0452/21/M/J/24 Mark Scheme – Accounting May/June 2024 Paper 21

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Cambridge Accounting (0452) mark scheme for paper 21, May/June 2024 — 0452/21/M/J/24, file 0452_s24_ms_21.pdf.

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Cambridge IGCSE™
ACCOUNTING

0452/21

Paper 2

May/June 2024

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 2024 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 16 printed pages.
© Cambridge University Press & Assessment 2024

[Turn over

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

May/June 2024

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 descriptions 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 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2024

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.

Social Science-Specific Marking Principles
(for point-based marking)
1

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).

Page 3 of 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2024

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).

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 4 of 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)

Addo
Sales journal

May/June 2024
Marks
3

Date

Details

2024
Apr 2
12
21

Ava (150 – 9)
Nuru
Mahia (480 – 24)

141 (1)
165
456 (1)
___
762 (1)OF

Transfer to sales account

1(b)

Addo
Journal
Date
2024
April 30

Details

Debit
$

Irrecoverable debts
Rachel

(1)
(1)

Amount due from Rachel written off as irrecoverable

(1)

Credit
$

215
215

1(c)(i)

Total amount received = $689 +$627 + $760 = $2 076 (1)

1(c)(ii)

Total cash discount = $40(1) + $33 = $73 (1)OF

Page 5 of 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(d)

Addo
Sales ledger control account

2024
April 1
30

May 1
1(e)

Details

Date

Balance b/d
Sales

Balance b/d

Date

(1)OF

2024
3 658 April 30
762

(1)OF

4 420
2 026

May/June 2024
Marks
6
$

Details
Sales returns
Bank
Discount allowed
Irrecoverable debts
Balance c/d

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

Advantages
Increased cash discount may encourage new customers/existing customers to buy more/increase sales (1)
More customers may pay early because of extra discount/improve liquidity (1)
Irrecoverable debts may be reduced (1)
Increased credit check indicates ability to pay (1)
Accept other valid points
Max (2)
Disadvantages
More credit checks would take more time/cost more money (1)
Less money coming in from sales (1)
No guarantee that customers will pay early (1)
Less profit on each sale/profit for the year will be reduced/expenses increased if give cash discount (1)
No guarantee that there will not be any irrecoverable debts (1)
Accept other valid points
Max (2)
Recommendation (1)

Page 6 of 16

30
2 076
73
215
2 026
4 420

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

May/June 2024

Question

Answer

Marks

2(a)

Paul
Journal

Error
number
1
2

4
5

Details

Debit
$

Purchases
Office equipment

(1)
(1)

140

Bank
Discount received

(1)
(1)

Carriage inwards
Carriage outwards
Suspense

(1)
(1)
(1)

82
82

Insurance
Bank

(1)
(1)

750

Bank
Suspense

(1)
(1)

Page 7 of 16

Credit
$
140
18

164
750
90

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(b)

Marks

Original cash at bank balance per draft financial statements
Error 2
Error 4
Error 5

$
3 290
18 (1)
(750) (1)
90 (1)

Bank balance after correcting errors

2 648 (1)OF

Original profit for the year per draft financial statements
Error 1
Error 2
Error 3 (82  2)
Error 4

$
9 268
(140)
18
(164)
(750)

Profit for the year after correcting errors

8 232 (1)OF

2(c)

Page 8 of 16

May/June 2024

5
(1)
(1)
(1)
(1)

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

3(a)

Q Limited
Income statement for the year ended 31 January 2024
$
$
Revenue
78 000
Less: Cost of sales
Opening inventory
2 950
Purchases
38 200
41 150
Less Closing inventory
4 720
36 430 (1)
Gross profit
41 570 (1)OF
Less Rent and insurance
10 600 }
Directors’ salaries
19 000 }(1)
General expenses
3 420 }
Advertising (5 400 + 75)
5 475 (1)
1 800 (1)
40 295
Depreciation of fittings (10%  18 000)
1 275 (1)OF
Profit for the year

3(b)

Retained earnings:
Opening balance
Profit for the year
Less Dividend paid
Closing balance

$
2 297
1 275 (1)OF
3 572
(2 500) (1)
1 072 (1)OF

May/June 2024
Marks
6

Page 9 of 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2024

Answer

3(c)

Non-current assets
Fittings
Current assets
Inventory
Bank

Marks

Q Limited
Statement of financial position at 31 January 2024
$
$
Accumulated
Cost
depreciation
18 000

7 200 (1)OF
4 720
915

Equity and Liabilities
Ordinary share capital
Retained earnings

$
Net book
value
10 800 (1)OF
5 635 (1)
16 435
13 000
1 072 (1)OF
14 072

Current liabilities
Trade payables
Other payables

2 288
75 (1)

Page 10 of 16

2 363 (1)OF
16 435

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(d)

