IGCSE Accounting Mark Schemes Table of Contents (2) New Syllabus June 2010 Paper 1(1) Page 137 June 2010 Paper 1 (2) Page 144 June

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1 IGCSE Accounting Mark Schemes Table of Contents (1) Old Syllabus June 2003 Paper 1 Page 3 June 2003 Paper 2 Page 5 June 2003 Paper 3 Page 11 June 2004 Paper 1 Page 25 June 2004 Paper 2 Page 27 June 2004 Paper3 Page 31 June 2005 Paper 1 Page 43 June 2005 Paper 2 Page 45 June 2005 Paper 3 Page 54 June 2006 Paper 1 Page 63 June 2006 Paper 2 Page 65 June 2006 Paper 3 Page 71 June 2007 Paper 1 Page 80 June 2007 Paper 2 Page 82 June 2007 Paper 3 Page 88 June 2008 Paper 1 Page 98 June 2008 Paper 2 Page 100 June 2008 Paper 3 Page 107 June 2009 Paper 1 Page 116 June 2009 Paper 2 Page 118 June 2009 Paper 3 Page 127

2 IGCSE Accounting Mark Schemes Table of Contents (2) New Syllabus June 2010 Paper 1(1) Page 137 June 2010 Paper 1 (2) Page 144 June 2010 Paper 1(3) Page 153 June 2010 Paper 2(1) Page 162 June 2010 Paper 2(2) Page 170 June 2010 Paper 2(3) Page 177 June 2011 Paper 1(1) Page 184 June 2011 Paper 1(2) Page 192 June 2011 Paper 1(3) Page 200 June 2011 Paper 2(1) Page 208 June 2011 Paper2(2) Page 218 June 2011 Paper 2(3) Page 227 June 2012 Paper 1(1) Page 236 June 2012 Paper 1(2) Page 245 June 2012 Paper 1(3) Page 252 June 2012 Paper 2(1) Page 261 June 2012 Paper 2(2) Page 269 June 2012 Paper 2(3) Page 278

3 June 2003 INTERNATIONAL GCSE MARK SCHEME MAXIMUM MARK: 40 SYLLABUS/COMPONENT: 0452/01 ACCOUNTING Paper 1 (Multiple Choice)

4 Page 1 Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE Question Question Key Number Number Key 1 D 21 A 2 D 22 C 3 A 23 C 4 B 24 C 5 A 25 D 6 A 26 C 7 B 27 C 8 C 28 B 9 D 29 B 10 C 30 B 11 A 31 B 12 B 32 D 13 C 33 B 14 A 34 B 15 A 35 D 16 B 36 A 17 A 37 B 18 B 38 A 19 B 39 B 20 D 40 B TOTAL 40 University of Cambridge Local Syndicate 2003

5 June 2003 INTERNATIONAL GCSE MARK SCHEME MAXIMUM MARK: 90 SYLLABUS/COMPONENT: 0452/02 ACCOUNTING Paper 2 (Structured Questions)

6 Page 1 Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE Question Number 1 (a) (b) Mark Scheme Details Trade creditors, accrued expense(s), bank overdraft Or acceptable alternative N.P. is undervalued/understated Part Mark 1 1 (c) One from: Correction of errors Opening entries Purchase/sale of fixed asset Other transfers/adjustments 1 (d) (e) (f) (g) (h) (i) (j) (k) 1. P/L Appropriation (1) 2. P/L (1) 3. P/L Appropriation (1) 1. Revenue 2. Capital 3. Capital Asset (1) or expense (1) Cost 1/1/ Depn. 31/12/01 (30%) 6000 (1) C/F N.B.V. 31/12/ (1) - Depn. 31/12/02 (30%) 4200 (1) O/Fs N.B.V. 31/12/ (1) Current liabilities Imprest system Error of commission Advantage of business due to its: - reputation - well-established clientele Or other acceptable - location reason for paying - good staff relations/reliable workforce premium price - goodwill University of Cambridge Local Syndicate 2003

7 Page 2 Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE Question Number 2 (a) Mark Scheme Details Danbi Wyske Trial Balance as at 30 April 2003 Part Mark (b) Dr Cr Stock 1 May (1) Sales (1) Purchases (1) Debtors (1) Creditors 9000 (1) Electricity 3000 (1) General expenses 7000 (1) Cash at bank 5000 (1) Drawings 8000 (1) Equipment at cost (1) Provision for depreciation of equipment (1) Rent and insurance paid 6000 (1) Capital (2) -1 O/F Suspense Account (a) An own figure mark for the Capital figure should only be awarded if a credit balance is shown. University of Cambridge Local Syndicate 2003

8 Page 3 Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE Question Number 3 (a) (b) (c) (d) Mark Scheme Details (i) (1) (ii) Purchase returns (accept returns ) (1) (iii) Closing stock (accept Stock at 31 March 2003 ) (1) (iv) 5000 (1) (v) received (1) (vi) (1) x 100 (1) = 15% (1) C/F Capital employed: x 100 (1) = 12% (2) O/F (1) N.P. as percentage of capital employed: - measures overall profitability of the business in relation to resources used - indicates adequacy of return on owner s investment - enables comparisons to be made, e.g. against other investments, earlier years, similar firms - assists decision-making, e.g. in production, cost of borrowing or other acceptable points For each reason given: 2 marks Part Mark University of Cambridge Local Syndicate 2003

9 Page 4 Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (a) Karl Cash Book Date Discount Cash Bank Date Discount Cash Bank Balances b/d Cash 300 (1) April 4 M Fynne 10 (1) 190 (1) April 8 S Ghalli 15 (1) 600 (1) 6 Bank 300 (1) 10 Wages 250 (1) 14 J Bildt 40 (1) 1460 (1) 17 Cash 400 (1) 17 Bank 400 (1) 21 T Daktyl 30 (1) 800 (1) 28 Sales (cash) 800 (1) 25 Wages 350 (1) 30 Cash 500 (1) 30 Bank 500 (1) Balances c/d 50 (1) (1) May 1 Balances b/d 600 (1) 2550 (1) C/Fs (b) Nominal Ledger Discount Allowed Account 2003 April 30 Total for April (or similar acceptable wording) (1) 50 (1) Discount Received Account 2003 April 30 Total for April (or similar acceptable wording) (1) 45 (1) University of Cambridge Local Syndicate 2003

