Accounting (0452) · Oct/Nov 2009 · Mark scheme 3

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UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS
International General Certificate of Secondary Education

MARK SCHEME for the October/November 2009 question paper
for the guidance of teachers

0452 ACCOUNTING
0452/03

Paper 3, maximum raw mark 100

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 must be read in conjunction with the question papers and the report on the
examination.

•

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

CIE is publishing the mark schemes for the October/November 2009 question papers for most IGCSE,
GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level
syllabuses.

Page 2
1

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

Syllabus
0452

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Paper
03

(a) Abdul Anwar Cash Book

Date

Details

2009
May 1
6
13

Discount
Allowed
$

Balance b/d
Sales

(1)

Sameen Atif

(1)

30

Cash

31

Balance c/d

Cash

Bank
$
100
80

(1)

180
June 1

Balance b/d (1)OF

50

Date
$

Details

2009
May 1

Discount
Received
$

18

Mohsin Ali

150

24

(1)

130

30

Sameen Atif
(dishonoured cheque)(1)
Bank
(1)

472

31

Balance c/d

$

312

8

150
130

8
Balance b/d

$
490

50

952
1

Bank

Balance b/d

200

June

Cash

(1)OF

180

952
472
[8]

© UCLES 2009

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Page 3

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

(b)

Syllabus
0452

Paper
03

Abdul Anwar
Sameen Atif account
2009
$
May 1 Balance b/d
150 (1)
24 Bank (dishonoured cheque) 150 (1)
300
Nov 1 Balance b/d
150 (1) OF

2009
$
May 13 Bank
150 (1)
Oct 31 Balance c/d 150
300

Alternative presentation
Abdul Anwar
Sameen Atif account
2009
May 1 Balance
13 Bank
24 Bank (dishonoured cheque)

Debit
$
150 (1)

Credit
$
150 (1)

150 (1)

Balance
$
150 Dr
0
150 Dr (1) OF

[4]

(c) Obtain reference from new credit customers
Fix a credit limit for each customer
Issue invoices and statements promptly
Follow up overdue accounts promptly
Supply goods on a cash basis only
Refuse further supplies until outstanding account is paid
Or other suitable points
Any 2 points (1) each
(d)

[2]
Abdul Anwar
Provision for doubtful debts account

2009
Oct 31 Profit & loss
Balance c/d

$
40 (1)
640 (1)
680

2008
Nov 1 Balance b/d

$
680
680

2009
Nov 1 Balance b/d

640 (1)OF

Alternative presentation
Abdul Anwar
Provision for doubtful debts account
2008
Nov 1 Balance
2009
Oct 31 Profit & loss

Debit
$
40 (1)

© UCLES 2009

Credit
$
680

Balance
$
680 Cr
640 Cr (2)C/F
(1)OF

[3]

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Page 4

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

Syllabus
0452

(e) Debtors in balance sheet are not overstated (1)
Net profit is not overstated (1)

Paper
03
[2]
[Total: 19]

2

(a)

Jane Nowka
Balance Sheet at 30 June 2009
$
Fixed assets
Equipment at valuation
Motor vehicle at cost
Less depreciation to date
Current assets
Stock of consumables (100 + 20)
Debtors (90 + 16)
Less provision for doubtful debts
Prepaid expenses
Current liabilities
Creditors (30 – 12)
Bank (2500 – 2720)
Accrued expenses
Working capital

$
650 (1)

3000 (1)
450

2550 (1)
3200

120 (1)
106 (1)
10

18 (1)
220 (1)
13

96 (1)
15
231

251
(20) (1)OF
3180

Financed by
Capital
Opening balance
(100 + 800 + 90 + 15 + 2500 – 30)
Plus net profit

3475 (3)
900 (1)
4375
1195 (1)
3180

Less drawings
Horizontal presentation acceptable

(b)

$

900
100 (1)
×
= 28.30% (1)OF
3180 OF
1

[14]

[2]

© UCLES 2009

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Page 5
(c)

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

Syllabus
0452

Paper
03

(i) Bank manager
To assess prospects of bank overdraft being repaid when due
To assess prospects of any interest on overdraft being paid when due
To assess the prospects of any requested loan being repaid when due
To assess the security available to cover any loan/overdraft
Any 1 point (1) mark
(ii) Creditor
To assess the liquidity position
To identify how long the business takes to pay creditors
To identify what credit limit is reasonable
To identify future prospects of the business
Any 1 point (1) mark

[2]

(d) Must be capable of being independently verified
Must be free from bias
Must be free from significant errors
Must be prepared with suitable caution being applied to any judgements and estimates
Any 2 points (1) each

[2]
[Total: 20]

3

(a)

Ruth Tembe
Purchases ledger control account
2009
$
July 1 Balance b/d
15 (1)
31 Bank
4650 (1)
Discount received
90 (1)
Purchases returns
30 (1)
Inter-ledger transfer 105 (1)
Balance c/d
3590
8480

2009
$
July 1 Balance b/d 3680 (1)
31 Purchases 4800 (1)

8480
Aug 1 Balance b/d 3590 (1)OF
+ (1) Dates

Alternative presentation
Ruth Tembe
Purchases ledger control account
2009
July 1 Balances
31 Purchases
Bank
Discount received
Purchases returns
Inter-ledger transfer

Debit
$
15 (1)

Credit
$
3680 (1)
4800 (1)

4650 (1)
90 (1)
30 (1)
105 (1)
+ (1) Dates
© UCLES 2009

Balance
$
3665 Cr
8465 Cr
3815 Cr
3725 Cr
3695 Cr
3590 Cr (1)OF
[9]

