Accounting (0452) · Oct/Nov 2021 · Mark scheme 23

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Cambridge IGCSE™
ACCOUNTING

0452/23

Paper 2

October/November 2021

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 2021 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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0452/23

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Generic Marking Principles

October/November 2021
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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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1

Cambridge IGCSE – Mark Scheme
PUBLISHED
Social Science-Specific Marking Principles
(for point-based marking)

October/November 2021
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Components using point-based marking:
• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer
shows confusion.
From this it follows that we:
a
b
c
d
e
f
g

2

DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
DO credit alternative answers/examples which are not written in the mark scheme if they are correct
DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)

Presentation of mark scheme:
• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

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Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark
for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

4

Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners
who marked that paper.

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Question

Answer

1(a)
Payments to trade payables
Less Opening trade payables
Add Closing trade payables
Purchases

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Marks
3

$
257 700
32 600 (1)
225 100
29 600 (1)
254 700 (1)

Accept alternative forms of presentation
1(b)

Shiv
Income Statement for the year ended 31 August 2021
$
Revenue
Cost of sales
Opening inventory
Purchases
Closing inventory
Gross profit
Expenses (34 000 + 400 (1) – 900 (1))
Provision for doubtful debts
Depreciation of equipment
(16 000 – 12 800)

$
320 000 (1)

23 500
254 700 (1) OF
278 200
22 200 (2) CF/(1) OF
256 000 (1) OF
64 000 (1)
33 500
777 (1)
3 200 (1)
37 477
26 523 (1) OF

Profit for the year
1(c)

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11

Business entity (1)

1

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Question
1(d)

Answer

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Marks
5

Inventory should be valued at the lower of cost and net realisable value (1)
Cost of sales would be understated (1)
The profit will be overstated/profit will not be shown at a realistic level (1)
The current assets/inventory will be overstated (1)
Prudence principle is not being observed (1)
Consistency principle is not being observed (1)
Comparison with previous years/competitors would not be accurate (1)
Accounting records must present a realistic view of the business (1)
Accept other valid points
Max (5)

Question

Answer

2(a)

Capital
expenditure
Building new extension to warehouse

Revenue
expenditure



Rates on new extension

 (1)

Carriage costs for roof tiles for new extension

 (1)

Legal costs for new extension

 (1)

Repairs to office roof

© UCLES 2021

Marks

 (1)

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4

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Question
2(b)

Answer
Rent warehouse

Marks
5

Purchase warehouse
Has to raise an additional $200 000
in order to purchase

(1)

Little or no maintenance/repair cost OR

Will be maintenance/repair
costs/depreciation

(1)

The non-current asset is not owned OR

Will own an additional non-current
asset/gets fixed asset/owns a
warehouse

(1)

Loan must be repaid

(1)

Will have to pay loan interest

(1)

Warehouse may not be required if
trade decreases in future

(1)

No initial outlay

OR

Premises may not be available on a long
term basis

(1)

Rent may increase after 6 months

(1)

Can vacate the premises after 6 months
(is flexible)
Max (2)

Max (2)
Accept other valid points

Recommendation (1)

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Question

Answer

2(c)

Marks

Jas
Fixtures account
Date
2020
Jan 1
2021
Jan 1

$

Details
Balance b/d
Bank

(1)

115 000
30 000
145 000

Balance b/d

(1)

125 000

8

Date
2020
Jun 30
31

Details

$

Fixtures disposal
Balance c/d

(1)

20 000
125 000
145 000

Provision for depreciation of fixtures account
Date
2020
Jun 30
Dec 31

$

Details
Fixtures disposal
Balance c/d

(1)

11 250
96 750

Date
2020
Jan 1
Dec 31

108 000
2021
Jan 1

© UCLES 2021

Details

$

Balance b/d
Income statement
21 375 (1)
2 250 (1)
6 750 (1)

77 625

Balance b/d

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(1)OF

30 375
108 000
96 750

0452/23
Question

Answer

2(d)

Marks

Jas
Fixtures disposal account
Date
2020
Jun 30

Details
Fixtures

$
20 000

Date
2020
Jun 30
Dec 31

20 000

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3

$

Details
Prov. for Dep.
Bank
Income
statement

Page 10 of 17

(1)OF
(1)

11 250
6 000

(1)OF

2 750
20 000

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PUBLISHED

Question

Answer

Marks

3(a)

Anil
Journal

12

Error
1

2

3
4

© UCLES 2021

Details
Suspense
Sales

Debit
$
7100

7100

Sales returns
Purchases
Suspense
OR
Sales returns
Suspense
Purchases
Suspense

520
520

Bank charges
Suspense

320

Bank
Suspense
Insurance
OR
Bank
Suspense
Suspense
Insurance

Credit
$

1040

(1)
(1)
(1)
(1)
(2)

