Accounting (0452) · Oct/Nov 2018 · 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 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 20 printed pages.
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0452/13

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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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0452/13

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PUBLISHED

Question

Answer

October/November 2018
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Marks

1(a)

C

1

1(b)

B

1

1(c)

B

1

1(d)

C

1

1(e)

A

1

1(f)

D

1

1(g)

A

1

1(h)

D

1

1(i)

D

1

1(j)

B

1

© UCLES 2018

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Question
1

Answer
Glossary
(c)

A
B
C
D

20% × (23 000–4 600)
20% × 23 000
(20% × 18 400)+4 600
(20% × 23 000)+4 600

(d)

A
B
C
D

CAs–CLs=(35+29)–(9+25)
Net As–LTLs=(121+35+29–9–25)–70
Total As–CLs=(121+35+29)–(9+25)
Total As=121+35+29

(f)

A
B
C
D

42 150–2 120–2 840
42 150+2 120–2 840
42 150+2 840–2 120
42 150+2 120+2 840

(g)

A

(

B
C
D

© UCLES 2018

2
3
2
(
3
2
(
3
2
(
3

×14 700–9 000)+9 000–2 100
×14 700–9 000)+9 000+2 100
×14 700)+9 000–2 100
×14 700)+9 000+2 100

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October/November 2018
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Marks

0452/13
Question
2(a)
2(b)

2(c)

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October/November 2018
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Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer

Marks

Total resources provided by the owner for the business/amount the business owes the business owner
Allow the amount the owner has invested, but not capital invested. Do not award for just the equation.
transaction

account to be debited

1
8

account to be credited

obtained loan from bank

Bank/cash at bank

(1)

loan

(1)

purchased office fixtures by cheque

office fixtures

(1)

Bank/cash at bank

(1)

sold computer for cash

Cash/cash in hand

(1)

sales

(1)

took printer for personal use

drawings

(1)

purchases

(1)

Check the arithmetical accuracy of the double entry
Assist in preparation of financial statements
Any 1 reason
Do not allow just accuracy or references to ledgers

1

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Question

Answer

Marks

2(d)

debit
column

credit
column

4

9

capital
9

drawings

9

provision for depreciation
carriage inwards

9

carriage outwards

9
9

rent received
stationery

9

sales returns

9

Each two correct items (1)
2(e)

Error of commission
Any suitable example such as crediting X instead of Y, debiting rent instead of rates (1)

3

Error of omission
Any suitable example of transaction completely omitted from books, for example, payment of insurance completely missed
out (1)
Compensating errors
Any suitable example such as overcasting sales by $100 and overcasting purchases by $100 (1)
2(f)

© UCLES 2018

Capital expenditure (1)
Revenue expenditure (1)

2

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0452/13
Question

Answer

2(g)

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Marks

Income Statement

Statement of
Financial Position

purchase of motor vehicle

9(1)

charge for delivering motor vehicle

9(1)

insurance for motor vehicle

9(1)

fuel for motor vehicle

9(1)

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4

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Question

Answer

3(a)

Lefika

Marks
12

Cash Book
Date

Details

Discount
allowed
$

2018
Aug 1

Balance b/d

Cash

Bank

Date

$

$

2018

30

Aug 1

Details

$

Cash

Bank

$

$

Balance b/d

1 253

5

Tabia

(1)

9

441

8 Tebago

(1)

16

Nyack

(1)

8

282

31 Drawings

(1)

200

28

Sales

(1)

90

153

Bank

(1)

150

30

Disposal

(1)

250

31

Cash

c (1)OF

Balance c/d

273

20

500
17

370

2018
Sept 1

c

7

150

Balance c/d

1 526

7

370

1 526

2018
Balance b/d

(1)

20

Sept 1

Balance b/d (1)OF

+ (1) dates need all dates but do not have to bring balances down
+ (1) totalling discount columns
Do not award non current asset for sale of non current asset in lieu of disposal
Need correct label and amount(s) for 1 mark
Must have bal c/d amount to gain bal b/d mark

