Accounting (0452) · Oct/Nov 2019 · 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 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 20 printed pages.
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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.

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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.

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0452/22

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Question

Answer

1(a)

Tebogo
Sales Journal
Date
2019
Aug 6

Details
Kayla
Less 20% trade discount

Marks
5

$

$

1400
280

1120

(1)
}
}(1)
}

18

Nyack

620

30

Kayla

31

Transfer to sales account

160

1900

(1)
OF

Tebogo
Sales Returns Journal
Date
2019
Aug 12

© UCLES 2019

Details
Kayla
Less 20% trade discount

24

Nyack

31

Transfer to sales returns account

Page 4 of 20

$

$

300
60

240

(1)

155
___
395

}
}(1)
}OF

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Question

Answer

1(b)

Tebogo
Kayla account
Date
2019
Aug 1
6
30

Details

$

Balance b/d
Sales OF }(1)
Sales CF }

900
1120
160

Date
2019
Aug 12
29

2180
2019
Sept 1

Balance b/d
(1)OF

Marks

31

8

Details
Sales returns
(1)OF
Bank
}(1)
Discount
}
Balance c/d

$
240
882
18
1040
2180

1040

Sales account
Date
2019
Aug 31

© UCLES 2019

Details
Income
statement
(1)OF

$

Date
2019
Aug 1
31

23 300
23 300

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Details

$

Total sales to date
Total for month
(1)OF

21 400
1900
23 300

0452/22

Question

Answer

1(b)

Sales returns account
Date
2019
Aug 1
31

1(c)(i)

Details
Total returns to
date
Total for month
(1)OF

$
1560

Date
2019
Aug 31

395
1955

Marks

Details
Income
statement
(1)OF

$

1955

1955

Effect on profit – May increase (1)
Reason – amount of discount allowed/expense decreases (1)
OR
Credit customers may not pay in time to receive cash discount as incentive of cash discount now reduced (1)
OR
Effect on profit – May decrease (1)
Reason – credit customers may find another supplier offering better terms (1)
Or other suitable reason

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2

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Question
1(c)(ii)

Answer
Effect on liquidity – May decrease (1)
Reason – Credit customers may take longer to pay as incentive of cash discount now reduced (1)
OR
Credit customers may find another supplier offering better terms (1)
OR
Effect on liquidity – May increase (1)
Reason – Credit customers will pay more because cash discount reduced (1)
Orr
Credit customers may pay quicker as credit period reduced (1)
Or other suitable reason

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Marks
2

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Question

Answer

2(a)

Payment

Marks
Capital
expenditure

Premises

9}(1)

Office furniture

9}

Carriage on office furniture

9(1)

Stationery and small office equipment

© UCLES 2019

Revenue
expenditure

6

9(1)

Legal expenses on purchase of premises

9(1)

Computer equipment

9}(1)

Installation of computer equipment

9}

Ink cartridges and printer paper
2(b)

October/November 2019
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9(1)

Straight line (fixed instalment)
Revaluation
Any 1 method (1)

1

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Question

Answer

2(c)

Amelia
Computer equipment account
Date
2017
April 1

$

Details
Bank

(1)

Date

Marks
6

Details

$

1700

Provision for depreciation of computer equipment account
Date
2018
Mar 31
2019
Mar 31

Details
Balance c/d

Balance c/d

$
510
___
510
867

Date
2018
Mar 31
2018
April 1
2019
Mar 31

___
867
2019
April 1
+ (1) Dates

© UCLES 2019

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

$
510
510
510
357
867
867

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Question

Answer

2(d)
Cost (3450 + 50)
Deprecation for year ended 31 March 2018
Deprecation for year ended 31 March 2019

$
3500
700 (1)
2800
560(1)

October/November 2019
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Marks
3

Total depreciation $700 + $560 = $1260 (1)OF
2(e)
Cost
Depreciation
Proceeds of sale
Loss (1) on disposal

© UCLES 2019

$
3500 (1)
1260 (1)OF
2240
1750
490 (1)OF

4

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0452/22

Question

Answer

3(a)

KS Sports Club
Subscriptions account
Date
2018
Aug 1
2019
July 31

Details
Balance b/d (1)
Income and
expenditure (1)
Balance c/d

$
250

Date
2018
Aug 1
2019
31 July

7500
200
7950
2019
Aug 1

+ (1) Dates

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Marks
6

$

Details
(1)

100

(1)OF

7850

7950

Balance b/d
Bank/cash

Balance b/d

(1)

200

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Question

Answer

3(b)

KS Sports Club
Receipts and Payments Account for the year ended 31 July 2019
Date
2019
July 31

Details
Subscriptions
(1)OF
Loan
(1)
Disposal of
equipment (1)
Tournament
receipts
(1)
Balance c/d

$
7850
1000

Date
2018
Aug 1
2019
July 31

870
525
2730

12 975
2019
Aug 1

© UCLES 2019

Page 12 of 20

Marks
13

$

Details
(1)

2620

AB Loan
(1)
Loan interest (1)
General expenses
(1)
Rates and
insurance
(1)
Sports
equipment (1)
Equipment
repairs
(1)
Tournament
expenses
(1)

