Accounting (0452) · May/June 2021 · Mark scheme 23

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Cambridge IGCSE™
ACCOUNTING

0452/23

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 16 printed pages.
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Generic Marking Principles

May/June 2021
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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.

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0452/23

1

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

May/June 2021
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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

2

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).

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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.

4

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.

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Question

Answer

1(a)

Marks
10

Leo
Petty Cash Book
Total
received
$

Date

Total
paid

Details

2021

48 Apr
152

11

$
1 Balance b/d

91 May

Bank

$

Ledger
accounts
$

(1)

5 Office cleaning

(1)

21

7 Train ticket

(1)

13

13 Hunter

(1)

72

18 Taxi fare

(1)

14

14

25 Conrad

(1)
120

27

30 Balance c/d

211

1 Balance b/d

(1)OF

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

© UCLES 2021

$

Office
expenses

(1)

91
211

Travel

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21
13
72

21

72

0452/23

Cambridge IGCSE – Mark Scheme
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Question

Answer

May/June 2021
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Marks

1(b)(i)

Travel – general ledger (1)
Hunter – purchases ledger (1)

2

1(b)(ii)

Duality (1)

1

1(c)

To remind Leo to pay the balance (1)
To allow Leo to check his records (1)
To provide a summary of the transactions for the month/period (1)
Accept other valid points
Max (2)

2

1(d)

Advantages
Do not need to keep as much cash on the premises (1)
Less risk of theft or fraud (1)
Do not have to have face to face meeting to pay/save time (1)
Or other relevant advantages
Max (2)

5

Disadvantages
No source document immediately available (1)
Still have to pay amounts below $50 by other methods (1)
May be easier / more suitable to use cheques (1)
May Increase bank charges (1)
Or other relevant disadvantages
Max (2)
Recommendation (1)

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Question

Answer

2(a)

Marks
6

Tej
Rent payable account
Details
Date
2020
Mar 1 Balance b/d
Jun 30 Bank
Nov 30 Bank
2021
Mar 1 Balance b/d

Details
Date
2021
300 Feb 28 Income Statement
Balance c/d
1950
2100
4350

$

$

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

(1)

3 900
450
4 350

450

+ (1) dates
2(b)

Tej
Provision for doubtful debts account
Date
Details
2021
Feb 28 Balance c/d (7 000 × 6%)

© UCLES 2021

Details

$

(1)

Date
2020
420 Mar 1
2021
Feb 28
420
Mar 1

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4
$
(1)

250

Income statement

(1)OF

Balance b/d

(1)OF

170
420
420

Balance b/d (6 250 × 4%)

0452/23

Cambridge IGCSE – Mark Scheme
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Question
2(c)

May/June 2021
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Answer
Matching (1)

Marks
1

Accept ‘Accruals’
2(d)(i)

Revenue is regarded as being earned (1) when title to the goods is passed (1)
The profit on sales is not recognised until it is earned (1)
Profit is recognised when earned not when payment is received (1)
Profit is earned when the sale is completed/legal title passes (1)
No profit is recognised when goods are ordered (1)
Accept other valid points.
Max (2)

2

2(d)(ii)

To ensure that profits/trade receivables are not overstated (1)
To ensure that trade receivables are shown at a realistic amount in the statement of financial position (1)
Profits and assets are reduced when the provision for doubtful debts is increased/profits and assets are increased when
the provision is reduced (1)
Accept other valid points
Max (2)

2

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0452/23

Cambridge IGCSE – Mark Scheme
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Question
2(e)

Answer

Marks
5

Advantages
Will encourage customers to pay earlier (1)
May increase liquidity/cash flow (1)
May reduce administration time/costs (1)
Or other relevant advantages
Max (2)
Disadvantages
Good relationships with customers will be damaged (1)
May lose customers/sales may reduce (1)
May incur extra costs to attract customers/advertising/marketing (1)
Or other relevant disadvantages
Max (2)
Recommendation (1)

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0452/23

Cambridge IGCSE – Mark Scheme
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Question

Answer

3(a)

$

Less Closing inventory
Gross profit
Less Expenses
Rent and insurance (9 280 (1) – (2/3 × 1 800) (1))
Wages (24 750 + 2 250)
Operating expenses
Depreciation of Fittings
(20% × (200 000 – 72 000))
Profit from operations
Debenture interest
Profit for the year

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Marks

HV Limited
Income Statement for the year ended 31 March 2021
Revenue
Cost of sales
Opening inventory
Purchases

$
145 000

5 820
64 900
70 720
6 090
64 630 (1)
80 370 (1)OF
8 080
27 000 (1)
8 500
25 600 (1)

69 180
11 190
1 200 (1)
9 990 (1)OF

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0452/23
Question
3(b)

Answer

Ordinary
share
capital

General
Reserve

$
On 1 April 2020

Retained
earnings

$

70 000

Profit for the year

Transfer to general reserve
On 31 March 2021

© UCLES 2021

Return on Capital employed =

70 000

5

Total

$

$

21 500

91 500

9 990

9 990

(1)
(1)OF

(5 600)

