CAMBRIDGE INTERNATIONAL EXAMINATIONS

International General Certificate of Secondary Education

MARK SCHEME for the May/June 2014 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 May/June 2014 series for most IGCSE, GCE
Advanced Level and Advanced Subsidiary Level components and some Ordinary Level components.
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IGCSE – May/June 2014 0452 11

1 (a) D

(b) B

(c) A

(d) C

(e) B

(f) C

(g) D

(h) C

(i) C

(j) B

(1) each [10]

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2 (a)
Account Ledger

Insurance nominal/general (1)

Sales nominal/general (1)

Purchases nominal/general (1)

Lottie, a supplier purchases (1)

Matthew, a credit customer sales (1)

Capital nominal/general (1)

[6]

(b) Cash book

Petty cash book
General journal
Any one (1) [1]

(c) To reduce number of entries/detail in sales account

Allows work to be shared between several people
Provides list of credit sales
Any 1 reason (2) [2]

(d) Elinor account

$ $
Apl 1 Balance b/d 120 (1) Apl 17 Returns 46 (1)
16 Sales 320 (1) 30 Balance c/d 394 (1)
440 440
May 1 Balance b/d 394 (1)OF

Sales account
$
Apl 30 Credit sales
for month 920 (1)

Sales returns account

$
Apl 30 Sales returns
for month 151 (1)

+ (1) dates [8]

(e) 260 × 0.95 (1) = $247 (1)

OR 260 – 13 (1) = $247 (1)
OR 260 – 5% = $247 (2) [2]

(f) Sales ledger control account. (1) [1]

[Total: 20]

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3 (a) Highfield Manufacturing Limited

Bad debts account
2014 $ 2014 $
Feb 28 Debtor 1100 (1) Feb 28 Income
Statement 1100 (1)
1100 1100

Bad debts recovered account

2014 $ 2014 $
Feb 28 Income Feb 28 Bank/cash/
Statement 200 (1) debtor 200 (1)
200 200

Provision for doubtful debts account

2014 $ 2014 $
Feb 28 Balance c/d 3755 (1) Mar 1 Balance b/d 2966 (1)
2015
Feb 28 Income
____ Statement (1) 789 (1)OF
3755 3755
2015
Mar 1 Balance b/d 3755 (1)OF [9]

(b) (i) Any expense/loss for the financial year (1) is matched/set against the revenue for that
same period (1) [2]

(ii) Ensures that the profit for the year is not overstated (1)
Ensures that the trade receivables/ current assets are not overstated (1) [2]

(c) Direct materials plus direct labour (1) plus direct expenses (1)
OR
Cost of production excluding overheads (2) [2]

(d) Cost of production (1) [1]

(e) (i)
Ordinary shares Preference shares

Variable rate of dividend Fixed rate of dividend

Carry voting rights Do not carry voting rights
Rank after preference shares for Rank before ordinary shares for payment
payment of dividend of dividend
Rank after preference shares in a winding Rank before ordinary shares in a winding
up up

Any 1 comparative statement (2) [2]

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(ii)
Ordinary shares Debentures

Variable rate of dividend Fixed rate of interest

Holders receive dividend Holders receive interest
Holders are members of the company Holders are creditors
Are equity Are long term loans
Carry voting rights Do not carry voting rights
Rank after debentures in a winding up Rank before ordinary shares in a winding up

Any 1 comparative statement (2) [2]

(f) $3000 (1) × 8/12 = $2000 (1) [2]

(g) Shareholders
Potential investors
Lenders
Bank
Trade creditors
Customers
Employees
Manager
Accountant
Government
Tax authorities
Any 2 parties (1) each [2]

[Total: 24]

4 (a) An amount paid by a member for the right to use the facilities of a club (1) [1]

(b) Some members of the club may be in arrears with their subscriptions (1) and other members
may have prepaid their subscriptions (1) [2]

(c)
Sole trader Club or society

Capital Accumulated fund (1)

Profit for the year Surplus (1)

Loss for the year Deficit (1)

[3]

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(d)
Debit Credit Receipts Income and
and expenditure
payments account
account

Depreciation charge

Proceeds of sale of equipment
(1)
(1)

Loss on disposal of equipment
(1)
(1)

Unpaid subscriptions written off
(1)
(1)

Purchase of new equipment
(1)
(1)

Profit on sale of refreshments
(1)
(1)

[10]

(e) Speedy Runners Sports Club

Income Statement (Trading Account) for the year ended 31 December 2013
$ $
Revenue 6150
Inventory – 1 January 380

Purchases (2480 (1) – 200 (1) + 220 (1)) 2500

2880

Inventory – 31 December 340 (1)OF

Cost of sales 2540 (1)

____
Gross profit 3610 [5]

(f) Members have not invested any capital (1) so there can be no drawings which represent
amounts taken from the return on an investment (1) [2]

(g) Financial statements are only useful if the information they contain can be compared with
previous periods or other businesses (2) [2]

[Total: 25]

5 (a) Timing (1) [1]

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(b) Miguel
Cash book (bank columns only)
2014 $ 2014 $
May 8 Gordon 920 (1) May 8 Balance b/d 2720
Balance c/d 1985 Insurance 120 (1)
____ Interest 65 (1)
2905 2905
2014
May 8 Balance b/d 1985 (2) CF
(1) OF [5]

(c) Miguel
Bank reconciliation statement at 7 May 2014
$ $
Balance on bank statement (1) (922) (1)
Add Amounts not yet credited Sales 2132 (1)
Charles 111 (1) 2243
1321
Less Cheques not yet presented Vehicle repairs 180 (1)
Francis 3126 (1) 3306
Balance in cash book (1) (1985) (1) OF

Alternative presentation
Miguel
Bank reconciliation statement at 7 May 2014
$ $
Balance in cash book (1) (1985) (1) OF
Add Cheques not yet presented Vehicle repairs 180 (1)
Francis 3126 (1) 3306
1321
Less Amounts not yet credited Sales 2132 (1)
Charles 111 (1) 2243
Balance on bank statement (1) (922) (1) [8]

(d) $66 (1) [1]

[Total: 15]

6 (a) Anton and Belle

Appropriation Account for the year ended 31 December 2013
$ $
Profit for the year 72 900 (1)
Interest on drawings – Anton 1 600 (1)
Belle 500 (1) 2 100
75 000
Interest on capital – Anton 10 000 (1)
Belle 8 000 (1)
18 000
Partner’s salary – Anton 12 000 (1) 30 000
45 000
Profit shares – Anton 30 000 (1) OF
Belle 15 000 (1) OF 45 000 [8]

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(b) Anton
Current account
2013 $ 2014 $
Jan 1 Balance b/d 10 400 (1) Dec 31 Int on Cap 10 000 (1) OF
2014 Salary 12 000 (1)
Dec 31 Drawings 32 000 (1) Profit share 30 000 (1) OF
Int on drawings 1 600 (1)
Balance c/d 8 000
52 000 52 000
2014
Jan 1 Balance b/d 8 000 (2) CF
(1) OF [8]

(c) $146 000 (1) + ($51 000 + $13 000) (1) = $210 000 (1)
($180 000 + $8000 + $10 000) (1) + $12 000 (1) = $210 000 (1) [3]

72 000 } (1)
(d) whole formula × 100 = 34.71% (2)CF/(1)OF [3]
210 000 OF}

(e) $72 900 (1) – $51 000 (1) + $15 000 (1) = $36 900 (1) [4]

[Total: 26]

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