Accounting (0452) · Oct/Nov 2023 · Mark scheme 21
Cambridge Accounting (0452) mark scheme for paper 21, Oct/Nov 2023 — 0452/21/O/N/23, file 0452_w23_ms_21.pdf.
Text of this paper
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Cambridge IGCSE™
ACCOUNTING
0452/21
Paper 2
October/November 2023
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 2023 series for most
Cambridge IGCSE, Cambridge International A and AS Level components, and some Cambridge O Level
components.
This document consists of 15 printed pages.
© UCLES 2023
[Turn over
0452/21
Cambridge IGCSE – Mark Scheme
PUBLISHED
Generic Marking Principles
October/November 2023
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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.
© UCLES 2023
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Cambridge IGCSE – Mark Scheme
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Social Science-Specific Marking Principles
(for point-based marking)
0452/21
1
October/November 2023
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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).
© UCLES 2023
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0452/21
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3
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.
© UCLES 2023
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Cambridge IGCSE – Mark Scheme
PUBLISHED
0452/21
Question
Answer
Marks
1(a)(i)
Shakir
Journal
3
Date
2023
1 Sep
Debit
$
Details
Motor vehicle
Inventory
Bank
9 500
1 240
1 682
Latif
Harrison
Capital
1(a)(ii)
12 422
}
} (1)
}
200
237
11 985
12 422
Full details are available about the assets, liabilities, revenues and expenses of the business (1)
The preparation of financial statements is relatively straightforward (1)
The calculation of the profit or loss for the year is likely to be reliable and accurate (1)
More informed decision-making is possible (1)
A greater degree of control over business activities can be exercised (1)
The possibility of fraud is reduced (1)
Comparisons with the results of previous years and with other businesses are possible (1)
Detailed records are available for reference purposes (1)
Information required by a bank or other lender is readily available (1)
Max (2)
© UCLES 2023
Credit
$
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}
} (1)
(1)}
}}}}
2
October/November 2023
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Cambridge IGCSE – Mark Scheme
PUBLISHED
0452/21
Question
Answer
1(b)
Shakir
Cash Book
Date
Details
Disc
Alld
$
2023
Sep 1
4
17
28
Balance
Bank
Sales
Sydney
b/d
(1)
(1)
Bank
Date
$
$
2023
1 682
350
}
} (1)
290
100
–
Oct 1 Balances
Cash
b/d
350
189
*(1) OF
Marks
11
Details
Sep 2 Rent
4 Cash
7 Latif
Wages
12 Harrison
29 Balances
30
Disc
Rec
$
(1)
(1)
(1)
(1)
(1)
Bank
$
$
420
350
194
6
161
5
c/d
2 072
1 013
Cash
11
(1)OF
189
95
1013
350
2 072
*For both balances
+(1) dates
1(c)
© UCLES 2023
Cash book balance
Sales by credit transfer
Less bank charges
1 013 (1)OF
175 (1)
(35) (1)
Corrected bank balance
1 153 (1)OF
OR
Balance per bank statement
Outstanding lodgement
Bank error
Corrected bank balance
Page 7 of 15
763 (1)
100 (1)
290 (1)
1 153 (1)OF
4
October/November 2023
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Cambridge IGCSE – Mark Scheme
PUBLISHED
0452/21
Question
Answer
2(a)
Hilary
Manufacturing Account for the year ended 31 July 2023
$
Cost of material consumed
Opening inventory of raw material
Purchases of raw material
Less Purchases returns
Marks
Direct wages
Prime cost
Factory overheads
Wages of factory supervisor
Heat, light and power (11 600 4/5)
Rates and insurance (8 250 – [5/12 4 440](1)) 3/5(1)
Factory repairs and renewals (5 125 + 644)
Depreciation of factory equipment
(124 000 – 35 500) 25%
107 800
116 900
9 980
106 920 (1)
91 665 (1)
198 585 (1)OF
29 000
9 280 (1)
3 840
5 769 (1)
22 125 (1)
70 014
268 599
21 357
289 956
22 446
267 510
Add opening work-in-progress
Less closing work-in-progress
Cost of production
$
Revenue
Cost of sales
Opening inventory
Cost of production
Purchases of finished goods
Less Purchases returns
$
(1)OF
*
* (1) both W in P
(1)OF
$
457 250
24 235 *
267 510 (1)OF
23 500 }
4 700 }(1)
Less Closing inventory
Gross profit
© UCLES 2023
$
9 100
110 000
2 200
