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Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 Multiple Choice February/March 2022
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*5211423493*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

INSTRUCTIONS
 There are thirty-five questions on this paper. Answer all questions.
 For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
 Follow the instructions on the multiple choice answer sheet.
 Write in soft pencil.
 Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
 Do not use correction fluid.
 Do not write on any bar codes.
 You may use a calculator.

INFORMATION
 The total mark for this paper is 35.
 Each correct answer will score one mark.
 Any rough working should be done on this question paper.

This document has 12 pages. Any blank pages are indicated.

IB22 03_0452_12/4RP
© UCLES 2022 [Turn over
2

1 What is prepared by a book-keeper?

A appropriation account
B cash book
C income statement
D statement of financial position

2 Which item is an asset?

A an amount owing by credit customers

B an amount owing to credit suppliers
C interest accrued on bank loan
D rent received in advance from tenant

3 Fatima required additional finance for her business and borrowed funds from Ali. This was
deposited into the business bank account.

How should Fatima record this?

account to be debited account to be credited

A bank Ali (loan)

B bank Ali (trade payable)
C Ali (loan) bank
D Ali (trade payable) bank

4 On 1 March, a business owed its suppliers $9500. During March, the following transactions took
place.

goods purchased on credit 10 000

goods returned to suppliers 200
cheques paid to suppliers 8 900
cash discounts received 100

How much did the business owe its suppliers on 31 March?

A $800 B $1000 C $10 300 D $10 500

© UCLES 2022 0452/12/F/M/22

5 Which document from a supplier reduces the amount owed by a customer?

A credit note
B debit note
C invoice
D statement of account

6 What is recorded in a petty cash book?

A all cash transactions

B cash purchases and expenses only
C purchases of all small value items
D small cash transactions

7 Jacob settled the account of Ahmed, a credit supplier. He made the following entries on the credit
side of his cash book.

discount cash bank

$ $ $

Ahmed 5 195

Which entries did Jacob make on the debit side of Ahmed’s account?

A bank 195
B bank 200

C bank 195
discount allowed 5
D bank 195
discount received 5

8 The total of the debit column of a trial balance was more than the total of the credit column.

One account balance had been entered in the wrong column.

Which one was it?

A cash
B discount received
C drawings
D irrecoverable debts

© UCLES 2022 0452/12/F/M/22 [Turn over

9 Davi prepared the following journal entry to correct an error.

debit credit
$ $

Samir 40
Samuel 40

Which error was being corrected?

A Cash paid to Samir had been credited to Samuel.

B Cash received from Samuel had been debited to Samir.
C Goods bought from Samir had been credited to Samuel.
D Goods sold to Samir had been debited to Samuel.

10 A suspense account was opened with a credit balance of $840.

Which error caused this?

A A cheque for $420 received from a customer was debited to his account.
B Discounts allowed, $420, was debited twice in the discounts allowed account.
C Goods costing $420, taken by the owner of the business for own use, were credited to his
drawings account.
D Rent received, $420, was credited twice in the rent receivable account.

11 A trader calculated her profit for the year at $14 800. The following errors were then discovered.

No entry had been made for $200 wages accrued.

The insurance expense included a prepayment of $90.

What is the correct profit for the year?

A $14 510 B $14 690 C $14 910 D $15 090

12 Jack’s cash book showed an overdrawn balance at bank of $2600. Comparing the cash book
with the bank statement, it was discovered that direct debits of $200 had not yet been recorded
by Jack. He then updated his cash book.

What was the bank balance in Jack’s updated cash book?

A $2400 credit
B $2400 debit
C $2800 credit
D $2800 debit

© UCLES 2022 0452/12/F/M/22

13 Which item is debited in a sales ledger control account?

A cash discount
B contra entry
C interest on overdue account
D provision for doubtful debts

14 Leroy provided the following information for May.

May 1 balance owing to credit suppliers 420

31 credit purchases 590
returns to credit suppliers 110
cheques paid to credit suppliers 291
discount received from credit suppliers 9
interest charged by a credit supplier 5

What was the balance on his purchases ledger control account on 1 June?

A $595 B $605 C $613 D $623

15 Which item should be treated as capital expenditure?

A the annual depreciation on office premises

B the cost of building an office extension
C the cost of repairing office equipment
D the purchase of a new computer for resale

16 On the last day of the financial year, Khalid purchased office fittings, $900. This was incorrectly
recorded as office expenses, $90.

Khalid does not charge depreciation in the year of purchase.

What was the effect on the profit for the year?

A overstated by $810
B overstated by $990
C understated by $90
D understated by $900

© UCLES 2022 0452/12/F/M/22 [Turn over

17 Aggie is a trader. She uses the following methods of depreciation for different types of
non-current asset.

straight-line at 20% per annum

reducing balance at 25% per annum
revaluation

On 1 January year 1, Aggie purchased small items of equipment costing a total of $2400 and
fittings costing $8000.

On 31 December year 2, Aggie estimated that the equipment was worth 70% of its original cost.

The statement of financial position showed the net book value of equipment as $1680 and fittings
as $4800.

Which depreciation methods has Aggie used?

equipment fittings

A reducing balance straight-line

B revaluation reducing balance
C revaluation straight-line
D straight-line revaluation

18 Abeo prepares financial statements to 31 December each year.

Abeo bought machinery for $40 000 on 1 January year 1. He charges depreciation on machinery
at 20% per annum using the reducing balance method. Depreciation is charged in the year of
purchase but not in the year of disposal.

On 1 January year 3, the machinery was sold for $22 000.

Which journal entry records the profit or loss on disposal of the machine?

debit credit
$ $

A disposal of machinery 2000

income statement 2000
B disposal of machinery 3600
income statement 3600
C income statement 2000
disposal of machinery 2000
D income statement 3600
disposal of machinery 3600

© UCLES 2022 0452/12/F/M/22

19 Why would a business record the amount owing by a credit customer as an irrecoverable debt?

A The customer has gone out of business.

B The customer has liquidity problems.
C The customer is making a loss.
D The customer is not satisfied with the goods.

20 Anji maintains a provision for doubtful debts at 5% of the trade receivables at the end of each
financial year. At the start of the financial year, the trade receivables were $2000. At the end of
the financial year, the trade receivables were $4500.

Which entry would be made in the income statement for the financial year?

A $125 as an expense
B $125 as an income
C $325 as an expense
D $325 as an income

21 Which businesses do not prepare a trading account section of an income statement?

1 furniture store
2 insurance company
3 newsagent
4 toy shop
5 window-cleaner

A 1 and 2 B 2 and 5 C 3 and 4 D 3 and 5

22 A business provided the following information.

current assets 25 000

current liabilities 12 000
non-current assets 18 000
non-current liabilities 21 000

What was the capital of the business?

A $10 000 B $22 000 C $31 000 D $43 000

© UCLES 2022 0452/12/F/M/22 [Turn over

23 A trader bought a machine for use in the business. He paid a part of the cost in cash and agreed
to pay the remaining part in 15 months’ time.