10 Page 5 Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE Question Number 5 (a) Mark Scheme Details Carrie Okie Balance Sheet as at 1 April 2002 Fixed assets (1) Current assets (1) Less Current liabilities (1) Capital (1) (Horizontal format also acceptable) Part Mark 4 (b) (c) Balance Sheet as at 31 March 2003 Fixed assets (1) Less Depreciation (20%) (1) (1) Current assets (1) Less Current liabilities (1) Capital 1/4/ (1) O/F Add Net profit (2) 1 O/F Less Drawings (1) (1) O/F (Horizontal layout also acceptable) Fixed assets (1) Capital 1/4/ (1) O/F Less Depreciation (1) (1) Add Net profit (2) 1 O/F Current assets (1) Less Drawings (1) (1) Current liabilities (1) (10) Prudence is observed by: - not overstating profits, as depreciation is charged in P/L a/c 1 mark per acceptable - allowing for foreseeable loss point x 2 asset values shown in B/S) University of Cambridge Local Syndicate 2003

11 June 2003 INTERNATIONAL GCSE MARK SCHEME MAXIMUM MARK: 100 SYLLABUS/COMPONENT: 0452/03 ACCOUNTING Paper 3 (Structured Questions Extended)

12 Page 1 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (a) Work can be shared between several people. Easier for reference as same type of accounts are kept together. Easier to introduce checking procedures. Or other suitable point [2] (b) The names of any two suitable accounts either real or nominal accounts which would appear in the general ledger. (1) each [2] (c) Purchases Ledger Control account Apl 30 Purchases Apl 1 Balances b/d 1960 returns 135 (1) 30 Purchases 4190 (1) Bank 3830 (1) Discount received 180 (1) Balances c/d May 1 Balances b/d 2005 (1) O/F Dates (1) [6] Sales Ledger Control account Apl 1 Purchases 1750 Apl 1 Balances b/d Sales 5150 (1) 30 Sales returns 270 (1) Bank (refund) 100 (1) Bank 4990 (1) Discount allowed 110 (1) Bad debts 74 (1) Balances c/d May 1 Balances b/d 1456 (1) O/F Dates (1) [8] [Total 18] University of Cambridge Local Syndicate 2003

13 Page 2 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (c) Alternative presentation Purchases Ledger Control account Dr Cr Balance 2003 Apl 1 Balances Cr 30 Purchases 4190 (1) 6150 Cr Purchases returns 135 (1) 6015 Cr Bank 3830 (1) 2185 Cr Discount received 180 (1) 2005 Cr (1) O/F Dates (1) [6] Sales Ledger Control account Dr Cr Balance 2003 Apl 1 Balances Dr 30 Sales 5150 (1) 6800 Dr Sales returns 270 (1) 6530 Dr Bank 4990 (1) 1540 Dr Discount allowed 110 (1) 1430 Dr Bank (refund) 100 (1) 1530 Dr Bad debts 74 (1) 1456 Dr (1) O/F Dates (1) [8] [Total 18] University of Cambridge Local Syndicate 2003

14 Page 3 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (a) Amir Sadiq Trading and Profit and Loss Account for the year ended 31 March 2003 Sales (1) Less Sales returns 1200 (1) Less Cost of Sales - Opening stock 9900 (1) Purchases (1) Less goods for own use 300 (1) Carriage inwards 700 (1) Less Closing stock (1) (1) Gross Profit (1) O/F Discount received 250 (1) Reduction in provision for doubtful debts 50 (1) Motor vehicle expenses 1240 (1) General expenses 2030 Wages (1) Insurance (1) Depreciation - Motor vehicles 20% x (1) Fixtures and equipment (1) Net Profit 3500 (1) O/F Horizontal presentation acceptable. [17] University of Cambridge Local Syndicate 2003

15 Page 4 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (b) Cost of goods sold = O/F = 6.83 times (1) O/F Average stock (c) (i) Accounts are prepared on the basis that the business will continue to operate for an indefinite period of time. [2] [2] (ii) Lower of cost and net realisable value. [1] [Total 22] University of Cambridge Local Syndicate 2003

16 Page 5 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (a) Mary Bank Reconciliation Statement as at 31 January 2003 Balance as per cash book (1780) (1) Plus cheque not yet presented David 270 (1) (1510) Less amount not yet credited 800 (1) Balance as per bank statement (2310) (1) [4] (b) (i) Current Assets Stock 6600 Debtors 5400 Insurance prepaid 120 Cash Current Liabilities Creditors 4620 Rent received in advance 160 Bank overdraft 1780 General expenses accrued Working capital 5100 (1) O/F Any 2 correct items (1) [5] (ii) 1. Current ratio O/F : 7260 O/F (1) = 1.70: 1 (1) O/F [2] 2. Quick ratio (12360 O/F ) : 1260 O/F (1) = 0.79: 1 (1) O/F [2] University of Cambridge Local Syndicate 2003

17 Page 6 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (c) (i) May have problems paying debts as they fall due May not be able to take advantage of cash discounts Cannot make the most of opportunities as they occur Difficulties in obtaining further supplies Or other suitable points Any two suitable points (2) each [4] (ii) Injection of more capital Long-term loans Sale of surplus fixed assets Reduce drawings Or other suitable points Any two suitable points (2) each [4] [Total 21] University of Cambridge Local Syndicate 2003

