0452/21/M/J/21 Mark Scheme – Accounting May/June 2021 Paper 21

All subjects

Download Open PDF

Cambridge Accounting (0452) mark scheme for paper 21, May/June 2021 — 0452/21/M/J/21, file 0452_s21_ms_21.pdf.

Loading the paper…

Text of this paper

www.dynamicpapers.com

Cambridge IGCSE™
ACCOUNTING

0452/21

Paper 2

May/June 2021

MARK SCHEME
Maximum Mark: 100

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 2021 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 20 printed pages.
© UCLES 2021

[Turn over

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2021
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.

Page 2 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2021
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.

Page 3 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED
Social Science-Specific Marking Principles
(for point-based marking)

May/June 2021
www.dynamicpapers.com

Components using point-based marking:
• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer
shows confusion.
From this it follows that we:
a
b
c
d
e
f
g

DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark scheme
requires a specific term)
DO credit alternative answers/examples which are not written in the mark scheme if they are correct
DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)

Presentation of mark scheme:
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

Page 4 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2021
www.dynamicpapers.com

Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark for
each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners who
marked that paper.

Page 5 of 20

0452/21

May/June 2021
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)

Marks
11

Rahat
Cash Book
Date

Details

2021
Mar 1
3
17
27
31
Apr 1

Balance b/d
Sales
Sales
Disposal
Balance c/d

Disc.

Cash

$
150

(1)
(1)
(1)

Balance b/d

Bank Date
$

2021

Mar 1
6
9
50
13
2246
30
31
2876
Apr 1
580

140

290
215
(1)OF

Details

Balance b/d
Insurance
GH Limited
Stationery
Colin
Balance c/d
Balance b/d

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

Disc.

Cash

Bank

$
1980
360
196

4
75
10
14
(1)OF

340
215
290

2876
2246
(1)OF

+(1) dates

1(b)

Updating cash
book
Cheque from Burgess dishonoured

Bank reconciliation
statement

 (1)

Cheque to Colin unpresented

 (1)

Overdraft interest

 (1)

Standing order paid for rates

 (1)

Page 6 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
1(c)

Answer
Advantages
Loan interest may be lower than overdraft interest (1)
No interest on overdraft to pay (1)
Have a longer time to repay a loan (1)
May improve relationship with bank (1)
Bank balance would be improved/liquidity would be improved (1)
New office furniture should lead to a better working environment (1)
Accept other valid points
(Max 2)
Disadvantages
Loan will have to be repaid (1)
Loan interest will have to be paid (1)
Early repayment may not be allowed (1)
The bank may require security (1)
No income/profit is generated from the office furniture (1)
Accept other valid points
(Max 2)
Recommendation (1)

Page 7 of 20

May/June 2021
www.dynamicpapers.com
Marks
5

0452/21
Question

Answer

2(a)

Marks

John and Banu

Revenue
Cost of sales
Opening inventory
Purchases

Income Statement for the year ended 31 March 2021
$
$
158 000

Less Closing inventory

9 400
69 200
78 600
9 200
69 400
88 600
5 100
93 700

Gross profit
Commission receivable (4 800 + 300)
Less Expenses
Rates and insurance (11 250 + 650)
Wages
General expenses
Discount allowed
Depreciation of fittings (15% × 18 000)
Profit from operations
Loan interest
Profit for the year

May/June 2021
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

11 900 (1)
10 475}
9 675}(1)
2 000 (1)
2 700 (1)

Page 8 of 20

(1)
(1)OF
(1)

36 750
56 950
500 (1)
56 450 (1)OF

0452/21
Question
2(b)

Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer
John and Banu
Appropriation Account for the year ended 31 March 2021
$
$
Profit for the year
56 450 OF
Add interest on drawings John
1 140}
Banu
1 260} (1)
2 400
58 850
Less
Interest on capital
John
2 250}
Banu
1 500}(1)
3 750
Salary
John
8 500 (1)
12 250
46 600
Profit share
John (40% × 46 600)
18 640 (1) OF
Banu (60% × 46 600)
27 960 (1) OF
46 600

