0452/21/M/J/23 Mark Scheme – Accounting May/June 2023 Paper 21

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Cambridge Accounting (0452) mark scheme for paper 21, May/June 2023 — 0452/21/M/J/23, file 0452_s23_ms_21.pdf.

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Cambridge IGCSE™
ACCOUNTING

0452/21

Paper 2

May/June 2023

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 2023 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 19 printed pages.
© UCLES 2023

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0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2023
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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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0452/21

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

May/June 2023
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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

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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Cambridge IGCSE – Mark Scheme
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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.

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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0452/21

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)
Total
received
$

Date

Details

Marks
10

Shvan
Petty Cash Book
Total
paid
$

Office
expenses
$

Travel
$

Ledger
accounts
$

2023
61

Mar 1

Balance b/d

(1)

Bank

(1)

Giles

(1)

Taxi fare

(1)

Notepads and pens

(1)

Mitchell

(1)

Office cleaning

(1)

(1)OF

124

139

101
225

Balance c/d

101

Mar 8

Balance b/d

225
(1)OF

+ (1) dates

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55
21

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(b)

Shvan
Giles account
Date

Details

Date

2023
Mar 2 Petty cash
13 Bank
31 Balance c/d

Marks
4
Details

2023
(1)

(1)

110

Mar 1 Balance b/d
22 Purchases

165
(1)

144
309

309
Apr 1 Balance b/d

1(c)(i)

144

(1)OF

144
1

Direct debit (1)
Internet transfer (1)
Telephone transfer (1)
Credit transfer (1)
Debit/credit card (1)
Max (1)

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0452/21
Question
1(c)(ii)

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PUBLISHED
Answer

Marks

Advantages of stopping using cash
Safer – no cash on premises/no transporting cash to/from bank (1)
May reduce fraud (1)
A petty cash book would not be required (1)
Time saving - no cash-handling or journeys to/from bank/ need to be physically present to exchange cash (1)
Bank transactions can be quicker (1)
Accept other valid points
Max (2)

Disadvantages of stopping using cash
Some customers/suppliers/service providers may prefer to use cash (1)
May take longer to receive funds via the banking system/ OR using cash may be quicker (1)
It may be useful to keep some cash on the premises for emergency use/small expenses (1)
May incur extra bank charges (1)
Bank reconciliation may take longer/is more complex (1)
Accept other valid points
Max (2)
(1) for recommendation
2(a)(i)

Stalla
Provision for doubtful debts account
Date

Details

Date

2022
Dec 31 Balance c/d

3
Details

2022
3 080

Jan 1 Balance b/d

(1)

3 000

(1)OF

2022
Dec 31 Income statement
3 080

3 080
2023
Jan 1 Balance b/d

Page 8 of 19

(1)

3 080

0452/21

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

2(a)(ii)

Not all trade receivables will pay the amount they owe/ to anticipate irrecoverable debts (1)
To apply the principle of prudence/ to ensure the profit is not overstated/ to ensure the trade receivables are not overstated
(1)
To apply the principle of matching / to ensure that the sales for which payment is not likely to be received are regarded as
an expense of the year in which the sales were made (1)

Max (2)
2(b)

$
Proceeds
Cost
Less provision for depreciation
Profit on disposal (1)

2(c)(i)

$
9 500

16 000 (1)
7 000 (1)

9 000
500 (1)OF

Stalla
Motor Vehicles account
Date

Details

2022

Date

2
Details

48 000

Dec 31 Disposal
Balance c/d

48 000
2023
Jan 1 Balance b/d

2022

Jan 1 Balance b/d

(1)

32 000

Page 9 of 19

(1)

16 000
32 000
48 000

0452/21

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(c)(ii)

Stalla
Provision for depreciation of Motor Vehicles account
Date

Details

2022

Marks

Date

Details

2022

Dec 31 Disposal

(1)OF

Balance c/d

7 000
18 500

Jan 1 Balance b/d

(1)

21 000

Dec 31 Income statement
(2)CF (1)OF

4 500

25 500

25 500
2023
Jan 1 Balance b/d

2(d)

Capital
expenditure
Legal fees for obtaining permission to build the extension



Building costs for the extension



18 500
4

Revenue
expenditure
(1)


Insurance for the office

(1)



Painting the office extension



Office calendar for 2023
Purchase of office equipment



Installation of office equipment



(1)



Stationery for office

(1)OF

Page 10 of 19

(1)

0452/21
Question

Answer

3(a)

Marks
10

Entries required to correct the error
Error

Debit
Account

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Credit
$

Account

A payment for rent, $300, had been
debited to the insurance account.

Rent paid

300

Sales to Raymond of $105, had been
debited to the sales account and credited
to Raymond’s account.

Raymond

210 (1)

Sales

210 (1)

Eshe’s total drawings from the bank for her
own use, $9 500, had been debited to the
cash account.

Drawings

9 500 (1)

Cash

9 500(1)

A purchases invoice from Danika for $137,
had been recorded in her account and in
the purchases journal as $173.

Danika

36 (1)

Purchases

36 (1)

Returns inwards, $44, had not been
recorded in the returns inwards account.

Returns inwards

44 (1)

Suspense

44 (1)

The motor expenses account had been
overcast by $100.

