Accounting (0452) · Oct/Nov 2020 · Mark scheme 22
Cambridge Accounting (0452) mark scheme for paper 22, Oct/Nov 2020 — 0452/22/O/N/20, file 0452_w20_ms_22.pdf.
Text of this paper
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Cambridge IGCSE™
ACCOUNTING
0452/22
Paper 2
October/November 2020
MARK SCHEME
Maximum Mark: 100
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 2020 series for most
Cambridge IGCSE™, Cambridge International A and AS Level and Cambridge Pre-U components, and some
Cambridge O Level components.
This document consists of 14 printed pages.
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0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles
October/November 2020
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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.
© UCLES 2020
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0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
October/November 2020
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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 2020
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0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
1(a)
October/November 2020
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Answer
Transaction
Business document
Book of prime entry
2
Credit note (1)
Sales returns journal (1)
3
Paying-in slip (1)
Cash book (1)
4
Bank statement (1)
Cash book (1)
1(b)
2020
Aug 1 Balance
9 Sales
2020
Sept 1 Balance
b/d
b/d
Dev
Petra account
$
2020
940
Aug 14 Sales returns
675 (1)
29 Bank
Discount allowed
31 Balance c/d
1 615
Marks
6
6
$
120 (1)
893 (1)
47 (1)
555
1 615
555 (1)OF
+ (1) dates
1(c)
Current assets (1) OF
1
1(d)
Advantage
Increase profit for the year (1)
Increase cash inflow (1)
Accept other valid responses
Max (1)
2
Disadvantage
May lose customers/sales may fall (1)
Customers may take longer to pay (1)
Accept other valid responses
Max (1)
© UCLES 2020
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0452/22
Question
1(e)
October/November 2020
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Cambridge IGCSE – Mark Scheme
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Answer
Marks
5
Advantages
Dev will have limited liability for the debts of the company (1)
The limited company will have a separate legal identity to Dev (1)
Dev will have access to different forms of finance/increase in capital employed (1)
Accept other valid responses
Max (2)
Disadvantages
The limited company will have greater regulation than Dev as a sole trader (1)
The accounting requirements of the limited company will be more complex than for Dev as a sole trader (1)
The financial statements of the limited company may be viewed by the public unlike those of Dev as a sole trader (1)
Accept other valid responses
Max (2)
Recommendation (1)
Question
2(a)
© UCLES 2020
Answer
BH Sports Club
Subscriptions account
2019
$
2020
Aug 1 Balance b/d
360 (1)
Jul 31 Bank
2020
Balance c/d
Jul 31 Income and Expenditure 10 200 (1)OF
Balance c/d
120
10 680
2020
2020
Aug 1 Balance b/d
720 (1)
Aug 1 Balance
+ (1) dates
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Marks
6
$
9 960 (1)
720
10 680
b/d
120 (1)
0452/22
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Question
Answer
2(b)
Marks
$
Revenue
Opening inventory
Purchases
520
8 190
8 710
770
7 940 (1)
2 770
Less Closing inventory
Wages – café staff (2750 + 80(1) – 60(1))
Profit for the year
$
13 520
4
10 710
2 810 (1)(OF)
Alternative forms of presentation acceptable
2(c)
BH Sports Club
Income and Expenditure Account for the year ended 31 July 2020
$
$
Income
Subscriptions
Profit on café
7
10 200 (1) OF
2 810 (1) OF
13 010
Expenditure
Wages – sports staff
Insurance – sports hall and sports equipment
(1430 + 400 (1) – 440 (1))
Sports Hall expenses
Depreciation – sports hall (17 000 – 16 560)
sports equipment
(10% × (3900 + 2100))
Surplus for the year
5 220
1 390
3 360
440 (1)
600 (1)
11 010
2 000 (1) OF
2(d)(i)
The difference between the assets and the liabilities (1)
The accumulated surpluses earned since the club started (1)
Max (1)
1
2(d)(ii)
Increase (1)OF $2 000 (1)OF
2
© UCLES 2020
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Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
Answer
3(a)
Opening inventory
Purchases
Carriage inwards
Less Closing inventory
Cost of sales
2
$
1 600 (1)
1 000
600 (1) OF
Provision at 30 September 2020 ((80 500 – 500) x 2%)
Less Provision at 1 October 2019
Increase in provision for doubtful debts
© UCLES 2020
Marks
$
66 000
263 000
1 500
330 500 (1)
59 000
271 500 (1) OF
3(b)
3(c)
October/November 2020
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JP Limited
Income Statement for the year ended 30 September 2020
$
$
Revenue
529 500
Less Cost of sales
271 500 (1) OF
Gross profit
258 000 (1) OF
Less expenses
Administrative expenses (44 000(1) - 1200(1))
42 800
Distribution costs (38 000(1) + 800(1))
38 800
Irrecoverable debts
500 (1)
Provision for doubtful debts
600 (1) OF
Depreciation – non-current assets
61 000 (1)
143 700