18 Page 7 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (a) April 1 Sales Suzi sold goods, 10100, on credit to John Karunda. (2) April 30 Bank John paid 1000 to Suzi by cheque. (2) May 6 Bank (dishonoured cheque) John's cheque was dishonoured by the bank. The amount was debited to John's account to show he still owes this amount. (2) December 1 Cash John paid 850 in cash to Suzi. (2) January 3 Bad debts Suzi wrote off the amount owed by John as a bad debt. (2) [10] (b) Provision for doubtful debts account Jan 31 Balance c/d 800 (2) Feb 1 Balance b/d 900 (1) Profit and Loss 100 (1) O/F Feb 1 Balance b/d 800 (1) O/F Dates (1) [6] University of Cambridge Local Syndicate 2003

19 Page 8 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE Alternative presentation Provision for doubtful debts account 2002 Feb 1 Balance Dr Cr 900 Balance 900 Cr (1) 2003 Jan 31 Profit and Loss 100 (1) O/F 800 Cr (3) C/F (1) O/F Dates (1) [6] (c) Obtain references from new credit customers Fix a credit limit for each customer Issue invoices and statements promptly Follow up overdue accounts promptly Supply goods on a cash basis only Refuse further supplies until outstanding account is paid Or other suitable points Any 4 suitable points (1) each [4] [Total 20] University of Cambridge Local Syndicate 2003

20 Page 9 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (a) Cobbydale Sports Club Income and Expenditure Account for the year ended 30 April 2003 Income Subscriptions ( ) 7100 (1) Open day - Ticket sales 3250 Less expenses (2) 8400 Expenditure General expenses 1430 (1) Insurance 670 Rent of premises ( ) 2640 (1) Depreciation - Equipment 550 (1) 5290 Surplus for the year 3110 (1) O/F Horizontal presentation acceptable. [7] (b) (i) Either Loan from member This is not regarded as income for the year as it represents a longterm liability. Or Purchase of equipment This is not regarded as revenue expenditure as it is the purchase of a fixed asset. Or Closing bank balance This is neither income nor expenditure for the year as it represents the amount of money in the bank on 30 April. [2] (ii) Either Subscriptions owing Or Rent owing In each case the item represents an amount relating to the current year which has not actually been received/paid. The matching principle must be applied so that the amount relates to the current period of time. Or Depreciation of equipment This is a non-monetary expense but must be taken into account in calculating the surplus/deficit for the period so that the matching principle is applied. Or Surplus for the year This is the difference between the income and expenditure and is the profit for the year and does not represent money paid/received. [2] University of Cambridge Local Syndicate 2003

21 Page 10 Prepared by D. El-Hoss Mark Scheme Syllabus Paper IGCSE EXAMINATIONS JUNE (c) Cobbydale Sports Club Balance Sheet as at 30 April 2003 Fixed Assets Cost Depreciation to Book value date Equipment 3500 (1) 550 (1) O/F 2950 (1) O/F Current Assets Subscriptions due 300 (1) Bank 1080 (1) 1380 Current Liabilities Accrual Rent 220 (1) Accumulated Fund Surplus for the year 3110 (1) O/F Long-Term Liabilities Loan* 1000 (1) 4110 * Alternatively, allow as current liability as question does not specify date of repayment. [8] Horizontal presentation acceptable. [Total 19] University of Cambridge Local Syndicate 2003

22 Grade thresholds taken for Syllabus 0452 (Accounting) in the June 2003 examination. maximum mark available minimum mark required for grade: A C E F Component Component Component The threshold (minimum mark) for B is set halfway between those for Grades A and C. The threshold (minimum mark) for D is set halfway between those for Grades C and E. The threshold (minimum mark) for G is set as many marks below the F threshold as the E threshold is above it. Grade A* does not exist at the level of an individual component.

23 UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the June 2004 question papers 0452 ACCOUNTING 0452/01 Paper 1 (Multiple Choice), maximum mark /02 Paper 2 (Structured Questions), maximum mark /03 Paper 3 (Structured Questions Extended), maximum mark 100 These mark schemes are published as an aid to teachers and students, to indicate the requirements of the examination. They show the basis on which Examiners were initially instructed to award marks. They do not indicate the details of the discussions that took place at an Examiners meeting before marking began. Any substantial changes to the mark scheme that arose from these discussions will be recorded in the published Report on the Examination. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the Report on the Examination. CIE will not enter into discussion or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the June 2004 question papers for most IGCSE and GCE Advanced Level syllabuses.

24 Grade thresholds taken for Syllabus 0452 (Accounting) in the June 2004 examination. maximum mark available minimum mark required for grade: A C E F Component Component Component The threshold (minimum mark) for B is set halfway between those for Grades A and C. The threshold (minimum mark) for D is set halfway between those for Grades C and E. The threshold (minimum mark) for G is set as many marks below the F threshold as the E threshold is above it. Grade A* does not exist at the level of an individual component.

25 June 2004 INTERNATIONAL GCSE MARK SCHEME MAXIMUM MARK: 40 SYLLABUS/COMPONENT: 0452/01 ACCOUNTING Paper 1 (Multiple Choice)

26 Page 1 Mark Scheme Syllabus Paper ACCOUNTING JUNE Question Number Key Question Number Key 1 B 21 A 2 B 22 B 3 B 23 B 4 A 24 D 5 C 25 B 6 B 26 A 7 A 27 B 8 B 28 C 9 C 29 A 10 A 30 A 11 B 31 A 12 A 32 A 13 B 33 C 14 B 34 A 15 B 35 A 16 D 36 D 17 A 37 A 18 B 38 C 19 B 39 D 20 B 40 D TOTAL 40 University of Cambridge International 2004

27 June 2004 INTERNATIONAL GCSE MARK SCHEME MAXIMUM MARK: 90 SYLLABUS/COMPONENT: 0452/02 ACCOUNTING Paper 2 (Structured Questions)

