Accounting (0452) · Oct/Nov 2019 · Mark scheme 11
Cambridge Accounting (0452) mark scheme for paper 11, Oct/Nov 2019 — 0452/11/O/N/19, file 0452_w19_ms_11.pdf.
Text of this paper
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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education
ACCOUNTING
0452/11
Paper 1
October/November 2019
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 2019 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.
© UCLES 2019
[Turn over
0452/11
Cambridge IGCSE – Mark Scheme
PUBLISHED
October/November 2019
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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.
© UCLES 2019
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0452/11
Cambridge IGCSE – Mark Scheme
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October/November 2019
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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 2019
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0452/11
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
October/November 2019
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Marks
1(a)
B
1
1(b)
D
1
1(c)
A
1
1(d)
B
1
1(e)
A
1
1(f)
A
1
1(g)
C
1
1(h)
D
1
1(i)
D
1
1(j)
B
1
© UCLES 2019
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0452/11
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
Glossary
(d) A 1/3 × 4200 = 1400 – 22% = 1092
B 1400 – 20% = 1120
C 1400 – 2% = 1372
D 1/3 × 4200 = 1400
(g) C of S = 34 GP = 10 P for yr. = 4
A 4/44 ×100 = 9.09
B 4/34 × 100 = 11.76
C 10/44 × 100 = 22.73
D 10/34 × 100 = 29.41
(j)
© UCLES 2019
A book value after 5 years (18 000 – (5 × 2700)) = 4500
B book value after 4 years (18 000 – (4 × 2700)) = 7200
C dep for 4 years (4 × 2700) = 10 800
D dep for 5 years (5 × 2700) = 13 500
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October/November 2019
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Marks
0452/11
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
October/November 2019
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Answer
2(a)
(i) $59 (1)
2(b)
Kadir
1
2(c)
Goods returned not as ordered
Goods returned as damaged/faulty
Or other suitable reason – excluding overcharge
Any 1 reason (1)
1
2(d)
The amount on the credit note must equal the amount originally charged for those goods, so trade discount must be deducted
from the list price. (1)
Trade discount was deducted on invoice or when purchased. (1)
1
2(e)
(iii) $3304 (1)
3
book of prime (original) entry
used by Aisha
book of prime (original) entry
used by Kadir
purchases returns journal (1)
sales returns journal (1)
2(f)
© UCLES 2019
(ii) $826 (1)
Marks
document
book of prime (original) entry used by Aisha
invoice
purchases journal (1)
debit note
no entry (1)
cheque
cash book (1)
statement of account
no entry (1)
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2
4
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Question
Answer
2(g)
Marks
Aisha
Kadir account
Date
2019
Sept 18
27
30
Details
Returns (1)OF
Bank (1)
Discount (1)
Balance c/d
$
3304
3332
68
5656
12 360
Date
2019
Sept 1
4
October/November 2019
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7
Details
Balance b/d (1)
Purchases (1)
$
3400
8960
12 360
2019
Oct 1
Balance
b/d (1)OF
5656
(1) Dates
2(h)
© UCLES 2019
Purchases (ledger) or trade payables
1
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Question
3(a)
October/November 2019
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Answer
They can assist in locating errors
They are proof of the arithmetical accuracy of the ledgers which they control
They provide instant totals of the trade payables and the trade receivables
They enable a draft statement of financial position to be prepared quickly or financial statements
They can help to reduce fraud
They provide a summary of the transactions affecting the trade payables and the trade receivables
Any 2 advantages (1) each
3(b)
book of prime (original) entry
purchases returns
purchases returns journal (1)
contra entry
general or nominal journal (1)
discount received
cash book (1)
interest charged on overdue account
general or nominal journal (1)
Marks
2
4
3(c)
Meaning