In addition to the non-current assets, which items in the statement of financial position will
increase as a result of this transaction?

current current non-current

assets liabilities liabilities

A
B
C
D

24 What is the purpose of a partnership appropriation account?

A to calculate partners’ salaries

B to record partners’ drawings
C to show the distribution of profits between partners
D to show the movement on partners’ capital accounts

25 James is a partner in a business. He made a loan to the business and received loan interest.

What is the double entry in the books of the partnership for the loan interest James has received?

debit credit

A bank account James current account

B interest on loan account bank account
C interest on loan account James current account
D James current account bank account

26 A limited company whose capital consisted of ordinary shares ceased trading and was not able to
pay its debts.

Which statement is correct?

A Shareholders would have to pay a proportion of the debt based on the number of shares
owned.
B Shareholders would have to pay a proportion of the debt based on the value of shares
owned.
C Shareholders would have to sell their personal possessions to pay the debts of the company.
D Shareholders would lose the money that was paid when the shares were first purchased.

© UCLES 2022 0452/12/F/M/22

27 A limited company was formed on 1 June 2021.

On that date, the company issued 500 000 $1 shares. Shareholders were asked to pay 60% of
the cost immediately, with the remainder being payable by 1 June 2022.

By 1 August 2021, all shareholders had paid what was due at that date.

What was the share capital of the company on 1 August 2021?

called-up capital paid-up capital

$ $

A 200 000 300 000

B 300 000 300 000
C 500 000 300 000
D 500 000 500 000

28 There are 120 members of a sports club. The annual subscription is $60.

At the beginning of the year, no members had paid in advance and no members had
subscriptions outstanding.

At the end of the year, 7 members had not paid and 3 members had paid in advance.

Which amount was shown for subscriptions in the income and expenditure account?

A $6600 B $6960 C $7200 D $7800

29 What is shown in a manufacturing account?

1 cost of material consumed

2 purchases of finished goods
3 cost of production
4 cost of sales

A 1 and 2 only
B 1 and 3 only
C 1, 2 and 3 only
D 1, 2, 3 and 4

© UCLES 2022 0452/12/F/M/22 [Turn over

30 Tarek produced a statement of affairs at 31 December year 1 and at 31 December year 2.

During year 2, his long-term loan increased by $3000 and his net current assets decreased by
$1000. Depreciation for the year was $500.

By how much did the total of Tarek’s capital decrease?

A $2500 B $3500 C $4000 D $4500

31 Wayne provided the following information.

$ $

revenue 12 800
opening inventory 1 000
purchases 10 500
11 500
closing inventory 1 600 9 900
gross profit 2 900

What was Wayne’s gross profit margin?

A 22.66% B 25.22% C 27.62% D 29.29%

32 A trader provided the following information for the year ended 31 December.

total cash and credit purchases of goods for re-sale 150 000
cash purchases of goods for re-sale 17 000
credit purchases of non-current assets 25 000

His trade payables at that date were $8000.

What was the trade payables turnover?

A 17 days
B 20 days
C 22 days
D 24 days

© UCLES 2022 0452/12/F/M/22

33 A trader decided to reduce her level of inventory in order to reduce the storage costs.

Sales quantity and selling price were not affected.

How did this affect profit for the year and the rate of inventory turnover?

profit for rate of inventory

the year turnover

A decreased decreased
B decreased increased
C increased decreased
D increased increased

34 Azim and Bashir are both sole traders. They provided the following information.

Azim Bashir
$ $

profit for the year ended 31 December before interest 17 200 15 000
long-term loan at 31 December – 12 500
capital at 31 December 86 000 25 000

What was Azim’s return on capital employed?

A double Bashir’s
B half of Bashir’s
C one-third of Bashir’s
D three times Bashir’s

35 Stephanie’s major competitor has invested in a new machine for making goods more cheaply.
Stephanie knows this will affect her sales but did not record this in her accounting records.

Which accounting principle is Stephanie applying?

A going concern
B materiality
C money measurement
D prudence

© UCLES 2022 0452/12/F/M/22

BLANK PAGE

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of Cambridge Assessment. Cambridge Assessment is the brand name of the University of Cambridge
Local Examinations Syndicate (UCLES), which is a department of the University of Cambridge.

© UCLES 2022 0452/12/F/M/22

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 12 February/March 2022
MARK SCHEME
Maximum Mark: 35

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination.

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 February/March 2022 series for most
Cambridge IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level
components.

This document consists of 3 printed pages.

© UCLES 2022 [Turn over

0452/12 Cambridge IGCSE – Mark Scheme February/March 2022
PUBLISHED

Question Answer Marks

1 B 1

2 A 1

3 A 1

4 C 1

5 A 1

6 D 1

7 D 1

8 B 1

9 D 1

10 A 1

11 B 1

12 C 1

13 C 1

14 B 1

15 B 1

16 C 1

17 C 1

18 D 1

19 A 1

20 A 1

21 B 1

22 A 1

23 D 1

24 C 1

25 B 1

26 D 1

27 B 1

28 C 1

© UCLES 2022 Page 2 of 3

0452/12 Cambridge IGCSE – Mark Scheme February/March 2022
PUBLISHED

Question Answer Marks

29 B 1

30 D 1

31 A 1

32 C 1

33 D 1

34 B 1

35 C 1

© UCLES 2022 Page 3 of 3

Cambridge IGCSE™
* 7 4 6 4 4 0 5 0 0 3 *

ACCOUNTING 0452/22
Paper 2 Structured Written Paper February/March 2022

1 hour 45 minutes

You must answer on the question paper.

No additional materials are needed.

INSTRUCTIONS
● Answer all questions.
● Use a black or dark blue pen. You may use an HB pencil for any diagrams or graphs.
● Write your name, centre number and candidate number in the boxes at the top of the page.
● Write your answer to each question in the space provided.
● Do not use an erasable pen or correction fluid.
● Do not write on any bar codes.
● You may use a calculator.
● International accounting terms and formats should be used as appropriate.
● You should show your workings.

INFORMATION
● The total mark for this paper is 100.
● The number of marks for each question or part question is shown in brackets [ ].
● Where you are asked to complete a layout, you may not need all the lines for your answer.

This document has 20 pages. Any blank pages are indicated.

DC (CJ) 303841/3
© UCLES 2022 [Turn over
2

1 Nazmeen started in business as a hairdresser on 1 January 2022. She purchases her hairdressing
supplies on credit and uses the imprest system for her petty cash.

Nazmeen’s assets and liabilities at 1 January 2022 were as follows:

$
Motor vehicle 11 000
Balance at bank 2 300
Petty cash 200
Bank loan 2 500

REQUIRED

(a) (i) Prepare the general journal entry to record the opening assets and liabilities at
1 January 2022. A narrative is required.

Nazmeen
General journal

Date Details $ $

................... ................................................................. ................... ...................

[4]

(ii) State one other use of the general journal.