520

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

320

(1)
(1)

520
520
520

1200
600
600

(2)
(1)
(1)

1200

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

1200
600
600

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Question

Answer

3(b)

Marks

Anil
Suspense account
Date

Details
Sales

$
(1)

6

Date

7100

Difference on trial
balance
Sales returns
Purchases
Bank charges
Bank

7100

$

Details

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

5140
520
520
320
600
7100

+(1) for matching totals OR for an own figure balance brought down
Alternative presentation if used alternative journal entry for error 4 in 3(a)
Date

$

Details
Sales
Insurance

(1)
(1)

7100
600

7700
3(c)

Difference on trial
balance
Sales returns
Purchases
Bank charges
Bank

Commission, compensating, complete reversal, omission, original entry, principle
Any 2 × 1 mark

© UCLES 2021

$

Details

Date

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

5140
520
520
320
1200
7700
2

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Question

Answer

4(a)

Marks
10

Karishma
Insurance account
Date
2020
Oct 1
2021
Feb 7
Aug 13
2021
Oct 1

$

Details
Balance b/d
Bank
Bank
Balance b/d

(1)

1700

}
}(1)

3400
3500
8600

(1)

2100

Date
2021
Feb 28
Sep 30

$

Details
Bank
(1)
Income statement
(1)OF
Balance c/d

300
6200
2100
8600

Electricity account
Date
2020
Oct 14
2021
Jan 24
May 26
Sep 30

$

Details
Bank
Bank
Bank
Balance c/d

}
}
}(1)
}

1800
1800
1800
2000
7400

Date
2020
Oct 1
2021
Sep 30

2021
Oct 1

Balance b/d
Income
statement

Balance b/d

Dates (1)

© UCLES 2021

$

Details

Page 13 of 17

(1)

1800

(1)OF

5600

7400

(1)

2000

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Question
4(b)

October/November 2021
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Answer

5

Advantages
Fixed monthly payment (1)
Payments would be made automatically (1)
More difficult to fall behind with payments (1)
Cheaper than existing contract (1)
Helps with planning expenditure (1)
Accept other valid points
Max (2)
Disadvantages
Would lose control of her payment schedule/ would not be able to pick and choose when to make the payments (1)
Bank charges might increase (1)
Tied to two-year contract (1)
Need to consider reliability of new supplier (1)
Possible price increase after two years (1)
Accept other valid points
Max (2)
Recommendation (1)

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Marks

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Question

Answer

4(c)

Marks

Karishma
Rent receivable account
Date
2021
Sep 30

Details
Income
statement (1)OF
Balance c/d

$
1965
510

2475

Date
2020
Oct 1
2021
Mar 2
Aug 8
2021
Oct 1

4

$

Details
Bank
Bank
Bank
Balance b/d

}
}
}(1)
}
(1)

800
825
850
2475
510

Dates (1)
4(d)

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Current liabilities

1

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Question

Answer

5(a)

Marks

VL Sports Club
Subscriptions account
Date
2020
Jan 1
Dec 31

2021
Jan 1

$

Details
Balance b/d
Income and
expenditure
Balance c/d

(1)

700

(1)OF

19 080
900
20 680

(1)

300

Balance b/d

Date
2020
Jan 1
Dec 31

2021
Jan 1

8

Details

$

Balance b/d
(1)
Bank
(1)
Irrecoverable debts(1)
Balance c/d

1 100
19 200
80
300
20 680

Balance b/d

(1)

900

Dates (1)
5(b)

VL Sports Club
Income and Expenditure Account for the year ended 31 December 2020
$
Income
Subscriptions
Competition receipts
cost of prizes
Dinner dance ticket sales
costs
Expenditure
General expenses
(11 500 – 400(1) + 500(1))
Irrecoverable debt
Depreciation of equipment
(23 000 + 12 000 – 30 000)
Surplus for the year

© UCLES 2021

$
19 080 (1)OF

7 300
4 100
6 500
6 200

3 200 (1)
300 (1)
22 580

11 600
80 (1)
5 000 (1)

16 680
5 900 (2)CF/(1)OF

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Question
5(c)

Answer
Advantages
Cash received earlier (1)
Reduced risk of irrecoverable subscriptions/reduced risk of subscriptions in arrears (1)
Reduction in administration costs (1)
May encourage new members to join (1)
Accept other valid points
Max (1)
Disadvantages
Less cash received (1)
Possible reduction in membership (1)
Difficulty of monitoring varying subscription rates (1)
Reduces the surplus for the year (1)
Accept other valid points
Max (1)
Recommendation (1)

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Marks
3