Accounting (0452) · Oct/Nov 2015 · Mark scheme 13

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CAMBRIDGE INTERNATIONAL EXAMINATIONS
Cambridge International General Certificate of Secondary Education

MARK SCHEME for the October/November 2015 series

0452 ACCOUNTING
0452/13

Paper 1, maximum raw mark 120

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 will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the October/November 2015 series for most
Cambridge IGCSE®, Cambridge International A and AS Level components and some
Cambridge O Level components.

® IGCSE is the registered trademark of Cambridge International Examinations.

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Page 2
1

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(a) A
(b) B
(c) D
(d) C
(e) C
(f) C
(g) A
(h) B
(i) B
(j) D

(1) mark each
[Total: 10]

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Page 3
2

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(a) Debit note: a document from a customer asking for a reduction in the value of an invoice
received by them. (1)
Credit note: a document sent to the customer showing the reduction of an invoice. (1)
Statement of account: to summarise a customer’s transactions for the month. (1)

[3]

(b) So that accounts of the same type can be kept together
To allow division of work
To allow easier reference
To allow checking procedures to be introduced
Any one reason (1)

[1]

(c)
Account

Ledger

Delivery van/Motor vehicles

Nominal/general

Sales

Nominal/general (1)

Susan

Sales (1)

Carriage inwards

Nominal/general (1)

Drawings

Nominal/general (1)

Adam

Purchases (1)
[5]

(d) Current assets (1)

[1]

(e)
Account debited

Account credited

Purchases (1)

Alice (1)
[2]

(f)
Discount allowed

Discount received

(1)

in the books of Ivy

(1)

in the books of Alice

[2]
(g) Statement of account (1)

[1]
[Total: 15]

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Page 4
3

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(a) Any two for (1) each e.g. plant and equipment, factory premises, office premises, delivery
vehicle
[2]
(b)
non-current asset

current asset

lasting more than 12 months

lasting less than 12 months

bought to keep and use in the
business

bought to resell/expected to turn into
cash within 12 months

depreciated

not depreciated

Any one comment (1), comparison comment (1)

[2]

(c) Amount received when a non-current asset is sold
Receipt of a loan
Share issue/capital introduced
Any one example (1)

[1]

(d)
Capital
expenditure

Revenue
expenditure

Purchase of inventory

(1)

Purchase of stationery

(1)

Legal fees on purchase of land

(1)

Construction costs of factory

(1)
[4]

(e) Disposal (1)

[1]

(f) Consistency (1)

[1]

(g) Historical/only deals with the past
Difficulties of definition
Non-financial aspects
Unable to predict future
Doesn’t identify the cause of a problem
Any one for (1) mark

[1]
[Total: 12]

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Page 5
4

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(a)

2014
Jan 1
Dec 31

Balance b/d
Sales
Bank
Balance c/d

2015
Jan 1
Balance b/d
Note * (2) for 100, (1) for 180

2014
Dec 31 Purchases rets
Bank/Cash
Discount received
SLCA/Contra
Balance c/d

Esme
Sales ledger control account
$
2014
9 500 (1)
Dec 31
Sales returns
95 100 (1)
Bank/Cash
450 (1)
Discount allowed
50
Bad debt
PLCA/Contra
Balance c/d
105 100
2015
8 800 (1of) Jan 1
Balance b/d

Esme
Purchases ledger control account
$
2014
1 950 (1)
Jan 1
Balance b/d
59 000 (1)
Dec 31
Purchases
850 (1)
100 (1of)
8 700
70 600
2015
Jan 1
Balance b/d

$
1 050
92 750
2 100
300
100
8 800
105 100

(1)
(1)
(1)
(1)
(2)*

50 (1)

$
7 000 (1)
63 600 (1)

70 600
8 700 (1of)
[18]

(b) Provide total of trade receivables
Check for the arithmetical accuracy of the sales ledger
Reduce fraud
To check for errors or fraud
Provide summary of transactions involving debtors
Enable financial statements to be prepared quickly
Any one for (1) mark

[1]

(c) Payment before specified date (1)

[1]
[Total: 20]

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Page 6
5

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(a)

Date

Details

2015
May 1 Capital
May 31 Sales
Cash

June 1

Balance b/d

Elliott
Cash Book
Date

Cash
$

Bank
$

2 250 (1)

12 000 (1)
4 200 (1)
2 000 (1)