© UCLES 2018

Discount
received

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500

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Question

Answer

Marks

3(b)

Lefika
Bank Reconciliation Statement at 31 August 2018
$

$

Balance shown on bank
statement
Add Amounts not credited –

Cheque not credited –

6

(812)
Sales

153

Cash

150 (1)OF

Nyack

282 (1)OF

(1)

(1)

585
(227)

Less cheques not yet presented
–

Tebago

Balance shown in cash book

© UCLES 2018

(273) (1)OF
(500) (1)OF

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Question
3(b)

October/November 2018
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Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer

Marks

Alternative presentation
Lefika
Bank reconciliation Statement at 31 August 2018
$

$

Balance shown in cash book
Add Cheques not yet presented
–

(500) (1)OF
Tebago

273

(1)OF

(227)
Less amounts not credited –

Cheques not credited –

Sales

153

Cash

150 (1)OF

Nyack

282 (1)OF

Balance shown on bank
statement

(1)

(585)
(812)

(1)

3(c)

Work can be shared amongst several people/division of work
Easier for reference as same type of accounts are kept together/locate details of transactions
Easier to introduce checking procedures
Reduce possibility of fraud
Or other suitable advantage
Any one advantage (1)

1

3(d)

(i)
(ii)
(iii)
(iv)

4

© UCLES 2018

sales/trade receivables ledger
nominal (general) ledger
nominal (general) ledger
purchases/trade payables ledger

(1)
(1)
(1)
(1)

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Question

Answer

4(a)

Ava
Bad debts recovered account
Date

Details

$

2018
July

Marks

Date

14

Details

$

2018
31

Income statement

(1)

194 July

31

Bank

194
} (1)

OR
Wilma
194

194

Bad debts account
Date

Details

$

1

Total to date

31

Gary

218 July
(1)

$

31

Income statement

(1)

398

180
398

© UCLES 2018

Details

2018

2018
July

Date

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398

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Question

Answer

4(a)

Gary account
Date

Details

$

Marks

Date

Details

$

2018

2018
July

1

Balance

b/d

270 July

31

Cash

(1)

90

Bad debts

(1)

180

270

270

Provision for doubtful debts account
Date

Details

$

2018
July

Date

Details

$

2017
31

Balance

c/d

460 Aug

1

Balance

b/d

310

2018
July

31

Income statement

(1)

460

150
460

2018
Aug

© UCLES 2018

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1

Balance

b/d

(1)

460

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Question

Answer

4(a)

Discount allowed account
Date

Details

$

Date

Details

$

2018

2018
July

Marks

1

1 495 July

Total to date

31 Total for month

31

Income statement

(1)

1639

144

(1)

1639

1639

Provision for depreciation of office equipment account
Date

Details

$

2018
July

Date

Details

$

2017
31

Balance

c/d

12 800 Aug

1

Balance

b/d

9 600

2018
July

31

Income statement

(1)

12 800

(1) 3 200
12 800

2018
Aug
+ (1) dates need dates on all entries but can still have if no bal b/d

© UCLES 2018

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1

Balance

b/d

(1)OF

12 800

0452/13

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Question

Answer

October/November 2018
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Marks

4(b)

Prudence
Accruals (matching)
Consistency
Any two (1) each

2

4(c)

Both years are within the credit period allowed
Slight improvement in 2018/or collection period has decreased
Risk of bad debts is reduced by prompt payment
Assists cash flow of business
Allows funds to be available for payment of trade payables/running costs
No cash discount will be allowed
Or other relevant comments
Any two comments (1) each

2

4(d)

Eliminates possibility of bad debts
Improves cash flow/better liquidity
Customers may go to other agencies where credit terms are available/sales decrease
Reduce provision for doubtful debts
Trade receivables will reduce/not exist
Or other relevant comments
Any two comments (1) each

2

Question
5(a)