..................................................................................................................................... [1]

Nazmeen makes all payments of less than $100 by petty cash. The imprest amount, which is
$200, is restored on the first day of each month from the bank account.

Nazmeen provided the following information for January 2022.

January 3 Paid for petrol, $35.

8 Paid for magazines for the reception area, $14.
17 Paid $60 to GL Limited, a trade payable.
26 Paid for vehicle cleaning, $9.
29 Paid $38 to Alim, a trade payable.

REQUIRED

(b) (i) Complete Nazmeen’s petty cash book on the following page.
Balance the petty cash book, bring down the balance on 1 February 2022 and restore
the imprest.
© UCLES 2022 0452/22/F/M/22
Nazmeen
Petty Cash Book
Total Date Details Total Motor Sundry Ledger

...................... ...................... ........................................................................... ...................... ...................... ...................... ......................

0452/22/F/M/22
...................... ...................... ........................................................................... ...................... ...................... ...................... ......................

...................... ...................... ........................................................................... ...................... ...................... ...................... ......................

[10]

[Turn over
4

(ii) State one advantage of using the imprest system for petty cash.

..................................................................................................................................... [1]

Nazmeen receives business documents from her credit suppliers.

REQUIRED

(c) Complete the table below by placing a tick (3) to indicate which document(s) each item
appears on. The first one is completed for you.

Invoice Credit note Statement

of account
A credit purchase 3 3
The balance owing by Nazmeen to a
supplier at the end of the month
A purchases return
Trade discount deducted from list price
Payment made to a credit supplier
[4]

[Total: 20]

© UCLES 2022 0452/22/F/M/22

BLANK PAGE

© UCLES 2022 0452/22/F/M/22 [Turn over

2 Ravi is a trader. He provided the following information.

2021 $
1 February Sales ledger control account debit balance 12 510
Sales ledger control account credit balance 1 245
2022
31 January Totals for the year:
Credit sales 134 000
Cash sales 4 625
Bank transfers received from credit customers 96 250
Cash received from credit customers 12 890
Returns from credit customers 4 000
Irrecoverable debts written off 9 100
Contra entries 1 677
Discount allowed 4 643
Discount received 2 119
Interest charged on overdue sales ledger accounts 1 104

Sales ledger control account debit balance ?

Sales ledger control account credit balance nil

REQUIRED

(a) Prepare Ravi’s sales ledger control account for the year ended 31 January 2022.
Balance the account and bring down the balance on 1 February 2022.

Ravi
Sales ledger control account
Date Details $ Date Details $

............. .................................. ............. ............. .................................. .............

[10]

© UCLES 2022 0452/22/F/M/22

(b) State the accounting principle which is being applied when irrecoverable debts are written off.

............................................................................................................................................. [1]

(i) Bank manager

...........................................................................................................................................

..................................................................................................................................... [2]

(ii) Trade payables

...........................................................................................................................................

..................................................................................................................................... [2]

Ravi sends out statements of account to credit customers and charges interest on overdue
accounts. He is concerned about the loss caused to his business by irrecoverable debts. He is
considering employing a part-time credit controller to contact credit customers by telephone and
to start legal action on overdue accounts if necessary. The credit controller would be paid $6800
per annum.

REQUIRED

(d) Advise Ravi whether or not he should employ the credit controller. Justify your answer.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2022 0452/22/F/M/22 [Turn over

3 Pari owns a clothing factory. Her year end is 31 December.

At 31 December 2021, her ledger account balances included the following.

$
Inventory at 1 January 2021
Raw materials 6 100
Work in progress 9 420
Finished goods 11 350
Revenue 230 020
Purchases of raw materials 84 200
Wages
Factory operatives 33 000
Factory supervisor 26 000
Office and sales staff 45 000
Rates and insurance 14 000
General factory expenses 11 500
Factory equipment – at cost 100 000
Factory equipment – provision for depreciation 36 000

Additional information

1. Inventory at 31 December 2021

Raw materials 6 840
Work in progress 9 885
Finished goods 12 630

2. Rates and insurance are to be apportioned equally between the factory and the office.

3. At 31 December 2021, general factory expenses of $500 were unpaid.

4. Factory equipment is depreciated at 20% per annum using the reducing balance method.

© UCLES 2022 0452/22/F/M/22

REQUIRED

(a) Prepare Pari’s manufacturing account for the year ended 31 December 2021.

Pari
Manufacturing Account for the year ended 31 December 2021
$ $

.......................................................................................... ................... ...................

[9]

© UCLES 2022 0452/22/F/M/22 [Turn over

(b) Prepare Pari’s income statement (trading section) for the year ended 31 December 2021.

Pari
Income Statement (trading section) for the year ended 31 December 2021
$ $

................................................................................................ ................... ...................

[4]

Gross margin
working answer

[2]

© UCLES 2022 0452/22/F/M/22

Pari is disappointed in her cost of production and gross profit. She is considering buying in her
products instead of producing them in her factory.

REQUIRED

(d) Advise Pari whether or not she should start to buy in her products. Justify your answer.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2022 0452/22/F/M/22 [Turn over

4 Demis is a trader. His financial year ends on 31 December.

He prepared the following trial balance which contains errors.

Demis
Trial balance at 31 December 2021
Debit Credit

$ $

Sales 90 052
Purchases 52 420
Purchases 52 420
Rates and insurance 11 500
General expenses 1 092
Property 92 500
Fixtures at cost 34 000
Provision for depreciation of fixtures 21 760
Trade receivables 7 410
Trade payables 4 665
Inventory 9 600
Cash at bank 8 095
Capital at 1 January 2021 109 940
Drawings 11 320
Suspense 60 770
283 772 283 772

Additional information

1. There was $80 in the petty cash box at 31 December 2021.

2. The value of inventory on 31 December 2021 was included in the trial balance.
The inventory valuation had increased by 20% since 31 December 2020.

© UCLES 2022 0452/22/F/M/22

REQUIRED

(a) Prepare a corrected trial balance at 31 December 2021.

Demis
Corrected Trial Balance at 31 December 2021
Debit Credit
$ $

Sales ............................. .............................

Purchases ............................. .............................

Rates and insurance ............................. .............................

General expenses ............................. .............................

Property ............................. .............................

Fixtures at cost ............................. .............................

Provision for depreciation of fixtures ............................. .............................

Trade receivables ............................. .............................

Trade payables ............................. .............................

Inventory ............................. .............................

Cash at bank ............................. .............................

Capital at 1 January 2021 ............................. .............................

Drawings ............................. .............................

............................................... ............................. .............................

______________ ______________

[6]

© UCLES 2022 0452/22/F/M/22 [Turn over

Demis has received a bank statement which shows that there were unpresented cheques of $437
at 31 December 2021. There were no outstanding lodgements.

REQUIRED

(b) Calculate the bank balance shown on the bank statement at 31 December 2021. Indicate
whether this balance is a debit or a credit balance.

...................................................................................................................................................

............................................................................................................................................. [2]

Demis later discovered the following errors.