28 Page 1 Mark Scheme Syllabus Paper ACCOUNTING JUNE Question Number 1 (a) Machinery, equipment, premises, motor vehicles, or acceptable alternatives Part Mark 1 (b) (i) Invoice 1 (ii) Purchases Journal/Purchases Day Book/Purchases Book/Purchases 1 (iii) Sales Ledger/Sales 1 (c) (i) Cost scrap value 6000(1) = = 8000(1) 5 2 (ii) %(1) 100 = OF 40000(1) 2 (d) (e) Use of incorrect figure in first place, with double entry carried out correctly for wrong amount. (Suitable example acceptable.) Customer is in same type of trade; for bulk purchases, or acceptable alternative. Accept: To enable customer to make profit. 1 1 (f) Suspense account. 1 (g) ROCE (or N.P. as %age of capital employed); GP: sales; NP: sales. Gross profit margin, Net profit margin. (h) Paid in year Balance at 31/3/ (1) Balance at 1/4/ (1) P/L charge (1) Question Number Part Mark 2 (a) (i) (1) (ii) Assets (1) (iii) 3000 (1) (iv) Creditors (1) (v) Capital (1) (vi) (1) (vii) Drawings (1) 7 (b) (i) (ii) (1) = 2 : 1 (1) Must be shown as ratio n: (1) = 0.8 : 1 (1) (1) 12 University of Cambridge International 2004

29 Page 2 Mark Scheme Syllabus Paper ACCOUNTING JUNE Question Number 3 (a) (i) Purchases account 30 April 2004 Purchases for month (1) Total/Purchases Journal Purchases Day Book/Creditors Part Mark Purchases returns account 30 April 2004 Returns for month 6000 (1) (accept as above) Sales account 30 April 2004 Sales for month (1) (accept as above) Sales returns account 30 April 2004 Returns for month 8000 (1) (accept as above) 4 Marks are for details and correct amount in correct column. (Horizontal format also acceptable) Lose 1 mark for any wrong or missing date (ii) Nominal (General) Ledger 1 (b) 1. Carriage inwards is added to cost of Purchases/Cost of Goods sold (1) in the Trading A/c/Trading and Profit and Loss A/c (1) 2. Carriage outwards is shown as an expense (1) in the P/L A/c/Trading and Profit and Loss A/c (1) (c) (i) Error of principle 1 (ii) Effect on: 1. P/L Account Purchases/Cost of Goods sold are overstated (1), so Gross profit/net Profit/Profit is understated (1) 2. Balance Sheet Office equipment/fixed assets is understated (1) Capital/Net profit/profit is understated (1) 4 (iii) DR CR Office equipment (machinery) (1) Purchases (1) University of Cambridge International 2004

30 Page 3 Mark Scheme Syllabus Paper ACCOUNTING JUNE Question Number 4 (a) (i) Debtors Balances at 1/4/ (1) Add Sales for year (1) Part Mark Less Cash received (1) Discount allowed 5000 (1) Balances at 31/3/ (1) (ii) Creditors Balances at 1/4/ (1) Add Purchases for year (1) Less Cash paid (1) Discount received 3000 (1) Balances at 31/3/ (1) 10 (b) Trading Account for the year ended 31 March, 2004 (1) (1) Sales ( ) Less Cost of goods sold Stock 1/4/ (1) Add Purchases (1) Less Stock 31/3/ (1) (1) Needs words "Cost of Goods Sold" Gross Profit (1)OF 7 (Horizontal format also acceptable) (c) (i) (1) OF = 5 times (1) OF (2) (ii) Any one of: Profitability aspect Stock replacement Comparisons Identifying causes of fluctuations Remedial/corrective action Basic statement = 1 Suitable development = 1 Max. mark University of Cambridge International 2004

31 Page 4 Mark Scheme Syllabus Paper ACCOUNTING JUNE Question Number 5 (a) (i) Wood and Coe Profit and Loss account for the year ended 30 April 2004 Gross profit Add Discount received 1000 (1) Part Mark Less Discount allowed 2000 (1) General expenses (4500 (1) (1)) 5000 Rent (13000 (1) 3000 (1)) Depreciation (20% x 40000) 8000 (2) Wages and salaries (14500 (1) (1)) Net profit c/d (1)OF 11 (Horizontal format also acceptable) (ii) Appropriation Account for the year ended 30 April 2004 Net profit b/d Less Interest on capital: Wood (10% x 70000) 7000 (2) Coe (10% x 20000) 2000 (2) 9000 Salary Coe (1) (no mark if shown in P/L A/c) (6000) Shares of loss: Wood (2)OF Coe (2)OF (Horizontal format also acceptable) (b) Interest on drawings discourages large or early cash withdrawals (2) Thus could improve cash/working capital position (2) Also produces additional residual income/profits for division between partners (2) Any 2 from 3, maximum University of Cambridge International 2004

32 June 2004 INTERNATIONAL GCSE MARK SCHEME MAXIMUM MARK: 100 SYLLABUS/COMPONENT: 0452/03 ACCOUNTING Paper 3 (Structured Questions Extended)

33 Page 1 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE Question 1 (a) Insurance account April 1 Balance 60 (1) Mar 31 Profit & Loss 258 (1)O/F July 1 Bank 264 (1) 324 Balance c/d 66 (1) April 1 Balance b/d 66 (1) O/F + (1) Dates [6] Alternative presentation 2003 April 1 Balance July 1 Bank 2004 Mar 31 Profit & Loss Insurance account Debit 60 (1) 264 (1) Credit 258 (1) O/F Balance 60 Dr 324 Dr 66 Dr (2)C/F (1)O/F + (1) Dates [6] (b) (i) A narrative is a brief explanation of why the entry is being made. [1] (ii) A narrative is necessary because of the great variety of transactions which are recorded in the journal, so the reason for each entry can be understood in the future. [2] University of Cambridge International 2004