A contra entry is an entry which appears in the purchases ledger control account (debit side) and also in the sales ledger control
account (credit side) (1)
Reason
The entry is made when a sales ledger account is set off against a purchases ledger account of the same person/business (1)
Same person is the buyer and seller (1)
Any 2 reasons (1) each
2
3(d)
Overpayment made to credit supplier
Returned goods after paying the balance of the account
Made payment without deducting the cash discount to which entitled
Paid credit supplier in advance/prepayment/paid deposit
Contra entry larger than the balance owed
Any 2 reasons (1) each
2
© UCLES 2019
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Question
Answer
3(e)
Details
Balance b/d
Sales (1)
Interest (1)
Balance c/d
$
6530
7860
15
80
Date
2019
Oct 1
31
14 485
2019
Nov 1
© UCLES 2019
Marks
Timothy
Sales ledger control account account
Date
2019
Oct 1
31
Balance b/d
(1)OF
7630
2019
Nov 1
October/November 2019
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9
Details
$
Balance b/d
Bank/cash (1)
Discount (1)
Returns (1)
Bad debts (1)
Contra(PLCA) (1)
Balance c/d
110
5782
118
285
260
300
7630
14 485
Balance b/d
(1)
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80
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Question
Answer
4(a)
Marks
Abiola
General Journal
Date
2017
Sept 1
Details
Inventory }(1)
Fixtures and fittings }
Bank (1)
Loan (1)
Capital (1)
October/November 2019
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5
Debit
$
Credit
$
6600
11 750
31 650
10 000
40 000
Assets, liabilities and capital at
this date or balances on assets, liabilities
and capital or record the start of the
business (1)
4(b)
© UCLES 2019
To explain the reasons for the entries which are to be made in the ledger (1)
Journal entries sometimes involve ‘out of the ordinary’ transactions (1)
It is impossible to remember the reason for every entry (1)
Transaction to be understood (1)
Any 2 reasons (1) each
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2
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Question
Answer
4(c)
Mar 1
Mar 1
Details
4
Debit
$
Motor vehicles (1)
Capital (1)
Credit
$
12 000
12 000
Drawings (1)
Purchases (1)
4(d)
450
450
Abiola
Rent payable account
Details
$
Date
2018
Sept 2
2019
Feb 3
Aug 6
Bank }
}
Bank }(1)
Bank }
3000
2019
Sept 1
Balance b/d (1)
1000
3000
1500
7500
Date
2018
Sept 1
2019
Aug 31
5
Details
Balance b/d (1)
Income
statement (1)OF
Balance c/d
(1) Dates
© UCLES 2019
Marks
Abiola
General Journal
Date
2018
October/November 2019
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Page 11 of 17
$
500
6000
1000
7500
0452/11
Cambridge IGCSE – Mark Scheme
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Question
4(e)
Answer
Marks
Only the rent relating to the current year or correct amount is transferred to the income statement (1)
This ensures that the profit for the year is shown at a more accurate figure (1)
This ensures that the expenses for the year are matched against the revenue for the year (1)
Accrued rent payable at the start of the year and prepaid at the end are not included (1)
Any 2 reasons (1) each
4(f)
Abiola
Commission receivable account
Date
2018
Sept 1
2019
Aug 31
Details
Balance b/d (1)
Income
statement (1)OF
$
350
1600
1950
2019
Sept 1
Balance b/d (1)
Date
2018
Sept 30
2019
Jan 31
Apl 30
July 31
Aug 31
Details
Bank
2
5
}
}
Bank
}(1)
Bank
}
Bank
}
Balance c/d
310
(1) Dates
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October/November 2019
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Page 12 of 17
$
350
425
395
470
310
1950
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Cambridge IGCSE – Mark Scheme
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Question
October/November 2019
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Answer
Marks
5(a)
Amounts paid by members of a club/society to use the facilities provided by that club/society
1
5(b)
$
Subscriptions due for the year (50 × $85)
4250 (1)
Add amount prepaid for following year (10 × $85) 850 (1)
5100
Less amount prepaid at start of year (14 × $85) 1190 (1)
3910
Less amount unpaid at end of year (22 × $85)
1870 (1)
Subscriptions received during the year
