Accounting (0452) · Oct/Nov 2017 · Mark scheme 13

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/13

Paper 1

October/November 2017

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 International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the October/November 2017 series for most
®
Cambridge IGCSE , Cambridge International A and AS Level components and some Cambridge O Level
components.

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This document consists of 13 printed pages.
© UCLES 2017

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0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

October/November
www.dynamicpapers.com
2017
Marks

1(a)

D

1

1(b)

C

1

1(c)

B

1

1(d)

C

1

1(e)

C

1

1(f)

A

1

1(g)

D

1

1(h)

B

1

1(i)

B

1

1(j)

A

1

© UCLES 2017

Page 2 of 13

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
2(a)

October/November
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2017

Answer

Marks

The amount owed by the business to the owner.
The funds put into the business/contributed by the owner (plus profits net of drawings).
Any one for (1) mark

2(b)

1

4

Principle
A trader withdraws goods for his own use and records this in the drawings
account.

Business entity (1)

A book-keeper writes off debts which will not be paid to the business.

Prudence/accruals (matching) (1)

An accountant does not include staff morale as an asset in the statement of
financial position.

Money measurement (1)

A business uses the double entry system of book-keeping to record transactions.

Duality (1)

2(c)

Nominal (general) ledger

1

2(d)

(Limited) company

1

2(e)

Items which a business owns or which are owed to the business are known as ASSETS.

1

2(f)

document

reason for issue

name of person issuing document

to record goods sold on credit

Jake

debit note

to ask for reduction in invoice (1)

Rashida (1)

credit note

to accept request for reduction in invoice (1)

Jake (1)

statement of account

to summarise transactions for the month (1)

Jake (1)

invoice

© UCLES 2017

Page 3 of 13

6

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Cambridge IGCSE – Mark Scheme
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Question

Answer

2(g)

© UCLES 2017

Marks
True or
False

Work in progress may appear in Jake’s manufacturing
account.

True (1)

Prime cost appears in Jake’s income statement.

False (1)

Jake’s business is a service business.

False (1)

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October/November
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2017

3

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(a)

Answer

Kang-Dae
Cash book (bank columns only)
2017
June 1

Balance b/d
Nigel
Insurance
(error)

$
1 310
540
320

(1)
(1)
(1)

2017
June 1

Bank charges
Rent
Electricity
Balance c/d

June 1

Balance b/d

2 170
710

Kang-Dae
Bank reconciliation statement at 1 June 2017
$
Balance per cash book
710 (1)OF
(1)
Add unpresented cheque
700
(1)
1 410
Less uncredited deposit
620
(1)
Balance per bank statement (1)
790
(1)

Kang-Dae
Bank reconciliation statement at 1 June 2017
$
Balance per bank statement
Add uncredited deposit
Less unpresented cheque
Balance per cash book

(1)

(1)

1
7

$
60 (1)
1 000 (1)
400 (1)
710
2 170

(1)OF

OR

© UCLES 2017

Marks

A bank statement is a copy of the customer’s account as it appears in the books of the bank.

3(b)

3(c)

October/November
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2017

790
620
1 410
700
710

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

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6

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

October/November
www.dynamicpapers.com
2017
Marks

3(d)

A loan is of fixed amount but an overdraft is of varying amount.
A loan is for a fixed term but an overdraft may be paid back at any time.
A loan may require security but an overdraft may be unsecured.
A loan may have a fixed rate of interest but an overdraft will have a variable rate.
Any two for (1) each

2

3(e)

Non-current liabilities

1

Question

Answer

Marks

4(a)

(17 040 − 12780) (1)
× 100 = 10% (1)OF
(1)
42 600

3

4(b)

1 May 2015:
Cash book (1)

3

1 August 2016:
1 Nominal (general) journal (1)
2 Cash book (1)

© UCLES 2017

Page 6 of 13

0452/13

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PUBLISHED

Question

Answer

4(c)
42 600 + 12 000

54 600
(1)

fixtures and fittings at cost on 31 December 2016

54 600 (OF) – 10 000

44 600
(1)OF

depreciation charge for the year ended 31 December 2015

(54 600 (OF) × 10%) (1)OF

accumulated depreciation at 31 December 2015

17 040 + 5 460 (1)OF

depreciation charge for the year ended 31 December 2016

(44 600 (OF) × 10%) (1)OF

accumulated depreciation at 31 December 2016

22 500 (1)OF + 4 460 (1)OF – 4 000 (1)

debit entry

12

5 460
(1)OF
22 500
(1)OF
4 460
(1)OF
22 960
(1)OF

credit entry

2

provision for depreciation of fixtures and fittings account (1)
debit entry

credit entry

provision for depreciation of fixtures and fittings account (1)

© UCLES 2017

$

fixtures and fittings at cost on 31 December 2015

income statement (1)

4(f)

Marks
workings

4(d)