Less Closing inventory of raw material
2(b)
11
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18 800
310 545
25 110 *(1)Both
285 435
171 815 (1)OF
4
Cambridge IGCSE – Mark Scheme
PUBLISHED
0452/21
Question
2(c)
October/November 2023
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Answer
Advantages of stopping buying in finished goods
Not dependent on supplier for ensuring continuity of supplies of goods/more control if produce own goods (1)
May have more control over quality of goods produced in own factory (1)
Would have more control over cost (1)
May be more profitable/cheaper to produce and sell own goods (1)
Not all manufacturing costs will increase in proportion to any increase in production (1)
Currently a high proportion of purchases of finished goods are returned (1)
Accept other valid points
Max (3)
Disadvantages of stopping buying in finished goods
Increase in factory running costs/cost of production (1)
May need to purchase additional machinery (1)
May not be able to increase factory capacity by enough to meet demand (1)
May not be able to meet increase in demand/if demand falls may have surplus capacity and increased inventory (1)
Quality of goods purchased may be inferior (1)
Accept other valid points
Max (3)
Recommendation (1)
© UCLES 2023
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Marks
5
Question
Answer
3(a)
Logan
Inventory account
Date
2022
Oct 1
Details
Balance b/d
(1)
8 400
8 400
2023
Sep 30
Income statement
(1)
8 675
3(b)
$
Date
2023
Sep 30
Marks
3
Details
Income statement
$
(1)
8 400
8 400
Logan
Provision for doubtful debts account
Date
2023
Sep 30
Details
Balance
c/d
$
(1)
335
___
335
Date
2022
Oct 1
2023
Sep 30
2023
Oct 1
3(c)
4
Details
Balance
b/d
$
(1)
300
Income statement
(1)OF
35
335
Balance
(1)OF
335
b/d
Logan
Rent payable account
Date
2022
Oct 1
Dec 1
2023
Jun 1
Details
Balance
Bank
Oct 1
Balance
b/d
Bank
b/d
$
(1)
(1)
820
2 460
(1)
2 490
5 770
830
(1)OF
Date
2023
Sep 30
+(1) Dates
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0452/21
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6
Details
Income statement
Balance c/d
$
(1)
4 940
830
5 770
Cambridge IGCSE – Mark Scheme
PUBLISHED
0452/21
Question
October/November 2023
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Answer
Marks
3(d)(i)
Inventory is valued at the lower of cost and net realisable value (1)
1
3(d)(ii)
The rent relating to the current year is transferred to the income statement (1)
The total rent paid is adjusted for prepayments before transfer to the income statement (1)
Max (1)
1
Advantages of buying premises using loan
Would not have to pay rent (1)
Will not be subject to future rent increases (1)
May be cheaper in the long run (1)
Property will be owned so can adapt to requirements/rent out etc. (1)
Have several years to repay the loan (1)
No further obligation after loan repaid (1)
Over a period of time property may increase in value (1)
Accept other valid points
Max (3)
5
3(e)
Disadvantages of buying premises using loan
Have to pay interest on loan (1)
Loan must be repaid when due (1)
Loan would probably be secured on the property/assets may be at risk is loan not repaid (1)
Will be responsible for maintenance of property (1)
Percentage of interest on loan may increase (1)
Accept other valid points
Max (3)
Recommendation (1)
© UCLES 2023
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PUBLISHED
0452/21
Question
Answer
Marks
4(a)
Asia
Journal
11
Error
number
1
2
3
4
5
Details
Jacques
Purchases
112
Suspense
Wages
300
Suspense
Savanah
Credit
$
112
(1)
(1)
300
(1)
(1)
75
(1)
(1)
594
(1)
(1)
(1)
54
(1)
(1)
75
Sales returns
Purchases returns
Suspense
396
198
Sophie
Suspense
54
4(b)
Asia
Suspense account
Date
2023
Aug 31
© UCLES 2023
Debit
$
Details
Difference on trial balance
Wages
Savanah
$
(1)
(1)
(1)
273
300
75
648
Date
2023
Aug 31
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5
Details
Sales returns
Purchases returns
Sophie
$
}
}(1)
(1)
396
198
54
648
Question
4(c)
October/November 2023
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Cambridge IGCSE – Mark Scheme
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0452/21
Answer
Error
number
Error
Marks
Gross profit
+
1
A credit purchase, $112, from Jacques,
had been debited twice to the purchases account.
