Cambridge Assessment International Education: Accounting 0452/11 May/June 2019

Cambridge Assessment International Education
Cambridge International General Certificate of Secondary Education
ACCOUNTING 0452/11
Paper 1 May/June 2019
MARK SCHEME
Maximum Mark: 120
Published
This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.
Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.
Cambridge International will not enter into discussions about these mark schemes.
Cambridge International is publishing the mark schemes for the May/June 2019 series for most
Cambridge IGCSE™, Cambridge International A and AS Level and Cambridge Pre-U components, and
some Cambridge O Level components.
This document consists of 17 printed pages.
© UCLES 2019 [Turn over

0452/11 Cambridge IGCSE – Mark Scheme May/June 2019
PUBLISHED
Generic Marking Principles
These general marking principles must be applied by all examiners when marking candidate answers. They should be applied alongside the
specific content of the mark scheme or generic level descriptors for a question. Each question paper and mark scheme will also comply with these
marking principles.
GENERIC MARKING PRINCIPLE 1:
Marks must be awarded in line with:
• the specific content of the mark scheme or the generic level descriptors for the question
• the specific skills defined in the mark scheme or in the generic level descriptors for the question
• the standard of response required by a candidate as exemplified by the standardisation scripts.
Marks awarded are always whole marks (not half marks, or other fractions).
Marks must be awarded positively:
• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond the
scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.
Rules must be applied consistently e.g. in situations where candidates have not followed instructions or in the application of generic level descriptors.
Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range may be
limited according to the quality of the candidate responses seen).
© UCLES 2019 Page 2 of 17
PUBLISHED
Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or grade
descriptors in mind.

PUBLISHED
Question Answer Marks
1(a) B 1
1(b) B 1
1(c) C 1
1(d) D 1
1(e) A 1
1(f) A 1
1(g) C 1
1(h) D 1
1(i) C 1
1(j) B 1

PUBLISHED
2(a) 4
book of prime (original) entry
returns to credit suppliers purchases returns journal (1)
cheques received from credit cash book (1)

customers
contra entry general journal (1)
bad debts written off general journal (1)
2(b) 7
no
debit credit
entry
credit sales 9 (1)
cash sales 9 (1)
cash refund to credit customer 9 (1)
cash discount allowed by credit suppliers 9 (1)
contra entry 9 (1)
trade discount allowed to credit customers 9 (1)
interest charged on credit customer’s

9 (1)
overdue account
2(c)(i) A bad debt is an amount owing to a business which will not be paid by the credit customer 1
2(c)(ii) A bad debt recovered is when a credit customer pays some or all of the amount owed after the amount was written off as a 1
bad debt.
2(c)(iii) A provision for doubtful debts is an estimate of the amount which a business will lose in a financial year because of bad debts. 1

PUBLISHED
2(d) Olivia 4
Ben account
Date Details $00 Date Details $00
2019 2019
Jan 2 Sales 360 Apr 30 Cash 200 (1)
Bad debts 160 (1)
360 360
Bad debts account

2019 2019
Apr 30 Total to date 384 Apr 30 Income statement
Ben (1) OF 160 (1) OF
544
544 544
2(e) Olivia 4
Provision for doubtful debts account

2019 2018
Apr 30 Income statement* May 1 Balance b/d (1) 405
(1) OF
21
Balance c/d (1) 384
405 405
2019
May 1 Balance b/d (1) OF 384

PUBLISHED
3(a) To check the arithmetical accuracy of / check for errors in the double entry (book-keeping) (1) 2
To assist with the preparation of financial statements (1)
3(b) Commission 6
Example: debiting Khan instead of Kean with cash paid to Kean
Complete reversal
Example: debiting sales and crediting cash with cash sales
Compensating
Example: sales and purchases accounts overcast by same amount
Principle
Example: debiting motor vehicles account with motor expenses
Omission
Example: drawings completely omitted from accounting records
Original entry
Example: amount of sales invoice entered incorrectly in sales journal
Any three – (1) each for naming error