Answer
Calculation of sales
Cheques received from trade receivables
Discount allowed
Bad debts written off
Trade receivables at 30 September 2018
Less Trade receivables at 1 October 2017
Sales

© UCLES 2018

$
47 970
1 230
115
3 305
52 620
4 620
48 000

Marks
6

(1)
(1)
(1)
(1)
(1)
(1)

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Question
5(a)

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Answer

Marks

Alternative presentation
Total trade receivables account
Date

Details

$

2017
Oct
1

Date

Balance b/d

(1)

4 620 Sept 30

Sales

(1)OF 48 000

Bank

(1)

47 970

Discount allowed

(1)

1 230

Bad debts

(1)

115

(1)

3 305

Balance
52 620
No aliens allowed for OF sales

© UCLES 2018

$

2018

2018
Sept 30

Details

Page 16 of 20

c/d

52 620

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Question

Answer

5(b)

Khalid
Income Statement (Trading Account section) for the year ended 30 September 2018
$

Marks

$

Revenue

7

$
48 000 (1)OF

Cost of sales
Opening
inventory

3 100 (1)

Purchases

39 200 (1)
42 300

Closing inventory

on premises

1 500 (1)

destroyed

2 400 (1)OF

3 900

Gross profit
5(c)(i)
5(c)(ii)

© UCLES 2018

38 400 (1)OF
9 600 (1)OF

38 400 OF
= 38 400 OF(1) whole formula = 10.97 times (1) OF
(3 100 + 3 900) OF ÷ 2
3 500 OF
The number of times the inventory is sold and replaced in the financial year (1)

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2
1

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Question

Answer

Marks

5(d)

debit entry

credit entry

opening balance owed to credit suppliers

9(1)

credit purchases

9(1)

cheques paid to credit suppliers

9(1)

cash discount received

9(1)

contra between sales and purchases ledgers

9(1)

Question

Answer

6(a)

FW Limited
Extract from Statement of Financial Position at 30 September 2018

5

Marks
7

$
Equity and reserves
Ordinary share capital (100 000 + 50 000)
General reserve (15 000 + 5 000)
Retained earnings (7 000 + 28 000 (1) – 5 000 (1) – 9 000 (1))
Non-current liabilities
5% Debentures (repayable 2024)

150 000 (1)
20 000 (1)
21 000
191 000 (1)
40 000 (1)

6(b)(i)

Owners of the share capital of a limited liability company (1)

1

6(b)(ii)

The liability of shareholders for the debts of the company is limited to the amount they agree to pay for their shares (1)

1

© UCLES 2018

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Question

October/November 2018
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Answer

6(c)(i)

ordinary shares

Marks
preference shares

dividend rate varies

dividend is fixed percentage

rank after preference shares for
dividend

rank before ordinary shares for
dividend

rank after preference shares in a
winding-up

rank before ordinary shares in a
winding-up

can vote at the annual general
meeting

cannot vote at the annual general
meeting

2

Any one comparison (2)
6(c)(ii)

6(d)

Get a fixed return
Have priority over ordinary shares for the interest/dividend
Have priority over ordinary shareholders in a winding-up
Cannot vote at the annual general meeting
Or other suitable point
Any two points (1) each

2

Proposal 1
Effect on profit – decrease of $3 000 (1)
Reason – debenture interest is an expense in the income statement/or deducted from operating profit (1)

4

Proposal 2
Effect on profit – no effect (1)
Reason – ordinary shares dividend is an appropriation of profit not an expense in the income statement (1)
6(e)

© UCLES 2018

(42 000 + 34 000 + 36 000) : (35 000 + 30 000) (1) whole formula
= 112 000 : 65 000
=1.72 : 1 (1)

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2

0452/13
Question

Answer

6(f)

Marks
4

effect on current ratio
increase
use the bank balance to repay the
loan

no effect

9(1)

sell half the inventory at cost price
to cash customers
pay amount owed to trade
payables by cheque

decrease

9(1)

purchase non-current assets on
credit

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9(1)
9(1)

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