MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING. 0452/11 Paper 1, maximum raw mark 120

Transcription

1 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/11 Paper 1, maximum raw mark 120 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 will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the October/November 2015 series for most Cambridge IGCSE, Cambridge International A and AS Level components and some Cambridge O Level components. IGCSE is the registered trademark of Cambridge International Examinations.

2 Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) B (b) A (c) D (d) D (e) B (f) A (g) C (h) B (i) A (j) C (1) each [10]

3 Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) The book where transactions (and other entries) are first recorded. (1) [1] (b) Cash book/petty cash book/sales journal/sales returns journal/purchases journal/purchases returns journal/general journal/returns inwards and returns outwards journals Any two for (1) mark each [2] (c) asset liability expense fixtures and fittings insurance bank overdraft cash trade payable wages accrued electricity Increase in provision for doubtful debts Unpaid commission receivable (1) Mark for every two correct [4] (d) Statement of financial position (1) [1] Income statement (1) [1]

4 Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (e) Debit entry Credit entry $ $ 1 Bank account Capital account Bank account (1) Loan account (1) 3 (Delivery) Van account/ Motor vehicles account (1) A1 Motors account (1) 4 Purchases account (1) Bank account (1) 5 Rent account (1) Bank account (1) 6 Petty cash/cash 100 (1) Bank account 100 (1) [10] (f) $ $ (1) (4 800) (1) (1)of [3] [Total: 22]

5 Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Raw materials (1) work in progress (1) finished goods/purchased finished goods (1) [3] (b) Lower of cost and net realisable value (1) [1] (c) Account debited Account credited Drawings (1) Purchases (1) [2] (d) Business entity (1) [1] (e) To check for errors and omissions in his books of account To check the errors in the bank statement To identify stale cheques To identify unpresented cheques To identify amounts not credited To calculate the correct bank balance in his cash book To verify the balance in his cash book To correct/amend his cash book Any one for (1) mark [1] (f) A copy of the customer s account as it appears in the books of the bank (1) [1] (g) An item in the cash book not in the bank statement Unpresented cheque/uncredited deposit/book-keeper error Any one for (1) mark An item in the bank statement not in the cash book. Bank charges/bank interest/dishonoured cheque/standing order/credit transfer/direct debit/bank error/dishonoured cheque Any one for (1) mark [2] [Total: 11]

6 Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) An estimate (1) of the amount which will be lost (1) when debts go bad (1) which reduces the value of trade receivables (1) Max 2 [2] (b) Samuel Provision for doubtful debts account 2015 $ 2014 $ 30 April Income statement 70 (1of) 1 May Balance b/d 450 (1) Balance c/d 380 (1) May Balance b/d 380 (1of) +(1) for dates [5] (c) Below/after gross profit/after trading account/(on credit side) as other income. Profit and loss section/(debit side) as an expense [1of] (d) Accruals/matching (1) Prudence (1) [2] (e) Trade receivables (1) Capital/profit (1) [2] [Total: 12]

7 Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) $ Trade receivables 700 } Trade payables (400) }(1) Inventory (1) Equipment at cost } Provision for depreciation of equipment (4 100) } (1) Prepaid rent 250 (1) Bank (1) Capital (1of) [6] (b) Nzita Total trade receivables account 2014 $ 2015 $ Feb 1 Balance b/d 700 (1) Jan 31 Bank/Cash (1) 2015 Jan 31 Sales (1of) Balance c/d Feb 1 Balance b/d 900 (1of) Nzita Total trade payables account 2015 $ 2014 $ Jan 31 Bank/Cash (1) Feb 1 Balance b/d 400 (1) Balance c/d Jan 31 Purchases (1of) Feb 1 Balance b/d 650 (1of) [8]

8 Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Nzita Income Statement for the year ended 31 January 2015 $ $ Sales/Revenue (1of) Inventory 1 Feb Purchases (1of) Inventory 31 January (1 for both) Cost of sales Gross profit (1of) Rent 3100 (1) + ( ) (1) 3200 Wages Sundry expenses Depreciation of equipment (1) Profit for the year + 1 for IAS terminology (1of) [9] (d) Nzita Statement of Financial Position (extract) at 31 January 2015 $ Capital at 1 Feb 2014 Profit for the year (1of) (1of) Drawings (1) Capital at 31 January (1of) [4]

9 Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (e) / (1of) 100 = 56.87% (1of) [2] (f) Lower selling prices Introduction of trade discount Sales promotions Higher purchases prices not passed on to customers Change in mix of goods sold Higher cost of sales Any two (1of) each [2] [Total: 31]