Page 9 of 20

May/June 2021
www.dynamicpapers.com
Marks
5

0452/21

May/June 2021
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

2(c)(i)

To discourage the partners from taking drawings (1)
Accept other valid points

2(c)(ii)

To reward John for lending money to the business
To compensate John for the interest he could have earned elsewhere (1)
(Max 1)
Accept other valid points

2(d)

Continuity of existence of the business
Banu may have skills and knowledge which John does not have

(1)

John is only liable for business debts up to the amount he agreed to contribute
Additional finance is available to the business

}

Risks and responsibilities are shared

 }(1)

John is bound by the actions of Banu carried out on behalf of the business
John can discuss matters with Banu before making decisions.
+ (1) if items 1, 3 and 6 are un-ticked

Page 10 of 20

(1)

0452/21
Question

Answer

3(a)

TC Limited
Rent and rates account
$

Date
2021
Jan 31

Details
Total to date
Balance c/d (rates)

(1)

Feb

Balance b/d (rent)

(1)

19 620
550
20 170
1 200

Marks

Date
2021
Jan 31

Details

Feb

Balance b/d (rates)

Ignore dates

May/June 2021
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Page 11 of 20

5
$

Manufacturing account (1)OF
Income statement
(1)OF
Balance c/d (rent)
(1)

9 485
9 485
1 200
20 170
550

0452/21

May/June 2021
www.dynamicpapers.com

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

3(b)

TC Limited
Manufacturing Account for the year ended 31 January 2021
$
$
Cost of material consumed
Opening inventory of raw material
Purchases of raw material
Carriage inwards

7 500
91 400
6 280

Less Closing inventory of raw material
Direct wages
Prime cost
Factory overheads
Wages of factory supervisor
Rent and rates
Insurance (75% × 4 600)
General expenses
Depreciation of factory equipment
(90 000 – 30 960) × 20%

97 680
105 180
8 000
97 180
52 000
149 180

(1)
(1)
(1) OF

23 100 (1)
9 485 (1)OF
3 450 (1)
4 200
11 808 (1)

Add opening work-in-progress
Less closing work-in-progress
Cost of production
* (1) for both opening and closing work-in-progress

Marks

Page 12 of 20

52 043
201 223
(1)OF
11 220 *
212 443
11 900 *
200 543
(1) OF

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2021
www.dynamicpapers.com

Question

Answer

3(c)

Advantages
To apply the principle of consistency OR the other non-current assets are depreciated so these should also be depreciated
(1)
To apply the principle of matching OR to spread the cost over expected useful life (1)
Are non-current assets so should be depreciated/they lose value over their useful life so should be depreciated (1)
Accept other valid points
(Max 2)
Disadvantages
The cost of the items may not be material (1)
The amount of depreciation would be insignificant (1)
The items may not last more than one year (1)
Accept other valid points
(Max 2)
Recommendation (1)

Page 13 of 20

Marks
5

0452/21
Question
4(a)

Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer
Neith
Corrected Trial balance at 31 March 2021
$
$
Fixtures and equipment at cost
300 000
Provision for depreciation of fixtures and equipment
120 000 (1)
Inventory
8 800 (1)
Trade receivables
16 100 (1)
Provision for doubtful debts
322
Petty cash
100
Bank overdraft
11 400 (1)
Trade payables
3 200
Capital at 1 April 2020
160 000
Sales
107 498
Purchases
41 520
Rent and rates
16 000
Office expenses
9 000
General expenses
8 150
Other receivables
2 750 (1)

402 420
402 420 (1)both

Page 14 of 20

May/June 2021
www.dynamicpapers.com
Marks
6

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

4(b)

Neith
Journal
Error number
1
2
3
4
5

4(c)

Error number

Details

Debit
$
32 (1)

Sales
Anya

75 (1)

Purchases
Samir

120 (1)

75 (1)
120 (1)

Bank
Office expenses

72 (1)
72 (1)

Office expenses/cleaning expenses
Fixtures and equipment

235 (1)
235 (1)