2 250
100 (1of)

Details

2015
May 31 Rent
Purchases
Drawings
Sundry expenses
Bank
Balance c/d

18 200
6 600 (1of)

Cash
$

Bank
$
3 000 (1)
5 000 (1)
3 600 (1)

150 (1)
2 000 (1)
100

2 250

6 600

18 200
[11]

(b) Cost of sales

Purchases 5000 (1of) – closing inventory 1100 (1) = 3900 (1of)
OR (5 × 300) (1) + (6 × 400) (1) = 3900 (1of)

Expenses

Rent 1000 (1) + other expenses (150 + 80) (1) = 1230 (1of)

Profit for the month

Sales 6450 (1of) – (3900 + 1230) (1of) = 1320 (1of)

© Cambridge International Examinations 2015

[9]

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Page 7

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(c)
Elliott
Statement of Financial Position at 31 May 2015
$
Non-current assets
Vehicle
1 800 (1)
Current assets
Inventory
Other receivable
Bank
Cash

1 100
2 000
6 600
100
9 800
11 600

Total assets
Capital at 1 May 2015
Profit

(1)
(1)
(1of)
(1of)

Drawings
Capital at 31 May 2015

13 800 (1)
1 320 (1of)
15 120
3 600 (1)
11 520

Current liabilities
Other payable
Total liabilities

80 (1)
11 600
[9]

(d) Elliott’s drawings are greater than his profit (1)

[1]
[Total: 30]

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Page 8
6

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(a)
2014
1 Jan
1 Mar

Balance b/d
Bank

2015
1 Jan
Balance b/d
+1 for dates

General Stores Limited
Fixtures and fittings account
$
2014
31 500 (1)
1 Mar
Disposal
17 400 (1)
31 Dec
Balance c/d
48 900

$
6 000 (1)
42 900
48 900

42 900 (1of)
[5]

(b) 42 900 (1of) × 0.3 = $12 870 (1of)

[2]

(c)
General Stores Limited
Income Statement for the year ended 31 December 2014
$
$
Revenue
227 000 (1)
Inventory 1 January 2014
41 200
Purchases
129 000
170 200
Inventory 31 December 2014
44 520 1 for both
Cost of sales
125 680 (1of)
Gross profit
101 320 (1of)
Sales assistants’ wages
15 900 }
Office salaries
12 060 } (1)
Depreciation
12 870 (1of)
Rent
24 000 (1)
Sundry expenses
6 220 (1)
71 050
Profit from operations
30 270
Interest
15 000 (1)
Profit for the year
15 270 (1of)
[10]

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Page 9

Mark Scheme
Cambridge IGCSE – October/November 2015

Syllabus
0452

Paper
13

(d)
General Store Limited
Statement of Changes in Equity for the year ended 31 December 2014
Total

General
reserve
$

Retained
earnings
$

100 000

20 000

4 810

124 810

Profit for the year

15 270

15 270

Dividend paid

………

………

(10 000)

(10 000)

(1)

Transfer to general reserve

………

5 000

(5 000)

–

(1)

100 000

25 000

5 080

Details

Share
capital
$

On 1 January 2014

On 31 December 2014

$

(1of)

130 080

(1of)

(1of)

[5]
(e) 30 270/227 000 (1of) × 100 = 13.33% (1of)
OR
15 270 / 227 000 (1of) × 100 = 6.73% (1of)

[2]

(f) Neighbouring shop may sell different mix of goods (1) with a higher gross profit margin (1).
Neighbouring shop may have different policies (1) for instance for depreciation (1).
Illustration with figures e.g. if depreciation rate was 10% then net profit margin would be
3.8% higher (1).
Neighbouring shop controls expenses better (1).
Neighbouring shop may own premises and avoid rent payment (1). Illustration with figures
e.g. rent accounts for 10.57% of revenue (1).
If using profit after interest also allow
Neighbouring shop may have more equity/capital (1) and not have the interest cost (1).
Illustration with figures e.g. interest amounts to 6.6% of sales (1).
[Max 6]
(g) Increase selling prices/increase gross profit margin/reduce cost of sales
Reduce expenses/rent cheaper premises
Find cheaper lenders of finance to reduce interest charges
Review depreciation rate – do fixtures only have a life of 3 to 4 years
Turn overdrafts and short term loans into long term loans to reduce interest rate
Any 3 for (1) mark each.

[3]
[Total: 33]

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