Accounting (0452) · Oct/Nov 2005 · Mark scheme 3

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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education

MARK SCHEME for the November 2005 question paper

ACOUNTING
0452/03

Paper 3

maximum raw mark 100

This mark scheme is published as an aid to teachers and students, to indicate the requirements of the
examination. It shows the basis on which Examiners were initially instructed to award marks. It does
not indicate the details of the discussions that took place at an Examiners’ meeting before marking
began. Any substantial changes to the mark scheme that arose from these discussions will be recorded
in the published Report on the Examination.
All Examiners are instructed that alternative correct answers and unexpected approaches in candidates’
scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated.
Mark schemes must be read in conjunction with the question papers and the Report on the Examination.
The minimum marks in these components needed for various grades were previously published with
these mark schemes, but are now instead included in the Report on the Examination for this session.

•

CIE will not enter into discussion or correspondence in connection with these mark schemes.

CIE is publishing the mark schemes for the November 2005 question papers for most IGCSE and GCE
Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.

Page 1

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Mark Scheme
IGCSE – November 2005

Syllabus

Paper

0452

03

Question 1
(a)
2005
July 31

Total paid/Bank
Balance c/d

Maria van Zyl
Wages Account
$
2004
61 300 (1) August 1
180 (1) 2005
July 31
61 480
2005
August 1

$
200

Balance b/d
Profit and Loss

Balance b/d

61 280 (1)
61 480
180 (1)
+ Dates (1)
[6]

Alternative presentation
Maria van Zyl
Wages Account
Debit
Credit
$
$
2004
August 1
2005
July 31

(b)

Balance
Total paid/Bank
Profit and Loss

200 (1)
61 300 (1)
61 280 (1)

Balance
$
200 Cr
61 100 Dr
180 Cr (2) C/F
+ Dates (1)

[6]

Matching (1)
Prudence (1)
[2]

(c)
2005
July 31

Maria van Zyl
Provision for Doubtful Debts Account
$
2004
Balance c/d
900 (2)
August 1 Balance b/d
Profit and Loss
90 (1) O/F
990
2005
July 1
Balance b/d

$
990 (2)
990
900 (1) O/F
+Dates (1) [7]

© University of Cambridge International Examinations 2005

Page 2

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Mark Scheme
IGCSE – November 2005

Syllabus

Paper

0452

03

Alternative presentation

2004
August 1
2005
July 31

Maria van Zyl
Provision for Doubtful Debts Account
Debit
Credit
Balance
$
$
$
Balance
990 (1) 990 Cr
Profit and Loss

90 (1)

900 Cr (3) C/F
(1) O/F
+Dates (1)

[7]

(d)

Any two of the following:
Look at debtors’ accounts and estimate which ones will not be paid.
Estimate on the basis of past experience what percentage of the debtors will prove to be
bad.
Make use of an ageing schedule.
Any two points (1) each [2]

(e)

2 Net profit

– Overstated. (1)
– Omission of a loss in the Profit and Loss Account means profit
overstated. (1)

3 Current assets

– Overstated. (1)
– Debtors are shown at a higher value than will actually be
received. (1)
[4]
Total [21]

Question 2
(a)

(b)

Any two of the following:
More meaningful than a single set of results.
Identifies the profit of each department.
Enables trading results to be analysed.
Enables overall profitability to be increased.
Poor performance of a department can be identified and investigated.
Or other suitable points.
Any two points (1) each

[2]

On floor space occupied by each department.
On proportion of total sales made by each department.
Or other acceptable method.
Any two methods (1) each

© University of Cambridge International Examinations 2005

[2]

Page 3

Mark Scheme
IGCSE – November 2005

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Syllabus

Paper

0452

03

(c)
Abdul El Said
Departmental Trading and Profit and Loss Account for the Year Ended 30 September
2005
Department A
Department B
$
Sales
Less Returns inwards
Less Cost of sales
Opening stock
Purchases
Carriage inwards

$
250 000
1 000
249 000

26 000
167 200
1 800
195 000
30 000

Less Closing stock

$

27 600
20 400

48 000
36 000

318 800
56 200
19 100
20 400

(1)
(1)

(1)
(1)
(1)

8 600
320 200

328 800
10 000
165 000
84 000

Gross Profit
Less Staff salaries
General expenses
Net Profit

$
375 000

39 500
16 700

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

Horizontal format acceptable
(d)

[11]

1 Rate of stock turnover – Department A
$165 000 O/F (1)
$28 000

=

5.89 times (1) O/F

2 Rate of stock turnover – Department B
$318 800 O/F (1)
$9 300

=

34.28 times (1) O/F
[4]