10 Page 10 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Capital (1) Revenue (1) Current (1) Non-current (1) Understated (1) Overstated (1) [6] (b) Error 2 (1) Error of commission (1) Error 4 (1) Error of principle (1) [4] (c) Error 1 Discount allowed Discount received Suspense Correction of misposting of discounts (1) 2 Joanie Yolanda Correction of misposting of receipt of cash (1) 3 Sales returns Suspense Correction of misposting of sales returns journal total (1) Debit $ 30 (1) 30 (1) 85 (1) 10 (1) Credit $ 60 (1) 85 (1) 10 (1) 4 Stationery Office equipment Correction of revenue expenditure treated as capital expenditure (1) 150 (1) 150 (1) [13]

11 Page 11 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (d) Leroy Suspense account 2015 $ 2015 $ Sept 30 Balance b/d 70 (1of) Sept 30 Discount allowed and received 60 (1of) Sales returns 10 (1of) [3] (e) No effect Increase $ Decrease $ $ Draft profit Error 1 60 (2) Error 2 (1) Error 3 10 (2) Error (2) Corrected profit (1)OF Marks with figures: 1 for figure, 1 for direction [8] [Total: 34]

12 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/12 Paper 1, maximum raw mark 120 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 will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the October/November 2015 series for most Cambridge IGCSE, Cambridge International A and AS Level components and some Cambridge O Level components. IGCSE is the registered trademark of Cambridge International Examinations.

13 Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) B (b) A (c) D (d) D (e) B (f) A (g) C (h) B (i) A (j) C (1) each [10]

14 Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) The book where transactions (and other entries) are first recorded. (1) [1] (b) Cash book/petty cash book/sales journal/sales returns journal/purchases journal/purchases returns journal/general journal/returns inwards and returns outwards journals Any two for (1) mark each [2] (c) asset liability expense fixtures and fittings insurance bank overdraft cash trade payable wages accrued electricity Increase in provision for doubtful debts Unpaid commission receivable (1) Mark for every two correct [4] (d) Statement of financial position (1) [1] Income statement (1) [1]

15 Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (e) Debit entry Credit entry $ $ 1 Bank account Capital account Bank account (1) Loan account (1) 3 (Delivery) Van account/ Motor vehicles account (1) A1 Motors account (1) 4 Purchases account (1) Bank account (1) 5 Rent account (1) Bank account (1) 6 Petty cash/cash 100 (1) Bank account 100 (1) [10] (f) $ $ (1) (4 800) (1) (1)of [3] [Total: 22]

16 Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Raw materials (1) work in progress (1) finished goods/purchased finished goods (1) [3] (b) Lower of cost and net realisable value (1) [1] (c) Account debited Account credited Drawings (1) Purchases (1) [2] (d) Business entity (1) [1] (e) To check for errors and omissions in his books of account To check the errors in the bank statement To identify stale cheques To identify unpresented cheques To identify amounts not credited To calculate the correct bank balance in his cash book To verify the balance in his cash book To correct/amend his cash book Any one for (1) mark [1] (f) A copy of the customer s account as it appears in the books of the bank (1) [1] (g) An item in the cash book not in the bank statement Unpresented cheque/uncredited deposit/book-keeper error Any one for (1) mark An item in the bank statement not in the cash book. Bank charges/bank interest/dishonoured cheque/standing order/credit transfer/direct debit/bank error/dishonoured cheque Any one for (1) mark [2] [Total: 11]

17 Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) An estimate (1) of the amount which will be lost (1) when debts go bad (1) which reduces the value of trade receivables (1) Max 2 [2] (b) Samuel Provision for doubtful debts account 2015 $ 2014 $ 30 April Income statement 70 (1of) 1 May Balance b/d 450 (1) Balance c/d 380 (1) May Balance b/d 380 (1of) +(1) for dates [5] (c) Below/after gross profit/after trading account/(on credit side) as other income. Profit and loss section/(debit side) as an expense [1of] (d) Accruals/matching (1) Prudence (1) [2] (e) Trade receivables (1) Capital/profit (1) [2] [Total: 12]

18 Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) $ Trade receivables 700 } Trade payables (400) }(1) Inventory (1) Equipment at cost } Provision for depreciation of equipment (4 100) } (1) Prepaid rent 250 (1) Bank (1) Capital (1of) [6] (b) Nzita Total trade receivables account 2014 $ 2015 $ Feb 1 Balance b/d 700 (1) Jan 31 Bank/Cash (1) 2015 Jan 31 Sales (1of) Balance c/d Feb 1 Balance b/d 900 (1of) Nzita Total trade payables account 2015 $ 2014 $ Jan 31 Bank/Cash (1) Feb 1 Balance b/d 400 (1) Balance c/d Jan 31 Purchases (1of) Feb 1 Balance b/d 650 (1of) [8]