(1) for a suitable example

PUBLISHED
3(c) Kadar 9
Trial Balance at 31 March 2019
Debit Credit
$00 $00
Revenue 146 000 (1)
Purchases 137 300
Sales Returns 1 400 (1)
Carriage outwards 2 970 (1)
Fixtures and fittings (at cost) 45 000
Provision for depreciation of
fixtures and fittings 18 000
Motor vehicle (at cost) 16 850
Discount allowed 190 (1)
Discount received 230
Trade payables 14 600
Trade receivables 12 900
Operating expenses 17 190
Rent payable 5 200 (1)
Commission receivable 2 000 (1)
Bank overdraft 5 170
Capital 65 000 (1)
Inventory 1 April 2018 12 000 (1)
251 000 251 000
(1) Matching totals

PUBLISHED
3(d) 1 year’s insurance 6

Revenue (expenditure) (1)
This is a day-to-day cost of running the business (1)
Delivery charge
Capital (expenditure) (1)
This is a cost incurred in the purchase of the non-current asset (1)
Fuel
Revenue (expenditure) (1)
This is a day-to-day cost of running the business (1)

PUBLISHED
4(a) YK Club 5
Shop Income Statement for the year ended 31 January 2019
$00 $00
Revenue 5 170 (1) OF
Cost of sales
Opening inventory 896
Purchases
(4150 – 420 (1) + 470 (1)) 4 200
5 096
Closing inventory 960 (1)* 4 136
Profit on shop 1 034 (1) OF
*For both inventories

PUBLISHED
4(b) 11
Receipts and Income and Statement of
payments expenditure financial
account account position
$ $ $ $
Balance at bank on 1 February 2018 460 given
Insurance paid on 1 February 2018 for

18 months to 31 July 2019 1 080 1 080 (1) 720 (1) 360 (1)
Purchase of new sports equipment by

cheque in 31 December 2018 3 500 3 500 (1)
Subscriptions received in January 2019

for the year ending 31 January 2020 350 350 (1) 350 (1)
Accumulated depreciation of sports

equipment at 31 January 2019 850 850 (1)
Cost of sports equipment at 31 January

2019 8 500 8 500 (1)
Profit from club shop for the year ended

31 January 2019
(calculated in (a)) ? 1 034 (1)OF
Bank overdraft on 31 January 2019 1 250 1 250 (1) 1 250 (1)

PUBLISHED
4(c) Increase subscriptions / membership 2

Reduce expenses / obtain discounts
Seek donations
Obtain loans
Seek other forms of income e.g. renting out sports ground
Increase prices in club shop
Or other suitable methods (excluding fund-raising activities)

Any two (1) each

PUBLISHED
5(a) Krishna 13
Income Statement for the year ended 30 April 2019
$00 $00
Fees (from clients) (35 270 (1) + 2150 (1)) 37 420
Commission receivable (1820 (1) + 60 (1)) 1 880
39 300
Wages 24 300
(1)
Operating expenses 4 260
Rent and rates (7750 (1) + 1200 (1) – 550
(1) = 8400 × ¾ (1) 6 300
Motor expenses 720 (1)
Depreciation of office fixtures and
equipment (18 900 – 17 320) 1 580 (1)
Provision for depreciation of motor vehicles
(20% × 17 500 – 6300) 2 240 (1) 39 400
Loss for the year 100 (1) OF

PUBLISHED
5(b) Krishna 5
Drawings account

2019 2019
Apr 30 Total cash drawings 9 150 Apr 30 Capital (1) OF 11 250
Rent and rates (1) OF 2 100
11 250 11 250
Capital account

2019 2018
Apr 30 Drawings (1) OF 11 250 May 1 Balance b/d 38 000
* Income statement
(1) OF 100
Balance c/d 26 650 2019
38 000 May 1 38 000
Balance b/d (1) OF 26 650
5(c) Will have to pay interest on loan (1) of $2400 per annum (1) 6
No rent will be payable (1) so expenses decrease (1)
Other expenses may increase (1) as expenses such as repairs, maintenance and insurance will be payable (1)
The bank loan will have to be repaid in 5 years (1) Will the necessary funds be available? (1)
Alternative uses of the capital of 40k (1) could she gain more through investing elsewhere? (1)
Or other valid points e.g. does she have adequate security?