Decreases capital

No effect on capital


 (1)

32 (1)

Marks

Credit
$

General expenses
Office expenses

Increases capital

May/June 2021
www.dynamicpapers.com

 (1)
 (1)

Page 15 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

5(a)

Marks
4

Trade receivables turnover (days)
workings

answer

12 400 365
×
whole formula(1)
191000
1

24 days (1)

Trade payables turnover (days)

May/June 2021
www.dynamicpapers.com

workings

answer

7 000
365
×
whole formula(1)
120 000
1

22 days (1)

Page 16 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

5(b)(i)

Answer

Marks
2

Answers to be based on OF answers to (a)

Ahu

Omer

Allows trade receivables a longer credit period (1)

Allows trade receivables a shorter credit period (1)

Has an inefficient credit control system/slower to
resort to legal action (1)

Has a more efficient credit control system/quicker to
resort to legal action (1)

Offers no cash discount/lower rate of cash discount
for prompt payment (1)

Offers cash discount/higher rate of cash discount for
prompt payment (1)

Charge no interest/lower rate of interest on overdue
Accounts (1)

Charge interest/higher rate of interest on overdue
Accounts (1)

Does not make use of invoice discounting and
factoring (1)

Makes use of invoice discounting and factoring (1)

Accept other valid points
(Max 2)

May/June 2021
www.dynamicpapers.com

Page 17 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

5(b)(ii)

Answer
Answers to be based on OF answers to (a)

Marks
2

Ahu

Omer

Is allowed a longer credit period by trade payables(1)

Is allowed a shorter credit period by trade payables (1)

Suppliers offer no cash discount/lower rate of cash
discount for prompt payment (1)

Suppliers offer cash discount/higher rate of cash
discount for prompt payment (1)

Suppliers charge no interest/lower rate of interest on
overdue accounts (1)

Suppliers charge interest/higher rate of interest on
overdue accounts (1)

Credit customers take longer to pay (1)

Credit customers pay more quickly (1)

Has less liquidity/is less able to pay the suppliers (1)

Has more liquidity/is more able to pay suppliers (1)

Is a more established customer so suppliers may be
more flexible on credit period taken (1)

Is paying quickly in order to establish a good
relationship with suppliers (1)

Accept other valid points
(Max 2)

May/June 2021
www.dynamicpapers.com

Page 18 of 20

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

5(c)

May/June 2021
www.dynamicpapers.com

Answer

Advantages of employing marketing manager

Disadvantages of employing marketing manager

May increase sales and may increase profit (1)

Manager’s salary will increase expenses (1)

May improve business reputation/brand image (1)

Increased cost of marketing/marketing expenses (1)

Can utilise experience and skills of manager (1)

Manager may not be experienced/effective (1)

May increase market share (1)

Increase in sales/profit may be less than salary (1)

Accept other valid points

Marks
5

(Max 4)
Recommendation (1)

5(d)

Establish a credit limit for each customer (1)
Issue invoices and statements promptly (1)
Improve credit control/maintain good credit control system (1)
Refuse further supplies until outstanding balance paid (1)
Take legal action if necessary (1)
Allow cash discount for prompt payment (1)
Sell on a cash basis only/reduce credit sales (1)
Accept other valid points
(Max 3)

Page 19 of 20

0452/21
Question

5(e)

Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer

Matching
To ensure that the revenue of the accounting period is matched against the costs of the same period (1)
Prudence
Profit should not be anticipated but all possible losses should be provided for (1)
To ensure that profits and assets are not overstated (1)
To ensure that losses and liabilities are not understated (1)
(Max 1)
Consistency
To ensure that accounting methods are used consistently from one period to the next (1)
To allow comparison of financial statements from year to year (1)
(Max 1)
Business entity
To ensure that the accounting records relate only to the business (1)
To ensure that the business is treated completely separately from the owner of the business (1)
(Max 1)

May/June 2021
www.dynamicpapers.com

Page 20 of 20

Marks
4

Accounting (0452) · May/June 2021 · Mark scheme 21

Popular subjects

Exam info

Help