Profit from operations
114 300
Debenture interest (700(1) + 700 (1))
1 400
Profit for the year
112 900 (1) OF
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2
12
0452/22
Question
Answer
3(d)
Increase
Marks
Decrease
Issue of additional ordinary shares
(1)
Proposal of ordinary share dividend
(1)
Transfer from retained earnings to general reserve
(1)
Question
4
(1)
Payment of ordinary share dividend
© UCLES 2020
No effect
Issue of additional debentures
4(a)
October/November 2020
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Cambridge IGCSE – Mark Scheme
PUBLISHED
Answer
Workings
Profit for the year
240 000 – 169 000 – 55 000
$16 000 (1)
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Marks
1
0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
4(b)
Answer
Profit margin
Marks
6
Workings
Answer
16 000 OF 100
×
(1) whole formula
240 000
1
6.67% (1) OF
Gross margin
Workings
Answer
240 000 − 169 000 100
(1) whole formula
×
240 000
1
29.58% (1)
Return on capital employed (ROCE)
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October/November 2020
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Workings
Answer
16 000 OF 100
×
(1) whole formula
62000
1
25.81% (1) OF
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0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
4(c)
Answer
Profit margin
General comment
Has worsened from 8.56% to 6.67% (1)
Possible causes
Increase in expenses (1)
Poor control over expenses (1)
Accept other valid responses
Max (1) from possible causes
All comments to be based on Own Figures from (b)
Gross margin
General comment
Has worsened from 34.26% to 29.58% (1)
Possible causes
Reduction in selling price (1)
Purchasing from more expensive suppliers / increased cost of sales (1)
Accept other valid responses
Max (1) from possible causes
All comments to be based on Own Figures from (b)
Return on capital employed
General comment
Has worsened from 32.08% to 25.81% (1)
Possible causes
Increased capital employed (1)
Less efficient use of its resources (1)
Accept other valid responses
Max (1) from possible causes
All comments to be based on Own Figures from (b)
© UCLES 2020
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Marks
6
0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
4(d)
Answer
Marks
5
Introduce additional capital
Advantages
Does not have to be repaid (1)
No interest cost (1)
Accept other valid responses
Max (1)
Disadvantages
May not have enough available funds (1)
Greater personal risk (1)
Accept other valid responses
Max (1)
Loan
Advantages
Instantly available (1)
Has two years to pay it off (1)
Accept other valid responses
Max (1)
Disadvantages
Annual interest is charged (1)
Must be repaid (1)
Security may be required (1)
Accept other valid responses
Max (1)
Recommendation (1)
© UCLES 2020
October/November 2020
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Page 11 of 14
0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
4(e)
October/November 2020
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Answer
Marks
2
Interested party
The interest they would have
Suppliers/potential suppliers
To assess whether outstanding debts are likely to be paid
Bank
To assess the likelihood of loan/overdraft being repaid when due
To assess the ability to pay interest on a loan/overdraft
To assess the availability of security for a loan
Lenders/potential lenders
To assess the likelihood of a loan being repaid when due
To assess the ability to pay interest on a loan
To assess the availability of security for a loan
Investors/potential partners
To assess future prospects of the business
To assess profitability
Government/tax authorities
To assess the tax due from the owner of the business
Accept other suitable parties and reasons
(1) for one named party + (1) for reason
Question
Answer
5(a)
2020
Sep 30 Sales returns
Motor repairs
Rent receivable
Rent payable
© UCLES 2020
$
300
180
310
310
1 100
Razia
Suspense account
2020
(1)
Sep 30 Difference on trial balance
(1)
(1)
Kamil
(1)
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Marks
6
$
200 (1)
900 (1)
___
1 100
0452/22
Cambridge IGCSE – Mark Scheme
PUBLISHED
Question
5(b)
5(c)
Answer
2
2
Error of omission
(1)
4
Error of transposition in one account
(1)
Error number
Increase profit
1
(1)
2
(1)
Decrease profit
No effect on profit
3
(1)
4
(1)
5
(1)
6
(1)
7
© UCLES 2020
Marks
Type of error
Error
October/November 2020
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(1)
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7
0452/22
Cambridge IGCSE – Mark Scheme
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Question
5(d)
Answer
Marks
5
Advantages
Less book-keeping (1)
No irrecoverable debts (1)
Cash received immediately (1)
Accept other valid responses
Max (2)
Disadvantages
May lose customers/sales may reduce (1)
May adversely affect customer relationships/customer loyalty (1)
Increased security issues (1)
Accept other valid responses
Max (2)
Recommendation (1)
© UCLES 2020
October/November 2020
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