19 Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Nzita Income Statement for the year ended 31 January 2015 $ $ Sales/Revenue (1of) Inventory 1 Feb Purchases (1of) Inventory 31 January (1 for both) Cost of sales Gross profit (1of) Rent 3100 (1) + ( ) (1) 3200 Wages Sundry expenses Depreciation of equipment (1) Profit for the year + 1 for IAS terminology (1of) [9] (d) Nzita Statement of Financial Position (extract) at 31 January 2015 $ Capital at 1 Feb 2014 Profit for the year (1of) (1of) Drawings (1) Capital at 31 January (1of) [4]

20 Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (e) / (1of) 100 = 56.87% (1of) [2] (f) Lower selling prices Introduction of trade discount Sales promotions Higher purchases prices not passed on to customers Change in mix of goods sold Higher cost of sales Any two (1of) each [2] [Total: 31]

21 Page 10 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Capital (1) Revenue (1) Current (1) Non-current (1) Understated (1) Overstated (1) [6] (b) Error 2 (1) Error of commission (1) Error 4 (1) Error of principle (1) [4] (c) Error 1 Discount allowed Discount received Suspense Correction of misposting of discounts (1) 2 Joanie Yolanda Correction of misposting of receipt of cash (1) 3 Sales returns Suspense Correction of misposting of sales returns journal total (1) Debit $ 30 (1) 30 (1) 85 (1) 10 (1) Credit $ 60 (1) 85 (1) 10 (1) 4 Stationery Office equipment Correction of revenue expenditure treated as capital expenditure (1) 150 (1) 150 (1) [13]

22 Page 11 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (d) Leroy Suspense account 2015 $ 2015 $ Sept 30 Balance b/d 70 (1of) Sept 30 Discount allowed and received 60 (1of) Sales returns 10 (1of) [3] (e) No effect Increase $ Decrease $ $ Draft profit Error 1 60 (2) Error 2 (1) Error 3 10 (2) Error (2) Corrected profit (1)OF Marks with figures: 1 for figure, 1 for direction [8] [Total: 34]

23 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/13 Paper 1, maximum raw mark 120 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 will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the October/November 2015 series for most Cambridge IGCSE, Cambridge International A and AS Level components and some Cambridge O Level components. IGCSE is the registered trademark of Cambridge International Examinations.

24 Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) A (b) B (c) D (d) C (e) C (f) C (g) A (h) B (i) B (j) D (1) mark each [Total: 10]

25 Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Debit note: a document from a customer asking for a reduction in the value of an invoice received by them. (1) Credit note: a document sent to the customer showing the reduction of an invoice. (1) Statement of account: to summarise a customer s transactions for the month. (1) [3] (b) So that accounts of the same type can be kept together To allow division of work To allow easier reference To allow checking procedures to be introduced Any one reason (1) [1] (c) Account Delivery van/motor vehicles Ledger Nominal/general Sales Nominal/general (1) Susan Sales (1) Carriage inwards Nominal/general (1) Drawings Nominal/general (1) Adam Purchases (1) [5] (d) Current assets (1) [1] (e) Account debited Account credited Purchases (1) Alice (1) [2] (f) Discount allowed Discount received in the books of Ivy (1) in the books of Alice (1) [2] (g) Statement of account (1) [1] [Total: 15]

26 Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Any two for (1) each e.g. plant and equipment, factory premises, office premises, delivery vehicle [2] (b) non-current asset lasting more than 12 months bought to keep and use in the business current asset lasting less than 12 months bought to resell/expected to turn into cash within 12 months depreciated not depreciated Any one comment (1), comparison comment (1) [2] (c) Amount received when a non-current asset is sold Receipt of a loan Share issue/capital introduced Any one example (1) [1] (d) Capital expenditure Revenue expenditure Purchase of inventory (1) Purchase of stationery (1) Legal fees on purchase of land (1) Construction costs of factory (1) [4] (e) Disposal (1) [1] (f) Consistency (1) [1] (g) Historical/only deals with the past Difficulties of definition Non-financial aspects Unable to predict future Doesn t identify the cause of a problem Any one for (1) mark [1] [Total: 12]

27 Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Esme Sales ledger control account $ $ Jan 1 Balance b/d (1) Dec 31 Sales returns (1) Dec 31 Sales (1) Bank/Cash (1) Bank 450 (1) Discount allowed (1) Balance c/d 50 Bad debt 300 (1) PLCA/Contra 100 (2)* Balance c/d Jan 1 Balance b/d (1of) Jan 1 Balance b/d 50 (1) Note * (2) for 100, (1) for 180 Esme Purchases ledger control account $ $ Dec 31 Purchases rets (1) Jan 1 Balance b/d (1) Bank/Cash (1) Dec 31 Purchases (1) Discount received 850 (1) SLCA/Contra 100 (1of) Balance c/d Jan 1 Balance b/d (1of) [18] (b) Provide total of trade receivables Check for the arithmetical accuracy of the sales ledger Reduce fraud To check for errors or fraud Provide summary of transactions involving debtors Enable financial statements to be prepared quickly Any one for (1) mark [1] (c) Payment before specified date (1) [1] [Total: 20]