May/June 2024

Answer

Marks
5

For
May increase sales/result in more customers (1)
May help reduce the level of inventory (1)
May benefit future years (1)
Increase in gross profit more than the extra cost of advertising may increase profit for the year (1)
Accept other valid points
Max (2)
Against
May not be able to afford the increase in advertising costs (1)
May need to borrow money for increased advertising costs (and borrowing would incur interest) (1)
There is no guarantee that sales would increase (1)
Profit may reduce/may result in a loss/expenses will increase because of extra advertising (1)
Accept other valid points
Max (2)
Recommendation (1)

Question

Answer

4(a)

Ahmed
Rent receivable account
Date
2023
Dec 31

Details
Income statement
Balance c/d

Marks

(1)

Date
2023
4 800 Apr 1
1 200 Sept 30
6 000
2024
Jan 1

Page 11 of 16

Details
Bank
Bank

}(1)
}

3 600
2 400
6 000

Balance b/d

(1)

1 200

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

4(b)

Ahmed
Disposal of office equipment account
Date
2023
Jan 3

Details

May/June 2024
Marks
5
Details

Office equipment

(1)

Date
2023
3 200 Jan 3
Dec 31
3 200

Provision for Depreciation
(800 + 600)
(1)
Rahat
(1)
Income statement
(1)OF

$
1 400
1 350
450
3 200

Dates (1)
*Calculation of depreciation 3 200  25% = 800 (3 200 – 800) = 2 400  25% = 600
4(c)

3
$
Painting the walls of the storage area

Capital
expenditure

Revenue
expenditure


600

(1)

2 115



}

Installation of the shelving

460



}(1)

Light fittings for storage area

620



}

Light bulbs for storage area

105

Shelving for the storage area



Page 12 of 16

}(1)

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
4(d)

4(e)

May/June 2024

Answer
ratio

working

Marks
answer
(to 2 decimal
places)
8.88 (1)OF

Rate of inventory
turnover (times)

(9 000  97 000  12130)
93 870 (1)
=
10 565 (1)
(9 000  12130) / 2

Current ratio

(12 130 + 6180 + 175) : (5500 + 640)
= 18 485 : 6140 (1) whole formula

3.01:1 (1)OF

Liquid (acid test)
ratio

(6180 + 175) : (5500 + 640)
= 6355 : 6140 (1) whole formula

1.04:1 (1)OF

The increased inventory may result in goods deteriorating or becoming obsolete (1)
Increase in storage costs (1)
Inefficient use of storage space (1)
Increase in funds tied up in inventory/may result in bank overdraft/may incur interest charges (1)
Accept other valid points
Max (2)

Page 13 of 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

May/June 2024

Answer

5(a)
Payments to credit suppliers
Add closing credit suppliers
Credit purchases
Cash purchases
Total purchases

$
34 250
2 960
37 210
37 210
74 420

(1)
(1)
OF
(1)OF

Marks

Bank

$
34 250 (1)

Balance c/d 2 960 (1)
37 210

$
Purchases 37 210

37 210

Credit purchases 37 210
Cash purchases 37 210 OF
Total purchases 74 420 (1)OF
5(b)

Stella
Income statement for the year ended 31 March 2024
$
$
89 760 (1)OF

Sales
Less Cost of sales
Purchases
Less Closing inventory
Gross profit
Less Rent and insurance
(6 750 – 600(1) – 500(1))
Wages (8 300 + 300)
Other expenses (1 815 – (120/3))
Profit for the year

74 420 OF
6 420
5 650
8 600 (1)
1 775 (1)

Page 14 of 16

68 000 (1)OF
21 760 (1)OF

16 025
5 735 (1)OF

8
(132%)
(100%)
(32%)

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(c)

May/June 2024

Answer

Marks

For:
Should increase sales/attract more customers (1)
Should lead to higher profit/higher profit margin (1)
Competitors may allow credit sales/may help Stella to compete (1)
Increase monthly sales to generate growth (1)
Accept other valid points
Max (3)

Against:
Money would come into the business more slowly (1)
Liquidity may be reduced (1)
Irrecoverable debts can occur (1)
Increased bookkeeping/a sales ledger would be required (1)
Credit control may be required (1)
Accept other valid points
Max (3)
Max (4)
Recommendation (1)
5(d)(i)

Materiality (1)

5(d)(ii)

Time and cost of recording small items outweigh the benefits of treating them as non-current assets (1)
Depreciation does not need to be calculated and charged low value non-current assets (1)
Max (1)

Page 15 of 16

0452/21

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
5(e)

Answer
Full details of the assets, liabilities, revenues and expenses are available (1)
The preparation of financial statements is more straightforward (1)
The calculation of profit or loss for the year is likely to be more accurate (1)
More informed decision-making is possible (1)
A greater degree of control over the business activities can be exercised (1)
The possibility of fraud is reduced (1)
Comparisons with the results of previous years and with other businesses are possible (1)
Detailed records are available for reference (1)
Information required by a bank or other lender is readily available (1)
Accept other valid points
Max (2)

Page 16 of 16

May/June 2024
Marks
2

Accounting (0452) · May/June 2024 · Mark scheme 21

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