Cambridge IGCSE™

ACCOUNTING 0452/23
Paper 2 October/November 2021
MARK SCHEME
Maximum Mark: 100

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the
details of the discussions that took place at an Examiners’ meeting before marking began, which would have
considered the acceptability of alternative answers.

Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for
Teachers.

Cambridge International will not enter into discussions about these mark schemes.

Cambridge International is publishing the mark schemes for the October/November 2021 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.

This document consists of 17 printed pages.

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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.

GENERIC MARKING PRINCIPLE 2:

Marks awarded are always whole marks (not half marks, or other fractions).

GENERIC MARKING PRINCIPLE 3:

Marks must be awarded positively:

• marks are awarded for correct/valid answers, as defined in the mark scheme. However, credit is given for valid answers which go beyond
the scope of the syllabus and mark scheme, referring to your Team Leader as appropriate
• marks are awarded when candidates clearly demonstrate what they know and can do
• marks are not deducted for errors
• marks are not deducted for omissions
• answers should only be judged on the quality of spelling, punctuation and grammar when these features are specifically assessed by the
question as indicated by the mark scheme. The meaning, however, should be unambiguous.

GENERIC MARKING PRINCIPLE 4:

Rules must be applied consistently, e.g. in situations where candidates have not followed instructions or in the application of generic level
descriptors.

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GENERIC MARKING PRINCIPLE 5:

Marks should be awarded using the full range of marks defined in the mark scheme for the question (however; the use of the full mark range
may be limited according to the quality of the candidate responses seen).

GENERIC MARKING PRINCIPLE 6:

Marks awarded are based solely on the requirements as defined in the mark scheme. Marks should not be awarded with grade thresholds or
grade descriptors in mind.

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Social Science-Specific Marking Principles
(for point-based marking)

1 Components using point-based marking:

• Point marking is often used to reward knowledge, understanding and application of skills. We give credit where the candidate’s answer
shows relevant knowledge, understanding and application of skills in answering the question. We do not give credit where the answer
shows confusion.

From this it follows that we:

a DO credit answers which are worded differently from the mark scheme if they clearly convey the same meaning (unless the mark
scheme requires a specific term)
b DO credit alternative answers/examples which are not written in the mark scheme if they are correct
c DO credit answers where candidates give more than one correct answer in one prompt/numbered/scaffolded space where extended
writing is required rather than list-type answers. For example, questions that require n reasons (e.g. State two reasons …).
d DO NOT credit answers simply for using a ‘key term’ unless that is all that is required. (Check for evidence it is understood and not used
wrongly.)
e DO NOT credit answers which are obviously self-contradicting or trying to cover all possibilities
f DO NOT give further credit for what is effectively repetition of a correct point already credited unless the language itself is being tested.
This applies equally to ‘mirror statements’ (i.e. polluted/not polluted).
g DO NOT require spellings to be correct, unless this is part of the test. However spellings of syllabus terms must allow for clear and
unambiguous separation from other syllabus terms with which they may be confused (e.g. Corrasion/Corrosion)

2 Presentation of mark scheme:

• Slashes (/) or the word ‘or’ separate alternative ways of making the same point.
• Semi colons (;) bullet points (•) or figures in brackets (1) separate different points.
• Content in the answer column in brackets is for examiner information/context to clarify the marking but is not required to earn the mark
(except Accounting syllabuses where they indicate negative numbers).

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3 Calculation questions:
• The mark scheme will show the steps in the most likely correct method(s), the mark for each step, the correct answer(s) and the mark
for each answer
• If working/explanation is considered essential for full credit, this will be indicated in the question paper and in the mark scheme. In all
other instances, the correct answer to a calculation should be given full credit, even if no supporting working is shown.
• Where the candidate uses a valid method which is not covered by the mark scheme, award equivalent marks for reaching equivalent
stages.
• Where an answer makes use of a candidate’s own incorrect figure from previous working, the ‘own figure rule’ applies: full marks will be
given if a correct and complete method is used. Further guidance will be included in the mark scheme where necessary and any
exceptions to this general principle will be noted.