28 Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Elliott Cash Book Date Details Cash $ Bank $ Date Details Cash $ Bank $ May 1 Capital (1) May 31 Rent (1) May 31 Sales (1) (1) Purchases (1) Cash (1) Drawings (1) Sundry expenses 150 (1) Bank (1) Balance c/d June 1 Balance b/d 100 (1of) (1of) [11] (b) Cost of sales Expenses Purchases 5000 (1of) closing inventory 1100 (1) = 3900 (1of) OR (5 300) (1) + (6 400) (1) = 3900 (1of) Rent 1000 (1) + other expenses ( ) (1) = 1230 (1of) Profit for the month Sales 6450 (1of) ( ) (1of) = 1320 (1of) [9]

29 Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Elliott Statement of Financial Position at 31 May 2015 $ Non-current assets Vehicle (1) Current assets Inventory (1) Other receivable (1) Bank Cash Total assets (1of) 100 (1of) Capital at 1 May (1) Profit (1of) Drawings (1) Capital at 31 May Current liabilities Other payable 80 (1) Total liabilities [9] (d) Elliott s drawings are greater than his profit (1) [1] [Total: 30]

30 Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) General Stores Limited Fixtures and fittings account 2014 $ 2014 $ 1 Jan Balance b/d (1) 1 Mar Disposal (1) 1 Mar Bank (1) 31 Dec Balance c/d Jan Balance b/d (1of) +1 for dates [5] (b) (1of) 0.3 = $ (1of) [2] (c) General Stores Limited Income Statement for the year ended 31 December 2014 $ $ Revenue (1) Inventory 1 January Purchases Inventory 31 December for both Cost of sales (1of) Gross profit Sales assistants wages } Office salaries } (1) Depreciation (1of) Rent (1) Sundry expenses (1) Profit from operations (1of) Interest (1) Profit for the year (1of) [10]

31 Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (d) General Store Limited Statement of Changes in Equity for the year ended 31 December 2014 Details Share capital $ General reserve $ Retained earnings $ Total $ On 1 January Profit for the year (1of) Dividend paid (10 000) (10 000) (1) Transfer to general reserve (5 000) (1) On 31 December (1of) (1of) [5] (e) / (1of) 100 = 13.33% (1of) OR / (1of) 100 = 6.73% (1of) [2] (f) Neighbouring shop may sell different mix of goods (1) with a higher gross profit margin (1). Neighbouring shop may have different policies (1) for instance for depreciation (1). Illustration with figures e.g. if depreciation rate was 10% then net profit margin would be 3.8% higher (1). Neighbouring shop controls expenses better (1). Neighbouring shop may own premises and avoid rent payment (1). Illustration with figures e.g. rent accounts for 10.57% of revenue (1). If using profit after interest also allow Neighbouring shop may have more equity/capital (1) and not have the interest cost (1). Illustration with figures e.g. interest amounts to 6.6% of sales (1). [Max 6] (g) Increase selling prices/increase gross profit margin/reduce cost of sales Reduce expenses/rent cheaper premises Find cheaper lenders of finance to reduce interest charges Review depreciation rate do fixtures only have a life of 3 to 4 years Turn overdrafts and short term loans into long term loans to reduce interest rate Any 3 for (1) mark each. [3] [Total: 33]

32 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/21 Paper 2, maximum raw mark 120 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 will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the October/November 2015 series for most Cambridge IGCSE, Cambridge International A and AS Level components and some Cambridge O Level components. IGCSE is the registered trademark of Cambridge International Examinations.

33 Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Date Details Discount Allowed Shahid Ayub Cash Book Cash Bank Date Details Discount Received 2015 $ $ $ 2015 $ $ $ Aug 1 Balance b/d (1) 50 Aug 1 Balance b/d Mariam Soliman (1) El Nil Supply Company 30 Sales (1) 3224 (dis cheque) (1) Cash c (1)OF Drawings (1) 54 Balance c/d Bank c (1) 3174 Balance c/d 100 Cash Bank Balance b/d 2015 Sept 1 Sept 1 Balance b/d 100 (1) + (1) dates [9] 3885 (1)OF

34 Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (b) (i) $316 (1) (ii) Mariam Soliman (1) [2] (c) Transaction Document Book of prime (original) entry August 9 Goods 13 Returns 24 Payment Sales invoice (1) Credit note (1) Cheque (OR Paying in book) (1) Sales Journal (1) Sales Returns Journal (1) Cash book (1) [6] (d) Mariam Soliman Shahid Ayub Account $ $ Aug 13 Returns 24 (1) Aug 1 Balance b/d Bank/Cash 507 (1) 9 Purchases 340 (1) Discount 13 (1) 31 Balance c/d Sept 1 Balance b/d 316 (1)O/F Three column running balance presentation acceptable +(1) for dates [6] [Total: 23]

