Accounting (0452) · Oct/Nov 2019 · Mark scheme 23

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Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education

ACCOUNTING

0452/23

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 17 printed pages.
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Generic Marking Principles

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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.

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Question

Answer

1(a)

Sophie
Cash Book
Date
2019
Aug 1
17
24
29
30
31

Disc.
$

Details
Balance b/d
Jack
Sales
Capital
Cash
Jason
Bella

2019
Sept 1 Balance b/d

Cash
$
250

Bank
$
156

3820
(1)
(1)

5000
2000
539
260

11

11

4070

7955

1976
(1)OF

2828
(1)OF

Date
2019
Aug 1
2
30
31

Marks
9
Disc.
$

Details
Balance b/d
Petty cash
Bank
Ellie
Bank charges
Jack (Dis. chq)
Insurance
Balance c/d

Cash
$

Bank
$
4010

94
2000
(1)
(1)
(1)
(1)

1976

858
53
156
50
2828

4070

7955

22

22

+ (1) OF totalling both discount columns
1(b)

Bank overdraft/amount Sophie owed the bank

1

1(c)

Amount withdrawn from the cash to transfer to the petty cash book/amount given in cash to the petty cashier

1

1(d)

This is a contra entry (1) Money was transferred to the bank account from the cash account (1)

2

© UCLES 2019

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Question
1(e)

Answer

Marks

Sophie
Bank Reconciliation Statement at 31 August 2019
$
Balance on bank statement
Amounts not yet credited
Cash
Cheque – Jason
Cheque not yet presented
Ellie
Balance in cash book

(1)OF
(1)
(1)OF

2000
539

(1)OF
(1)OF

5
$
1147
2539
3686
858
2828

Alternative presentation
Sophie
Bank Reconciliation Statement at 31 August 2019
$
Balance in cash book
Cheque not yet presented
Ellie
Amounts not yet credited
Cash
Cheque – Jason
Balance on bank statement

© UCLES 2019

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

$
2828
858
3686

2000
539

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2539
1147

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Question
1(f)

October/November 2019
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Answer

Marks

Obtain the correct bank balance
Identify errors in the bank columns of the cash book
Identify errors on the bank statement
Assist in discovering fraud and embezzlement
Identify amounts/cheques not credited by the bank
Identify cheques not presented
Identify stale cheques
Understand/reconcile the differences between the bank account/bank column in cash book and the bank statement
Any 2 reasons (1) each

2

1(g)(i)

August 17 Cheque received from Jack
31 Return of dishonoured cheque to Jack
31 Cheque received from Jason
31 Discount allowed to Jason
31 Payment by credit transfer from Bella
Any 1 transaction (1) mark

1

1(g)(ii)

August 31 Cheque paid to Ellie
August 31 Discount received from Ellie
Any 1 transaction (1) mark

1

1(g)(iii)

August 24 Sales
29 Capital
31 Bank charges
Insurance
Any 2 transactions (1) mark each

2

© UCLES 2019

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Question

Answer

2(a)

Marks

CS Limited
Statement of Changes in Equity for the year ended 30 September 2019
Details

Ordinary
share
capital
$

On 1 October 2018

150 000

Profit for the year
Final dividend paid

On 30 September 2019

General
reserve

Retained
earnings

Total

$

$

$

.

173 000)

15 000)

15 000)

(1)

(6 000)

(6 000)

(1)

5 000

(5 000)

..

(1)

12 000

20 000)

182 000)

.

..

150 000

4

16 000)

7 000
..