1 Drawings of goods for own use, $317, had been omitted from the books of account.

2 Purchases returns, $93, had been credited to the sales account.

3 A payment for property insurance, $500, had been debited to the property account.

4 A credit purchase, $315, from Erin, had been recorded as $135.

5 A credit sale, $191, to Harvinder, had been debited to the sales account and credited to
Harvinder’s account.

© UCLES 2022 0452/22/F/M/22

REQUIRED

Entries required to correct the error

Error Debit Credit
Account $ Account $

1. Drawings of goods for own use,

$317, had been omitted from the
books of account. ................... .............. ................... ..............

2. Purchases returns, $93, had been

credited to the sales account. ................... .............. ................... ..............

3. A payment for property insurance,

$500, had been debited to the
property account. ................... .............. ................... ..............

4. A credit purchase, $315, from

Erin, had been recorded as $135. ................... .............. ................... ..............

5. A credit sale, $191, to Harvinder,

had been debited to the
sales account and credited to
Harvinder’s account. ................... .............. ................... ..............

[10]

(d) Identify the following error types from the table above.

(i) error 2

..................................................................................................................................... [1]

(ii) error 4

..................................................................................................................................... [1]

[Total: 20]

© UCLES 2022 0452/22/F/M/22 [Turn over

5 Priti and Paisley are in partnership renting out properties. Paisley manages the office and
maintains the bookkeeping records for the partnership.

The partnership agreement provides for

Interest on drawings 5% per annum

Interest on capital 4% per annum
Salary to Paisley $6000 per annum
Residual profits and losses to be shared 75% to Priti and 25% to Paisley.

The profit for the year ended 31 January 2022 was $33 100.

© UCLES 2022 0452/22/F/M/22

REQUIRED

(a) Prepare the appropriation account for Priti and Paisley for the year ended 31 January 2022.

Priti and Paisley

Appropriation Account for the year ended 31 January 2022
$ $

................................................................................................ ................... ...................

[6]

© UCLES 2022 0452/22/F/M/22 [Turn over

(b) Prepare Paisley’s current account for the year ended 31 January 2022. Balance the account
and bring down the balance on 1 February 2022.

Paisley
Current account
Date Details $ Date Details $

............. .................................. ............. ............. .................................. .............

[6]

(c) Suggest three reasons why Paisley may not be satisfied with his overall share of the profit for
the year to 31 January 2022.

1 ................................................................................................................................................

...................................................................................................................................................

2 ................................................................................................................................................

...................................................................................................................................................

3 ................................................................................................................................................

............................................................................................................................................. [3]

© UCLES 2022 0452/22/F/M/22

Priti and Paisley are planning to purchase more properties to rent out. They are considering
forming a limited company as they believe this would make it easier for them to raise the finance
for the purchase of the properties.

REQUIRED

(d) Advise Priti and Paisley whether or not they should form a limited company.
Justify your answer with two advantages and two disadvantages.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2022 0452/22/F/M/22

BLANK PAGE

© UCLES 2022 0452/22/F/M/22

Cambridge IGCSE™

ACCOUNTING 0452/22
Paper 2 February/March 2022
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.

This document consists of 17 printed pages.

© UCLES 2022 [Turn over

0452/22 Cambridge IGCSE – Mark Scheme February/March 2022
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.

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)(i) Nazmeen 4
General Journal
Debit Credit
Date Details
$ $

2022
Jan 1 Motor vehicle 11 000 }
Bank 2 300 } (1)
Petty cash 200 }
Bank loan 2 500 (1)
Capital 11 000 (1)
13 500 13 500
Assets, liabilities and capital at this date (1)

1(a)(ii) Correction of errors (1) 1

Purchase/disposal of non-current assets on credit (1)
Transactions not recorded in another book of prime entry (1)
Transfers between accounts (1)
Writing off irrecoverable debts (1)
Creation of/adjustment to a provision for doubtful debts (1)
Recording depreciation (1)
Year-end transfers to income statement (1)

Max (1)
Accept other valid points

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Question Answer Marks

1(b)(i) Nazmeen 10
Petty Cash Book
Total Total Motor Sundry Ledger
received Date Details paid expenses expenses accounts
$ $ $ $ $

2022
200 Jan 1 Balance (1)
3 Petrol (1) 35 35
8 Magazines (1) 14 14
17 GL Limited (1) 60 60
26 Cleaning (1) 9 9
29 Alim (1) 38 38
156 44 14 98
31 Balance c/d 44
200 200

44 Feb 1 Balance b/d (1)OF

156 Bank (1)OF

+ (1) dates
(1)OF totalling analysis columns

1(b)(ii) Easier control of/check on petty cash expenditure (1) 1

There is a maximum amount which can be spent (1)
Theft/fraud is limited to the imprest amount (1)

Accept other valid points

Max (1)

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Question Answer Marks

1(c) 4
Invoice Credit note Statement of
account

A credit purchase  

The balance owing by Nazmeen to a  (1) row

supplier at the end of the month

A purchases return   (1) row

Trade discount deducted from list   (1) row

price

Payment made to a supplier  (1) row

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Question Answer Marks

2(a) Ravi 10
Sales ledger control account
Date Details $ Date Details $

2021 2021
Feb 1 Balance b/d 12 510* Feb 1 Balance b/d (1) both 1 245*
2022 2022
Jan 31 Sales (1) 134 000 Jan 31 Bank (1) 96 250
Interest charged (1) 1 104 Cash (1) 12 890
Sales returns (1) 4 000
Irrecoverable debts (1) 9 100
Contra entries (1) 1 677
Discount allowed (1) 4 643
Balance c/d 17 809
2022 147 614 147 614
Feb 1 Balance b/d (1)OF 17 809
(1) *for both opening balances

2(b) Prudence (1) 1

2(c)(i) Bank manager 2

Level of trade receivables may influence bank’s decision (1)
If the bank believes trade receivables are too high may not wish to lend (1)
If trade receivables too high may not have adequate funds to repay loan/ bank overdraft/ interest
OR If trade receivables too low may have adequate funds to repay loan/ bank overdraft/ interest (1)

Max (2)
Accept other valid points

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Question Answer Marks

2(c)(ii) Trade payables 2

Level of trade receivables may influence trade payable’s decision (1)
If trade payable believes trade receivables are insufficient may decide not to supply/not to continue to supply/supply on
cash terms only
OR If trade receivables are high may have adequate funds to pay trade payables (1)

Max (2)
Accept other valid points

2(d) Reasons for employing a credit controller 5

Should result in lower irrecoverable debts (1)
Should control the amount owed by trade receivables (1)
Payments from trade receivables likely to be received more quickly/ collection period decreases(1)
Ravi’s time would be freed up to carry out other business tasks (1)
The salary of the credit controller is less than the amount of irrecoverable debts (1)
Max (2)
Accept other valid points

Reasons for not employing a credit controller

Have to pay an annual salary (1)
Salary would be paid regardless of amount of debts recovered (1)
No guarantee that all debts will be collected (1)
Legal fees may be incurred for any legal action (1)
Damage relationship with customers/ may buy less/may buy from a different supplier/lose customer loyalty (1)
Could instead try to increase cash sales (1)
Max (2)
Accept other valid points

