Accounting (0452) · May/June 2020 · Mark scheme 22

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Cambridge IGCSE™
ACCOUNTING

0452/22

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 12 printed pages.
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0452/22

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2020
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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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0452/22

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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 2020

Page 3 of 12

0452/22
Question

Answer

1(a)

Bilal
Purchases journal
Date
2020
April 4
5
13
30

Marks
4

Details

$

Milly (320 – 64)
EHL Limited
Todd
Transfer to purchases account

1(b)

256
500
250
1 006

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

Bilal
Cash Book
Disc.
Alld
$
2020
Apr 1
8
12
28

Balance b/d
Sales
Sales
Disposal

Cash

Bank

$

$

160
(1)
(1)
(1)

110
50
320

2020
May 1

Balance b/d

192
(1)OF

2020
1 960 Apr 6
280 10
17
21
24
30
2 240
870
(1)OF

Dates (1)

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Page 4 of 12

Disc.
Recd
$
Stationery
Milly
Office equip.
Todd
EHL Limited
Balance c/d

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

Cash

Bank

$

$
145

128
10
15
25(1)

192
320

500
240
485
870
2 240

0452/22

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Question

Answer

Marks

1(c)

accounting principle
The double entry for the posting of the purchases journal
entries is completed by posting the individual amounts to
the purchases ledger.

duality (1)

The purchase of goods on 5 April did not include goods
costing $55 which Bilal bought for his own use.

business entity (1)

The stationery purchased on 6 April had been recycled. This
is expected to improve the reputation of the business.
Reputation is not recorded in the accounting statements.

money measurement (1)

The value of office equipment shown in the financial
statements was based on its purchase price.

historic cost (1)

Question

Answer

2(a)

Marks
$
845 (1)
1 570
130
615
11 200
14 360 (1)
250
140

Subscriptions in arrears
Cash at bank
Cash in hand
Inventory
Fixtures and fittings
Subscriptions in advance
Wages outstanding
Accumulated fund

4

$

4

390 (1)
13 970 (1)(OF)

2(b)

The accumulated fund is built up from the annual surpluses (1) less any annual deficits (1)
Accept other valid points

2

2(c)

1250 + 115 – 140 (1) = 1225 (1)OF

2

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0452/22

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Question

Answer

2(d)

K Music Club
Subscriptions account
2019
Apr 1
2020
Mar 31

Balance b/d
Income and Expenditure
Balance c/d

$
845 (1)

2019
Apr 1
2020
8 820 (1)OF Mar 31
215

Marks

Balance b/d
Bank
Irrecoverable debts
Balance c/d

9 880
2020
Apl 1
2(e)

Balance b/d

2020
975 (1)OF Apl 1

Balance b/d

7
$
250 (1)
8 500 (1)
155 (1)
975
9 880
215 (1)OF

Advantages
Subscriptions in arrears have risen from $845 to $975, so this may be a concern (1)
Subscriptions in arrears are significantly higher than subscriptions in advance (1)
Irrecoverable debts would be minimised particularly if the direct debits were set up for the start of the year (1)
The timing of cash receipts from members will be known (1)
Administration costs may be reduced (1)
Accept other valid points
Max (2)
Disadvantages
Members may prefer to choose their own method of payment (1)
They may prefer to pay their subscription at a time of their choosing (1)
Some members may decide not to renew their membership (1)
Accept other valid points
Max (2)
Recommendation (1)

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5

0452/22

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Question

Answer

3(a)

Gok
Income Statement for the year ended 29 February 2020
$
Revenue
Less Sales returns
Cost of sales
Opening inventory
Purchases

420 000
12 000

Less Expenses
Discount allowed
Wages
Rent and rates
General expenses
Irrecoverable debts
Insurance (4 500 – 1 500)
Telephone expenses (4 565(1) + [1 660/4] (1))
Depreciation on Fixtures and equipment (20% × 76 800) (1)
Profit from operations
Loan interest (60 000 × 7%)(1) × 8/12(1)
Profit for the year

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9 000
12 360
11 750
4 220
8 600
3 000
4 980
15 360

15
$
408 000 (1)

26 700
311 400
338 100
32 100 (1)OF

Less Closing inventory
Gross profit

© UCLES 2020

Marks

306 000 (1) OF
102 000 (1)

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

69 270
32 730
2 800
29 930 (1)OF

0452/22

Cambridge IGCSE – Mark Scheme
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Question

Answer

Marks

3(b)