4 Annotation:
• For point marking, ticks can be used to indicate correct answers and crosses can be used to indicate wrong answers. There is no direct
relationship between ticks and marks. Ticks have no defined meaning for levels of response marking.
• For levels of response marking, the level awarded should be annotated on the script.
• Other annotations will be used by examiners as agreed during standardisation, and the meaning will be understood by all examiners
who marked that paper.

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Question Answer Marks

1(a) $ 3
Payments to trade payables 257 700
Less Opening trade payables 32 600 (1)
225 100
Add Closing trade payables 29 600 (1)
Purchases 254 700 (1)

Accept alternative forms of presentation

1(b) Shiv 11
Income Statement for the year ended 31 August 2021

$ $
Revenue 320 000 (1)
Cost of sales
Opening inventory 23 500
Purchases 254 700 (1) OF
278 200
Closing inventory 22 200 (2) CF/(1) OF
256 000 (1) OF
Gross profit 64 000 (1)
Expenses (34 000 + 400 (1) – 900 (1)) 33 500
Provision for doubtful debts 777 (1)
Depreciation of equipment
(16 000 – 12 800) 3 200 (1)
37 477
Profit for the year 26 523 (1) OF

1(c) Business entity (1) 1

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Question Answer Marks

1(d) Inventory should be valued at the lower of cost and net realisable value (1) 5
Cost of sales would be understated (1)
The profit will be overstated/profit will not be shown at a realistic level (1)
The current assets/inventory will be overstated (1)
Prudence principle is not being observed (1)
Consistency principle is not being observed (1)
Comparison with previous years/competitors would not be accurate (1)
Accounting records must present a realistic view of the business (1)
Accept other valid points

Max (5)

Question Answer Marks

2(a) 4
Capital Revenue
expenditure expenditure

Building new extension to warehouse 

Rates on new extension  (1)

Carriage costs for roof tiles for new extension  (1)

Legal costs for new extension  (1)

Repairs to office roof  (1)

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Question Answer Marks

2(b) 5
Rent warehouse Purchase warehouse

No initial outlay OR Has to raise an additional $200 000 (1)

in order to purchase

Little or no maintenance/repair cost OR Will be maintenance/repair (1)

costs/depreciation

The non-current asset is not owned OR Will own an additional non-current (1)
asset/gets fixed asset/owns a
warehouse

Loan must be repaid (1)

Will have to pay loan interest (1)

Warehouse may not be required if (1)

trade decreases in future

Premises may not be available on a long (1)

term basis

Rent may increase after 6 months (1)

Can vacate the premises after 6 months

(is flexible)

Max (2) Max (2)

Accept other valid points

Recommendation (1)

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Question Answer Marks

2(c) Jas 8
Fixtures account

Date Details $ Date Details $

2020 2020
Jan 1 Balance b/d 115 000 Jun 30 Fixtures disposal (1) 20 000
Bank (1) 30 000 31 Balance c/d 125 000
145 000 145 000
2021
Jan 1 Balance b/d (1) 125 000

Provision for depreciation of fixtures account

Date Details $ Date Details $

2020 2020
Jun 30 Fixtures disposal (1) 11 250 Jan 1 Balance b/d 77 625
Dec 31 Balance c/d 96 750 Dec 31 Income statement
21 375 (1)
2 250 (1)
______ 6 750 (1) 30 375
108 000 108 000
2021
Jan 1 Balance b/d (1)OF 96 750

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Question Answer Marks

2(d) Jas 3
Fixtures disposal account

Date Details $ Date Details $

2020 2020
Jun 30 Fixtures 20 000 Jun 30 Prov. for Dep. (1)OF 11 250
Bank (1) 6 000
Dec 31 Income
______ statement (1)OF 2 750
20 000 20 000

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Question Answer Marks

3(a) Anil 12
Journal

Error Details Debit Credit

$ $

1 Suspense 7100
Sales 7100 (1)
(1)

2 Sales returns 520 (1)

Purchases 520 (1)
Suspense 1040 (2)
OR
Sales returns 520 (1)
Suspense 520 (1)
Purchases 520 (1)
Suspense 520 (1)

3 Bank charges 320 (1)

Suspense 320 (1)