(e)

Any two of the following:
Type of goods sold.
Staff efficiency.
Location of the department.
Or other suitable answer.
Any two points (1) each

[3]

Total [21]

© University of Cambridge International Examinations 2005

Page 4

Mark Scheme
IGCSE – November 2005

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Syllabus

Paper

0452

03

Question 3
(a)
Rebecca Tan
Statement of Affairs at 30 June 2005
$
Fixed Assets
Equipment at cost
Less depreciation
Motor vehicles
Less depreciation
Current Assets
Stock
Debtors
Less provision for doubtful debts
Prepayments
Current Liabilities
Creditors
Accruals
Bank overdraft
Working capital

$
13 900
1 200
7 500
1 500

$
12 700 (2)
6 000 (2)
18 700

7 250 (1)
5 200 (1)
104 (1)

4 800 (1)
146 (1)
250 (1)

5 096
122 (1)
12 468

5 196

Capital

Horizontal format acceptable

7 272
25 972
25 972
(2) C/F
(1) O/F
[13]

(b)
Rebecca Tan
Calculation of Net Profit (net loss) for the Year Ended 30 June 2005
$
$
Closing Capital
25 972 (1) O/F
Add Drawings – Cash
3 150 (1)
Goods
1 250 (1)
4 400
30 372
Less Capital introduced
5 000 (1)
25 372
Less Opening capital
27 000 (1)
Net Loss
1 628 (2) O/F
[7]

© University of Cambridge International Examinations 2005

Page 5

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Mark Scheme
IGCSE – November 2005

Syllabus

Paper

0452

03

Alternative presentation
2005
June 30

Drawings

- cash
- goods

Balance c/d
Net Loss

Rebecca Tan
Capital Account
$
2004
3 150 (1) July 1
1 250 (1)
25 972 (1)
O/F
* 1 628 (2)
O/F
32 000

Balance

2 Bank

$
27 000 (1)
5 000 (1)

32 000
2005
July 1

Balance b/d

25 972
[7]
Total [20]

Question 4
(a)

Profitability of the business

Owner
Potential partner

Market value of fixed assets

Loan creditor
Bank manager

Liquidity position of the business

Trade creditor
Owner
Or other suitable answers provided that the people do not appear more than twice.
Any correct answer (1) each
(b)

[6]

Understandability. (1)
Comparability. (1)
Relevance. (1)
[3]

© University of Cambridge International Examinations 2005

Page 6

(c)

Mark Scheme
IGCSE – November 2005

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Syllabus

Paper

0452

03

August 4 Fischer has been charged carriage costs by Zwink. (1)
Debit – Carriage inwards account. (1)
12 Fischer has returned goods to Zwink. (1)
Credit – Purchases returns (returns outward) account. (1)
16 Fischer has paid $400 to Zwink by cheque. (1)
Credit – Bank account. (1)
28 Fischer has transferred $250 to Zwink’s account in the sales ledger. (1)
Credit – E Zwink account in sales ledger. (1)
Significance of the $300 – this is the amount Fischer owes Zwink. (1)
[9]
Total [18]

Question 5
(a)
Ebor and Olicana

Error

Effect of correcting the error:
on the gross profit
on the net profit

2.

- $15

(1)

No effect

(1)

3.

+ $30

(1)

No effect

(1)

4.

No effect

(1)

-$200
+$50

(1)
(1)
[7]

© University of Cambridge International Examinations 2005

Page 7

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Mark Scheme
IGCSE – November 2005

Syllabus

Paper

0452

03

(b)
Ebor and Olicana
Journal

1.

2.

3.

Olicana current (Or drawings)
Purchases
Goods taken by partner for own
use
(1)
Office equipment
Ebor capital
Computer introduced into
business by partner

Debit
$
400 (1)

Credit
$
400 (1)

900 (1)
900 (1)
(1)

Ebor current
Ebor capital
Transfer from current account
to capital account
(1)

5000 (1)
5000 (1)

[9]
(c)

Any two of the following:
Reflect what has happened in the past – significant events may have taken place since the
end of the financial year.
Transactions are recorded at their actual cost – inflation may affect these figures.
Accounts only include information that can be expressed in monetary terms – and so
many factors will not appear in the accounting statements.
The accounts provided are for one year only – accounts for previous years would allow
meaningful ratios to be prepared.
Or other relevant points.
Any one point (1) mark for statement and (1) for development.
Any two points up to (2) each

[4]

Total [20]

© University of Cambridge International Examinations 2005