Recommendation (1)

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Question Answer Marks

3(a) Pari 9
Manufacturing Account for the year ended 31 December 2021

Cost of material consumed $ $

Opening inventory of raw materials 6 100
Purchases of raw materials 84 200
90 300
Less Closing inventory of raw materials 6 840
83 460 (1)
Direct wages 33 000 (1)
Prime cost 116 460 (1)OF
Factory overheads
Wages of factory supervisor 26 000}
Rates and insurance (14 000 ÷ 2) 7 000}(1)
General expenses (11 500 + 500) 12 000 (1)
Depreciation of factory equipment
(100 000 – 36 000) x 20% 12 800 (1) 57 800
174 260 (1)OF
Add opening work-in-progress 9 420 *
183 680
Less closing work-in-progress 9 885*
Cost of production 173 795 (1)OF

*(1) for both inventories of work in progress

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Question Answer Marks

3(b) Pari 4
Income Statement (trading section) for the year ended 31 December 2021

$ $
Revenue 230 020
Cost of sales
Opening inventory of finished goods 11 350 *
Cost of production 173 795 (1)OF
185 145
Less Closing inventory of finished goods 12 630 * 172 515 (1)OF
Gross profit 57 505 (1)OF
*(1) for both inventories of finished goods

3(c) 100 2
Gross margin = 57 505 OF × } whole formula (1)OF = 25.00% (1)OF
230 020 1

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Question Answer Marks

3(d) 5
Advantages Disadvantages

May be cheaper to buy rather than to May be cheaper to make rather than to
make buy (1)
If could buy at lower cost than making If could make at lower cost than making
gross margin/gross profit would improve gross margin/gross profit would improve (1)
Would have more time for other business
functions e.g. marketing (1)
Accounting records would be simpler (1)
Cost of purchased finished goods may
increase in the future (1)
Depend on supplier for regular supplies (1)
Depend on supplier for quality (1)
Depend on supplier for required quantity (1)
May lose customer loyalty (1)
May be difficult to start production again
once stopped (1)

Advantages Max (2) Disadvantages Max (2)

Accept other valid points
Recommendation (1)

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Question Answer Marks

4(a) Demis 6
Corrected Trial Balance at 31 December 2021

Debit Credit
$ $
Sales 90 052
Purchases 52 420 (1)
Rates and insurance 11 500
General expenses 1 092
Property 92 500
Fixtures at cost 34 000
Provision for depreciation of fixtures 21 760
Trade receivables 7 410
Trade payables 4 665 (1)
Inventory 8 000 (2)CF
(1)OF
Cash at bank 8 095
Capital at 1 January 2021 109 940
Drawings 11 320
Petty cash 80 (1)
226 417 226 417

(1) matching CF totals

4(b) $ 2
Cash book balance 8 095 OF
Add unpresented cheques 437
Bank statement balance 8 532 (1) OF Credit (1)

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Question Answer Marks

4(c) 10
Error Entries required to correct the error

Debit Credit

Account $ Account $

1 Drawings of goods for own Drawings 317 (1) Purchases 317 (1)
use, $317, had been
omitted from the books of
account.

2 Purchases returns, $93, Sales 93 (1) Purchases 93 (1)

had been credited to the returns
sales account.

3 A payment for property Rates and 500 (1) Property 500 (1)
insurance, $500, had been insurance
debited to the property
account.

4 A credit purchase, $315, Purchases 180 (1) Erin 180 (1)

from Erin had been
recorded as $135.

5 A credit sale, $191, to Harvinder 382 (1) Sales 382 (1)

Harvinder, had been
debited to the sales
account and credited to
Harvinder’s account.

4(d)(i) Error of commission (1) 1

4(d)(ii) Error of original entry (1) 1

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Question Answer Marks

5(a) Priti and Paisley 6

Appropriation Account for the year ended 31 January 2022

$ $
Profit for the year 33 100
Add Interest on drawings Priti 750 (1)
Paisley 650 (1) 1 400
34 500
Less Interest on capital Priti 4 000 (1)
Paisley 800 (1)
4 800

Less Salary Paisley 6 000 (1) 10 800

23 700
Share of profit Priti 17 775 }(1)
Paisley 5 925 } OF 23 700

5(b) Paisley 6
Current account
Date Details $ Date Details $
2022 2021
Jan 31 Drawings (1) 13 000 Feb 1 Balance b/d 2 350
Interest on drawings (1)OF 650 2022
Balance c/d 1 425 Jan 31 Interest on capital (1)OF 800
Salary (1) 6 000
Profit share (1)OF 5 925
15 075 15 075
2022
Feb 1 Balance b/d (1)OF 1 425

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Question Answer Marks

5(c) Is entitled to only one quarter of the residual profit (1) 3

His total profit share is significantly less than Priti’s (1)
May feel he is not getting adequate reward for his extra duties/responsibilities (1)
May be able to earn more as a manager elsewhere (1)
His total profit share is lower than his drawings for the year (1)

Accept other valid points

Max (3)

5(d) Advantages 5
Limited liability/ a company is a separate legal entity (1)
Can raise more finance (1)
More options for raising finance (1)
Different ways of raising finance are available ordinary/preference shares and debentures/loans (1)
Or other relevant advantages
Max (2)

Disadvantages
Costly to establish (1)
More complex/regulated accounting required/have to publish accounts/more legal requirements (1)
May lose control of the business (1)
Decisions may take longer (1)
Dividends have to be paid to shareholders/have to share profit with shareholders (1)
Max (2)
Or other relevant disadvantages

Recommendation (1)

© UCLES 2022 Page 17 of 17

Cambridge IGCSE™

ACCOUNTING 0452/11
Paper 1 Multiple Choice October/November 2021
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*8805598337*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

INFORMATION
 The total mark for this paper is 35.
 Each correct answer will score one mark.
 Any rough working should be done on this question paper.

This document has 12 pages. Any blank pages are indicated.

IB21 11_0452_11/FP
© UCLES 2021 [Turn over
2

1 Why does a trader calculate the profit of his business?

A to calculate the interest payable on a loan

B to calculate the provision for doubtful debts
C to know the total expenses of the business
D to know whether drawings are at a reasonable level

2 Hassan is a trader. During the financial year he took goods from the business for his own use.

How should he record this?

debit credit

A drawings inventory
B drawings purchases
C income statement inventory
D income statement purchases

3 Where are the accounts of credit suppliers maintained?

A purchases journal
B purchases ledger
C sales journal
D sales ledger

4 Which document does a trader issue to remind a credit customer that payment is due?

A credit note
B debit note
C receipt
D statement of account

5 What is a cheque counterfoil used for?

A to pay a cheque into the bank account

B to pay for goods purchased by cheque
C to record a cheque payment in the cash book
D to record a cheque received in the cash book

© UCLES 2021 0452/11/O/N/21

6 Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the
bank.

