Accounting (0452) · Oct/Nov 2018 · Mark scheme 22

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/22

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 12 printed pages.
© UCLES 2018

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0452/22

Cambridge IGCSE – Mark Scheme
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Generic Marking Principles

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.
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 2 of 12

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0452/22

Question

Answer

Marks

1(a)(i)

This represents an overdraft/what the trader owes the bank on that date

1

1(a)(ii)

To restore the petty cash balance to the imprest amount

1

1(a)(iii)

3%

1

1(a)(iv)

Not enough money in the account
Cheque unsigned/incorrect signature
Amount in words and figures disagree
Cheque undated/out of date/wrong date
Takes account in to unauthorised overdraft
Or other acceptable reason
Any 1 reason (1)

1

1(a)(v)

This is a contra entry (1)
Money has been transferred from the cash into the bank account (1)

2

1(a)(vi)

Money was received from selling goods for $1100. Of this, $220 was paid into
the cash account and $880 paid into bank account.

1

Cash balance $290 (1)
Current asset (1)
Bank balance $4027 (1)
Current liability (1)

4

1(b)

1(c)

Rajinder
Sales account
Date
2018
July 31

Details

$

Income
statement (1)OF

5

Date

14 600
14 600

2018
June 30
July 29

Details

$

Total to date
Cash/bank (1)

13 500
1 100
14 600

Details

$

AM Limited account
Date
2018
July 27

Details

Bank
(1)
Discount (1)
31 Balance c/d

$
312
8
370
690

Date

2018
July 1 Balance b/d
14 Purchases

690
2018
Aug 1

© UCLES 2018

250
440

Page 3 of 12

Balance b/d (1)OF

370

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0452/22

Question

Answer

1(d)

Rajinder
Discount allowed account
Date

Details

$

2018
June 30
July 31

Total to date
(1)
Total for month (1)

178
18
196

Question
2(a)

Date
2018
July 31

Marks
3

Details
Income
statement

$

(1)OF

196
196

Answer

Marks

Bad debts
Amounts owing to a business which will not be paid by credit customers (1)

3

Bad debts recovered
Money received from credit customers in payment/part payment of debts after
they have been written off as bad debts (1)
Provision for doubtful debts
An estimate of the amount which a business will lose in a financial year
because of bad debts (1)
2(b)

Adil
Mahinda account
Date
2018
Feb 1

Details
Sales

$
600

Date
2018
Feb 10
Aug 31

600

4

Details

$

Sales returns
Bank
(1)

30
114
456
600

Bad debts

(1)

Bad debts account
Date

Details

2018
Aug 30 Total to date
31 Mahinda (1)OF

$

2018
Aug
31
710
456
1166

© UCLES 2018

Date

Page 4 of 12

Details

$

Income
Statement
(1)OF 1166
1166

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0452/22

Question

Answer

Marks

2(c)(i)

Eliminates possibility of bad debts
No cash discount for prompt payment is required
Improvement in cash flow
Or other suitable response
Any 1 advantage (1)

1

2(c)(ii)

Customers may move to other suppliers
May be reduction in sales
Or other suitable response
Any 1 disadvantage (1)

1

Obtain references from new credit customers
Fix a credit limit for each credit customer
Improve credit control
Issue invoices and monthly statements promptly
Refuse further supplies until outstanding balance is paid/overdue account
Charge interest on late payment
Allow cash discount/discount for prompt payment
Invoice discounting/debt factoring
Any 2 methods (1) each
Not stop selling on credit/sell on cash terms only – given in question

2

2(d)

2(e)

Adil
Provision for doubtful debts account
Date
2018
Aug 31

Details
Income
Statement (1)OF
Balance c/d

$

Date
2017
Sept 1

276
1 050
1 326 2018
Sept 1

4

Details

$

Balance b/d (1)

1326
1 326

Balance b/d (1)

1 050

+ (1) dates
2(f)

The sales for which a business is unlikely to be paid (1) are regarded as an
expense of the year in which those sales are made (1)

2

2(g)

Prudence (1)
Consistency (1)

2

© UCLES 2018

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0452/22

Question
2(h)

Answer

Marks
2

Either
debit

credit

Bank

(1) Bad debts recovered

(1)

Or
debit

2(i)

credit

Amaya

Bad debts recovered

(1)

Bank

Amaya

(1)

Increase by $250

1

Question

Answer

3(a)

Paul and Ann
Journal
Date
2018
April 1

Sept 30

© UCLES 2018

Details

Marks

Debit $

5

Credit $

Motor vehicle
Bank
Paul Capital

14 500
15 500

(1)
(1)
30 000 (1)

Ann Capital
Ann Current

5 000

(1)
5 000 (1)

Page 6 of 12

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0452/22

Question

Answer

Marks

3(b)

Paul and Ann
Profit and Loss Appropriation Account for the year ended 30 September 2018
Profit for the
year:
Interest on
drawings:
Interest on
capital:

Partner’s
salary:

$

Paul
Ann

1 000
12 350

2 600 *
3 400 (1)
6 000

Paul
7000 × 6 / 12 = 3500(1)
8000 × 6 / 12 = 4000(1)

Share of loss

$
11 350

450 }
550 } (1)

Paul
4% × 50 000 × 6 / 12 = 1000(1)
4% × 80 000 × 6 / 12 = 1600(1)
Ann

8

7 500 **

Paul
Ann

13 500
(1 150)

575 (1)OF
575 (1)OF

(1 150)

*Alternative calculation
4% × 50 000 × 12 / 12 = 2000(1)
4% × 30 000 × 6 / 12 = 600(1)
**Alternative calculation
7000 × 12 / 12 = 7000(1)
1000 × 6 / 12 = 500(1)
3(c)