Advantages
Gok would no longer need to pay wages to Aiman as he would not be an employee (1)
Aiman may invest capital into the business (1)
Gok would consider how much capital would be introduced by Aiman (1)
The risks and responsibilities would be shared with Aiman (1)
Aiman may have skills which could be used in the business, other than those which he currently uses as a warehouse
assistant (1)
Aiman may be prepared to work longer hours in the business if he became a partner (1)
Currently Gok has not had time to carry out an inventory count so it seems that any extra hours which Aiman may work would
be helpful (1)
Accept other valid points
Max (2)

5

Disadvantages
Gok would no longer be able to take all the decisions on his own (1)
Aiman would be entitled to a share of the profits (1)
Gok would consider how profits and losses are to be shared (1)
Aiman would expect to take drawings from the business (1)
Accept other valid points
Max (2)
Recommendation (1)

Question

Answer

4(a)
2020
Mar 31

Purchases
Commission payable
Commission receivable

4(b)(i)
© UCLES 2020

Nadia
Suspense account
$
2020
110 (1)
Mar 31 Difference on trial balance
65 (1)
Discount allowed
Insurance
65 (1)
Drawings
240

Error of principle (1)

Marks
7
$
24
28
18
170
240

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

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0452/22
Question
4(b)(ii)

May/June 2020
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Cambridge IGCSE – Mark Scheme
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Answer

Marks

Error of commission (1)

1

4(c)

7
Nadia
Statement of corrected profit for the year ended 31 March 2020
$
6720

Profit for the year before corrections
No
effect
Error 1
Error 2
Error 3
Error 4
Error 5
Error 6
Error 7
Corrected profit for the year

Decrease
in profit
$
28 (1)
18 (1)

130 (1)
nil (1)
nil (1)

4(d)

190 (1)
___
236

___
240

4(1)(OF)
6724

Nadia
Journal
Date
2020
March 31
March 31

© UCLES 2020

Increase
in profit
$
110

4
Debit
$

Details

Irrecoverable debts
DD Supplies

300 (1)

Income statement
Provision for doubtful debts

284 (1)

Credit
$

300 (1)

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284 (1)

0452/22

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Question
5(a)

Answer
Rate of inventory turnover
(8 000 + 121618 − 11050)(1) 118 568
=
= 12.45 times (1)OF
(8 000 + 11050 / 2(1)
9 525

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Marks
5

Trade receivables turnover
28 700 365
(1) whole formula = 50 days (1)OF
×
209 510
1

5(b)(i)

Risk of obsolete inventory (1)
Risk of damage to inventory (1)
Increased storage costs (1)
May need to reduce selling price to sell old inventory (1)
Cash is tied up longer in inventory (1)
May mean missed business opportunities if insufficient cash (1)
Accept other valid points
Max (3)

3

5(b)(ii)

Risk of irrecoverable debts (1)
A provision for doubtful debts may be required (1)
Credit control may need to be reviewed (1)
Cash tied up in trade receivables (1)
May mean missed business opportunities if insufficient cash (1)
Effect may be significant as all sales are on credit (1)
Accept other valid points
Max (3)

3

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0452/22

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(c)

Answer
Cash discount
Advantages
Cash will be received significantly earlier (1)
Good customer relationships are maintained (1)
Credit control costs may be reduced (1)
Irrecoverable debts may be reduced (1)
Accept other valid points
Max (1)
Disadvantages Less cash will be received (1)
1% may not be enough to encourage earlier payment (1)
If customers have insufficient funds to pay the cash discount may have no effect (1)
Accept other valid points
Max (1)
Interest
Advantages

More cash may be received (1)
Cash may be received earlier (1)
Interest received will increase profit (1)
Irrecoverable debts may be reduced (1)
Accept other valid points
Max (1)
Disadvantages Customer relationships may worsen (1)
Increased administration costs (1)
Customers may refuse to pay the interest (1)
Customers may find an alternative supplier (1)
Accept other valid points
Max (1)
Recommendation (1)

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Marks
5

0452/22
Question

Cambridge IGCSE – Mark Scheme
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May/June 2020
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Answer

Marks

5(d)(i)

Accounting policies should be applied consistently so that financial statements can be compared from year to year (1)
Financial statements can be compared with similar businesses (1)
Any change in the company’s accounting policies, and the effect of the change, should be disclosed (1)
Accept other valid points
Max (2)

2

5(d)(ii)

Information is relevant if it is capable of influencing the decisions being made (1)
Information must be available in time for decisions to be taken (1)
Relevant information helps the directors to evaluate past, present and future events (1)
Accept other valid points
Max (2)

2

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