Accounting (0452) · Oct/Nov 2020 · Mark scheme 23

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Cambridge IGCSE™
ACCOUNTING

0452/23

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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0452/23

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.

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0452/23

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.

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Page 3 of 14

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

1(a)

Sariah
Journal
Details

© UCLES 2020

Debit
$

October/November 2020
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Marks
4

Credit
$

Motor vehicles
Sharpe Motors

(1)
(1)

Irrecoverable debts
Ruhee

(1)
(1)

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0452/23
Question

Answer

1(b)
2019
Oct 1 Balance
2020
Mar 31 Bank
2020
Oct 1 Balance
2020
Jan 31 Disposal
Sep 30 Balance

b/d

b/d

Sariah
Fixtures and fittings account
$
2020
28 600
Jan 31 Disposal
Sep 30 Balance c/d
3 500 (1)
32 100

Marks
11
$
1 500
30 600

(1)

32 100

30 600 (1) OF

Provision for depreciation of fixtures and fittings account
$
2019
$
285 (1)
Oct 1 Balance b/d
6 185
c/d
8 370
2020
Sep 30 Income statement
2 470
8 655
8 655
2020
Oct 1 Balance b/d
8 370

Disposal account
2020
$
2020
Jan 31 Fixtures and fittings
Jan 31 Prov. for Dep.
1 500 (1)
Bank
Sep 30 Income statement

1 500
+ (1) Dates

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Page 5 of 14

$
285
1 150
65
1 500

(1)
(1)OF

(1)OF
(1)
(1)OF

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
1(c)

Answer
Advantages
Emy may introduce additional capital (1)
Emy may bring additional specialist skills to the business (1)
Sariah may benefit from Emy’s contacts from her business (1)
The partners will be able to share the workload/responsibilities/risks (1)
Accept other valid responses
Max (2)

October/November 2020
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Marks
5

Disadvantages
Sariah will have to share profits with Emy (1)
Decision making may take longer (1)
Disagreements between the partners may occur (1)
Accept other valid responses
Max (2)
Recommendation (1)
Question

Answer

2(a)
Balance at 31 July 2020
Direct debit payment
Dishonoured cheque
Bank charges
Revised balance at 31 July 2020

$
(3 420)
(350)
(665)
(45)
(4 480)

4
(1)
(1)
(1)
(1)OF

Accept alternative forms of presentation

© UCLES 2020

Marks

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0452/23
Question
2(b)

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Cambridge IGCSE – Mark Scheme
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Answer

Marks

Eniola
Bank Reconciliation Statement at 31 July 2020
$
Balance in cash book
(4 480)
Cheques not yet presented
1 290
(3 190)
Amounts not yet credited
(410)
Balance on bank statement
(3 600)

4
(1)OF
(1)
(1)
(1)OF

Alternative presentation
Balance on bank statement
Amounts not yet credited
Cheques not yet presented
Balance in cash book

© UCLES 2020

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$
(3 600)
410
(3 190)
(1 290)
(4 480)

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

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
2(c)(i)

October/November 2020
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Answer

Marks
1

Do not have to pay the purchase price of these assets (1)
Will pay a monthly/yearly hire charge which spreads the outlay (1)
Will possibly have to pay more than the actual cost if hire for a long time (1)
Will never own these assets (1)
Possibly will not have any repair costs (1)
There will be no depreciation charge (1)
Accept other valid responses
Max 1

2(c)(ii)

1

Money will be retained in the business for longer (1)
Money is available for other purposes (1)
May not be able to obtain cash discount (1)
May be charged interest on an overdue balance (1)
May damage relationship with suppliers (1)
Accept other valid responses
Max 1

2(d)

Eniola
Rent and rates account
2019
$
2019
Aug 1 Balance (rates) b/d 260
Aug 1 Balance (rent) b/d
Bank
3 150 }
2020
Oct 1 Bank
1 860 }
Jul 31 Income statement
2020
}(1)
Rent 5400
Mar 1 Bank
2 700 }
Rates 1810 (1)OF
Jul 31 Balance
c/d 450
Balance
c/d
8 420
2020
2020
Aug 1 Balance (rates) b/d 310 (1)
Aug 1 Balance (rent) b/d

6
$
900
(1)OF
7 210
310
8 420
450

(1)

+ (1) dates
2(e)

© UCLES 2020

Rent: Current liabilities (1) or OF from (d)
Rates: Current assets (1) or OF from (d)

2

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

2(f)(i)

Matching or prudence (1)

1

2(f)(ii)

Matching – the expense for the year is matched to the revenue for the year (1)
OR
Prudence – ensures that the profit for the year is not overstated (1)

1

Question
3(a)