Paul
Current account
Date
2018
Sept 30

Details
Drawings (1)
Int on Draw.
(1)OF
Share of loss
(1)OF
Balance c/d

$

Date

2017
9 000 Oct 1
2018
450 Sept 30
575
1 825

8

Details
Balance b/d

$
(1)

1 150

Int. on cap (1)OF
Salary
(1)OF
Int. on loan
(1)

2 600
7 500
600

11 850

11 850
2018
Oct 1

Balance b/d

1 825
(1)OF

© UCLES 2018

Page 7 of 12

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0452/22

Question

Answer

4(a)

Increase $
total of current assets

4(b)

Marks
Decrease $

no effect

3

80 000 (1)

total profit for the year

4000 (1)

total equity

4000 (1)

Prior claim on the profits of the business
Reduction in profit available for ordinary shareholders
Prior claim on the assets of the business in a winding-up
Or other suitable comment

2

Any 2 comments (1) each
4(c)

In the event of winding up each shareholder may receive less
The dividend per share may reduce
Dilution of ownership
Or other suitable comment

2

Any 2 comments (1) each
4(d)

Proposal 1
General reserve is not necessarily represented by actual money (1)

2

Proposal 2
Bank overdraft not appropriate for long-term borrowing (1)
Or other suitable comments
4(e)

© UCLES 2018

Long term loan from bank/financial institution
Government grant if available
Mortgage premises
Sale and lease-back of non-current assets
Or other suitable method
Any 1 method (1)

Page 8 of 12

1

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0452/22

Question
5(a)

Answer

Marks
8

Current ratio
31 200 : 20 200

(1) whole formula

1.54 : 1

(1)

Quick (acid test) ratio
16 300 : 20 200

(1) whole formula

0.81 : 1

(1)

16 200 365
×
1
192 000

(1)
whole
formula

16 500 365
×
1
154 500

(1)
whole
formula

Trade receivables collection period
= 31 days (1)
Trade payables payment period

= 39 days (1)
5(b)

Decrease in inventory/trade receivables/cash
Increase in trade payables/bank overdraft
Purchase of non-current assets
Increase in drawings
Repayment of long-term liabilities

2

Any 2 reasons (1) each
5(c)

increase
introduce $4000 additional capital in
order to pay off the bank overdraft

decrease

increase the bank overdraft by
$16 500 in order to repay the trade
payables
5(d)

9(1)
9(1)

9(1)

Inventory is not included in the calculation (1)

Either
Inventory is not regarded as a liquid asset – a buyer has to be found and then
the money collected (1)
Or
The quick ratio shows whether the business would have any surplus liquid
funds if all the current liabilities were paid immediately from the liquid assets
(1)

© UCLES 2018

Page 9 of 12

4

9(1)

sell half the inventory at cost price to a
cash purchaser
convert a $10 000 long-term bank loan
into a bank overdraft

no effect

2

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0452/22

Question
5(e)

Answer
Has decreased (1) OF
Plus comment –
Business is short of liquid funds
Business cannot pay immediate liabilities from liquid assets
Business needs injection of long term funds
Or other relevant comment based on OF quick ratio

Marks
2

Any 1 comment (1)
5(f)

Has increased/Credit customers are taking longer to settle their debts
Change may affect business’s ability to pay current liabilities when due
Change adversely affects the liquidity of the business
Or other relevant comment based on OF trade receivables period

2

Any 2 comments (1) each
5(g)(i)

Has the use of the money for other purposes for longer than previous
Allow comment based on OF trade payables period.
Or other relevant comment

1

Any 1 comment (1)
5(g)(ii)

Is not able to take advantage of cash discount
May be charged interest
Damages relationship with credit suppliers
Allow comment based on OF trade payables period.
Or other relevant comment
Any 1 comment (1)

© UCLES 2018

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1

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0452/22

Question

Answer

6(a)

Marks

Calculation of purchases

6

$

Cheques paid to credit suppliers
Discount recived
Returns to credit suppliers
Amounts owing to credit suppliers 30 september 2018
Cash withdrawn from bank for purchases
Total purchases for the year

33 150
850
1 670
3 180
4 820
43 670

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

Alternative presentation
Date
2018
Sept 30

Details

$

Bank
Discount Recd.
Returns outward
Balance c/d

Total purchases –

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

2018
33 150 Sept 30
850
1 670
3 180
38 850

Details

$

Purchases

38 850

38 850

Credit: 38 850
Cash:
4 820 (1)
43 670 (1)OF

6(b)

Priti
Bank account
Date
2017
Oct 1
2018
Sept 30

Details

$

Date

Capital (1)

2018
30 000 Sept 30

Sales (1)

48 500

78 500

© UCLES 2018

Date

Page 11 of 12

7

Details

$

Non-current assets (1)

19 400

Trade payables (1)
Cash Purchases (1)
*Expenses (1)OF
Balance c/d (1)

33 150
4 820
5 090
16 040
78 500

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Question

Answer

Marks

6(c)

Priti
Income Statement for the year ended 30 September 2018
$
Revenue
Cost of Sales
Purchases
Less Purchases returns

$
48 500 (1)

Less Closing inventory
Gross profit
Discount received
Expenses (5090 (1) OF + 120 (1))
Depreciation of non-current assets
Profit for the year
6(d)

43 670 (1)OF
1 670 (1)
42 000
3 200 (2)CF
(1)OF 38 800
9 700 (1)
850 (1)
10 550
5 210
1 940 (1)
7 150
3 400 (1)OF

Margin is the gross profit measured as a percentage of selling price (1)
Mark-up is the gross profit measured as a percentage of cost price (1)

© UCLES 2018

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