Accounting (0452) · Oct/Nov 2018 · Mark scheme 21

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/21

Paper 2

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 17 printed pages.
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0452/21

Cambridge IGCSE – Mark Scheme
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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

Page 3 of 17

0452/21
Question
1(a)(i)

October/November 2018
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Cambridge IGCSE – Mark Scheme
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Answer

Marks

To notify Thato of an overcharge/faulty goods
To notify Thato of goods being returned
To request that Thato reduce the amount of the invoice/request credit note
Any 1 purpose (1)

1(a)(ii)

credit Abebe
account

debit Abebe
account

1

1
no entry
9(1)

1(b)(i)

To inform Abebe of the amount due
To provide a summary of the transactions for the month/period
To allow Abebe to check his records
Any 1 purpose (1)

1

1(b)(ii)

The statement is a summary of the transactions which have already been recorded in the accounting records

1

1(c)(i)

Thato purchased in large quantities/to encourage Thato to purchase in large quantities
Thato is a loyal customer/encourage repeat business
Thato is in the same trade
Any 1 reason (1)

1

1(c)(ii)

To encourage Thato to pay promptly / within the credit period allowed / within 30 days

1

1(c)(iii)

$5000 – (2½% × 5000) = 5000 – 125 = 4875 (1)

1

1(c)(iv)

Purchases ledger

1

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Question

Answer

1(d)

Thato
Purchases journal
Date
Details
2018
Aug 4 Nyack
Goods
Less Trade discount
9 Gaby
Goods
Less Trade discount

Marks
5

$

$

6 250
1 250

5 000 (1)

2 600
520

2 080 (1)

31 Transfer to purchases account

7 080 (1) OF

Purchases returns journal
Date
Details
2018
Aug 13 Gaby
Goods
Less Trade discount

$

100
20

31 Transfer to purchases returns account

© UCLES 2018

$

Page 5 of 17

80 (1)
80 (1) OF

0452/21

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Cambridge IGCSE – Mark Scheme
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Question

Answer

1(e)

Thato
Purchases account
$
Date

Date

Details

Marks
6
Details

$

Details

$

2018
Aug 31 Purchases for month (1) OF

Date

Details

7 080
Purchases returns account
$
Date
2018
Aug 31 Returns for month (1) OF

Date

Details

Gaby account
$
Date

2018
30 Bank (1) OF
Discount (1) OF

© UCLES 2018

$

2018

Aug 13 Purchases returns (1) OF

1(f)

Details

80

80

Aug 9 Purchases (1)OF

2 080

1 960
40

Business entity (1)
Money measurement (1)
Realisation (1)

3

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0452/21
Question
2(a)

Answer

Marks

Reduces the number of entries in the main cash book
Reduces the small cash payments in the main cash book
Reduces the number of entries in the ledger
Allows the chief cashier to delegate some of the work
Provides training for junior members of staff
Or other suitable advantage
Any 1 advantage (1)

2(b)

1

Sara
Cleaning account
Date

Details

$

2

Date

2018

Details

$

2018

Jul 31 Petty cash (1)
2(c)

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55

Jul 31 Petty cash (1)

5

Sabeena account (1) Debit (1)

2

2(d)

3
debit

credit
$

petty cash (1)

104*

$

cash/bank (1)

104*
*(1) for 2 matching correct figures

© UCLES 2018

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(e)

Sara
Commission receivable account
Date
2017
Aug 1
2018
Jul 31
2018
Aug 1

Details
Balance b/d
Income
statement (1)OF
Balance b/d (1)

$

Date
Details
2017
Bank
}
190 Aug 3
2018
}(1)
Feb 1 Bank
}
420 Jul 31 Balance c/d
610
220

+ (1) Dates

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Marks
4
$
190
200
220
610

0452/21

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(f)

Sara
Rates and insurance account
Date
Details
2017
Aug 1 Balance (insurance) b/d
2017
Sept 1 Bank (rates) (1)
Nov 1 Bank (ins.) (1)

Marks
8

$

Date
Details
2017
570
Aug 1 Balance (rates) b/d
2018
5 200
Jul 31 Drawings
(1)
3 400
Income statement

$
800
1 000
(1)

2018
Balance c/d
Jul 31

400

Rates
Ins

4800
2370
(1)OF

Balance c/d

7 170
600

9 570
9 570
2018
Aug 1 Balance
(ins.) b/d

600
(1)

2018
Aug 1 Balance
(rates) b/d

(1)

400

+ (1) Dates
2(g)

Financial information is reliable only
if it can be depended on to represent actual events
if it is free from error
if it free from bias
Any 2 comments (1) each

2

2(h)

Comparability (1)
Relevance (1)
Understandability (1)

3

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Question

Answer

Marks

3(a)

Sadia
Income Statement for the year ended 30 September 2018
$
Fees from clients (42 100 – 2880(1) + 3120(1))
Wages (29 800 – 3500(1))
Advertising (3150 – 630(1))
Rent (1200 + 190(1) – 200(1))
General expenses
Provision for doubtful debts ((5% × 3120(1)) – 144(1))
Depreciation
Office equipment ((26 000 – 9360)(1) × 20%(1))
Office furniture (11 100 + 1450 – 11 400)
Profit for the year

13

$
42 340

26 300
2 520
1 190
1 775 (1)
12
3 328
1 150 (1)

36 275
6 065 (1) OF

3(b)

Revenue
Purchases
Inventory (opening/closing)
Returns (sales/purchases)
Carriage inwards
Carriage outwards
Or other suitable item
Any 3 items (1) each

3

3(c)

Assess prospects of any requested loan/overdraft being repaid when due
Assess prospects of any interest on loan/overdraft being paid when due
Assess security available to cover any loan/overdraft
Or other acceptable reason
Any 2 reasons (1) each