35 Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Grace Zindi Income Statement for the year ended 31 July 2015 $ $ Income from Clients ( (1) (1)) Commission receivable (7600 (1) (1)) Wages (1) Rates and Insurance ((3900 (1) 300 (1)) ¾ (1)) General Expenses 990 (1) Heat and Light 710 (1) Provision for Doubtful Debts (1% 3400) 34 (1) Depreciation motor vehicles ( (1) 20% (1)) Depreciation office equipment ( (1) (1)) Profit for the year (1)OF [16] (b) Grace Zindi Capital Account $ $ July Cash/Drawings (1) 1 Aug Balance b/d (1) Rates & 2015 Insurance Drawings 900 (1) 31 July Profit (1)OF Balance c/d Aug Balance b/d (1)OF +(1) For dates Three column running balance presentation acceptable [6] (c) Revenue for the year is matched against the costs of the same period (1) Example Either Insurance prepaid at year-end was deducted Or Commission receivable outstanding at year-end was added Or Amount owing from clients at year-end was added (1) (d) The business is treated as being separate from the owner (1) Example The proportion of rates and insurance relating to the owner s flat was excluded from the business expenses (1) [2] [2] [Total: 26]

36 Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Physical deterioration Economic reasons Passage of time Depletion Any 2 reasons (1) each [2] (b) The depreciation is calculated on the net cost price (1) and the same amount is written off each year (1) [2] (c) The same percentage is written off each year (1) but it is calculated on the net book value of the asset (1) [2] (d) Ensures that non-current assets are shown at more realistic values (1) Ensures that the profit for the year is not overstated (1) [2] (e) Accruals (matching) (1) [1]

37 Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (f) (i) Natasha Salim Machinery Account $ $ Oct 1 Bank (1) Sept 30 Balance c/d Jan 1 ABC Machines (1) Oct 1 Balance b/d (1)OF Feb 1 Disposal (1) Sept 30 Balance c/d Oct 1 Balance b/d (1)OF (ii) Provisions for depreciation of machinery account 2014 $ 2014 $ Sept 30 Balance c/d Sept 30 Income Statement 800(1) (1) Feb 1 Disposal 800 (1) Oct 1 Balance b/d (1)OF Sept 30 Balance c/d Sept 30 Income Statement 960 (1) Oct 1 Balance b/d (1)OF (2)CF Three column running balance presentation acceptable [12] (g) $ Proceeds of Sale Provision for depreciation 800 (1)OF Less Cost Price (1) Profit/Loss (1) on disposal (1)OF Accept alternative formats [4] [Total: 25]

38 Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Moses and Tobias Lyambo Corrected Statement of Financial Position at 31 October 2015 $ $ $ Assets Non-current assets Premises at cost Fixtures and Equipment at book value ( ) (1) (1) Current Assets Inventory Trade Receivable Provision for doubtful debts 130 (1) Bank ( ) (1) Cash 500 (1) (1)OF Total assets Capital and liabilities M lyambo T lyambo Total Capital Accounts (1) Current Accounts Balance (2 000) (1) Share of Profit (1) Drawings (1) (1) (1) (1)OF (1)OF Current liabilities Trade Payables Other Payables (1) (1) Total Liabilities Accept current account calculations outside statement [16] (b) Introduce more capital Obtain long-term loan Mortgage premises Or other suitable way Any two ways (1) each [2]

39 Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Introduce more capital Obtain long-term loan Mortgage premises Or other suitable way Any two ways (1) each [2] (d) Increase Decrease No effect Sale of surplus equipment (1) Delay payment to credit suppliers (1) Paying surplus cash into bank (1) Writing off a bad debt (1) [4] [Total: 24]

40 Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Kelbrook Limited Extract from Statement of Financial Position at 30 September 2015 $ Equity and Reserves Ordinary Share Capital (1) General Reserve (4000 (1) (1) Retained Earnings (5500 (1) (1)) [5] (b) Workings ( ) : ( ) : (1) Current ratio Answer to two decimal places 1.15 : 1 (1) Workings 8500 : ( ) 8500 : (1) Quick ratio Answer to two decimal places 0.72 : 1 (1) Return on capital employed (ROCE) Workings 9000 } } (1) 1 OR 9000 } } (1) 1 Answer to two decimal places 8.65% (1) [6]

41 Page 10 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Ratio has fallen Current assets only just cover the current liabilities May have problems in meeting debts when they fall due Is below the generally-accepted benchmark Or other suitable comments based on answer to (b) Any 2 points (1) each [2] (d) Change from positive bank balance to overdraft/increase in overdraft/reduction in bank balance Increased expenditure on inventory/increase in inventory Purchase of non-current assets Repayment of long-term loan Increase in current liabilities Decrease in trade receivables Any 1 reason (1) [1] (e) Increase the profit Reduce the capital employed Any 2 reasons (1) each [2] (f) (i) (1) = 69 days (1) [2] (ii) On average credit customers are taking 9 days more than is allowed This may affect the ability of the business to pay current liabilities This may affect the ability of the business to take advantage of opportunities when they arise Or other suitable comments based on answer to (f)(i) Any 2 points (1) each [2] (g) On average are taking 22 days more than is allowed to pay credit suppliers This may be caused by the credit customers taking too long to pay May result in further supplies being refused Or other suitable points Any 2 points (1) each [2] [Total: 22]

