Accounting (0452) · Oct/Nov 2016 · Mark scheme 13

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Cambridge International Examinations
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/13

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 10 printed pages.
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Page 2

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

Glossary for Q1
(c) A
B
C
D

+50 – 80 + 10 = $20 credit
+50 – 80 – 10 = $40 credit
+50 + 80 – 10 = $120 debit
+50 + 80 + 10 = $140 debit

(f) A
B
C
D

(60 000 – 6 000) x ½ + 4 000 – 18 000 = $13 000
(60 000 – 6 000) x ½ = $27 000
(60 000 – 6 000) x ½ + 2 000 = $29 000
(60 000 – 6 000) x ½ + 4 000 = $31 000

(g) A
B
C
D

85 000 – 15 000 – 10 000 = $60 000
30 000 + 85 000 – 15 000 – 10 000 = $90 000
30 000 + 85 000 – 15 000 = $100 000
30 000 + 85 000 – 10 000 = $105 000

(i) A
B
C
D

6 100/90 000 × 365 = 25 days
6 100/84 000 × 365 = 27 days
7 400/90 000 × 365 = 31 days
7 400/84 000 × 365 = 33 days

Mark scheme
1

(a) D
(b) D
(c) B
(d) B
(e) B
(f) D
(g) C
(h) A
(i) B
(j) C
10 × (1) mark
[Total: 10]
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Page 3
2

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(a) A decrease in a non-current asset account requires a credit (1) entry.
An increase in a liability account requires a credit (1) entry.
An increase in an expense account requires a debit (1) entry.

[3]

(b) Any reasonable example for (1) mark, e.g. bank overdraft, loan, trade payable

[1]

(c)
debit entry
income statement (1)

credit entry
provision for depreciation (1)
[2]

(d) to simplify information in the ledger
to allow book-keeping duties to be shared
to reduce the number of entries in the ledger
as an aid for posting to the ledger
to gather and summarise information
to facilitate preparation of control accounts
to group similar transactions together
any one for (1) mark

[1]

(e)
book of prime (original) entry
cash book
petty cash book
sales journal
sales returns journal
purchases journal
purchases returns journal
general journal

source document
cheque counterfoil/bank
statement/till roll
receipt/voucher
sales invoice
credit note issued
purchase invoice
credit note received
invoice for non-current asset
purchased on credit or other
suitable document

Any two books for (1) mark each plus two related documents for (1) mark each. Allow other
reasonable suggestions for document.
[4]
(f) A trading business buys and sells goods. (1) A service business provides a service instead.
(1) A trading business produces a trading account (1) and a service business does not.(1) A
trading business holds inventory. (1) A service business holds no inventory. (1)
[max 2 for each type of business]

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[max 3]

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Page 4

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(g)
trading business
only
cost of sales

√ (1)

gross profit

√ (1)

service business
only

both

discount allowed

√ (1)

profit for the year

√ (1)
[4]

(h)
principle
the same accounting treatment should be
applied to similar items at all times

consistency (1)

transactions should be expressed in
monetary terms

money measurement (1)

financial statements should assume that a
business will continue to operate indefinitely

going concern (1)
[3]
[Total: 21]

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Page 5
3

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Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(a) (8 × 1200) + (4 × 1000) = $13 600 (1)

[1]

(b) one month’s rent accrued/unpaid (1)

[1]

(c)
2015
Sept 4 Bank
2016
Mar 1 Bank
July 9 Bank
Sept 1 Balance b/d

Winston
Rent account
$
2015
6 000 }
Sept 1 Balance b/d
2016
7 400 }
Aug 31 Income
statement
Balance c/d
3 600 } (1)
17 000
2 400 (1of)

$
1 000 (1)
13 600 (1)
2 400
17 000

+(1) for dates

[5]

(d)

2016
Aug 1 Balance b/d
Aug 3 Sales
Aug 18 Sales

Sept 1 Balance b/d

Winston
Sales ledger
Jared account
$
2016
300 (1)
Aug 6 Sales returns
480 (1)
Aug 9 Bank
320 (1)
Discount
allowed
Aug 31 Balance c/d
1 100
760 (1of)

+(1) for dates

$
40 (1)
291 (1)
9 (1)
760
1 100
[8]

(e)
account debited
Jared (purchases ledger
account)

account credited
(1)

Jared (sales ledger account)
(1)
[2]

(f) work in progress (1)

[1]

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Page 6

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Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(g)
manufacturing
account
purchases of raw
materials

income statement

√

salesman’s wages

√

carriage outwards

√

purchases of finished
goods

√

machine operator’s wages

√

factory supervisor’s salary

√

inventory of raw materials

√

carriage inwards

√

inventory of finished
goods

√

Any two correct for (1) mark

[4]
[Total: 22]

4

(a) to access additional capital
for additional expertise/more ideas
to share responsibilities/cover sickness and holidays
to shares losses/risks
Any one reason for (1) mark

[1]

(b) to avoid disagreements in the future

[1]