(5 600) (1)

2 000

(2 000)

(1)

2 000

23 890

Dividend paid

3(d)

Marks

HV Limited
Statement of Changes in Equity for the year ended 31 March 2021
Details

3(c)

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11190 (1) OF

95 890 (1)OF

100
= 8.89% (1) OF
( 95 890 OF + 30 000 )(1) OF 1
×

There is a fixed rate of dividend on preference shares (1): the dividend on ordinary shares may vary (1)
There are higher risks and rewards for ordinary shares (1) than there are for preference shares (1)
Ordinary shares normally carry voting rights (1): preference shares do not (1)
Ordinary shares are part of the equity of the company (1). Redeemable preference shares are a non-current liability and
non-redeemable preference shares are part of the equity (1).
If the company is wound up, preference shares are repaid before ordinary shares(1)/ordinary shares are repaid after
preference shares (1)
Preference shares receive the dividend first (1) ordinary shares receive the dividend after the preference shares (1)
Accept other valid points
Must be two contrasting statements
Max (4)

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4

0452/23
Question

Answer

4(a)

RIA Music Club
Subscriptions account
Details
Date
2020
(1)
Jan 1 Balance b/d
Dec 31 Income and expenditure (1)OF
Balance c/d
2021
Jan 1 Balance b/d

(1)

4(b)
Date
Details
2020
Dec 31 Purchases returns
(1)
Bank
(1)OF
Balance c/d
(1)

4(c)

Marks
6

$

$

Details
Date
2020
5 215 Jan 1 Balance b/d
37 465 Dec 31 Bank
1 050
Balance c/d
43 730
2021
5 830 Jan 1 Balance b/d

RIA Music Club
Total shop trade payables account
Details
$
Date
2020
1 710 Jan 1 Balance b/d
31 975 Dec 31 Purchases
Interest
4 990
38 675
2021
Jan 1 Balance b/d

Sales revenue = cost of sales + 20%
Cost of sales = 34 200 – 1 710 = 32 490 (1)
Sales revenue = 32 490 + 20% = 32 490 + 6 498 (1)OF = 38 988 (1)OF
Alternative calculation
Cost of sales
Gross profit 20%
Sales revenue

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32 490 (1)
6 498 (1)OF
38 988 (1)OF

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(1)
(1)

1 200
36 700
5 830
43 730

(1)

1 050
6
$

(1)
(1)
(1)

4 275
34 200
200
38 675
4 990

3

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Question
4(d)

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Answer
Benefits of renting out the premises
Extra income would be generated by renting out the premises (1)
Extra funds would be raised if the club is not fully used (1)
May increase the opportunity to recruit new members (1)
May increase the levels of shop trade to additional customers/increase shop profit (1)
Or other relative benefits
Max 2
Disadvantages
Income from existing members may fall/members may leave the club (1)
The facilities to members may be reduced (1)
Expenses may be increased (1)
Alternatives to renting out the premises
Extra funds could be raised by increasing subscriptions/charging interest on overdue subscriptions/fund raising/increasing
the mark-up on the sales of shop goods (1)
Expenses may be reduced (1)
Or other relative disadvantages/alternatives
Max (2)
Recommendation (1)

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Marks
5

0452/23
Question

Answer

5(a)

Marks
9

Entries required to correct the error
Debit

Error

Account

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Credit
$

Account

200 Suspense

$
200

Cash drawings, $200, had been omitted
from the drawings account.

Drawings

A petty cash book payment, $31, to Abel, a
supplier, had been recorded in the column
for office expenses.

Abel

Sales returns, $105, had been correctly
entered in the customer’s account but had
been credited to the purchases returns
account.

Sales returns
Purchases returns

105 (1) Suspense
105 (1)

210 (1)

A payment for motor expenses, $72, had
been recorded in the motor expenses
account as $172.

Suspense

100 (1) Motor expenses

100 (1)

A purchase invoice, $102, from Abel, had
been debited to Abel and credited to
purchases.

Purchases

204 (1) Abel

204 (1)

31 (1) Office expenses

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31 (1)

0452/23
Question

Answer

5(b)

Kia
Suspense account
Date
Details
2021
April 30 Trial balance difference
Motor expenses

5(c)
Original balance
Purchases
Office expenses
Corrected balance
5(d)

Marks
5

$

(1)OF
(1)

Date
Details
2021
310 April 30 Drawings
100
Sales returns
Purchases returns
410

$
(1)
(1)
(1)

200
105
105
410

$
327
204 (1)
(31) (1)
500 (1)OF

3

The principle of materiality was applied (1).
The cost of the calculator was an immaterial amount (1)
The cost of recording the calculator as a non-current asset would have outweighed the benefit (1)
The amount of depreciation would be insignificant (1)
The calculator may not last over 12 months (1)
Accept other valid points
Max (3)

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