42 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/22 Paper 2, maximum raw mark 120 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 will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the October/November 2015 series for most Cambridge IGCSE, Cambridge International A and AS Level components and some Cambridge O Level components. IGCSE is the registered trademark of Cambridge International Examinations.

43 Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Date Details Discount Allowed Shahid Ayub Cash Book Cash Bank Date Details Discount Received 2015 $ $ $ 2015 $ $ $ Aug 1 Balance b/d (1) 50 Aug 1 Balance b/d Mariam Soliman (1) El Nil Supply Company 30 Sales (1) 3224 (dis cheque) (1) Cash c (1)OF Drawings (1) 54 Balance c/d Bank c (1) 3174 Balance c/d 100 Cash Bank Balance b/d 2015 Sept 1 Sept 1 Balance b/d 100 (1) + (1) dates [9] 3885 (1)OF

44 Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (b) (i) $316 (1) (ii) Mariam Soliman (1) [2] (c) Transaction Document Book of prime (original) entry August 9 Goods 13 Returns 24 Payment Sales invoice (1) Credit note (1) Cheque (OR Paying in book) (1) Sales Journal (1) Sales Returns Journal (1) Cash book (1) [6] (d) Mariam Soliman Shahid Ayub Account $ $ Aug 13 Returns 24 (1) Aug 1 Balance b/d Bank/Cash 507 (1) 9 Purchases 340 (1) Discount 13 (1) 31 Balance c/d Sept 1 Balance b/d 316 (1)O/F Three column running balance presentation acceptable +(1) for dates [6] [Total: 23]

45 Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Grace Zindi Income Statement for the year ended 31 July 2015 $ $ Income from Clients ( (1) (1)) Commission receivable (7600 (1) (1)) Wages (1) Rates and Insurance ((3900 (1) 300 (1)) ¾ (1)) General Expenses 990 (1) Heat and Light 710 (1) Provision for Doubtful Debts (1% 3400) 34 (1) Depreciation motor vehicles ( (1) 20% (1)) Depreciation office equipment ( (1) (1)) Profit for the year (1)OF [16] (b) Grace Zindi Capital Account $ $ July Cash/Drawings (1) 1 Aug Balance b/d (1) Rates & 2015 Insurance Drawings 900 (1) 31 July Profit (1)OF Balance c/d Aug Balance b/d (1)OF +(1) For dates Three column running balance presentation acceptable [6] (c) Revenue for the year is matched against the costs of the same period (1) Example Either Insurance prepaid at year-end was deducted Or Commission receivable outstanding at year-end was added Or Amount owing from clients at year-end was added (1) (d) The business is treated as being separate from the owner (1) Example The proportion of rates and insurance relating to the owner s flat was excluded from the business expenses (1) [2] [2] [Total: 26]

46 Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Physical deterioration Economic reasons Passage of time Depletion Any 2 reasons (1) each [2] (b) The depreciation is calculated on the net cost price (1) and the same amount is written off each year (1) [2] (c) The same percentage is written off each year (1) but it is calculated on the net book value of the asset (1) [2] (d) Ensures that non-current assets are shown at more realistic values (1) Ensures that the profit for the year is not overstated (1) [2] (e) Accruals (matching) (1) [1]

47 Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (f) (i) Natasha Salim Machinery Account $ $ Oct 1 Bank (1) Sept 30 Balance c/d Jan 1 ABC Machines (1) Oct 1 Balance b/d (1)OF Feb 1 Disposal (1) Sept 30 Balance c/d Oct 1 Balance b/d (1)OF (ii) Provisions for depreciation of machinery account 2014 $ 2014 $ Sept 30 Balance c/d Sept 30 Income Statement 800(1) (1) Feb 1 Disposal 800 (1) Oct 1 Balance b/d (1)OF Sept 30 Balance c/d Sept 30 Income Statement 960 (1) Oct 1 Balance b/d (1)OF (2)CF Three column running balance presentation acceptable [12] (g) $ Proceeds of Sale Provision for depreciation 800 (1)OF Less Cost Price (1) Profit/Loss (1) on disposal (1)OF Accept alternative formats [4] [Total: 25]