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Page 6

(b)

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

Syllabus
0452

Paper
03

3 500 OF 365 (1)
×
= 22.59 = 23 days (1)OF
58 000
1

[2]

(c) Refusal of further supplies
Loss of cash discount
Good relationship with suppliers may be damaged
Suppliers may insist on cash purchases only
Or other acceptable points
Any two points (1) each
(d) 2008
Sept 30

July 31

Bank $1490
Explanation
Double entry

[2]

This is the total amount paid by cheque for business rates (1)
Credit bank account (1)

Profit & loss $1200
Explanation
This is the business rates relating to the year ended
31 July 2009 (1)
Double entry
Debit profit & loss account (1)
[4]

(e) (i) This is the amount paid in advance for business rates for the following financial year (2)
(ii) Current asset (1)

[3]
[Total: 20]

4

(a) (i)

Terry, Candy and Paul Wang
Goodwill account
2009
Aug 1 Terry capital
Candy capital

$
18 000 (1)
12 000 (1)

2009
Aug 1 Terry capital
Candy capital
Paul capital

30 000

$
15 000 (1)
10 000 (1)
5 000 (1)
30 000

Alternative presentation
Terry, Candy and Paul Wang
Goodwill account
2009
Aug 1 Terry capital
Cindy capital
Terry capital
Cindy capital
Paul capital

Debit
$
18 000 (1)
12 000 (1)

Credit
$
15 000 (1)
10 000 (1)
5 000 (1)

© UCLES 2009

Balance
$
18 000 Dr
30 000 Dr
15 000 Dr
5 000 Dr
0

[5]

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Page 7

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

(ii)

Syllabus
0452

Paper
03

Capital accounts
Terry
$
15000
(1)OF
Balances c/d 63000

2009
Aug 1 Goodwill *

Candy
$
10000
(1)OF
42000

Paul
$
5000
(1)OF
15000

2009
Aug 1 Balances b/d
Goodwill*

Terry
$
60000
(1)
18000
(1)OF

Candy
$
40000
(1)
12000
(1)OF

Bank

16000
(1)
4000
(1)

Motor vehicle
78000

52000

20000
Aug 2 Balances b/d

Paul
$

78000
63000
(1)OF

52000
42000
(1)OF

20000
15000
(1)OF

* Allow (2) if a net figure of $3000 (or O/F) is credited to Terry Wang a/c
Allow (2) if a net figure of $2000 (or O/F) is credited to Candy Wang a/c
Alternatively allow three separate “T” accounts

[12]

Alternative presentation
Terry Wang capital account
2009
Aug 1 Balance
Goodwill*
Goodwill*

Debit
$

Credit
$
60 000 (1)
18 000 (1)OF

15 000 (1)OF

Balance
$
60 000 Cr
78 000 Cr
63 000 Cr (1)OF

* Allow (2) if a net figure of $3000 (or O/F) is credited
Candy Wang capital account
2009
Aug 1 Balance
Goodwill
Goodwill

Debit
$

Credit
$
40 000 (1)
12 000 (1)OF

10 000 (1)OF

Balance
$
40 000 Cr
52 000 Cr
42 000 Cr (1)OF

* Allow (2) if a net figure of $2000 (or OF) is credited
Paul Wang capital account
2009
Aug 1 Bank
Motor vehicle
Goodwill

Debit
$

Credit
$
16 000 (1)
4 000 (1)

5 000 (1)OF

Balance
$
16 000 Cr
20 000 Cr
15 000 Cr (1)OF

[12]

(b) The new partner will benefit from the goodwill built up by the existing partners (1) who must
be compensated for this (1).
[2]
© UCLES 2009

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Page 8

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

(c)

Syllabus
0452

Paper
03

Terry, Candy and Paul Wang
Balance Sheet extract at 2 August 2009

Capital accounts
Current accounts

Terry
Wang
$
63 000
O/F
(5 050)
57 950

Candy
Wang
$
42 000
O/F
4 950
46 950

Paul
Wang
$
15 000
O/F
15 000

Total
$
120 000 (1)
O/F
(100) (1)
119 900 (1)
O/F

[3]
[Total: 22]

5

(a)

Raminder Singh
Departmental Trading and Profit and Loss Account for the year ended 31 October 2009

Sales
Less Cost of sales
Opening stock
Purchases
Less Closing stock

Department A
$
$
150 000
8 400
85 000
93 400
9 100

Gross profit
Less Business rates
Staff salaries
General expenses
Depreciation – fittings

Department B
$
$
60 000

4 000
6 500
2 250
2 000

47 800
12 200
2 000
6 500
2 250
800

14 750
50 950

Net profit

(1)
(1)

3 900
48 000
51 900
4 100
84 300
65 700

Horizontal format acceptable

(1)

11 550
650

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

[11]

(b) Department B
Percentage of gross profit to sales
12 200 OF 100 (1)
×
= 20.33% (1)OF
60 000
1
Rate of stock turnover
(1)
47 800 OF
= 11.95 times (1)OF
3 900 + 4 100 ÷ 2

© UCLES 2009

[4]

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Page 9

Mark Scheme: Teachers’ version
IGCSE – October/November 2009

Syllabus
0452

Paper
03

(c) Different type of goods
Different rates of trade discount from suppliers
Not passing on increased costs to customers
Allowing customers higher trade discount for bulk buying
Holding seasonal “sales”
Selling at cut prices
Or other acceptable reason
Any 2 reasons (1) each

[2]

(d) Reduce stock levels
Generate more sales activity
Or other acceptable point
Any 2 points (1) each

[2]
[Total: 19]

© UCLES 2009