34 Page 2 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (c) Journal 1. Drawings Purchases Goods taken for own use (1) Debit 60 (1) Credit 60 (1) 2. Motor vehicles Motor expenses PJ Motors Purchase of new motor on credit and repairs to old motor (1) (1) 600 (1) (1) 3. Stationery Purchases Correction of error, stationery debited to purchases account (1) 20 (1) 20 (1) [10] [Total 19] Question 2 (a) Playground Company Manufacturing Account for the year ended 31 December 2003 Cost of raw material Purchases (1) Less Closing stock of raw material (1) Direct factory wages ( ) (1) Prime Cost (1) (1) Factory indirect wages Factory general expenses Factory fuel and power ( ) (1) Depreciation Factory machinery (1) (1) O/F Less Closing stock of work in progress (1) Cost of Production(1) (1) O/F Horizontal format acceptable (1) [12] University of Cambridge International 2004

35 Page 3 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (b) Playground Company Trading Account for the year ended 31 December 2003 Sales (1) Less Cost of sales Cost of Production (1) O/F Less Closing stock of finished goods (1) (1) O/F Gross Profit (1) O/F Horizontal format acceptable [5] (c) Reasons why departmental final accounts are required - More meaningful than a single set of results Identifies the profit of each department Enables trading results to be analysed Enables overall profitability to be increased Poor performance of a department can be identified and investigated Or other suitable points Any 2 points (1) each [2] [Total 19] Question 3 (a) When suspense account is required When a trial balance fails to balance [1] (b) The second error requires a correcting entry in the suspense account (1) This is required because this error affects the balancing of the trial balance (2) [3] University of Cambridge International 2004

36 Page 4 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (c) Mary Manake Balance Sheet as at 30 April 2004 Fixed Assets At cost ( ) (1) Less Depreciation ( ) (1) Current Assets Stock Debtors Prepayments 30 (1) (1)O/F Current Liabilities Creditors Bank overdraft ( ) (1) (1)O/F Working Capital (1)O/F Capital Balance at 1 May Net Profit ( ) (1) (1) (1) (2) Drawings (1)O/F Presentation (1) Horizontal presentation acceptable [14] [Total 18] Question 4 (a) Reason for providing a provision for doubtful debts Ensures that the profits are not overstated (prudence) Ensures that the debtors are shown in the Balance Sheet at a more realistic amount (prudence) Application of the matching principle as the amount of sales unlikely to be paid for are treated as an expense of that particular year Or other suitable reason. Any one reason (2) marks [2] University of Cambridge International 2004

37 Page 5 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (b) (i) Ahmed account 2003 May 1 Sales 100(1) July 31 Bank 80(1) 2004 Jan 31 Bad debts 20(1) 100 [3] (ii) Bad debts account 2004 Jan 31 Ahmed 20(1) Mar 31 Profit & Loss 20(1) 20 [2] (iii) Bad debts recovered account 2004 Mar 31 Profit & Loss* 50(1) Sept 1 Cash** 50(1) 50 *Alternatively transfer to Bad debts account, in which case the transfer from Bad debts account to Profit & Loss Account will be 30 on the debit side of Bad debts account ** Alternatively allow Zaki, as may be using method where the amount is credited to customer s account and then debited and transferred to bad debts recovered account [2] (iv) Provision for doubtful debts account 2004 Mar 31 Profit & Loss 50(2) Balance c/d 200(1) April 1 Balance b/d 250(1) April 1 Balance b/d 200(1) O/F [5] [12] University of Cambridge International 2004

38 Page 6 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (b) Alternative presentation (i) Ahmed account 2003 May 1 Sales July 31 Bank 2004 Jan 31 Bad debts Debit 100(1) Credit 80(1) 20(1) Balance 100 Dr 20 Dr 0 [3] (ii) Bad debts account 2004 Jan 31 Ahmed Mar 31 Profit & Loss Debit 20(1) Credit 20(1) Balance 20 Dr 0 [2] (iii) Bad debts recovered account Debit Credit Balance 2003 Sept 1 Cash** (1) 50 Cr Mar 31 Profit & Loss* 50(1) 0 *Alternatively transfer to Bad Debts account, in which case the transfer from Bad debts account to Profit & Loss Account will be 30 on the debit side of Bad debts account ** Alternatively allow Zaki, as may be using method where the amount is credited to customer s account and then debited and transferred to bad debts recovered account [2] (iv) 2003 April 1 Balance 2004 Mar 31 Profit & Loss Provision for doubtful debts account Debit Credit 250(1) 50(2) Balance 250 Cr 200 Cr (2) C/F (1) O/F [5] [12] University of Cambridge International 2004

39 Page 7 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (c) (i) Write Zanetti s account off as a bad debt (1) Amount now outstanding for over 1 year with little hope of recovery (1) Or other acceptable explanation (ii) No entries in accounting records are necessary (1) Account is still likely to be paid, there is no evidence yet that it will not be paid by Lim (1) Or other acceptable explanation (iii) Create a provision for doubtful debts of 280 (1) Must ensure that he does not overstate his net profit for the year (1) Or other acceptable explanation [6] [Total 20] Question 5 (a) (i) Margin when the gross profit is expressed as a percentage of the selling price [2] (ii) Mark-up when the gross profit is expressed as a percentage of the cost price [2] (b) (i) Year ended 31 January 2004 Gross profit as a percentage of sales x 100 = 28% (1) [6] Net profit as a percentage of sales x 100 = 12% (1) Collection period for debtors 6300 x 365 = 35 days (1) 66000(1) 1 (34.84 days) Payment period for creditors 5700 x 365 = 40 days (1) 52000(1) 1 University of Cambridge International 2004

