Accounting (0452) · Oct/Nov 2016 · Mark scheme 11

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/11

Paper 1

October/November 2016

MARK SCHEME
Maximum Mark: 120

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 will not enter into discussions about these mark schemes.
Cambridge is publishing the mark schemes for the October/November 2016 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.

This document consists of 9 printed pages.
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Page 2

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

Glossary for Q1
(c)
A
B
C
D

600 – 150 = 450
600 – 20 = 580
600 + 20 = 620
600 + 150 = 750

(d)
A and C
B and D

2000 + 100 -180 – 1750 = 170
2000 – 100 + 180 – 1750 = 330

(i)
A
B
C
D

9800 – 1120 – 8280 = 400
10 000 – 1120 – 8280 = 600
9800 – 850 – 8280 = 670
10 000 – 850 – 8280 = 870

A
B
C
D

800 – (820 – 70) = 50
(820 + 70) – 800 = 90
1200 – (820 + 70 ) = 310
1200 – 820 = 380

(j)

1

(a) B
(b) B
(c) A
(d) A
(e) A
(f) C
(g) D
(h) C
(i) D
10 × (1) mark

(j) B

[Total: 10]
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Page 3
2

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

(a) Going concern (1)

[1]

(b) To check the arithmetical accuracy of the double entry (1)
OR
To help in the preparation of the financial statements (1)

[1]

(c) Suspense (1)

[1]

(d)
Debit side

9

Capital
Cash

9

Drawings

9

Rent

9

Sales returns

9
9

Bank overdraft
Machinery

Credit side

9

Discount received

9

Provision for depreciation

9

Bad debts

9

Any two correct for (1) mark

[5]

(e) 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)

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[1]

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Page 4

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

(f)
Account

Ledger

Insurance

Nominal/general

Sales

Nominal/general (1)

Discount allowed

Nominal/general (1)

Philip, a credit customer

Sales (1)

Purchases

Nominal/general (1)

Amit, a credit supplier

Purchases (1)
[5]

(g) (i) Trade discount –
to encourage bulk purchases
to reward business in the same trade
to allow customers to make a profit
Any one for (1) mark

[1]

(ii) Cash discount - to reward prompt payment (1)

[1]

(h) Cash discount (1)

[1]

(i)
debit entry

credit entry

Goods taken

Drawings (1)

Purchases (1)

Computer transferred

Office equipment (1)

Capital (1)
[4]

(j) Business entity (1)

[1]

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Page 5

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

(k)
Interested party

Reason

Karen
Government department
Trade payables/ suppliers
Bank manager
Customer

To see progress of business
To check on tax payable
To check on likelihood of receiving money
To decide on whether to give/continue overdraft
To check on viability of business for continued supply
of goods
To see potential rewards for investment
To see progress of business
Any two related reasons for (1) each

Potential partner
Manager
Any two for (1) each

Reasonable alternatives may be rewarded

[4]

(l) Financial information is relevant if it affects the business decisions (1)

[1]
[Total: 27]

3

(a) Something which the business owns or something which is owed to the business (1)

[1]

(b) Non-current asset –any reasonable definition (1) eg an item held for more than 12 months,
an item which is not for resale.
Current asset – any reasonable definition (1) eg short term, an item which can be turned into
cash quickly.
[2]
(c) An amount which is owed by the business (1)

[1]

(d) Non-current liability – any reasonable definition (1) eg long term debt
Current liability – any reasonable definition (1) eg an amount owed to be paid within a year
[2]
(e) (i) any reasonable suggestion (1) eg oven, computer
(ii) any reasonable suggestion (1) eg flour, yeast, unsold loaves
Other suitable answers are acceptable.