4(e)

October/November
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2017

2

disposal account (1)

Reducing (diminishing) balance method (1)
Annual percentage rate (1) is applied to the net book value (1) of the asset.
OR
Revaluation method (1)
The difference between the opening and closing valuations is taken (1) and adjusted for any purchases or disposals (1)

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3

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PUBLISHED

Question

Answer

4(g)

4(h)

© UCLES 2017

capital expenditure
cost of vehicle

9 (1)

number plates

9 (1)

revenue expenditure

fuel

9 (1)

insurance of vehicle

9 (1)

Capital introduced
Receipt of loan
Proceeds of sale of non-current asset
Any one for (1) mark

October/November
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2017
Marks
4

1

Page 8 of 13

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

5(a)

5(b)(i)

Marks

Satish
Suspense account
2017
Jun 30 Drawings
Capital

$
2 000 (1)
2 000 (1)
4 000

4

2017
Jun 30 Balance b/d
Purchases

$
3 900 (1)
100 (1)
4 000

Satish
Statement of correction of gross profit for the year ended 30 June 2017
No Effect

Increase
$

Decrease
$

Draft gross profit

8

$
20 000

Error 1

400 (2)

Error 2

550 (2)

Error 3

100 (2)

Error 4

October/November
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2017

9 (1)
400

650

(250)

Corrected gross profit

19 750
(1)OF
*(2 marks) = (1) for right column, and second mark for correct amount
5(b)(ii)

© UCLES 2017

$
$
Corrected gross profit
19 750 (1)OF
Rent
6 000
Wages
2 800
Other operating expenses
4 180 (2)*
Depreciation
1 500 (1)
14 480
Profit for the year
5 270 (1)OF
*2 marks for all three components, 1 mark for two components
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5

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

5(c)

Marks

Satish
Statement of Financial Position at 30 June 2017
Non-current assets

$
Cost

Fixtures and fittings

12 000 (1)

$
Accumulated
depreciation
4 500 (1)

Current assets
Inventory (4 620 – 550)
Trade receivables (3 100 + 400)

10

$
Net book
value
7 500
4 070 (1)
3 500 (1)
7 570
15 070

Total assets
Capital at 1 July 2016
Capital introduced
Profit

14 200
2 000
5 270
21 470
8 900
12 570

Drawings
Capital at 30 June 2017
Current liabilities
Trade payables
Bank
Total liabilities

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

1 900 (1)
600 (1)
2 500
15 070

Accept alternative presentation

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October/November
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2017

Page 10 of 13

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
6(a)
6(b)

Answer
A business in which two or more people work together as owners.
Amina and Samara
Appropriation Account for the year ended 30 June 2017
$
Profit for the year
Interest on capital – Amina
– Samara

$
17 500

5 500
2 000

(1)
(1)
7 500
10 000

Share of profit

– Amina
– Samara

6 000
4 000

(1)OF
(1)OF
10 000

© UCLES 2017

Page 11 of 13

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2017
Marks
1
4

0452/13

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

6(c)

Amina and Samara
Capital accounts
Date

Details

2017 Jun 30

Balance c/d

Amina
Samara
Date
$
$
60 000
20 000 2016 Jul 1
2017 Jan 1

Marks
3
Details
Balance b/d
Cash

60 000

20 000
2017 Jul 1

October/November
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2017

Balance b/d

Amina
Samara
$
$
50 000
20 000
10 000
60 000
60 000

20 000
20 000

(1)
(1)
(1)
OF

Current accounts
Date

Details

2017 Jun 30

Drawings
Balance c/d

Jul 1

Balance b/d

Amina
Samara
Date
$
$
8 000
12 000 (1) 2016 Jul 1
7 500
2017 Jun 30
15 500

12 000
3 000

Jul 1

5
Details
Balance b/d
Interest on capital
Share of profit
Balance c/d
Balance b/d

Amina
Samara
$
$
4 000
3 000
5 500
2 000
6 000
4 000
3 000
15 500
12 000
7 500

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

Where appropriate mark is for both entries
6(d)

© UCLES 2017

Profit for the year would be lower by the amount of the loan interest. (1)
Interest on capital would be lower by the interest on the additional capital. (1)
Shares of profit might be higher or lower depending on rate of loan interest. (1)
Max 2

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2

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October/November
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2017

Question

Answer

6(e)

Samara has a debit balance on her current account (1) which means that she owes funds to the business. (1)
Samara’s drawings are greater than her total allocation of profit, (1) which means she is reducing the capital of the
business. (1)
The partnership agreement could be amended (1) to introduce a partner’s salary/interest on drawings/change in the profit
sharing ratio. (1)
Amina has had to introduce additional capital (1) in order to run the day to day business/cover what Samara has taken as
drawings. (1)
One mark for basic point, plus one for development to max 4

© UCLES 2017

Page 13 of 13

Marks
4