4 Bank 1200
Suspense 600 (2)
Insurance 600 (1)
OR (1)
Bank 1200
Suspense 1200 (1)
Suspense 600 (1)
Insurance 600 (1)
(1)

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Question Answer Marks

3(b) Anil 6
Suspense account

Date Details $ Date Details $

Sales (1) 7100 Difference on trial

balance 5140
Sales returns (1) 520
Purchases (1) 520
Bank charges (1) 320
____ Bank (1) 600
7100 7100

+(1) for matching totals OR for an own figure balance brought down

Alternative presentation if used alternative journal entry for error 4 in 3(a)

Date Details $ Date Details $

Sales (1) 7100 Difference on trial

Insurance (1) 600 balance 5140
Sales returns (1) 520
Purchases (1) 520
Bank charges (1) 320
____ Bank (1) 1200
7700 7700

3(c) Commission, compensating, complete reversal, omission, original entry, principle 2

Any 2 × 1 mark

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Question Answer Marks

4(a) Karishma 10
Insurance account

Date Details $ Date Details $

2020 2021
Oct 1 Balance b/d (1) 1700 Feb 28 Bank (1) 300
2021 Sep 30 Income statement
Feb 7 Bank } 3400 (1)OF 6200
Aug 13 Bank }(1) 3500 Balance c/d 2100
8600 8600
2021
Oct 1 Balance b/d (1) 2100

Electricity account

Date Details $ Date Details $

2020 2020
Oct 14 Bank } 1800 Oct 1 Balance b/d (1) 1800
2021 } 2021
Jan 24 Bank }(1) 1800 Sep 30 Income
May 26 Bank } 1800 statement (1)OF 5600
Sep 30 Balance c/d 2000 ____
7400 7400
2021
Oct 1 Balance b/d (1) 2000

Dates (1)

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Question Answer Marks

4(b) Advantages 5
Fixed monthly payment (1)
Payments would be made automatically (1)
More difficult to fall behind with payments (1)
Cheaper than existing contract (1)
Helps with planning expenditure (1)
Accept other valid points

Max (2)

Disadvantages
Would lose control of her payment schedule/ would not be able to pick and choose when to make the payments (1)
Bank charges might increase (1)
Tied to two-year contract (1)
Need to consider reliability of new supplier (1)
Possible price increase after two years (1)
Accept other valid points

Max (2)

Recommendation (1)

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Question Answer Marks

4(c) Karishma 4
Rent receivable account

Date Details $ Date Details $

2021 2020
Sep 30 Income Oct 1 Bank } 800
statement (1)OF 1965 2021 }
Balance c/d 510 Mar 2 Bank }(1) 825
____ Aug 8 Bank } 850
2475 2475
2021
Oct 1 Balance b/d (1) 510

Dates (1)

4(d) Current liabilities 1

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Question Answer Marks

5(a) VL Sports Club 8

Subscriptions account

Date Details $ Date Details $

2020 2020
Jan 1 Balance b/d (1) 700 Jan 1 Balance b/d (1) 1 100
Dec 31 Income and Dec 31 Bank (1) 19 200
expenditure (1)OF 19 080 Irrecoverable debts(1) 80
Balance c/d 900 Balance c/d 300
20 680 20 680
2021 2021
Jan 1 Balance b/d (1) 300 Jan 1 Balance b/d (1) 900

Dates (1)

5(b) VL Sports Club 9

Income and Expenditure Account for the year ended 31 December 2020

$ $
Income
Subscriptions 19 080 (1)OF
Competition receipts 7 300
cost of prizes 4 100 3 200 (1)
Dinner dance ticket sales 6 500
costs 6 200 300 (1)
22 580
Expenditure
General expenses
(11 500 – 400(1) + 500(1)) 11 600
Irrecoverable debt 80 (1)
Depreciation of equipment
(23 000 + 12 000 – 30 000) 5 000 (1) 16 680
Surplus for the year 5 900 (2)CF/(1)OF

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Question Answer Marks

5(c) Advantages 3
Cash received earlier (1)
Reduced risk of irrecoverable subscriptions/reduced risk of subscriptions in arrears (1)
Reduction in administration costs (1)
May encourage new members to join (1)
Accept other valid points
Max (1)

Disadvantages
Less cash received (1)
Possible reduction in membership (1)
Difficulty of monitoring varying subscription rates (1)
Reduces the surplus for the year (1)
Accept other valid points
Max (1)

Recommendation (1)

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