(f)

(i)

[1]
[1]

135 480 (1of)
= 9.51 times (1of)
14250 (1)
[3]

(ii) [(1300 + 700) × 1.2] (1) – 1400 (1) = 1000 (1)

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[3]

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Page 6

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

(g) Any two possible reasons for (1) mark each e.g.
making a loss, excess drawings, purchase of non-current assets, bad debts, debtors not
paying, paying trade payables sooner, increased expenditure on inventory, repayment of
loan.
Other suitable answers are acceptable.
[2]
[Total: 16]
4

(a)

2015
Jan 1
Mar 1

Balance b/d
Bill

2016
Jan 1
Balance b/d
+1 dates

Grindle
Fixtures and fittings account
2015
$
17 200 (1) Aug 1
Disposal (1)
3 600 (1) Dec 31 Balance c/d
20 800

$
3 200 (1of)
17 600
20 800

17 600 (1)
[6]

(b) $17 600 (1) x 0.10 = $1760 (1)

[2]

(c)

2015
Aug 1
Dec 31

Grindle
Provision for depreciation of fixtures and fittings account
2015
$
Disposal
320 (1of) Jan 1
Balance b/d
Balance
Dec 31 Income
c/d
7 240
statement
7 560
2016
Jan 1
Balance b/d
+1 dates

$
5 800
1 760 (1of)
7 560
7 240 (1of)
[4]

(d) Capital expenditure (1)

[1]

(e) None (1)

[1]

(f)
Increase

Decrease
9 (1)
[1]
[Total: 15]

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Page 7
5

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

(a) A cost which can be linked to a specific unit of production (1)

Paper
11
[1]

(b) Any two correct answers for (1) mark each
E.g. purchases of cloth, thread, buttons etc., carriage on material, machinists etc., royalties
[2]
(c) Factory overhead (1)
OR any example for (1) mark
e.g. factory supervisor’s salary, depreciation of factory machinery, rent of factory building [1]
(d) (i) 89 000 + 21 600 (1) – 100 (1) = $110 500 (1of)

[3]

(ii)
Mistry Clothing
Income Statement for the year ended 30 June 2016
$
$
Revenue
203 220
Inventory at 1 July 2015
8 800
Cost of production
110 500
Purchases
36 200
155 500
Drawings
(320)
155 180
Inventory at 30 June 2016
19 700
Cost of sales
135 480
Gross profit
67 740
Selling and distribution expenses
20 760
Administration expenses
31 760
52 520
Profit for the year
15 220

(1)
(1)
(1of)
(1)
(1)
(1)
(1of)
(1)
(1of)
[9]

(e) It is cheaper to buy than produce (1) OR
Demand is higher than production at full capacity (1)

[1]

1800 (1)
= 2.4 : 1 (1)
750 (1)

[3]

(f)

(g) Sales have slowed down (1)
Inventory has increased (1)

[2]
[Total: 22]

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Page 8
6

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

(a)

2016
Jan 1 Capital A
Capital D
6 Sales

Feb 1 Balance b/d

Amina and Doreen
Cash book (bank columns)
$
2016
5 000 }
Jan 1 Rent
5 000 }(1)
20 Bertie
7 900 (1)
31 Wages
Balance c/d
17 900
10 520
(1of)

$
2 700 (1)
3 880 (1)
800 (1)
10 520
17 900
[6]

(b) (i)
$
Revenue
Purchases
Closing
inventory
Cost of sales
Gross profit

4 000
(600)

$
8 500 (1)
(1)
(1)
3 400
5 100 (1of)
[4]

(ii)
Amina and Doreen
Calculation of profit for the month ended 31 January 2016
$
$
Gross profit
5 100 (1of)
Discount received
120 (1)
5 220
Rent
900 (1)
Wages
800 (1)
Depreciation fixtures and fittings
40 (1)
Depreciation delivery van
135 (1)
1 875
Profit for the month
3 345 (1of)
[7]

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Page 9

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
11

(c)
Amina and Doreen
Statement of Financial Position at 31 January 2016
$
$
Accumulated
Non-current assets
Cost
depreciation
135 (1of)
Delivery vehicle
8 100 (1)
Fixtures and fittings
4 800 (1)
40 (1of)
12 900
175

7 965
4 760
12 725

Current assets
Inventory (150 × 4)
Trade receivable (50 × 10)
Other receivables
Bank
Cash
Total assets

13 520
26 245

Capital
Current

600
500
1 800
10 520
100

Amina
Doreen

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

13 100 (1)
9 800 (1)

Amina
Doreen

2 230 (1of)
1 115 (1of)

$
NBV

22 900
3 345
26 245
[13]
[Total: 30]

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