Accounting (0452) · Oct/Nov 2019 · 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 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

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0452/12

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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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

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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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

October/November 2019
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Answer

Marks

1(a)

B

1

1(b)

D

1

1(c)

A

1

1(d)

A

1

1(e)

D

1

1(f)

C

1

1(g)

B

1

1(h)

C

1

1(i)

C

1

1(j)

A

1

Glossary
1(b) A & B 200 – (45 + 194) = 39
1(f) A ½ × (93 000 – 15 000)

C & D 45 + 200 – 194 = 51

B ½ × 93 000

C 15 000 + ½ × (93 000 – 15 000)

1(h) A 314 + 181 – 117 – 32
B 314 + 181 – 117 + 32 C 314 + 181 + 117 – 32

D 314 + 181 + 117 + 32

1(j) A (60 units × 16) + (30 units × 7)
B (60 units × 19) + (30 units × 7)
C 90 units × 16
D 90 units × 19

© UCLES 2019

Page 4 of 17

D (½ × 93 000) + 15 000

0452/12

October/November 2019
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(a)

Marks

Saleh
Petty Cash Book
Total
received
$
150

Date
2019

Aug 1
4
9
14
20
26
30
31

Details

Bank
Stationery
Omar
Flowers
Taxi fare
Tea and coffee
Cleaner
Balance

150

16

Total
paid
$

Office
expenses
$

21
57
10
9
7
30

21

134
16

c/d

10
Travel
$

Cleaning
$

Ledger
accounts
$

57
10
9
7
30
38

9

30

57

150

2019
Sept 1

Balance

b/d

(1)OF

Totalling total columns (1)
Totalling analysis columns (1) OF
Dates (1)
2(b)(ii)

© UCLES 2019

$134 (1)OF

1

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(b)(ii)

Marks
2

debit

credit

petty cash (1)

cash/bank/cash book (1)

2(c)

Saleh
Office expenses account
Date
2019
Aug 31

Details
Petty cash
(1)OF

$

Date

2

Details

$

Details

$

38

Omar account
Date
2019
Aug 31

© UCLES 2019

Details
Petty cash
(1)

$

Date

October/November 2019
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57

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

2(d)

Details
Laila
(1)
Balance c/d

$
190
806
___
996

Date
2019
Sept 1

2019
Sept 1

© UCLES 2019

Marks

Saleh
Cash Book (bank columns only)
Date
2019
Sept 1

October/November 2019
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4

Details

$

Balance b/d
Bank charges (1)
Insurance (1)

944
22
30
996

Balance b/d
(1)OF

806

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
2(e)

Answer
Saleh
Bank Reconciliation Statement at 31 August 2019
Balance in cash book
Cheques not yet presented (1) (Kalifa 114 + Fatima 175)
Amounts not yet credited (1)
Balance on bank statement

$
(806) (1)OF
289 (1)
(517)
(363) (1)
(880) (1)OF

Alternative presentation
Saleh
Bank Reconciliation Statement at 31 August 2019
Balance on bank statement
Amounts not yet credited (1)
Cheques not yet presented (1) (Kalifa 114 + Fatima 175)
Balance in cash book

© UCLES 2019

$
(880) (1)OF
363 (1)
(517)
(289) (1)
(806) (1)OF

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October/November 2019
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Marks
6

0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(a)

October/November 2019
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Answer
document

name of person issuing
document

book of prime (original) entry used
by Tumelo

Marks
book of prime (original entry)
used by Azuel

invoice

Azuel

purchases (journal)

sales (journal)

debit note

Tumelo

no entry

no entry

credit note

Azuel

purchases returns (journal)

sales returns (journal)

9

3(b)(i)

Statement (of account)

1

3(b)(ii)

Azuel

1

3(b)(iii)

To remind Tumelo of the amount due
To provide a summary of the transactions for the month
To enable Tumelo to compare his records and check for errors
Or other relevant reason
Any one reason

1

3(b)(iv)

Tumelo

1

3(b)(v)

6_ _ × 100 = 2%
(294 + 6) 1

1

3(b)(vi)

(300 + 470 – 190 – 294 – 6) = 280

1

3(b)(vii)

No transaction has taken place/the statement is a summary of the transactions for the month which are already recorded/not
part of double entry

1

© UCLES 2019

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(c)

Answer
Work can be shared amongst several people
Easier for reference as the same types of account are kept together
Easier to introduce checking procedures
Reduces the possibility of fraud
Helps in locating errors
Or other suitable advantage. Any two advantages (1) each

3(d)

© UCLES 2019

account
sales

sales returns

nominal (general)

Lerato, a credit supplier

purchases

purchases

nominal (general)

carriage inwards

nominal (general)

Marks
2

5

ledger

Tumelo, a credit customer

October/November 2019
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0452/12

Question

Answer

4(a)

Marks

Gary
General Journal
Date
2019
Aug 1

4(b)

October/November 2019
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Details

Debit
$

Bad debts
Ed
Account written off as irrecoverable
Account debited

cash
(office) equipment

$
180
260

3
Credit
$

326
326

(1)
(1)
(1)
3

Account credited
(1) bad debts recovered

$
440

(1

[Alternatively accept re-instatement of debt and then entries from Sally account to cash and office equipment accounts]