How should Farouk record this?

account to be debited account to be credited

A bank Khalid
B irrecoverable debts Khalid
C Khalid bank
D Khalid irrecoverable debts

7 Tumelo sells on credit. The terms of trade are listed.

list price: $200 per unit

credit period: 60 days
trade discount 15% if 10 units or more are purchased
cash discount 3% if the debt is paid within one month

A credit customer purchased 20 units and paid the debt within 15 days.

What was the total of the invoice?

A $3298 B $3400 C $3880 D $4000

8 Jane purchased goods and paid by credit transfer.

How should this be recorded in Jane’s accounting records?

account to account to
be debited be credited

A bank purchases
B purchases bank
C purchases trade payable
D trade payable purchases

9 What is shown in a trial balance?

A capital and profit on a particular date

B financial transactions for a particular period
C ledger balances on a particular date
D receipts and payments for a particular period

© UCLES 2021 0452/11/O/N/21 [Turn over

10 At the end of each year, PT Limited transfers 20% of the profit for the year to the general reserve.

Draft financial statements were prepared for the year ended 30 September 2021. It was then
discovered that the inventory at 30 September 2021 had been overstated by $1500.

Which effects did the correction of this error have on retained earnings and general reserve at
30 September 2021?

retained earnings $ general reserve $

A decrease 300 increase 300

B decrease 1200 decrease 300
C increase 300 increase 1200
D increase 1500 no effect

11 The bank columns in a trader’s cash book and the bank statement both showed positive
balances. A comparison revealed the following differences.

uncredited cheque 200

bank charges not included in cash book 10

What was the difference between the balance shown in the bank column of the cash book and
that shown on the bank statement?

A The cash book balance was $190 higher than the bank statement balance.
B The cash book balance was $190 lower than the bank statement balance.
C The cash book balance was $210 higher than the bank statement balance.
D The cash book balance was $210 lower than the bank statement balance.

12 What is a reason for preparing a sales ledger control account?

A to calculate total sales revenue

B to ensure trade receivables pay on time
C to help prepare the income statement
D to summarise the accounts of the trade receivables

© UCLES 2021 0452/11/O/N/21

13 Two companies each purchased a motor vehicle for $10 000 at the beginning of year 1. Company
G used the straight-line method of depreciation at a rate of 15% per annum, while Company H
used the reducing balance method at a rate of 20% per annum.

What was the difference in the depreciation charge between the two companies for year 2?

A $100 greater for G

B $100 greater for H
C $500 greater for G
D $500 greater for H

14 Amit’s financial year ends on 31 December. The following account appeared in his sales ledger.

Dipak account
2020 $ 2020 $

Jan 7 sales 3200 Jun 3 bank 1700

Oct 30 cash 230
Nov 21 ? 1270
3200 3200

What does the entry on 21 November represent?

A an irrecoverable debt
B discount allowed
C the balance carried down
D the recovery of a debt previously written off

15 Sally wished to increase the balance on the provision for doubtful debts account at the end of the
financial year.

How should this increase be recorded?

debit credit

A income statement provision for doubtful debts account

B irrecoverable debts account provision for doubtful debts account
C provision for doubtful debts account income statement
D provision for doubtful debts account irrecoverable debts account

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16 The following errors were found after a statement of financial position had been prepared.

1 A loan repayable in two year’s time had been included as a current liability.
2 A provision for doubtful debts should have been created.

What is the effect of correcting these errors?

current current non-current owner’s

assets liabilities liabilities equity

A decrease decrease increase decrease

B decrease increase decrease increase
C increase decrease decrease increase
D increase increase decrease decrease

17 John maintains a full set of accounting records.

Why does he also prepare a statement of financial position?

A to calculate the profit for the year

B to check if assets equal capital plus liabilities
C to show the transactions which took place during the year
D to summarise what the business owns and what it owes

18 What are advantages of operating as a sole trader?

1 The owner can keep all the profit.

2 The owner can raise finance by issuing debentures.
3 The owner can make decisions independently.
4 The owner is protected by limited liability.

A 1 and 3 B 1 only C 2 and 3 D 2 and 4

© UCLES 2021 0452/11/O/N/21

19 Anwar is a sole trader making annual profits of $24 000. He decides to admit Dilip as a partner.
They agree that Anwar would receive a salary, and profits and losses would be shared equally.

The forecast appropriation account for the partnership’s first year of trading is:

profit for the year 50 000

salary Anwar 10 000
profit available for distribution 40 000

By how much will Anwar’s total income increase?

A $1000 B $6000 C $16 000 D $26 000

20 Kasi and Ravi are in partnership. The financial statements for the year ended 31 August 2021
showed that Ravi was entitled to interest on capital and interest on loan and was charged interest
on drawings.

Which entries would be made in Ravi’s current account?

interest on capital interest on loan interest on drawings

debit credit debit credit debit credit

A
B
C
D

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21 BCD Limited provided the following information.

ordinary shares 300 000

retained earnings 200 000
debentures 170 000

How much was the equity and the capital employed?

equity capital employed

$ $

A 300 000 470 000

B 300 000 670 000
C 500 000 470 000
D 500 000 670 000

22 The issued share capital of CD Limited consists of ordinary shares.

Retained earnings were $86 000 on 1 September 2020 and $88 500 on 31 August 2021.

The company made a profit during the year of $26 000 and made a transfer to general reserve of
$5000.

What was the total ordinary share dividend paid during the year?

A $18 500 B $23 500 C $28 500 D $33 500

23 A sports club was formed on 1 August 2020. During the year ended 31 July 2021 the club
purchased equipment costing $5000, paying by cheque.

In which of the club’s financial statements did this appear?

receipts and payments income and expenditure statement of financial

account account position

A
B
C
D

© UCLES 2021 0452/11/O/N/21

24 What is not part of the prime cost of a manufacturing business?

A raw material
B royalties
C wages of factory supervisors
D wages of production workers

25 The value of Thato’s work in progress increased during the year. This was recorded in his
financial statements.

How did this affect the cost of production and the cost of sales?

cost of
cost of sales
production

A decreased decreased
B decreased no effect
C increased increased
D increased no effect

26 What are advantages of keeping a full set of accounting records?

1 Financial statements will be free from errors.

2 It is impossible to make fraudulent entries.
3 More informed decision-making is possible.
4 The calculation of profit is more accurate.

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

27 Beth provided the following information.

1 January 31 December
net assets $28 000 $24 000

Her drawings during the year amounted to $3000.

What was Beth’s profit or loss for the year?

A $1000 loss
B $1000 profit
C $7000 loss
D $7000 profit

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28 Roshan’s sales for his first year of trading were $55 000. His gross profit margin was 20%. The
closing inventory was $3200.

What were the purchases for the year?