Suspense

100 (1)

Motor expenses

100 (1)

Page 11 of 19

Insurance

300

0452/21
Question

Answer

3(b)

Eshe
Suspense account
Date

Details

Mar 31 Motor expenses

Marks

Date

2023

Details

2023
(1)

100

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Page 12 of 19

Mar 31 Difference on trial balance
(1)OF

Returns inwards

(1)

100

0452/21
Question

Answer

3(c)

Marks
7

Calculation of closing capital
$
$
Capital at 1 April 2022
Draft profit
Add Sales invoice
Purchases invoice
Motor expenses

$
31 000 }
}(1)

15 600
210 (1)
36 (1)
100 (1)

Less Returns inwards
Less Drawings
Capital at 31 March

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Page 13 of 19

346
15 946
44

(1)

15 902
46 902
9 500 (1)
37 402 (1)OF

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
4(a)

Answer
Salman
Manufacturing Account for the year ended 30 April 2023
$
$
Cost of material consumed
Opening inventory of raw material
8 190
Purchases of raw material
78 420
86 610
8 000
Less Closing inventory of raw material
78 610
Direct wages
52 396
Prime cost
131 006
Factory overheads
Wages of factory supervisor
27 500 (1)
13 146 (1)
Rates and insurance (17 528  3/4)
Factory electricity (11 442 + 1 048)
12 490 (1)
General expenses
8 244
Depreciation of factory equipment
9 216 (1)
70 596
(90 000 – 43 920)  20%
201 602
Add opening work-in-progress
15 200
216 802
Less closing work-in-progress
16 100
Cost of production
200 702
* (1) for both opening and closing work-in-progress

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Page 14 of 19

Marks
10

(1)
(1)
(1)OF

(1)OF
*
*
(1)OF

0452/21

Cambridge IGCSE – Mark Scheme
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Question

Answer

4(b)

Salman
Income statement (trading section) for the year ended 30 April 2023
$
$
Revenue
435 174 (1)OF
Cost of sales
Opening inventory
23 860
Cost of production
200 702 (1)OF
Purchases of finished goods
90 144 (1)
314 706
Closing inventory
24 590
290 116 (1)OF
Gross profit
145 058 (1)OF

4(c)

Advantages of converting office space
Will be more profitable use of space/increase output (1)
Manufacturing appears to be profitable (1)
May not need to purchase finished goods (1)
Have high bank balance which will help to pay for conversion (1)
Accept other valid points
Max (3)
Disadvantages of converting office space
May not be able to sell the extra output (1)
Conversion of office space may be costly (1)
May have to purchase additional factory equipment (1)
May be more appropriate/more profitable to use the funds for other things (1)
The space is necessary for office purposes (1)
Accept other valid points
Max (3)
Max (4)
(1) for recommendation

Page 15 of 19

Marks
5

0452/21
Question

Answer

5(a)

Calculation of retained earnings
Retained earnings at 1 April 2022
Profit for the year
Less Dividend
Retained earnings at 31 March 2023

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Page 16 of 19

Marks
3
$
16 250
43 500
59 750
(39 000)
20 750

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

0452/21
Question

Answer

5(b)

Q Limited
Statement of Financial Position at 31 March 2023
$
$
Assets
Non-current Assets
Fittings and equipment
Motor vehicles

Cost
150 000
72 000
222 000

Current Assets
Inventory
Trade receivables
Less Provision for doubtful debts
Bank

Marks

Provision For
Depreciation
40 650
31 125
71 775

8
$
Net Book
Value
109 350 } (1) for
40 875 } both lines
150 225 (1)
51 790

19 700
591

Total assets
Equity and Liabilities
Equity
Ordinary share capital
Retained earnings

19 109 (1)
1 076
71 975 (1)OF
222 200

120 000 (1)
20 750 (1)OF
140 750

Non-current Liabilities
5% Debentures
Bank Loan

40 000 }
10 000 }(1)

Current Liabilities
Trade payables
Total Equity and Liabilities

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50 000
31 450 (1)
222 200

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0452/21

Cambridge IGCSE – Mark Scheme
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Question
5(c)
5(d)(i)

Answer

Marks

(19 109 OF + 1 076) : 31 450 OF = 20 185 OF : 31 450 OF (1) whole formula = 0.64 : 1 (1)OF

Dividends paid (1)
Increase in level of inventory (1)
Purchase of non-current assets (1)
Repayment of non-current liabilities (1)
Payment of trade payables/payment of a bank overdraft (1)
Delay in receiving payment from trade receivables (1)

Accept other valid points
Max (2)

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Page 18 of 19

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(d)(ii)

Answer

Marks
5

Issue ordinary shares
No interest payable (1)
No repayment required (1)
No need to provide security (1)
The directors can decide on the rate of dividend (1)
May dilute control/ownership (1)
Shareholders will expect a dividend (1)
May not be able to raise amount required (1)
Already have long-term liabilities to repay (1)
Accept other valid points
Max (3)
Obtain bank loan
Repayment is required (1)
Once loan is repaid no further liability to bank (1)
Funds would need to be available when repayment is due (1)
Security will be required (1)
Interest will be charged (1)
Bank may not be willing to lend as already have substantial long-term liabilities (1)
Funds may be obtained more quickly than a share issue (1)
If company is wound up loan must be repaid before shareholders (1)
Accept other valid points
Max (3)
Max (4)
(1) for recommendation

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Accounting (0452) · May/June 2023 · Mark scheme 21

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