48 Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Moses and Tobias Lyambo Corrected Statement of Financial Position at 31 October 2015 $ $ $ Assets Non-current assets Premises at cost Fixtures and Equipment at book value ( ) (1) (1) Current Assets Inventory Trade Receivable Provision for doubtful debts 130 (1) Bank ( ) (1) Cash 500 (1) (1)OF Total assets Capital and liabilities M lyambo T lyambo Total Capital Accounts (1) Current Accounts Balance (2 000) (1) Share of Profit (1) Drawings (1) (1) (1) (1)OF (1)OF Current liabilities Trade Payables Other Payables (1) (1) Total Liabilities Accept current account calculations outside statement [16] (b) Introduce more capital Obtain long-term loan Mortgage premises Or other suitable way Any two ways (1) each [2]

49 Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Introduce more capital Obtain long-term loan Mortgage premises Or other suitable way Any two ways (1) each [2] (d) Increase Decrease No effect Sale of surplus equipment (1) Delay payment to credit suppliers (1) Paying surplus cash into bank (1) Writing off a bad debt (1) [4] [Total: 24]

50 Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Kelbrook Limited Extract from Statement of Financial Position at 30 September 2015 $ Equity and Reserves Ordinary Share Capital (1) General Reserve (4000 (1) (1) Retained Earnings (5500 (1) (1)) [5] (b) Workings ( ) : ( ) : (1) Current ratio Answer to two decimal places 1.15 : 1 (1) Workings 8500 : ( ) 8500 : (1) Quick ratio Answer to two decimal places 0.72 : 1 (1) Return on capital employed (ROCE) Workings 9000 } } (1) 1 OR 9000 } } (1) 1 Answer to two decimal places 8.65% (1) [6]

51 Page 10 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Ratio has fallen Current assets only just cover the current liabilities May have problems in meeting debts when they fall due Is below the generally-accepted benchmark Or other suitable comments based on answer to (b) Any 2 points (1) each [2] (d) Change from positive bank balance to overdraft/increase in overdraft/reduction in bank balance Increased expenditure on inventory/increase in inventory Purchase of non-current assets Repayment of long-term loan Increase in current liabilities Decrease in trade receivables Any 1 reason (1) [1] (e) Increase the profit Reduce the capital employed Any 2 reasons (1) each [2] (f) (i) (1) = 69 days (1) [2] (ii) On average credit customers are taking 9 days more than is allowed This may affect the ability of the business to pay current liabilities This may affect the ability of the business to take advantage of opportunities when they arise Or other suitable comments based on answer to (f)(i) Any 2 points (1) each [2] (g) On average are taking 22 days more than is allowed to pay credit suppliers This may be caused by the credit customers taking too long to pay May result in further supplies being refused Or other suitable points Any 2 points (1) each [2] [Total: 22]

52 CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/23 Paper 2, maximum raw mark 120 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 will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the October/November 2015 series for most Cambridge IGCSE, Cambridge International A and AS Level components and some Cambridge O Level components. IGCSE is the registered trademark of Cambridge International Examinations.

53 Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) (i) Lack of funds No signature Amount in words and figures differ No date Or other suitable reason Any 1 reason (1) [1] (ii) This is a contra entry (1) Cash has been withdrawn from the bank for business use (1) [2] (iii) Money received from sales: some retained in cash and some paid into the bank (1) [1] (iv) ( + 13) = 100 = 2½% (1) [1] 1 (v) Debited (1) to the discount allowed account (1) [2] (vi) = 277 (1) [1] (b) Paul Chew Bank Reconciliation Statement at 30 September 2015 $ $ Balance shown on bank statement (43) (1) Add Amounts not credited 560 (1) Cheque not yet credited Yeung & Co 267 (1) Less Cheque not yet presented K Tan 507 (1) Balance shown in cash book 277 (1) OF Alternative form of presentation acceptable [5]

54 Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Document Paul Chew s book of prime (original) entry Kim Chan s book of prime (original) entry Paul Chew sold goods on credit to Kim Chan Invoice (1) Sales Journal (1) Purchases Journal (1) Kim Chan notified Paul Chew of an overcharge Debit note (1) No entry (1) No entry (1) Paul Chew notified Kim Chan that he agreed the overcharge Credit note (1) Sales Returns Journal (1) Purchases Returns Journal (1) Paul Chew sent Kim Chan a summary of the month s transactions Statement of account (1) No entry (1) No entry (1) [12] [Total: 25]

55 Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Ishmael Makumbo Rent receivable account $ $ Sept 1 Balance b/d (1) Sept 2 Bank (1) Aug 31 Income statement (1) Jan 3 Bank }(1) May 4 Bank } Aug 31 Balance c/d Sept 1 Balance b/d (1)OF + (1) for dates Three column running balance presentation acceptable [6] (b) Current assets (1) It is an amount owing to Ishmael Makumbo (1) [2] (c) Ishmael Makumbo Motor expenses account $ $ Sept 7 Bank 274 (1) Sept 1 Balance b/d 274 (1) Feb 1 Cash 96 (1) Aug 31 Income statement 209 (1) Aug 31 Balance c/d Sept 1 Balance b/d 113 (1) + (1) for dates Three column running balance presentation acceptable [6]