A $41 250 B $44 000 C $44 450 D $47 200

29 Which information is required to calculate the return on capital employed for a sole trader?

A gross profit, non-current liabilities, owner’s capital

B gross profit, non-current liabilities, working capital
C operating profit for the year, non-current liabilities, owner’s capital
D operating profit for the year, non-current liabilities, working capital

30 What is the best indicator of the liquidity of a business?

A current ratio
B liquid (acid test) ratio
C return on capital employed
D working capital

31 A trader provided the following information for the year ended 31 May 2021.

trade payables on 1 June 2020 12 250

trade payables on 31 May 2021 42 000
credit purchases for the year 319 375

What was the trade payables turnover (days) for the year ended 31 May 2021?

A 31 days B 34 days C 48 days D 62 days

© UCLES 2021 0452/11/O/N/21

32 A business provided the following information about its gross margin.

Year 1 40%
Year 2 38%
Year 3 35%

What could explain the changes in the gross margin?

A Cost of sales is decreasing.

B Expenses are decreasing.
C Quantity of goods sold is decreasing.
D Selling price is decreasing.

33 What is not a limitation of inter-firm comparison?

A Accounting records do not include the skills of the workforce.

B Businesses may have different accounting policies.
C Businesses may have different sales prices.
D The available information may not relate to a typical year.

34 Why would a supplier be interested in the financial statements of a credit customer?

A to know if the customer can pay what he owes

B to know the amount owed by trade receivables
C to know the profit for the year
D to know the value of the inventory

35 What does the objective of understandability assume users of financial statements will possess?

A a reasonable knowledge of accounting

B full knowledge of accounting
C knowledge of book-keeping but not accounting
D no knowledge of book-keeping or accounting

© UCLES 2021 0452/11/O/N/21

BLANK PAGE

Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of the University of
Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the University of Cambridge.

© UCLES 2021 0452/11/O/N/21

Cambridge IGCSE™

ACCOUNTING 0452/11
Paper 1 October/November 2021
MARK SCHEME
Maximum Mark: 35

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination.

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 3 printed pages.

© UCLES 2021 [Turn over

0452/11 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2021

Question Answer Marks

1 D 1

2 B 1

3 B 1

4 D 1

5 C 1

6 C 1

7 B 1

8 B 1

9 C 1

10 B 1

11 C 1

12 D 1

13 B 1

14 A 1

15 A 1

16 A 1

17 D 1

18 A 1

19 B 1

20 C 1

21 D 1

22 A 1

23 B 1

24 C 1

25 A 1

26 D 1

27 A 1

28 D 1

© UCLES 2021 Page 2 of 3

0452/11 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2021

Question Answer Marks

29 C 1

30 B 1

31 C 1

32 D 1

33 C 1

34 A 1

35 A 1

© UCLES 2021 Page 3 of 3

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 Multiple Choice October/November 2021
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*3561577926*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

INFORMATION
 The total mark for this paper is 35.
 Each correct answer will score one mark.
 Any rough working should be done on this question paper.

This document has 12 pages. Any blank pages are indicated.

IB21 11_0452_12/2RP
© UCLES 2021 [Turn over
2

1 Which statement is correct?

A The accountant prepares the trial balance and the book-keeper prepares the financial
statements.
B The accountant writes up the journals and the book-keeper writes up the ledger accounts.
C The book-keeper writes up the journals and the accountant prepares the trial balance.
D The book-keeper writes up the ledger accounts and the accountant prepares the financial
statements.

2 Which formulas may be used for the accounting equation?

1 assets = owner’s equity minus liabilities

2 liabilities = assets minus owner’s equity
3 owner’s equity = assets plus liabilities
4 owner’s equity plus liabilities = assets

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

3 Goods purchased on credit from Zamir were returned by Ashwin.

Which entries should Zamir make to record this?

account debited account credited

A Ashwin purchase returns

B purchase returns Zamir
C sales returns Ashwin
D Zamir sales returns

4 During her first financial year, a trader paid $1800 for insurance and $3200 for rent.

At the end of the financial year, she transferred insurance of $1500 and rent of $3600 to the
income statement.

What do the balances remaining on the accounts at the end of the financial year represent?

insurance account rent account

A accrued expense accrued expense

B accrued expense prepaid expense
C prepaid expense accrued expense
D prepaid expense prepaid expense

© UCLES 2021 0452/12/O/N/21

5 Leah bought goods, $8000, less 15% trade discount. She later returned half of these goods as
they were faulty.

Which document did Leah issue to the supplier for the returned goods?

A credit note for $3400

B debit note for $3400
C credit note for $4000
D debit note for $4000

6 What is a cheque counterfoil used for?

A to make a credit entry in the bank column of a cash book

B to make a debit entry in the bank column of a cash book
C to send a payment to a supplier
D to send proof of payment to a customer

7 Farouk sells goods on credit. A cheque from Khalid, a credit customer, was dishonoured by the
bank.

How should Farouk record this?

account to be debited account to be credited

A bank Khalid
B irrecoverable debts Khalid
C Khalid bank
D Khalid irrecoverable debts

8 Why does a supplier offer trade discount?

A to avoid irrecoverable debts

B to encourage bulk buying
C to encourage payment in cash
D to reward prompt payment

© UCLES 2021 0452/12/O/N/21 [Turn over

9 Ann maintains a petty cash book using the imprest system.

Which statement is not correct?

A A petty cash book can be maintained by a junior member of staff.

B At any time petty cash vouchers plus the petty cash balance are equal to the imprest
amount.
C The chief cashier is not asked continually for small sums of money.
D The number of entries in the cash book increases because of the large number of small cash
payments.

10 A sales invoice for $800 was incorrectly recorded in the sales journal as $1800.

How did this error affect the trial balance?

A The trial balance balanced but both totals were overstated by $1000.
B The trial balance balanced but both totals were understated by $1000.
C The trial balance did not balance because the credits were overstated by $1000.
D The trial balance did not balance because the debits were understated by $1000.

11 A standing order paid for rent has not been entered into the accounting records of a business.

Which statement is correct?

A Because the payment was made automatically, no additional entries are required in the
accounting records.
B Because the payment was made automatically, only an entry in the rent account is required.
C Entries are required in the cash book and in the bank reconciliation statement.
D Entries are required in the cash book and in the nominal (general) ledger.

12 The bank statement of a business had a credit balance of $2690 on 1 October 2021. At that date
cheques totalling $850 had not yet been presented for payment.

What was the bank balance in the cash book on 1 October 2021?

A $1840 credit
B $1840 debit
C $3540 credit
D $3540 debit

© UCLES 2021 0452/12/O/N/21

13 A trader has purchased new business premises.

What are examples of capital expenditure?

1 cost of heating and lighting the new premises

2 cost of purchasing the new premises
3 legal costs of purchasing the new premises
4 office furniture purchased for use in the new premises

A 1 and 2 only B 1, 2 and 4 C 2, 3 and 4 D 3 and 4 only

14 Two companies each purchased a motor vehicle for $10 000 at the beginning of year 1. Company
G used the straight-line method of depreciation at a rate of 15% per annum, while Company H
used the reducing balance method at a rate of 20% per annum.

What was the difference in the depreciation charge between the two companies for year 2?