2
The wages account had been overcast by $300.
–
Profit for the
year
+
✓
4
No
effect
–
✓
(1)
✓
3
4
5
© UCLES 2023
Cash received, $75 from Savanah, a trade
receivable, had only been entered in the cash
book.
The total of the sales returns journal for August
2023, $198, had been credited to both the sales
returns account and the purchases returns
account.
✓
✓
✓
(1)
✓
A payment to Sophie, $93, had been
recorded as $39 in Sophie’s account.
Page 13 of 15
(1)
(1)
Question
5(a)
Answer
6
$
125 800 (1)
109 481
16 319 (1)OF
B Limited
Statement of Changes in Equity for the year ended 30 June 2023
5
Ordinary
share capital
$
General
Reserve
$
Retained
earnings
$
Total
10 000
2 000
13 490
25 490
(1) row
Profit for the year
16 319
16 319
(1)OF row
Dividend paid
(4 800)
(4 800)
(1) row
Transfer to general reserve
1 000
(1 000)
(1) row
10 000
3 000
24 009
37 009
Details
On 1 July 2022
On 30 June 2023
© UCLES 2023
Marks
B Limited
Income Statement for the year ended 30 June 2023
$
Revenue (135 040 – 9 240)
Less Expenses
Wages and salaries
72 000
Motor expenses
9 820
7 320 (1)
Insurance (1/2 7 220)+(1/2 7 440)
General expenses (12 780 + 186)
12 966 (1)
6 375 (1)
Depreciation of motor vehicles (42 000 – 16 500) 25%
1 000 (1)
Depreciation of equipment (5 000 20%)
Profit for the year
5(b)
5(c)(i)
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The company provides a service rather than a product (1)
The clients provide their own cleaning materials (1)
Max (2)
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$
(1)OF row
2
Cambridge IGCSE – Mark Scheme
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0452/21
Question
5(c)(ii)
Answer
Marks
There were no irrecoverable debts during the year/there are no irrecoverable trade receivables (1)
There are very few trade receivables/trade receivables represent less than a week’s revenue (1)
Some customers are paying in advance (1)
Max (2)
5(d)
Issuing debentures
Issuing ordinary shares
Annual interest is payable (1)
A dividend may be paid (1)
Are a liability\are a loan\must be repaid (1)
Do not have to be repaid (1)
If company is wound up they are repaid before
ordinary shareholders (1)
If company is wound up they are repaid after
debenture holders (1)
Debenture holders are not members of the
company/cannot vote (1)
Shares will carry same voting rights/rank equally
as existing shares (1)
Issue of debentures will not dilute the control of
the existing ordinary shareholders (1)
May dilute control of existing shareholders (1) (if
some purchase a greater proportion of shares)
Interest is a fixed amount (1) (and so can be
budgeted for)
Dividend is not fixed (and may depend on profit
levels) (1)
Interest must be paid irrespective of profits (1)
Directors they can decide on amount of dividend
they will pay (1)
May be secured on the non-current assets of the
company (1)
May take longer to raise the funds (1)
Issue may not raise adequate funds (1)
Issue may not raise adequate funds (1)
Max (3)
Max (3)
Recommendation (1)
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