Transfer to general reserve

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Page 7 of 17

(1)OF

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Question

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Answer

2(b)

Marks

CS Limited
Statement of Financial Position at 30 September 2019
Assets
Non-current assets
Premises
Machinery
Fixtures and fittings

$
Cost

$
Accumulated
depreciation

172 000
38 000
19 500
229 500

13 680
3 900
17 580

Current assets
Inventory
Trade receivables
Less provision for doubtful debts
Other receivables
Petty cash

14
$
Book value
172 000
24 320 (1)
15 600 (1)
211 920 (1)
14 360

16 800
504

16 296 (1)
110
200 (1)
30 966 (1)

Total assets
242 886
Equity and liabilities
Equity and reserves
Ordinary shares
General reserve
Retained earnings

150 000
12 000 (1)OF
20 000 (1)OF
182 000 (1)OF
Continued

© UCLES 2019

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0452/23
Question
2(b)

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Answer
Non-current liabilities
5% Debentures
(repayable 1 October 2030)
Current Liabilities
Trade payables
Other payables
Bank overdraft
Bank loan (repayable 1 April 2020)

Marks

25 000 (1)
14 866
198
10 822
10 000
35 886

Total equity and liabilities

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

242 886

2(c)

The difference between the two percentages represents the percentage of expenses to revenue (1)
The lower the percentage the more efficiently the expenses are being controlled (1)
Or other suitable comments
Any 2 comments (1) each

2

2(d)

The profit earned for every $100 used in the business

1

2(e)

The return on capital employed will decrease (1) because the capital employed will increase (1)

2

© UCLES 2019

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Question

Answer

3(a)

Marks

Yabani
Income Statement for the year ended 30 September 2019
$
Revenue
Cost of sales
Opening inventory of finished goods
Cost of production
Purchases of finished goods
Carriage on finished goods

12
$

$
205 000 (1)

21 340* (1)*
141 220* (1)
22 000 (1)OF
2 000 (1)

Closing inventory of finished goods
Gross profit
Administration and selling expenses
Depreciation – delivery vehicle (20% × (19 500 – 3900))
office fixtures and fittings (10% × 14 100)
Profit for the year

24 000*
186 560* (1)OF
22 560* both
22 120* (1)
3 120* (1)
1 410* (1)

164 000 (1)
41 000 (1)
26 650
14 350 (1)OF

3(b)(i)

Gross profit increases (1) the cost of production reduces (1)
OR
Gross profit may decrease (1) if the raw materials are lower quality there may be more wastage and cost of production may
increase (1) so
OR
Gross profit may decrease (1)
If the finished goods are of a lower quality the customers may seek other suppliers so the revenue may decrease (1)
Max 2

2

3(b)(ii)

Gross profit would increase (1) cost of goods sold would decrease (1)
OR
Gross profit may decrease (1) the total sales may reduce as customers go elsewhere if Yabani cannot supply these goods (1)

2

Max 2

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Question
3(b)(iii)

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Answer
No effect on gross profit (1) the wages of the sales staff are a selling expense not a manufacturing expense/are not included
in the calculation of the gross profit (1)
OR
Gross profit would reduce (1) reducing the number of sales staff may result in a reduction in sales (1)

Marks
2

Max 2
3(b)(iv)

© UCLES 2019

Gross profit would increase (1) the cost of production would decrease (1)
OR
gross profit may decrease (1) machine operators may take industrial action resulting in reduction of production/reduction in
revenue (1)
Max 2

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2

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Question
4(a)

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Answer

Marks

Calculation of amount paid to credit suppliers

5
$

Credit purchases
Less Returns to credit suppliers
Cash discount received
Amount owing to credit suppliers 31 July 2019
Amount paid to credit suppliers

$
38 450 (1)

1 980 (1)
981 (1)
3 770 (1)

6 731
31 719 OF(1)

Alternative presentation
Total trade payables account
Date
2019
Aug 31

© UCLES 2019

Details
Returns
(1)
Discount
(1)
*Bank
(1)OF
Balance c/d (1)

$
1 980
981
31 719
3 770
38 450

Date
2019
Aug 31

Details
Purchases

$
(1)

38 450

38 450

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Question
4(b)

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Answer

Marks

Calculation of credit sales

5
$
47 385
1 215
150
7 650
56 400

Amount received from credit customers
Cash discount allowed
Bad debts
Amount owing by credit customers 31 July 2019
Credit sales

