases
900 *
7 600
8 500
970 *(1)
Less Closing inventory
Gross profit
4
$
10 542 (2)CF/(1)OF
7 530 (1)OF
3 012
* mark for opening and closing inventory
Any format acceptable
1(b)
Date
2020
Feb 29
Details
Shop sales
Subscriptions
Competition fees
$
(1)OF
}
}(1)
Date
2019
10 542 Mar 1
11 400 2020
915 Feb 29
22 857
2020
Mar 1
Balance b/d
(1)OF
3 447
(1) Dates
© UCLES 2020
8
ZED Sports Club
Receipts and Payments Account for the year ended 29 February 2020
Page 4 of 18
Details
Balance b/d
Shop purchases
Competition prizes
Fittings
Rent and insurance
Wages – shop assistant
Balance c/d
$
(1)
845
(1)
}
}(1)
}
}(1)
7 600
390
4 000
4 575
2 000
3 447
22 857
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
Marks
1(c)
ZED Sports Club
Bank Reconciliation Statement at 29 February 2020
$
Balance on bank statement
Add: Amount not yet credited – competition fees
Bank error
5
$
7 162 (1)
260 (1)
25 (1)
Less Cheque not yet presented – fittings
Balance in cash book
285
7 447
4 000 (1)
3 447 (1) OF
Alternative presentation
$
Balance in cash book
Add: Cheque not yet presented – fittings
Less: Amount not yet credited – competition fees
Bank error
Balance on bank statement
© UCLES 2020
Page 5 of 18
$
3 447 (1) OF
4 000 (1)
7 447
260 (1)
25 (1)
285
7 162 (1)
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
1(d)
Answer
Receipts and payments account
Marks
3
Income and expenditure account
Includes all money received and paid
Includes income and expenses
(1)
No adjustment made for accruals or
prepayments
Adjustments made for accruals and
prepayments
(1)
Includes only monetary items
Includes non-monetary items
Includes only revenue receipts and
expenditure
(1)
Includes both capital and revenue items
Balancing figure represents surplus/deficit
(1)
Balancing figure represents bank balance
(1)
Accept other valid points
Max (3) for comparative statements
© UCLES 2020
May/June 2020
www.dynamicpapers.com
Page 6 of 18
0452/21
Question
Answer
2(a)
Ame
Trial Balance at 31 March 2020
Marks
Debit
$
Capital
Drawings
Equipment at cost
Provision for depreciation of equipment
Inventory at 1 April 2019
Trade receivables
Bank overdraft
Trade payables
Sales
Purchases
Purchases returns
Carriage inwards
Discount received
Commission receivable
Rent and Insurance
Office expenses
Suspense
6
Credit
$
4 000
15 500
10 369 }
}(1)
}
3 100 }(1)
1 765
1 290
475 (1)
1 600
31 250
18 330
640
910 }(1)
}
815 }
1 500 }(1)
5 700
2 425
369
50 019
© UCLES 2020
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Page 7 of 18
50 019 (1)OF
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
Marks
2(b)
9
Entries required to correct the error
Debit
Error
Account
No entry had been made for cash sales, $60.
$
60
Office expenses
240 (1)
Wages
240 (1)
The purchases journal total for March 2020 was
$2165. This amount was incorrectly recorded in
the purchases account as $2651.
Suspense
An insurance payment, $375, had been correctly
recorded in the cash book but no other entry has
been made.
The purchase of equipment, $800, was correctly
recorded in the cash book but debited to the
office expenses account.
Office expenses, $240, had been credited to the
wages account. No debit entry had been made.
© UCLES 2020
Cash
Credit
Account
Sales
$
60
Suspense
480 (1)
486 (1)
Purchases
486 (1)
Rent and
insurance
375 (1)
Suspense
375 (1)
Equipment
800 (1)
Office expenses
800 (1)
Page 8 of 18
0452/21
Question
Answer
2(c)
Ame
Suspense account
Date
Details
$
2020
Mar 31
Marks
5
Date
Details
$
2020
Difference on trial balance
Purchases
(1) OF
(1)
369
Mar 31
486
855
© UCLES 2020
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Page 9 of 18
Office expenses
(1)
240
Wages
(1)
240
Rent and insurance
(1)
375
855
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
Marks
3(a)
Chippo
Manufacturing Account for the year ended 30 April 2020
$
Cost of material consumed
Opening inventory of raw material
Purchases of raw material
Less Closing inventory of raw material
Direct wages
Direct expenses – royalties
Prime cost
Factory overheads
Wages – factory supervisor
Factory general expenses
Factory fuel and power
Rent and insurance (28 000 × 50%)
Depreciation of machinery (60 000 – 21 600) × 20%
Add opening work in progress
28 500 (1)
4 500
5 325
14 000 (1)
7 680 (1)
$
46 620
38 250
7 690
92 560
(1)
(1)
(1)
(1)OF
60 005
152 565 (1)OF
5 400 *
157 965
5 590 *(1) both
152 375 (1) OF
Less closing work in progress
Cost of production
*mark for both opening and closing work-in-progress
© UCLES 2020
3 120
46 500
49 620
3 000
10
Page 10 of 18
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
Marks
3(b)
Chippo
Income Statement (Trading Account section) for the year ended 30 April 2020
$
Revenue
Less Cost of sales
Opening inventory of finished goods
Cost of production
Purchases of finished goods
$
254 000
8 220
152 375 (1)OF
59 000 (1)
219 595
7 885
Less Closing inventory of finished goods
Gross profit
211 710 (1) OF
42 290 (1)OF
3(c)
2
Action
Increase gross profit
Increase wages of factory
supervisor
Reduce trade discount
allowed to customers
© UCLES 2020
4
Decrease gross profit
(1)
(1)
Page 11 of 18
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
3(d)
May/June 2020
www.dynamicpapers.com
Answer
Advantages