2000
100

Balance b/d

Balance b/d (1)OF

435
3120
4150
215
335
12 975
2730

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Question

Answer

4(a)

Mariam
Statement of Affairs at 30 September 2019
Assets
Non-current assets

$
Cost

Premises
Fixtures and fittings
Motor vehicle

80 000
7800
10 000
97 800

Current assets
Inventory
Trade receivables
Less Debt written off

Marks

$
Accumulated
depreciation
1170 (1)
2000 (1)
3170

15

$
Book value
80 000
6630(1)OF
8000(1)OF
94 630(1)OF
5840 (1)

6450
150
6300 (1)

Less Provision for doubtful
debts
Bank

315 (1)

Total assets

5985(1)OF
6787(1)
18 612
113 242

Capital and liabilities
Capital account

91 882(1)OF

Non-current liabilities
Loan

© UCLES 2019

7000 (1)

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Question
4(a)

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Answer

Marks

Current Liabilities
Trade payables
Other payables
Short term loan

7100(1)
260 (1)
7000(1)
14 360

Total capital and liabilities
113 242
4(b)

Mariam
Capital account
Date
2019
Sept 30

Details

$

Drawings (1)
Balance c/d
(1)OF

3125
91 882

95 007

Date
2018
Oct 1
2019
Sept 30
2019
Oct 1

© UCLES 2019

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5

$

Details
Balance b/d
Bank
Profit
Balance b/d

(1)

89 000

(1)
(1)OF

5000
1007
95 007
91 882

0452/22

Question
4(c)

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Answer
Full details are available about the assets, liabilities, revenues and expenses of the business/detailed records are available for
reference purposes
The preparation of financial statements is relatively straightforward
The calculation of the profit or loss for the year is likely to be reliable and accurate
More informed decision-making is possible
A greater degree of control over business activities can be exercised
The possibility of fraud is reduced
Information required by a bank or other lender is readily available
Or other suitable points
Any 2 advantages (1) each

Page 15 of 20

Marks
2

0452/22

Question

Answer

5(a)

Marks

account

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9

Entry required to correct the error
Debit

5(b)

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1

sales
sales returns

2

Nadia

3

drawings

4

no entry

5

discount received
discount allowed

Credit
$

account

990
990

suspense

65 (1)

150 (1)

Nadira

$
1980

65 (1)

purchases

150 (1)

(1)

suspense

4100 (1)

340 (1)
430 (1)

suspense

770 (1)

–

No (1)
The errors discovered will not cancel out the original difference on the trial balance of $7000/the suspense account will still have a
balance (1)

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2

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Question

Answer

Marks

5(c)

Sabir
Statement of corrected profit for the year ended 30 September 2019
Draft profit for the year
before corrections

$31 400

No effect
on profit

Increase
in profit

Error 1
Error 2
Error 3

$990 (1)
$990 (1)
9(1)
$150 (1)

Error 4

$4100 (1)

Error 5

$340 (1)
$430 (1)

Total difference

$150

Corrected profit for the
year

© UCLES 2019

Decrease in
profit

$6850

(6700)
$24 700
(2)CF
(1)OF

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9

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Question
6(a)

Answer
Percentage of gross profit to revenue
(42 000 – 35 490) × 100} (1) whole formula = 15.50% (1)
42 000
1}

Marks
8

Percentage of profit to revenue
(6510 OF – 3772 × 100} (1) OF whole formula = 6.52% (1)OF
42 000
1}
Return on capital employed
2738 OF__ × 100} (1) OF whole formula = 4.35% (1)OF
(53 000 + 10 000)
1}
Rate of inventory turnover
35 490___ (1) whole formula = 39.88 times (1)
(860 + 920) / 2

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0452/22

Question

Cambridge IGCSE – Mark Scheme
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Answer

Marks

6(b)

Dealing in different types of goods
Furniture has a higher profit mark-up than fruit and vegetables
Any 2 points (1) each

2

6(c)

Fruit and vegetables are a low-priced everyday product/furniture is a higher priced article which is not purchased daily
Fruit and vegetables will go bad if kept for a long period of time/furniture does not deteriorate as quickly as fresh food.
Or other relevant reason
Any 1 reason (1)

1

6(d)

Wages, insurance of premises, bad debts, increase in provision for doubtful debts, cash discount allowed
Or other suitable expenses
Any 2 expenses (1) each

2

6(e)

Dealing in different goods
Different type of business (sole trader/partnership)
Different length of life of business
Different types of expenses
Different size of business
Results are for one year only and may not show trends
The statements do not show non-monetary factors
It may not be possible to obtain all the information needed to make comparisons
Different accounting policies may be used
Or other relevant factors
Any 4 factors (1) each

4

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Question

Answer

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Marks

6(f)

Increase in selling price will increase margin/mark-up (1) so gross profit will increase (1)
Increase in selling price may make customers go elsewhere (1) so gross profit will decrease (1)

2

6(g)

How much capital will Sabeena invest?
Will the annual profit be increased with the injection of more capital?
What share of profit will Sabeena require?
Will Sabeena work in the business?
Will Sabeena require an annual salary?
What areas of expertise will Sabeena bring to the business?
Are they going to be able to work together without disputes arising?

3

Or other relevant factors
Any 3 factors (1) each

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