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

Alternative presentation
Total trade receivables account
Date
2019
Aug 31

Details
*Sales

(1)OF

$
56 400

Date
2019
Aug 31

Bank
Discount
Bad debts
Balance c/d

56 400
4(c)

Calculation of cash banked
Amount of cash sales
Less Cash kept for personal use
Amount paid into bank for cash sales

© UCLES 2019

$

Details

$
14 100 (1)OF
3 000
11 100 (1)OF

Page 13 of 17

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

47 385
1 215
150
7 650
56 400
2

0452/23
Question
4(d)

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Answer

Marks

Ishaq
Bank account
Date
2018
Aug 1
2019
July 31

8

$

Details
(1)

95 000

Credit customers
(1)
Sales
(1)OF

47 385
11 100

Capital

Date
2018
Aug 1
2019
July 31

$

Details
(1)

70 000

Operating expenses (1)
Credit suppliers (1)OF
*Drawings
(1)OF
Balance c/d
(1)

21 451
31 719
9 000
21 315
153 485

Non-current assets

153 485
4(e)(i)

Lower of cost and net realisable value

1

4(e)(ii)

Prudence Or Accruals (matching)

1

4(f)

overstated
gross profit for the year ended 31 July 2019

9(1)

current assets at 31 July 2019

9(1)

cost of sales for the year ending 31 July 2020

9(1)

profit for the year ending 31 July 2020

© UCLES 2019

understated

9(1)

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Question

Answer

5(a)
Date
2018
Sept
3
2019
July

31

Date
2018
Aug
1
2019
Mar
30
July
6
2019
Aug

1

Details
Bank
Discount

(1)
(1)

Balance c/d

Stationery account
$
Date
2019
85
July
31

Details
Balance b/d
Cash
SS Limited
Balance b/d

Lili
SS Limited account
$
Date
2018
429
Aug
1
11
2019
July
6
322
762
2019
Aug
1

(1)
(1)
(1)

45
322
452

Marks
9
$

Details

440

Balance b/d
Stationery

Balance b/d

(1)

(1)OF

322
___
762
322

Details

$

Income statement(1)OF
Balance c/d

356
96
452

96

+ (1) Dates
5(b)

© UCLES 2019

Credit customers paying early to take advantage of cash discount
Increase in rate of cash discount
Introduction of interest charge on overdue accounts
Improved credit control
Issue invoices/statements of account promptly
Refusal of further supplies until outstanding balance paid
Any 2 reasons (1) each

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2

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Question

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Answer

Marks

5(c)

Have to wait longer for the money/could cause cash flow problems
Increased risk of bad debts
Or other suitable disadvantage
Any 1 disadvantage (1)

1

5(d)

Opportunity to earn more cash discount/pay smaller amount
Have to pay earlier/deprived of use of the money earlier/may create cash flow problems
If credit customers delay in paying the business will have to use existing money to pay the credit suppliers if wish to earn the
cash discount
If cannot pay on time may be charged interest on overdue account
If cannot pay on time relationship with suppliers may be damaged
Will have little impact as is not earning the cash discount now
Any two comments (1) each

2

5(e)

Capital expenditure
Money spend on acquiring, improving and installing non-current assets (1)

4

Capital receipt
Amounts received which do not form part of the day-to-day trading activities (1)
Revenue expenditure
Money spent on the running of a business on a day-to-day basis (1)
Revenue receipt
Amounts received in the day-to-day trading activities and other items of income (1)

© UCLES 2019

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Question

Answer

5(f)

effect on non-current assets
overstated
$

understated
$

error 1
error 2

no effect

3000
1630 (1)

error 3

9(1)

1280 *

1350*

1350*

*(1) position and (1) amount

© UCLES 2019

understated
$
3000

1630 (1)

error 4

Marks

effect on profit for the year
overstated
$

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