Answer
Haziq
Income Statement for the year ended 31 July 2020
$
$
166 000

Revenue
Cost of sales
Opening inventory
Purchases (96 220 (1) – 6 280 (1) + 7 460 (1))
Less Closing inventory
Gross profit
Less expenses
Rent (2 640 (1) + 240 (1))
Wages (41 400 (1) + 610 (1))
General expenses
Depreciation of non-current assets
(35 580 – 32 450)
Profit from operations
Less Loan interest
Profit for the year

© UCLES 2020

Marks

8 400
97 400
105 800
6 200

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(1)OF 99 600
66 400

2 880
42 010
10 890

(1)

3 130

(1)

58 910
7 490
300
7 190

15
(1)

(1)OF
(1)

(1)
(1)OF

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question
3(b)

Answer
Advantages
Enables easier production of financial statements (1)
Enables greater accuracy of the financial records (1)
Provides checks and balances to minimise possibility of fraud (1)
Facilitates easier decision making/easier for reference/easier comparisons/better understanding of finances (1)
Accept other valid responses
Max (2)
Disadvantages
May be complex and harder to understand for the non-accountant (1)
Time consuming (1)
May be costly to set-up (1)
Not all errors will be identified (1)
Accept other valid responses
Max (2)
Recommendation (1)

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Page 10 of 14

Marks
5

0452/23

Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

October/November 2020
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Answer

4(a)
Inventory at 30 September 2020
Original cost of damaged goods
Net realisable value of damaged goods
Revised value of inventory

Marks
2

$
26 300
(5 200) }(1)
4 400 }
25 500 (1)OF

Accept alternative forms of presentation
4(b)

$

Less Inventory overstated
Provision for doubtful debts omitted
Revised profit for the year

4

$
84 900
400 (1)
85 300

Draft profit for the year
Add Insurance prepaid omitted
800 (1)OF
100 (1)

900
84 400 (1)OF

Accept alternative forms of presentation
4(c)

© UCLES 2020

DW Limited
Statement of Changes in Equity for the year ended 30 September 2020
Total
Retained
General
Details
Share
earnings
reserve
capital
$
$
$
$
279 975
73 475
6 500
200 000
On 1 October 2019
84 400
84 400
Profit for the year
(2 000)
(2 000)
Dividend paid
(5 000)
5 000
Transfer to general reserve
On 30 September 2020
200 000
11 500
150 875
362 375

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5

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

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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

4(d)

DW Limited
Statement of Financial Position at 30 September 2020
$
$

9
$

Assets
Cost
Non-current assets
Current assets
Inventory
Trade receivables
Less Provision for doubtful debts
Other receivables (1 600 + 400)

462 000

Net book
value
356 000
25 500

14 500
725

Total assets
Equity and liabilities
Equity
Ordinary share capital
General reserve
Retained earnings

(1)

13 775
2 000
41 275
397 275

200 000
11 500
150 875
362 375

Non-current liabilities
6% Debentures
Current liabilities
Trade payables
Other payables
Bank overdraft
Total equity and liabilities

© UCLES 2020

Accumulated
depreciation
106 000

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

(1)OF

18 000

(1)

8 250
2 200
6 450
16 900
397 275

}
}(1)
(1)

0452/23

October/November 2020
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Cambridge IGCSE – Mark Scheme
PUBLISHED

Question

Answer

Marks

5(a)

8
Effect on profit
for the year

Effect on
working capital

Overstated

No effect

No adjustment had been made for insurance prepaid

Understated (1)

Understated (1)

An irrecoverable debt had not been written off

Overstated (1)

Overstated (1)

No effect (1)

Understated (1)

Overstated (1)

Overstated (1)

Repairs to office equipment had been entered in the office equipment account

No record had been made of additional capital introduced in cash
Closing inventory had been overstated

5(b)(i)

Aziz has more current assets/more inventory/more trade receivables/more cash (1)
Aziz has less current liabilities/trade payables/bank overdraft (1)

2

5(b)(ii)

Aziz has less inventory (1)
Aziz has higher current ratio (1)

2

5(b)(iii)

Aziz has higher profit for the year (1)
Aziz has lower capital employed (1)
Aziz has lower non-current liabilities (1)

2

Nazim has lower sales (1)
Nazim has higher inventory (1)

1

5(c)

Max 1

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0452/23

Cambridge IGCSE – Mark Scheme
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Question
5(d)

Answer

Marks
5

Advantages
Cash received earlier (1)
Reduces possibility of irrecoverable debts (1)
May reduce bank overdraft interest charges (1)
Accept other valid responses
Max (2)
Disadvantages
May lose customers/may reduce sales (1)
Will increase administration costs/may reduce profits (1)
May damage relationship with customers (1)
Max (2)
Recommendation (1)

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