40 Page 8 Prepared by D. El-Hoss Mark Scheme Syllabus Paper ACCOUNTING JUNE (b) (ii) All responses to be based on own figure calculations in (b) (i) Gross profit as a percentage of sales Purchasing goods more cheaply Reducing trade discounts to customers Increasing selling prices Net profit as a percentage of sales- Increase in gross profit percentage Reduction in expenses Differences in types of expenses (fixed/variable) Collection period for debtors Less efficient credit control Allowing longer credit to maintain sales Not allowing cash discounts to debtors Payment period for creditors Shortage of liquid funds Knock-on effect of debtors taking longer to pay Suppliers not allowing cash discounts In each case other suitable points acceptable In each case any 2 points (1) each [8] (c) Interested parties Zaraki (Proprietor) - Assessment of past performance Planning for the future Identifying areas where corrective action is required Manager (if any) Assessment of past performance Planning for the future Identifying areas where corrective action is required Bank manager Assessment of prospects of any requested loan/overdraft being repaid when due Assessment of prospects of any interest on loan/overdraft being paid when due Assessment of the security available to cover any loan/overdraft Lenders Assessment of prospects of any requested loan being repaid when due Assessment of prospects of interest on loan being paid when due Assessment of the security available to cover the loan Creditors for goods Assessment of the liquidity position Identifying how long the business normally takes to pay creditors Identifying future trading prospects of the business In each case other suitable reasons acceptable Three parties to be identified (1) each giving a total of (3) One reason required in each case (1) giving a total of (3) [6] [Total 24] University of Cambridge International 2004

41 UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the June 2005 question paper 0452 ACCOUNTING 0452/01 Paper 1 (Multiple Choice), maximum raw mark 40 Mark schemes must be read in conjunction with the question papers and the Report on the Examination. CIE will not enter into discussion or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the June 2005 question papers for most IGCSE and GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.

42 Grade thresholds for Syllabus 0452 (Accounting) in the June 2005 examination. Minimum Minimum mark required for grade mark available A C E F Component 1 40 N/A The threshold (minimum mark) for B is set halfway between those for Grades A and C. The threshold (minimum mark) for D is set halfway between those for Grades C and E. The threshold (minimum mark) for G is set as many marks below F threshold as the E threshold is above it. Grade A* does not exist at the level of an individual component.

43 JUNE 2005 IGCSE MARK SCHEME MAXIMUM MARK: 40 SYLLABUS/COMPONENT: 0452/01 ACCOUNTING Paper 1 (Multiple Choice)

44 Page 1 Mark Scheme Syllabus Paper IGCSE JUNE Question Number Key Question Number Key 1 B 21 D 2 C 22 D 3 A 23 A 4 A 24 A 5 A 25 C 6 C 26 B 7 D 27 A 8 A 28 B 9 B 29 A 10 C 30 D 11 D 31 B 12 D 32 C 13 A 33 C 14 C 34 D 15 C 35 B 16 A 36 A 17 A 37 B 18 D 38 C 19 B 39 B 20 A 40 D University of Cambridge International 2005

45 UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the June 2005 question paper 0452 ACCOUNTING 0452/02 Paper 2, maximum raw mark 90 This mark scheme is published as an aid to teachers and students, to indicate the requirements of the examination. It shows the basis on which Examiners were initially instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners meeting before marking began. Any substantial changes to the mark scheme that arose from these discussions will be recorded in the published Report on the Examination. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the Report on the Examination. CIE will not enter into discussion or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the June 2005 question papers for most IGCSE and GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.

46 Grade thresholds for Syllabus 0452 (Accounting) in the June 2005 examination. Maximum mark available Minimum mark required for grade: A C E F Component The threshold (minimum mark) for B is set halfway between those for Grades A and C. The threshold (minimum mark) for D is set halfway between those for Grades C and E. The threshold (minimum mark) for G is set as many marks below F threshold as the E threshold is above it. Grade A* does not exist at the level of an individual component.

47 June 2005 IGCSE MARK SCHEME MAXIMUM MARK: 90 SYLLABUS/COMPONENT: 0452/02 ACCOUNTING Paper 2

48 Page 1 Mark Scheme Syllabus Paper IGCSE JUNE Question number 1 (a) (b) (c) (d) (e) (f) (g) (h) Question (including any source details) Cash book, Sales journal, Purchases journal, Sales returns journal, Purchases returns journal, Journal, Petty cash book (any two). An expense incurred in the accounting period but unpaid at the end of the period. Current liabilities. Suspense account. Profit and Loss Account. Error of original entry. Business will continue trading for the foreseeable future. (i) 1,800 (ii) 1,800 (iii) 8,400 (iv) Dr Cr Profit and Loss Account (1)OF (accept Depreciation account) Provision for depreciation (1)OF Part mark [2] [1] [1] [1] [1] [1] [1] [1] [1] [1] [2] [Total: 13] University of Cambridge International 2005

49 Page 2 Mark Scheme Syllabus Paper IGCSE JUNE Question number 2 (a) (b) Question (including any source details) Bonnie Clyde Balance Sheet at 31 March 2005 Fixed Assets Machinery at cost (1) Provision for depreciation (1) Net book value (1) Current Assets Stock (1) Debtors (1) Bank 500 (1) Current Liabilities Creditors 700 (1) Working capital Long term Liability Bank loan (accept if under capital) (1) Capital Balance at 1 April (1) Profit for the year (1) less drawings (1) [Horizontal format acceptable] (1) for matching totals (i) Current assets less current liabilities (1) Capital needed for day to day running of business (1) Part mark [12] (ii) Working capital (1OF) less 700 (1)OF = (1) [4] [Total: 16] University of Cambridge International 2005

50 Page 3 Mark Scheme Syllabus Paper IGCSE JUNE Question number 3 (a) Question (including any source details) Zafira Cash Book Part mark Dr Cr Balance b/d 620 (1) Bank charges 15 (1) Bank interest 20 (1) Insurance (D/debit) 40 (1) Aisha 130 (1) Dishonoured cheque, (credit transfer) Yanni (either) 65 (1) Balance c/d Balance b/d 650 (1)OF [Running balance acceptable] [7] (b) (c) Bank reconciliation statement at 30 April 2005 Balance on updated cash book 650 (1)OF (from (a) above) Adjustments: add: unpresented cheque (1) less: amount not yet credited 310 (1) Balance on bank statement 590 (2) [Amounts must have narrative] (1)OF Incorrect entry in cash book Transposition of figures in cash book Addition error on cash book page Item on bank statement omitted from cash book - or similar explanations [Any two - 2 marks each] [Repeating part (b) = 0] [5] [4] [Total: 16] University of Cambridge International 2005