(c) capital contribution by each partner
profit sharing ratio
interest on capital
interest on drawings
partners’ salaries
interest on partners’ loans
Any two for (1) mark each

[2]

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Page 7

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Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(d)
debit entry

credit entry

Drawings Rajiv (1)

Bank (1)
[2]

(e)
debit entry

credit entry

Current account Rajiv (1)

Drawings Rajiv (1)
[2]

(f)

Bank
Cash
Fees

Friedrich and Graham
Trial Balance at 31 July 2016
$
4 800
200

$
81 000

(1)

Rent
Wages
Administration costs

12 000
6 800
19 500

}
} (1)
}

Drawings – Friedrich
– Graham

25 000
16 100

}
} (1)

Equipment
Provision for depreciation

24 200

}
6 500 } (1)

Trade receivables
Other payables

17 400

}
1 100 } (1)
20 000 }
15 000 } (1)

Capital account – Friedrich
– Graham
Current account – Friedrich
– Graham

900
126 900

(1of)
3 300
126 900 (1)
[8]
[Total: 16]

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Page 8
5

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Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(a)
2015
Jul 1 Balance b/d
2016
Jun 30 Sales

Boris
Total trade receivables account
$
2016
300 (1)
Jun 30 Bank/cash/cash
book
Bad debts
Sales returns
7 770 (1)
Balance c/d
8 070

2016
Jul 1 Balance b/d

$
6 800
250
480
540
8 070

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

540
[6]

(b)
2016
Jun 30 Bank/cash/cash
book
Discount received
Balance c/d

Total trade payables account
$
2015
4 320 (1)
Jul 1 Balance b/d
210 (1of)
680 (1)
5 210

2016
Jun 30

Purchases

$
710
4 500
5 210

2016
Jul 1 Balance b/d

(1)
(1)

680
[5]

(c)
Boris
Statement of Financial Position at 30 June 2016
$
$
$
Cost
Acc dep
NBV
3 870 (1of)
3 230 (1)
Non-current assets
7 100
Current assets
Inventory
700 (1)
Trade receivables
540 (1of)
1 240
Total assets
5 110
Capital
At 1 July 2015
Profit for the year
Drawings

5 010
1 070
(2 050)
4 030

Current liabilities
Trade payables
Other payables
Bank

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

680 (1)
100 (1)
300 (1)
1 080
5 110

Total liabilities

[11]

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Page 9

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Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

Paper
13

(d) Drawings are high/too high (1)
Drawings are almost twice profit (1)
Drawings are about half the capital (1)
Excessive drawings are causing a shortage of cash in the business (1)
Funds should be left in the business so that it can function or grow (1)
Profits need to be higher to finance the level of drawings (1)
Drawings need to be lower to enable the business to continue/may have financial problems
in the future (1)
Answers to be based on OF profit
[max 2]
[Total: 24]
6

(a)
Chess Club
Income Statement for the year ended 31 December 2015
$
Shop sales
Inventory at 1 January 2015
Purchases
5700 (1) + 350 (1) – 170 (1)
Inventory at 31 December 2015

$
6 700 (1)

580 *
5 880
6 460
310 * (1)
both
6 150
550
1 200 (1)
650 (1of)

Cost of sales
Wages
Loss for the year

[7]
(b)
Chess Club
Income and Expenditure Account for the year ended 31 December 2015
$
Subscriptions
17 700 + 950 (1) – 550 (1)
Less expenditure
Loss for the year
Depreciation of equipment (1)
3100 + 3800 – 5150
Rent
Wages
Sundry expenses

$
18 100

650 (1of)
1 750
4 800
8 400
4 300

(1)
}
} (1)
}
19 900
1 800 (1of)

Deficit

[7]

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Page 10

(c)

Mark Scheme
Cambridge IGCSE – October/November 2016

Syllabus
0452

550 (1of) 100
×
= 8.94% (1of)
6150 (1of)
1

Paper
13
[3]

(d)
Chess Club
Statement of revised profit
$
Revenue
Cost of sales
Gross profit
Commission
Computer costs

$
8 610 (1of)
6 150 (1of)
2 460 (1of)

1 722 (1of)
500 (1)
2 222
238 (1of)

Profit for the year
OR
Increase in revenue/gross profit
Original wages
Commission
Computer costs
Less original loss
Profit for the year

$
1 910 (1of)
1 200 (1)
1 722 (1of)
500 (1)
650 (1of)

$
3 110

2 872
238 (1of)
[6]

(e) Increase subscription rate
Increase membership
Increase selling price in shop
Reduce cost of sales in shop
Reduce expenses in shop
Sell off unused equipment
Obtain a loan
Start fundraising
Seek donations
Sponsorship
Or other acceptable suggestions
Any two reasonable suggestions for (1) mark each

[2]

(f) Members have not invested capital in the organisation (1) and therefore cannot earn a return
on their investment (1). Any surplus is retained in the organisation (1).
[max 2]
[Total: 27]

© UCLES 2016