2

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(d)

Answer
Competitors
Employees
Government
Lenders/potential lenders
Manager
Potential buyers of the business/investors
Potential partners
Trade receivables/clients/customers
Trade payables/suppliers
Owner/Sadia
Or other acceptable interested party
Any two interested parties (1) each

Question
4(a)

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October/November 2018
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Marks
2

Answer
To ensure that the trial balance totals agree
To allow draft financial statements to be prepared
To assist in the correction of errors
To assist in ensuring errors are discovered
Any 2 reasons (1) each

Marks
2

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Question

Answer

4(b)

Rizwan
Journal
Details
1

2

3

Marks
10
$

Suspense
Rent receivable
Rent payable
Correction of error, rent receivable treated as rent payable

1120

Office equipment
Purchases
Correction of error, office equipment treated as purchases

890

(No entry)
Suspense
Correction of error, petty cash omitted from trial balance

$

560
560

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

890

(1)
(1)
(1)

21

(1)
(1)
(1)

–

4(c)

Higher mark-up
Lower cost price of goods
Higher selling price of goods
Lower rate of trade discount allowed to customers
Higher rate of trade discount received from suppliers
Different mix of goods
Or other suitable reason
Any 2 reasons (1) each

2

4(d)

Year ended 30 September 2017 (1)

2

Reason
The business was run less efficiently in 2018
The percentage of expenses to revenue was greater in 2018
Any 1 comment (1)

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Question

Answer

October/November 2018
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Marks

4(e)

Reduce expenses/control expenses better
Obtain more other income
Change the type of expenses
Or other suitable ways
Any 2 ways (1) each

2

4(f)

Increase in profit
Reduction in capital/increase in drawings
Reduction in long term loans
Any 2 reasons (1) each

2

Question
5(a)

© UCLES 2018

Answer
Easier to see amount invested by each partner
Easier to calculate interest on capital
Easier to see the profit retained by each partner
Easier to see if a partner is making excessive drawings
Any 2 advantages (1) each

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Marks
2

0452/21
Question

Answer

5(b)

Mark and Ella
Current accounts
Ella
Date
$

Date

Detail

2017
Sept 1 Balance b/d
2018
Aug 31 Drawings (1)
Interest on drawings (1)
Balance c/d

Mark
$

12 000
960

2018
Sept 1 Balance b/d (1)OF

840

Marks
7
Detail

Mark
$

2017
Sept 1 Balance b/d

1 800

14 760

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16 000
1 280
11 640

2018
Aug 31 Interest on capital (1)
Salary (1)
Profit share (1)
Balance c/d

28 920

2 000

6 000
7 920
840
14 760

2018
Sept 1 Balance b/d (1)OF

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Ella
$

4 000
15 000
7 920

28 920
11 640

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Question

Answer

5(c)

Mark and Ella
Statement of Financial Position at 31 August 2018
$

Marks

$

6
$

Assets
Non-current assets
Premises at cost
Fixtures & equipment at book value
Motor vehicles at book value

165 000
24 400
14 750
204 150 (1)

Current assets
Inventory
Trade receivables
Less Provision for doubtful debts
Petty cash

14 950
16 800
420

Total assets

16 380 (1)
150
31 480 (1)
235 630

Capital and liabilities
Capital accounts

Mark
120 000

Ella
80 000

Current accounts

(840)

11 640

Total
200 000 (1)
10 800 (1) OF
210 800

Current liabilities
Trade payables
Bank overdraft

19 240
5 590
24 830 (1)

Total capital and liabilities
© UCLES 2018

235 630
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Question

October/November 2018
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Answer

Marks

5(d)

Ella has higher drawings so higher interest/Mark has lower drawings so lower
interest
Present agreement may discourage Ella from taking excessive drawings
Not charging interest on drawings will reduce Mark’s share of the profits
Or other suitable comments
Any 2 comments (1) each

2

5(e)

What profit share he would get
Whether interest on capital is allowed/interest on drawings is charged
Whether he would get a partnership salary
Comparison of present income with possible income if a partner
Whether capital would have to be invested
Responsibilities compared to those he now has
Will be responsible for the debts of the business
The capital employed/value of the business
Profitability of the business
Prospects for the future
Or other suitable considerations
Any 2 considerations (1) each

2

Question

Answer

Marks

6(a)

Total of the direct materials, direct labour and direct expenses

1

6(b)

Indirect factory wages, factory rent, factory insurance, depreciation of factory machinery, repair of factory machinery, etc.
Any 2 factory overheads (1) each

2

6(c)

36 500 × 20% = 7300 (1)

1

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Question
6(d)

Answer
Long term loan
Mortgage
Admit a partner
Form a limited company
Government grant
Or other suitable source of finance
Any 2 sources (1) each

6(e)
Prime cost 30 000 + 20%
Factory overheads 6500 + 1500
Cost of production
Alternative calculation
Present cost of production
Increase in prime cost 30 000 x 20%
Increase in factory overheads
Cost of production

October/November 2018
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Marks
2

$
36 000 (1)
8 000 (1)
44 000 (1) OF

4

36 500 (1)
6 000 }(1)
1 500 }
44 000 (1) OF

Gross profit 44 000 × 18% = 7 920 (1) OF
6(f)

© UCLES 2018

Gross profit increases by only $620 OF
May not be worthwhile if the gross profit only increases by this amount
Interest may have to be paid on any money borrowed
May not be able to obtain the necessary finance
The figures provided are only estimates
Costs of materials and labour may increase by more than estimated
Customers may demand further price reductions
May not be able to sell additional output
Or other relevant disadvantages
Any 4 disadvantages (1) each

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