56 Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (d) Ishmael Makumbo Journal Debit $ Credit $ Drawings Purchases Goods taken for own use (1) (1) (1) Drawings Telephone expenses Personal telephone expenses transferred to drawings account (1) (1) (1) One composite journal entry acceptable [6] [Total: 20]

57 Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) Error 1 Error of omission (1) 2 Error of principle (1) 3 Error of reversal (1) [3] (b) Sally Rickard Corrected Trial Balance at 31 October 2015 Revenue Purchases Wages Motor expenses ( ) General expenses ( ) Premises at cost Equipment and fixtures at cost Motor vehicle at cost ( ) Provision for depreciation of equipment and fixtures Provision for depreciation of motor vehicles Trade receivables ( ) Provision for doubtful debts Trade payables Cash ( ) Bank overdraft ( ) Loan from AB Loans Drawings Capital Inventory 1 November 2014 Debit $ Credit $ (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)OF (1) (1)OF [13]

58 Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (c) Increase Effect on profit Decrease Accounting principle An amount owing by a credit customer should have been written off (1) Prudence OR Accruals / matching (1) The general expenses includes rates which were prepaid until 31 December (1) Accruals/ matching (1) Goods invoiced and despatched to a customer were not recorded as the customer did not receive them until 3 November 2015 (1) Realisation (1) No record had been made of goods taken for personal use (1) Business Entity (1) [8] [Total: 24]

59 Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) (i) Cost of sales } (1) Average inventory } (ii) } (1) = 5.42 times (1) } [1] [2] (iii) Higher inventory levels Lower sales activity Or other suitable reason Any 2 reasons (1) each [2] (b) (i) Lower of cost and net realisable value (1) [1] (ii) Prudence (1) [1] (c) Extract from Statement of Financial Position at 31 July 2015 Sanch Syed Mirza Mirza Total $ $ $ Capital account (1) (1) Current account (3 500) (1) (1) (1 000) (1) [5] (d) (i) Profit for the year (or profit for the year before interest) 100 }(1) [1] Capital employed 1 } (ii) }(1) OF} 100 = 10.11% (1) OF [2] 1 (iii) Lower profit for the year Higher capital employed Any 1 reason (1) [1]

60 Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (e) (i) To compensate him for investing the most capital To encourage Sanchi to invest more Or other suitable reason Any 2 reasons (1) each [2] (ii) To penalise Sanchi for making more drawings To discourage Sanchi from making excessive drawings Or other suitable reason Any 1 reasons (1) mark [1] (iii) To compensate Sanchi for extra workload To reward Sanchi for extra skills Or other suitable reason Any 1 reasons (1) mark [1] (f) (i) trade payable credit purchases 365 }(1) [1] 1 } }(1) (ii) = 49 days (1) [2] } (iii) Exceeds credit allowed May find it difficult to obtain further supplies May damage relationship with suppliers May not be able to take advantage of cash discount from suppliers Or other relevant comment Any 2 comments (1) each [2] (g) Reduces liquidity May find it difficult to pay trade payables May find it difficult to pay running expenses May lead to bank overdraft Cannot take advantage of business opportunities when they arise May not be able to take advantage of cash discount from suppliers Or other relevant comment Any 2 comments (1) each [2] [Total: 27]

61 Page 10 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (a) $ Subscription received (1) Less amount for previous year 360 (1) Less amount for following year 270 (1) Add amount prepaid at start 450 (1) Subscription for the year (1) Alternative forms of presentation acceptable [5] (b) (c) Hills Road Youth Club Refreshment Income Statement for the year ended 31 October 2015 $ $ Sales of refreshments (1) Cost of sales Opening inventory 280 (1) Purchases (1) Closing inventory 310 (1) Profit in refreshments 480 (1) Hills Road Youth Club Income and Expenditure Account for the year ended 31 October 2015 $ $ Subscriptions Profit on refreshments Repairs to equipment 220 Insurance (1350 (1) 270 (1)) Rent of premises (1430 (1) (1)) General expenses Depreciation of equipment (1)OF 480 (1)OF (( ) (1) 6800 (1)) Deficit 120 (1)OF [5] [9]

62 Page 11 Mark Scheme Syllabus Paper Cambridge IGCSE October/November (d) Income and expenditure account includes non-monetary items Income and expenditure account has adjustments for accruals and prepayments Income and expenditure account includes only revenue items Or other suitable reason Any 2 reasons (1) each [2] (e) The members of the club have not invested any capital (1) so there can be no dividends/profit share which represent a return on capital invested (1) [2] (f) Accumulated fund arises from the surpluses the club has made (1) [1] [Total: 24]