51 Page 4 Mark Scheme Syllabus Paper IGCSE JUNE Question number 4 (a) Question (including any source details) Redd - Purchases Ledger Block account March Purchases returns 100 (1) 5 March Purchases 320 (1) 30 March Bank 220 (1) 29 March Purchases 270 (1) 31 March Balance c/d 270 (1) April Balance b/d 270 (1)OF Part mark Quayle account March Bank Discount 485 (1) 15 (1) March Purchases (1) [Running balance acceptable] + (1) for all dates [need not show year] [10] (b) Rent account April Bank 900 (1) 2 July Bank 700 (1) 31 July Bank Sept Bank (1) Jan Bank March P/L Account (1) 29 March Bank 800 (1) Balance c/d 800 (1) April Balance b/d 800 (1)OF [Must have narrative] [Running balance acceptable] + (1) for all dates [8] University of Cambridge International 2005

52 Page 5 Mark Scheme Syllabus Paper IGCSE JUNE Question number (c) (i) Question (including any source details) Costs should be offset against revenues from the same accounting period. (2) Accept example. Part mark (ii) The rent paid in advance on 29 March 2005 relates to the following accounting year and is therefore subtracted from the amount charged to Profit and Loss Account for the year ended 31 March (2) [4] [Total: 22] 5 (a) Total bank deposits Less: cash sales (1) less: Debtors at 1 April (1) add: Debtors at 31 March (1) Credit sales for year (1) [Amounts need narrative] [4] (b) William Trading and Profit and Loss Account for the year ended 31 March 2005 Sales -credit (1)OF -cash (1) Stock at 1 April (1) Purchases (1) Carriage inwards 280 (1) Stock at 31 March (1) Cost of goods sold (1) Gross profit (1)OF Rent 600 Electricity 360 Motor expenses 800 (2) * Insurance 580 Wages Net profit (1)OF * 5 items = 2 marks 1 error = 1 mark 2 errors = 0 marks Error = wrong figure, alien or omission [11] University of Cambridge International 2005

53 Page 6 Mark Scheme Syllabus Paper IGCSE JUNE Question number (c) (d) Question (including any source details) Gross profit/sales x (1)OF/ (1)OF x 100 = 40.16% (1)OF (i) Gross profit increased (1) by 90(1) Part mark [3] [2] (ii) Revised gross profit percentage: (1)OF/ (1)OF x 100 = 40.49% (1)OF [3] [Total: 23] University of Cambridge International 2005

54 UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the June 2005 question paper 0452 ACCOUNTING 0452/03 Paper 3, maximum raw mark 100 This mark scheme is published as an aid to teachers and students, to indicate the requirements of the examination. It shows the basis on which Examiners were initially instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners meeting before marking began. Any substantial changes to the mark scheme that arose from these discussions will be recorded in the published Report on the Examination. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the Report on the Examination. CIE will not enter into discussion or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the June 2005 question papers for most IGCSE and GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.

55 Grade thresholds for Syllabus 0452 (Accounting) in the June 2005 examination. Maximum mark available Minimum mark required for grade: A C E F Component N/A N/A The threshold (minimum mark) for B is set halfway between those for Grades A and C. The threshold (minimum mark) for D is set halfway between those for Grades C and E. The threshold (minimum mark) for G is set as many marks below F threshold as the E threshold is above it. Grade A* does not exist at the level of an individual component.

56 JUNE 2005 IGCSE MARK SCHEME MAXIMUM MARK: 100 SYLLABUS/COMPONENT: 0452/03 ACCOUNTING Paper 3

57 Page 1 Mark Scheme Syllabus Paper IGCSE JUNE Question 1 Prepared by D. El-Hoss (a) Current Accounts James Susan James Susan May 1 Balance b/d 400 May 1 Balance b/d Apl 30 Drawings (1) Apl 30 Interest on capital (1) Interest on drawings (1) Partner s salary 7 000(1) Balance c/d 3 350(1) Share of profit (1) Balance c/d 1 400(1) May 1 Balance b/d May 1 Balance b/d (1)O/F (1)O/F The marks for interest on capital, profit shares, drawings, and interest on drawings are for both figures Alternatively allow two separate T accounts [9] Alternative presentation James Current Account Debit Credit Balance 2004 May 1 Balance Dr 2005 Apl 30 Drawings Dr Interest on drawings Dr Interest on capital Dr Share of profit Dr (2)C/F (1)O/F Susan Current Account Debit Credit Balance 2004 May 1 Balance Cr 2005 Apl 30 Drawings Dr Interest on drawings Dr Interest on capital Dr Partner s salary (1) 900 Dr Share of profit Cr (2)C/F (1)O/F Drawings (1) for both figures Interest on drawings (1) for both figures Interest on capital (1) for both figures Profit shares (1) for both figures [9] University of Cambridge International 2005

58 Page 2 Mark Scheme Syllabus Paper IGCSE JUNE (b) Capital Accounts James Susan Anna James Susan Anna May 1 Goodwill (1) (1) (1) May 1 Balance b/d (1) (1) Balance c/d (1) (1) (1) Bank (1) Goodwill (1) (1) May 2 Balance b/d (1)O/F (1)O/F (1)O/F Alternatively allow three separate T accounts [14] Alternative presentation Total [23] James Capital Account Debit Credit Balance 2005 May 1 Balance (1) Cr Goodwill (1) Cr Goodwill (1) Cr (2)C/F (1)O/F Susan Capital Account Debit Credit Balance 2005 May 1 Balance (1) Cr Goodwill (1) Cr Goodwill (1) Cr (2)C/F (1)O/F Anna Capital Account Debit Credit Balance 2005 May 1 Bank (1) Cr Goodwill (1) Cr (2)C/F (1)O/F [14] Total [23] University of Cambridge International 2005