2040 (1)OF
5
Alternative presentation
KW Club
Subscriptions account
Date
2019
Sept 30
5(c)
© UCLES 2019
Details
Income and
expenditure (1)
Balance c/d (1)
$
4250
850
5100
Date
2018
Oct 1
2019
Sept 30
Details
$
Balance b/d (1)
1190
Bank/cash (1)OF
Balance c/d (1)
2040
1870
5100
If all members pay the bank balance should improve (1) by $1000 or $4250 to $5250 (1)
Should reduce deficit/increase surplus or increase income (1) by $1000 or $4250 to $5250 (1)
May mean that more members are late in paying their subscription or subscriptions accrued increases (1) already have 22
members who are in arrears (1)
May mean that members leave the club (1) if they cannot afford the extra amount or if can find a similar cheaper club (1)
Or other acceptable comments
Any 4 comments
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Question
5(d)
October/November 2019
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Cambridge IGCSE – Mark Scheme
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Answer
Marks
Possible answers include:
4
Income and expenditure account
Receipts and payments account
Equivalent to income statement
Summary of a cash book
Used to calculate surplus or deficit
Shows the bank balance
Items adjusted for accruals and payments
Requires payments and receipts irrespective of period
Includes only revenue items
Includes capital (non-current assets) and revenue items
Includes non-cash items eg depreciation
Includes all cash items not depreciation
Max 4 marks ( 1 mark for each relevant statement)
Accept other valid points.
5(e)
error
effect of effort on the deficit
overstated
the total of the income from a sports competition was understated
9(1)
proceeds of sale of club equipment were included in the income
9(1)
no adjustment was made of club shop wages accrued at the year-end
9(1)
Page 14 of 17
no effect
9(1)
no entry had been made for bank charges
shop rent was charged to the income and expenditure account instead of
the shop income statement
© UCLES 2019
understated
9(1)
5
0452/11
Question
Answer
6(a)
Marks
Amrit
Income Statement for the year ended 31 July 2019
$
58 800 (1)
3000 (1)
61 800
230
35
1800
39 500
6500 (1)
2560 (1)
Bad debts 80 (1) + 150 (1)
Provision for doubtful debts 135 (1) – 100 (1)
Insurance 2100 (1) – 300 (1)
Wages 38 000 (1) + 1500 (1)
Operating expenses
Depreciation Office equipment (20% × 16 000 – 3200)
Profit from operations
Loan interest 5% × 15 000
Profit for the year
6(b)
increase
extend the loan for a further 2 years
decrease
50 625
11 175
750 (1)
10 425 (1)OF
no effect
3
9(1)
ask the bank to extend the overdraft
facility
9(1)
purchase new office equipment on credit
© UCLES 2019
14
$
Fees from clients
Rent receivable
6(c)
October/November 2019
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9(1)
Higher profit
Lower capital employed/lower capital/lower long term liabilities
Any 2 reasons (1) each
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2
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Question
Answer
October/November 2019
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Marks
6(d)
Share losses
Share responsibilities
Share or spread risks
Share decision-making
Additional finance or capital may be available
Additional skills and experience are available
Any 2 advantages (1) each
2
6(e)
Share profits
Decisions must be recognised by all partners
Decisions may take longer to implement
One partner’s actions can bind the other partners
Disagreements can occur
All partners are responsible for the debts of the business
Other partner takes too much drawings
Do not have full control
Any 2 disadvantages (1) each
2
© UCLES 2019
Page 16 of 17
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Question
6(f)
Answer
Marks
Amrit and Neena
Estimated Profit and Loss Appropriation Account for the year ending 31 July 2019
$
Estimated profit for the year
Interest on drawings Amrit
Neena
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$
15 500
210 (1)
150 (1)
Interest on capital
Amrit
Neena
Partnership salary
Amrit
3200 (1)
2400 (1)
5600
6000
Share of profit
Amrit
Neena
2556 (1)OF
1704 (1)OF
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360
15 860
11 600
4260
4260
6