A manufacturing business such as Chippo’s, which requires machinery as well as premises, would usually operate as a
limited company (1)
Chippo would be able to raise some money by issuing shares (1)
It may be easier for Chippo to obtain finance for the proposed expansion if the business is a limited company (1)
If Chippo converts the business to a limited company, her personal assets will be safer (1)
If Chippo continues to manufacture as a sole trader, the lender could take her personal assets if the assets of the business
were insufficient to cover any loans (1)
Accept other valid points
Max (2)
Disadvantages
The lender is likely to require security over the company’s assets (1)
The lender could take possession of the assets of the business if payments were not made in accordance with the agreed
terms (1)
There will be costs involved in setting up and running a limited company (1)
Accept other valid points
Max (2)
Max (3) overall for advantages and disadvantages
Recommendation (1)
© UCLES 2020
Page 12 of 18
Marks
4
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
4(a)
Item
Net realisable
value
$
Marks
Lower of cost and
net realisable
value
$
Number of units
4
Total value
$
A
20 – 2 = 18
17
110
1 870 (1)
B
19 – 1 = 18
18
85
1 530 (1)
C
16 – 2 = 14
14
90
1 260 (1)
Total
4 660 (1)
4(b)
The net realisable value is lower than the cost so item D should be recorded at its net realisable of zero (1)
There will be no effect on profit (1)
2
4(c)
Advantages
The obsolete inventory is a loss to Rani’s business (1)
She will wish to avoid such losses in the future (1)
Holding inventory necessitates storage costs (1)
If Rani stops buying item D, she may have funds available for other business opportunities (1)
Rani had difficulty in monitoring four types of inventory (1)
Accept other valid points
Max (2)
5
Disadvantages
Rani needs to consider that it may be risky to stock only three of the four lines of inventory in the future (1)
There may be customer demand in future for item D (1)
Customers who have to start buying item D from another supplier may also buy items A, B and C from them (1)
Accept other valid points
Max (2)
Recommendation (1)
© UCLES 2020
Page 13 of 18
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
4(d)
Rani
Advertising income account
Date
2019
Apl 1
2020
Mar 31
Details
Balance b/d
Income statement
Balance c/d
$
*(1)
(1)OF
Date
2019
300
Apl 1
2020
6 320 Mar 31
500
Marks
7
Details
$
Balance b/d*
420
Bank
Irrecoverable debts
Balance c/d
(1)
(1)
6 000
300
400
7 120
Balance b/d
(1)
500
7 120
2020
Apl 1
Balance b/d
(1)
400
2020
Apl 1
(1) Dates
* mark for both balances
4(e)
© UCLES 2020
Sales of inventory are included in calculation of the gross profit (1)
Advertising income is included as other income after the calculation of the gross profit (1)
If sales of inventory are included as advertising income the gross profit will be understated (1)
Accept other valid points
Max (2)
Page 14 of 18
2
0452/21
Question
Answer
5(a)
Marks
$
Retained earnings 1 May 2019
Profit for the year
28 000 } (1)
42 000
5 000 }
4 500 }(1)
Less Transfer to general reserve
Dividend
Retained earnings 30 April 2020
Any format acceptable
© UCLES 2020
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Page 15 of 18
$
14 000 }
9 500
32 500 (1) OF
3
0452/21
May/June 2020
www.dynamicpapers.com
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
Marks
5(b)
MPT Limited
Statement of Financial Position at 30 April 2020
$
Assets
Non-current Assets
Fixtures and equipment at book value
Motor vehicles at book value
30 330
31 500
630
Total assets
Equity and Liabilities
Equity
Ordinary share capital
General reserve (35 000 + 5 000)
Retained earnings
30 870 (1)
61 200 (1)OF
273 600
150 000
40 000 (1)
32 500 (1)OF
222 500
Non-current Liabilities
5% Debentures
20 000 (1)
Current Liabilities
Trade payables
Bank
24 900
6 200
31 100 (1)
273 600
Total Equity and Liabilities
General reserves may not necessarily be matched by cash balances (1)
Accept other valid points
© UCLES 2020
$
152 000
60 400
212 400 (1)
Current Assets
Inventory
Trade receivables
Less Provision for doubtful debts
5(c)
7
Page 16 of 18
1
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
5(d)
Answer
Marks
4
Either
28 000 + 1000 (1)
100
×
150 000 + 40 000 (1)OF + 32 500OF + 20 000 (1)
1
=
29 000 100
×
242 500
1
= 11.96% (1)OF
Or
28 000 + 1000 (1)
100
×
273 600 (1)OF − 31100 (1)
1
= 11.96% (1)OF
© UCLES 2020
May/June 2020
www.dynamicpapers.com
Page 17 of 18
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
5(e)
May/June 2020
www.dynamicpapers.com
Answer
Basic statements – Increase profit for the year (1)
Reduce capital employed (1)
Use capital employed more effectively (1)
Max (3)
Expansion of basic statements –
Ways to increase profit for the year – Increase profit by increasing gross profit (1)
Reduce expenses (1)
Increase other income (1)
Max (2)
Ways to reduce capital employed –
Increase dividend (so reducing reserves) (1)
Reduce non-current liabilities (1)
Max (2)
Ways to use capital employed more effectively – combine lower costs with higher sales (1)
sell off surplus/inefficient assets that generate little revenue/increase costs (1)
Max (2)
Max (5)
© UCLES 2020
Page 18 of 18
Marks
5