59 Page 3 Mark Scheme Syllabus Paper IGCSE JUNE Question 2 Prepared by D. El-Hoss (a) To ensure no transactions are forgotten/overlooked (not relying on human memory) To enable profit to be calculated To enable the financial position of the business to be ascertained Or other suitable point Any 2 items (1) each [2] (b) (c) The accounting records of a business are maintained from the viewpoint of the business. The business and the owner of the business are regarded as being separate entities. The personal transactions of the owner of the business are not recorded in the accounting records of the business. Any 2 items (1) each [2] Jane Joda Trading Account for the year ended 31 March 2005 Sales - Credit (1)O/F Cash (1) Less Cost of sales Opening stock (1) Purchases (1) Less Closing stock (1) (1) Gross Profit (2)C/F (1)O/F Horizontal format acceptable [8] (d) (i) Comparison with the results of other businesses (1) of a similar size/type (1) [2] (ii) Improve profitability Increase sales (in total or of certain products) Review stock levels Direct investment into new areas Or other suitable point Any one point required (1) for basic point (1) for suitable development [2] (iii) Any two of the following Information must be - capable of being independently verified free from bias free from significant errors prepared with suitable caution being applied to any judgements and estimates which are necessary Any two items (2) each [4] Total [20] University of Cambridge International 2005

60 Page 4 Mark Scheme Syllabus Paper IGCSE JUNE Question 3 Prepared by D. El-Hoss (a) (i) 1 Current ratio : (1) = 1.52 : 1 (1) 2 Quick ratio ( ) : (1) = 0.69 : 1 (1) [4] (ii) Quick ratio [1] Stock is not regarded as a liquid asset a buyer has to be found and then the money collected. Some stock may prove to be unsaleable. The quick ratio shows whether the business would have any surplus liquid funds if all the current liabilities were paid immediately from the liquid assets. Any one reason (2) marks [2] (b) Return on capital employed (using closing capital figure) (1) = 9.43% (1) [2] (c) (i) Collection period for debtors (1) = days (51 days) (1) [2] (ii) 1 Not satisfied if (c)(i) is more than 30 days Or satisfied if (c)(i) is less than 30 days [1] 2 Debtors are allowed 30 days credit but on average are taking 51 days Or suitable explanation based on O/F answer to (c)(i). [1] (d) (i) Payment period for creditors (1) = days (49 days) (1) [2] (ii) Advantage of paying creditors before due date May be able to take advantage of cash discounts Improves the relationship with suppliers Or other suitable comment One advantage required (1) [1] (iii) Disadvantage of paying creditors before due date The business is deprived of the use of the money earlier than necessary Or other suitable comment One disadvantage required (1) [1] Total [17] University of Cambridge International 2005

61 Page 5 Mark Scheme Syllabus Paper IGCSE JUNE Question 4 Prepared by D. El-Hoss (a) (i) The Income and Expenditure Account is equivalent to a Profit and Loss Account of a trading organisation. (1) It is used to calculate the annual surplus or deficit. (1) Or other suitable points [2] (ii) The accumulated fund is equivalent to the capital of a trading organisation, the difference between the assets and the liabilities. (1) The annual surpluses (less any deficits) accumulate within a non-trading organisation to form the accumulated fund. (1) [2] (b) Siltones Music Society Receipts and Payments Account for the year ended 31 March Apl 1 Balance (1) Mar 31 Concert expenses (1) 2005 Rent (1) Mar 31 Subscriptions (1) General expenses 215 (1) Concert receipts (1) Insurance 325 (1) Proceeds of sale of instruments 700 (1) Purchase of new instruments (1) Balance c/d Apl 1 Balance b/d (1)O/F [10] (c) Siltones Music Society Subscriptions account Apl 1 Balance b/d 1000 (1) Mar 31 Bank 5800 (1) 2005 Mar 31 Balance c/d 800 (1) Income and Expenditure (1) 4000 (1) Apl 1 Balance b/d 800 (1) Dates (1) [7] Alternative presentation Siltones Music Society Subscriptions account Debit Credit Balance 2004 Apl 1 Balance 1000 (1) 1000 Dr 2005 Mar 31 Bank 5800 (1) 4800 Cr Income and Expenditure (1) 4000 (1) 800 Cr (2) Dates (1) [7] Total [21] University of Cambridge International 2005

62 Page 6 Mark Scheme Syllabus Paper IGCSE JUNE Question 5 Prepared by D. El-Hoss (a) (b) To make the totals of the trial balance agree (1) and so that draft final accounts may be prepared. (1) [2] Ahmed Shafiq Journal Debit Credit 1. Suspense account 390 (1) Commission received account 390 (1) 2. Mutua account 400 (1) Mutola account 400 (1) Suspense account 800 (1) 3. Stationery account 20 (1) Purchases account 20 (1) 4. Discount allowed account 15 (1) Limo 15 (1) 5. Sales returns account 420 (1) Purchases returns account 240 (1) Suspense account 660 (1) [12] (c) Ahmed Shafik Statement of corrected net profit for the year ended 31 January 2005 Net profit before corrections Effect on net profit + Error No effect (1) 3 No effect (1) 4 15 (1) (1) Corrected net profit (1) O/F [5] Total [19] University of Cambridge International 2005

63 UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2006 question paper 0452 ACCOUNTING 0452/01 Paper 1 Multiple Choice, maximum raw mark 40 These mark schemes are published as an aid to teachers and students, to indicate the requirements of the examination. They show the basis on which Examiners were initially instructed to award marks. They do not indicate the details of the discussions that took place at an Examiners meeting before marking began. Any substantial changes to the mark scheme that arose from these discussions will be recorded in the published Report on the Examination. All Examiners are instructed that alternative correct answers and unexpected approaches in candidates scripts must be given marks that fairly reflect the relevant knowledge and skills demonstrated. Mark schemes must be read in conjunction with the question papers and the Report on the Examination. The minimum marks in these components needed for various grades were previously published with these mark schemes, but are now instead included in the Report on the Examination for this session. CIE will not enter into discussion or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the May/June 2006 question papers for most IGCSE and GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses.