Accounting (0452) · Oct/Nov 2018 · Mark scheme 12

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/12

Paper 1

October/November 2018

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 2018 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.

This document consists of 19 printed pages.
© UCLES 2018

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Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles

October/November 2018
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These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
•
•
•

the specific content of the mark scheme or the generic level descriptors for the question
the specific skills defined in the mark scheme or in the generic level descriptors for the question
the standard of response required by a candidate as exemplified by the standardisation scripts.

GENERIC MARKING PRINCIPLE 2:
Marks awarded are always whole marks (not half marks, or other fractions).
GENERIC MARKING PRINCIPLE 3:
Marks must be awarded positively:
•
•
•
•
•

marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
marks are awarded when candidates clearly demonstrate what they know and can do
marks are not deducted for errors
marks are not deducted for omissions
answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.

GENERIC MARKING PRINCIPLE 4:
Rules must be applied consistently e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.

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GENERIC MARKING PRINCIPLE 5:
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may
be limited according to the quality of the candidate responses seen).
GENERIC MARKING PRINCIPLE 6:
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.

© UCLES 2018

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Question

Answer

October/November 2018
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Marks

Glossary
(d)

A
B
C
D

10 000 × 0.15
10 000 × (0.4–0.15)
10 000 × (1–0.4)
10 000 × (1–0.15)

(e)

A
B
C
D

48 700–29 100–8000
48 700–8000
67 400+48 700–29 100–8000
67 400+48 700–8000

(h)

A
B
C
D

1750+858
1750+924
1850+858
1850+924

1(a)

D

1

1(b)

B

1

1(c)

D

1

1(d)

B

1

1(e)

D

1

1(f)

A

1

1(g)

C

1

1(h)

A

1

1(i)

C

1

1(j)

B

1

© UCLES 2018

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Question

Answer

2(a)

Jennifer
Journal
Date 2018
Jun 1

Marks
5

Debit
$
Delivery van/Motor vehicles

15 000

Fixtures and fittings

2 700

Inventory

6 200

Cash

1 500

Loan from Amina

Credit
$

}

(1) both

}

(1) both

5 000 (1)

Capital

20 400 (1)
25 400

25 400

Assets, liabilities and capital at
the start of the business (1)
2(b)

© UCLES 2018

Useful because it may be necessary to recall the reasons/it can involve non-regular transactions/can contain a
reference to any prime documents.
(1 mark for any acceptable purpose)

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1

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Question

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Answer

Marks

2(c)

Purchase/sale of non-current assets on credit
Non-regular transactions not recorded in any other book of prime entry
Correction of errors
Year end transfers
(1 mark per use – maximum 2)

2

2(d)

2 October 2018
Purchased office equipment (1), for cash (1)

6

3 October 2018
Purchased motor vehicle (1), on credit (1)
4 October 2018
Took drawings (1), in cash (1)
2(e)

Duality

1

2(f)(i)

What the business owns and what is owed to the business

1

2(f)(ii)

What the business owes

1

2(f)(iii)

Resources provided by the owner of the business/what the business owes to the owner of the business

1

Statement of the assets, liabilities, capital (1) of the business on a certain date (1)

2

2(g)

© UCLES 2018

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Question

Answer

3(a)

Saul
Corrected Trial Balance at 31 March 2018
Debit

Marks

Credit
$

Motor vehicle at net book value

Inventory

109 000 (1)
80 230 (1)
5 100 (1)

Bank overdraft

13 900 (1)

Cash in hand

1 500

Drawings

6 500 (1)

Discount allowed
Other operating expenses
Wages and salaries

720 (1)
9 350
16 500

Capital
1 OF if matching totals
3(b)

© UCLES 2018

$

38 000

Revenue
Purchases

7

35 000
157 900

157 900

A book in which transactions are recorded before being entered in the ledger.
Or books used to record information from source documents

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1

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Question

Answer

Marks

3(c)

5
Book of prime (original) entry

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October/November 2018
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Purchases

Purchases journal

Cash and cheques received from credit
customers

Cash book (1)

Bad debts written off

(General) journal (1)

Discount received from credit suppliers

Cash book (1)

Sales returns

Sales returns journal (1)

Interest charged by credit suppliers

(General) journal (1)

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Cambridge IGCSE – Mark Scheme
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Question

Answer

3(d)

Marks

Saul
Sales ledger control account
Date
2018

Details

$

Jun 1

Balance b/d*

Jun 30

Sales

(1)

Interest charged

(1)

Date
2018

16 420 Jun 1

Balance c/d

10

Details

$

Balance b/d*

390

39 800 Jun 30 Sales Returns

(1)

2 700
36 350

175

Bank/cash

(1)

200

Discount allowed

(1) OF

570

Bad debt

(1)

340

Contra/PLCA/set
off

(1)

760

Balance c/d

15 485

56 595
Jul 1

Balance b/d

(1)

15 485 Jul 1

* 1 mark for both opening balances.

© UCLES 2018

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56 595
Balance b/d

(1)

200

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Question
3(e)

Answer

Marks

Helps to prove the arithmetical accuracy of sales ledger
Helps to reduce fraud
Can (assist in) locating errors, allow help, identify errors
Easy access to total receivables figure
Quicker production of financial statements
Provides a summary of transactions relating to trade receivables
(1 mark per benefit, maximum 2)

Question

2

Answer

4(a)

Capital
expenditure

Legal fees on purchase of office building

Marks
Revenue
expenditure

Capital
receipt

Revenue
receipt

9

Motor vehicle repairs
9 (1)

Purchase of goods for resale

9 (1)

Insurance of plant and equipment

9 (1)

Proceeds of sale of fixtures at net book value

9 (1)

Discount received from supplier

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9 (1)

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5

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Question

Answer

4(b)

Marks

Increase
Plant and equipment

9 (1)

Ahmed
Statement of corrected gross profit for the year ended 30 September 2018
Increase
$
Draft gross profit
Disposal proceeds
Capital expenditure

Decrease
$
2 600

15 000 (1)
15 000

Corrected gross profit

© UCLES 2018

2

Decrease

9 (1)

Motor vehicle
4(c)

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Page 11 of 19

2 600

$
24 200
(1)
12 400
36 600

(1) OF

3

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Question

Answer

4(d)

Khalid
Provision for depreciation account for office equipment
Date
Details
2018
Mar 31 Disposal
Balance c/d

$

(1)

Date
Details
2017
300 Apr 1 Balance b/d
5 300 2018
_ ___ Mar 31 Income Statement *
5 600
Apr1
Balance b/d (1) OF

October/November 2018
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Marks
5

$
3 600
2 000
5 600
5 300

* 2 500 × 0.2 = 500 (1)
* (9 000 – 1 500) × 0.2 = 1 500 (1)
+ 1 dates
4(e)

Khalid
Office equipment disposal account
Date
Details
2018
Mar 31 Office equipment (1)

© UCLES 2018

$

Date
Details
2018
1 500 Mar 31 Provision for depreciation (1) OF
Bank
(1)
_ ___
Income Statement
(1) OF
1 500

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4

$
300
1 100
100
1 500

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Question

Answer

4(f)

Khalid
Extract from Statement of Financial Position at 31 March 2018
$

$

Cost
Office equipment
4(g)

Marks

$

Accumulated
depreciation
10 000 (1)

Net book value

5 300 (1)OF

1

Question

Answer

5(a)

Direct
material
Purchase of plastic toy parts

Marks
Direct
labour

4

9 (1)

Wages of machine operator

9 (1)
9 (1)

Wages of supervisor

© UCLES 2018

Factory
overhead

9

Rent of factory

5(b)

4 700 (1)OF

Accruals (matching), Prudence

Purchase of packaging

3

9 (1)

Total of direct materials plus direct labour (1) plus direct expenses/royalties (1)

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2

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Question

Answer

Marks

5(c)

TP Limited
Manufacturing Account for the year ended 31 May 2018
$

$

Cost of raw materials used
Opening inventory

18 000

Purchases

323 000
341 000

Less: Closing inventory

22 100

Factory wages

318 900 (1)
98 000 (1)

Prime cost

416 900 (1)

Factory overheads

125 000 (1)
541 900

Opening work in progress

5 750
547 650

Closing work in progress (1)

(6 820)

Production cost of goods completed

© UCLES 2018

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540 830 (1)OF

6

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Question

Answer

Marks

5(d)

TP Limited
Income Statement (Trading Account section) for the year ended 31 May 2018
$
Revenue

$
836 000

Less: cost of sales
Opening inventory finished goods
Production cost

27 200

*

540 830

Purchases of finished goods

(1) OF

28 900

(1)

596 930
Closing inventory finished goods

(30 100)

*(1)
(566 830)

Gross profit

269 170 (1) OF

* for both inventories

© UCLES 2018

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Question

Answer

October/November 2018
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Marks

5(e)

Cheaper to buy than make
Cannot manufacture those particular items themselves
Production cannot keep up with demand
1 mark per point – maximum 2

2

5(f)

Prudence or Accruals (matching)

1

5(g)

Lower sales activity/no reference to selling price
Higher levels of inventory
Cost of sales is decreased
Cheaper suppliers
(or other acceptable reason)
1 mark per point - maximum 2

2

5(h)

Different type of goods
Food is a necessity
Food sells quicker than toys
Food must be sold more quickly
Food might spoil
(or other acceptable reason)
1 mark per point - maximum 2

2

© UCLES 2018

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Question

Answer

6(a)

$
Café receipts

Marks
4

$
4 145 (1)

Less: cost of sales
Opening inventory

200

Purchases

2 300
2 500

Closing inventory

(185)

Gross profit

(1 800) (1)

Café profit

30 (1)OF

Any format acceptable

© UCLES 2018

(2 315) (1)
1 830

Wages

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Question

Answer

Marks

6(b)

CC Club
Income and Expenditure Account for the year ended 30 September 2018

$
Subscriptions
24 500–750 (1) +650 (1)

$
24 400

Café profit

30 (1) OF

Competition entry fees

1 550

Cost of prizes

(500)

1 050 (1)
25 480

Rent (4 000–500)

3 (1)
500

General expenses (6 870+320)

7 (1)
190

Wages

6
900

Depreciation on sports equipment

8
250

37 400+7 600 (1) –36 750 (1)
Deficit for the year

© UCLES 2018

(25 840)
360 (1) OF

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Question
6(c)

October/November 2018
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Answer
Receipts and payments account

Income and expenditure account

Shows opening and closing bank
balance

Shows surplus and deficit for the year

Makes no adjustment for accruals and
prepayments

Makes adjustment for accruals and
prepayments

Does not include non-cash items

Includes non-cash items

Includes capital and revenue items

Includes only revenue items

Marks
3

1 mark for each difference – maximum 3
6(d)

© UCLES 2018

Increase selling prices
Find cheaper suppliers/obtain discounts
Change the mix of sales
Reduce expenses
Reduce wages
Buy cheaper products
(or other acceptable suggestions)
1 mark for each suggestion – maximum 3

3

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