Any three factors (1) + basic statement (1) for development

PUBLISHED
6(a) 5
True False
The reward given to ordinary shareholders for

9
investing in the company is known as a dividend.
The amount of issued shares for which payment has

been received by the company from shareholders is 9 (1)
known as paid-up share capital.
Ordinary shareholders receive a fixed percentage of

9 (1)
the profit each year.
In the event of the company being wound up the

9 (1)
ordinary shares are the last to be repaid.
Ordinary shareholders are personally liable for the

9 (1)
debts of the company.
Any ordinary share dividend paid during the financial

year is entered in the statement of changes of equity 9 (1)
irrespective of the year to which it relates.

PUBLISHED
6(b) ML Limited 6
Statement of Changes in Equity for the year ended 31 December 2018
Ordinary
Retained General
share Total
earnings reserve
capital
$00 $00 $00 $00
On 1 January 2018 (1) 200 000 16 500 8 000 224 500
Profit for the year (1) 28 000 28 000
Dividend paid – final (1) (8 000) (8 000)
interim (1) (6 000) (6 000)
Transfer to general reserve (1) (3 000) 3 000
On 31 Dec 2018 (1)OF 200 000 27 500 11 000 238 500
6(c) 6000 × 100 2

(1) whole formula = 3% (1)
200 000
6(d) Carry a fixed rate (of dividend) 3

Dividend may not be paid if there is not enough profit
Dividend is paid before ordinary share dividend
Do not usually carry voting rights
Capital is repaid before ordinary share capital in a winding-up
Are not secured on the assets of the company
Or other valid answers

Any three (1) each

PUBLISHED
6(e) Are long-term loans 3

Debenture holders are not members of the company
Do not carry voting rights
Carry a fixed rate (of interest)
Interest is not dependent on the company’s profit
Are often secured on the assets of the company
Debenture holders are repaid before shareholders in a winding-up
Other valid answers

Any three (1) each
6(f) 4
Increase Decrease No Effect
$ $
Effect on balance at bank 100 000
effect on non-current liabilities 100 000 (1)
effect on working capital 100 000 (1)
effect on equity at 1 January 2019 9(1)
effect on annual profits 5 000 (1)

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Cambridge Assessment International Education

Cambridge International General Certificate of Secondary Education

This document consists of 17 printed pages.

© UCLES 2019 [Turn over

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

GENERIC MARKING PRINCIPLE 2:

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

GENERIC MARKING PRINCIPLE 4:

GENERIC MARKING PRINCIPLE 5:

© UCLES 2019 Page 3 of 17

© UCLES 2019 Page 4 of 17

returns to credit suppliers purchases returns journal (1)

cheques received from credit cash book (1)

contra entry general journal (1)

bad debts written off general journal (1)

credit sales 9 (1)

cash sales 9 (1)

cash refund to credit customer 9 (1)

cash discount allowed by credit suppliers 9 (1)

contra entry 9 (1)

trade discount allowed to credit customers 9 (1)

interest charged on credit customer’s

© UCLES 2019 Page 5 of 17

Bad debts account

Date Details $00 Date Details $00

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Any three – (1) each for naming error

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3(d) 1 year’s insurance 6

© UCLES 2019 Page 9 of 17

*For both inventories

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Balance at bank on 1 February 2018 460 given

Insurance paid on 1 February 2018 for

Purchase of new sports equipment by

Subscriptions received in January 2019

Accumulated depreciation of sports

Cost of sports equipment at 31 January

Profit from club shop for the year ended

Bank overdraft on 31 January 2019 1 250 1 250 (1) 1 250 (1)

© UCLES 2019 Page 11 of 17

4(c) Increase subscriptions / membership 2

Or other suitable methods (excluding fund-raising activities)

© UCLES 2019 Page 12 of 17

© UCLES 2019 Page 13 of 17

Date Details $00 Date Details $00

Date Details $00 Date Details $00

Balance b/d (1) OF 26 650

Or other valid points e.g. does she have adequate security?

© UCLES 2019 Page 14 of 17

The reward given to ordinary shareholders for

The amount of issued shares for which payment has

Ordinary shareholders receive a fixed percentage of

In the event of the company being wound up the

Ordinary shareholders are personally liable for the

Any ordinary share dividend paid during the financial