© UCLES 2019

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

October/November 2019
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Answer

Marks

Gary
Provision for doubtful debts account

4(c)

Date
2019
Sept 30

Details
Balance c/d

$
950

Date
2018
Oct 1
2019
Sept 30

__
950
2019
Oct 1

Details
Balance b/d
Income
statement
Balance b/d

5

$
910
_40
950
950

Dates (1)
4(d)

If the provision for doubtful debts is not maintained –

4

Not applying principle of prudence
The trade receivables (current assets) will be overstated
Profit for the year will not be realistic
Not applying the principle of accruals (matching)
Sales for which he is unlikely to be paid will not be regarded as an expense of the year in which those sales were made
Not applying the principle of consistency
Should continue to follow the practice of maintaining a provision unless there is a good reason not to do so
Or other valid reasons
Any four reasons (1) each

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0452/12

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

October/November 2019
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Answer

4(e)
item omitted

Marks

effect on profit for the year ended
30 September 2019
$

bad debts

© UCLES 2019

$

overstated

326

bad debt recovered

understated

440

adjustment to provision for doubtful debts

overstated

40

Page 13 of 17

4

effect on current assets at
30 September 2019

overstated

326

(1)

understated

180

(1)

(1)
OF

overstated

40

(1)
OF

0452/12

Question

Cambridge IGCSE – Mark Scheme
PUBLISHED

October/November 2019
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Answer

Marks

5(a)

A limited liability company is a legal entity which has a separate identity from its shareholders (1) whose liability for the
company’s debts is limited to the amount they agree to pay for their shares (1)

2

5(b)

Possibility of raising more capital than a partnership business
May be easier to obtain loans than a partnership business/ability to expand the business
There is continuity of existence
Or other benefits.
Any two benefits (1) each

2

5(c)(i)

Called-up share capital is the amount which a company has requested from its shareholders

1

5(c)(ii)

Paid-up share capital is that part of the called-up share capital for which a company has actually received money from its
shareholders

1

5(d)

Ordinary shareholders are members of the company
Carry voting rights
Ordinary share dividend is a share of the profits
Ordinary share dividend is variable
Ordinary share dividend is paid after any dividend on preference shares/interest on debentures
Ordinary shareholders are repaid last/after preference shareholders in the event of a winding-up
Or other valid answers
Any two features (1) each

2

5(e)

Are (long-term) loans/lenders
Debenture holders are not members of the company
Do not carry voting rights
Carry a fixed rate of interest
Interest is not dependent on the profit of the company
Are often secured on the assets of the company
Debenture holders are repaid before shareholders in a winding-up
The debentures rank before ordinary and preference shares in the event of the business winding up.
Or other valid answers
Any two features (1) each

2

© UCLES 2019

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

October/November 2019
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Answer

5(f)

Marks
income
statement

statement of
changes in
equity

issue of 5% debentures during the year

9(1)

debenture interest relating to the current year paid during the year

9(1)

final ordinary share dividend relating to the previous financial year
paid during the current year

9(1)

interim ordinary share dividend paid for the current year

9(1)

proposed ordinary share dividend for the current year

© UCLES 2019

no entry

9(1)

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5

0452/12

Question

Answer

6(a)

Gross profit
Discount received

current assets

inventory
trade receivables
other receivables

current liabilities trade payables
other payables
bank overdraft
working capital

12

$
40 780 (1)
970 (1)
41 750

Wages (27 120 (1) + 980 (1) – 1000) (1)
Rates and insurance (1700 (1) – 180) (1)
Operating expenses
Motor expenses
Bad debts
Depreciation Fixtures and fittings (20% × 12 000)
Motor vehicle (20% × (14 400 – 6300))
Profit for the year

© UCLES 2019

Marks

Pavita
Income Statement for the year ended 30 September 2019
$

6(b)

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27 100
1520
3195}(1)
1155}
190 (1)
2400 (1)
2025 (1)

8870
(8940 – 190) 8750
180 17 800 (1)
10 280
980
1230 12 490 (1)
5310 (1)OF

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37 585
4165 (1)OF
3

0452/12

Cambridge IGCSE – Mark Scheme
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Question

Answer

October/November 2019
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Marks

6(c)

Introduce further capital in cash/admit a partner
Obtain a long term loan
Sell any surplus non-current assets
Increase profit/reduce expenses/increase selling price
Reduce drawings
Increase other income
Or other acceptable points
Any 2 points (1) each

2

6(d)

17 800 : 12 490 whole formula (1) OF
1.43 : 1 (1) OF

2

6(e)

trade receivables × 365 (1) whole formula
credit sales
1

1

6(f)

8750 × 365 (1) whole formula = 27 days (1)
120 000 1

2

6(g)

Give cash discount for prompt/speedy payment
Charge interest on overdue accounts
Improve credit control/issue invoice or statements promptly
Refuse further supplies until outstanding balance paid
Invoice discounting and debt factoring
Any 1 point (1)

1

6(h)

trade payables × 365 (1) whole formula
credit purchases 1

1

6(i)

10 280 × 365 (1) whole formula = 43 days (1)
88 100 1

2

6(j)

Unsatisfied (1) OF
Pavita is paying her accounts 13 days after the period of credit allowed (1) OF

2

© UCLES 2019

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