A $100 greater for G

B $100 greater for H
C $500 greater for G
D $500 greater for H

15 At the end of the financial year Mui had prepaid rent of $1500.

How should she record this?

A credit $1500 in the rent account and carry down as a credit balance
B credit $1500 in the rent account and carry down as a debit balance
C debit $1500 in the rent account and carry down as a credit balance
D debit $1500 in the rent account and carry down as a debit balance

© UCLES 2021 0452/12/O/N/21 [Turn over

16 After preparing draft financial statements at the end of her first year of trading, Lucy discovered
two errors.

1 Damaged inventory had been valued at cost price, $340. It was expected to sell
for $180.
2 100 items which had been expected to sell for $12 each had been valued at their
cost price of $7 each. Carriage inwards of $1 for each item had not been included in
the cost.

What was the effect of these errors on the gross profit?

A overstated $60
B overstated $240
C understated $60
D understated $240

17 Which is an advantage and a disadvantage of operating as a sole trader?

advantage disadvantage

A gains all the profit bears all the risk

B gains all the profit controls the decision-making
C provides all the capital bears all the risk
D provides all the capital controls the decision-making

18 What is shown in the capital and liabilities section of a statement of financial position of a
business?

A how the resources are being used by the business

B the working capital of the business
C total amounts owed by and to the business
D where the resources of the business have come from

19 John maintains a full set of accounting records.

Why does he also prepare a statement of financial position?

A to calculate the profit for the year

B to check if assets equal capital plus liabilities
C to show the transactions which took place during the year
D to summarise what the business owns and what it owes

© UCLES 2021 0452/12/O/N/21

20 A sole trader paid off the business’s overdraft using his own personal funds.

How did this affect the statement of financial position?

liabilities capital assets

A no effect increase increase

B decrease increase increase
C decrease increase no effect
D decrease no effect increase

21 Hassin found that he needed help to run his business. He decided to take a partner rather than
employ an assistant.

Why did he decide to take a partner?

1 An assistant would not interfere with how the shop was run.
2 An assistant would not share risk.
3 A partner would introduce some additional capital.
4 A partner would take a share of the profit.

A 1 and 3 B 1 and 4 C 2 and 3 D 2 and 4

22 Anwar is a sole trader making annual profits of $24 000. He decides to admit Dilip as a partner.
They agree that Anwar would receive a salary, and profits and losses would be shared equally.

The forecast appropriation account for the partnership’s first year of trading is:

profit for the year 50 000

salary Anwar 10 000
profit available for distribution 40 000

By how much will Anwar’s total income increase?

A $1000 B $6000 C $16 000 D $26 000

© UCLES 2021 0452/12/O/N/21 [Turn over

23 BCD Limited provided the following information.

ordinary shares 300 000

retained earnings 200 000
debentures 170 000

How much was the equity and the capital employed?

equity capital employed

$ $

A 300 000 470 000

B 300 000 670 000
C 500 000 470 000
D 500 000 670 000

24 The issued share capital of CD Limited consists of ordinary shares.

Retained earnings were $86 000 on 1 September 2020 and $88 500 on 31 August 2021.

The company made a profit during the year of $26 000 and made a transfer to general reserve of
$5000.

What was the total ordinary share dividend paid during the year?

A $18 500 B $23 500 C $28 500 D $33 500

25 A sports club was formed on 1 August 2020. During the year ended 31 July 2021 the club
purchased equipment costing $5000, paying by cheque.

In which of the club’s financial statements did this appear?

receipts and payments income and expenditure statement of financial

account account position

A
B
C
D

© UCLES 2021 0452/12/O/N/21

26 A sports club has 100 members and the annual subscription is $60.

During the year ended 31 August 2021:

12 members paid their outstanding subscription from the previous financial year
10 members paid their subscription in advance for the following financial year.

On 31 August 2021, subscriptions for the current financial year were still outstanding from
8 members.

What was the total amount received from members during the year ended 31 August 2021?

A $5160 B $5640 C $6600 D $6840

27 Beth provided the following information.

1 January 31 December
net assets $28 000 $24 000

Her drawings during the year amounted to $3000.

What was Beth’s profit or loss for the year?

A $1000 loss
B $1000 profit
C $7000 loss
D $7000 profit

28 Roshan’s sales for his first year of trading were $55 000. His gross profit margin was 20%. The
closing inventory was $3200.

What were the purchases for the year?

A $41 250 B $44 000 C $44 450 D $47 200

29 Which information is required to calculate the return on capital employed for a sole trader?

A gross profit, non-current liabilities, owner’s capital

© UCLES 2021 0452/12/O/N/21 [Turn over

30 What is the best indicator of the liquidity of a business?

A current ratio
B liquid (acid test) ratio
C return on capital employed
D working capital

31 A business provided the following information about its gross margin.

Year 1 40%
Year 2 38%
Year 3 35%

What could explain the changes in the gross margin?

A Cost of sales is decreasing.

B Expenses are decreasing.
C Quantity of goods sold is decreasing.
D Selling price is decreasing.

32 Sam and Rob each own a trading business. The income of each business is solely from the sale
of goods. They provided the following information for the year ended 30 June 2020.

Sam Rob

return on capital employed 12% 10%

gross margin 25% 30%
profit margin 14% 12%
current ratio 2.8 : 1 1.2 : 1

Which statement is correct?

A Rob will find it easy to pay his current liabilities.

B Rob’s expenses are a higher proportion of his sales.
C Sam is not employing his capital effectively.
D Sam’s goods are sold at a higher price.

© UCLES 2021 0452/12/O/N/21

33 Why would the owner of a business want to see his financial statements at the end of the year?

1 to assess the performance and progress of the business

2 to determine the market value of the non-current assets
3 to make informed decisions for the following years

A 1 only B 1 and 3 C 2 only D 2 and 3

34 Charlie is a car dealer. Joe wanted a new car and went to Charlie’s car showroom.

On Monday Joe took a car for a test drive and decided to buy it.

On Tuesday Joe arranged to pay for the car by cheque.

On Wednesday Joe collected the car and received an invoice.

On Thursday Joe’s cheque was cleared by the bank.

On which day was Charlie able to account for the profit on the sale?

A Monday
B Tuesday
C Wednesday
D Thursday

35 Which accounting objective requires that financial information is provided in time for a decision to
be made?

A comparability
B relevance
C reliability
D understandability

© UCLES 2021 0452/12/O/N/21

BLANK PAGE

© UCLES 2021 0452/12/O/N/21

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 October/November 2021
MARK SCHEME
Maximum Mark: 35

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination.

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.

This document consists of 3 printed pages.

© UCLES 2021 [Turn over

0452/12 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2021

Question Answer Marks

1 D 1

2 C 1

3 C 1

4 C 1

5 B 1

6 A 1

7 C 1

8 B 1

9 D 1

10 A 1

11 D 1

12 B 1

13 C 1

14 B 1

15 B 1

16 A 1

17 A 1

18 D 1

19 D 1

20 C 1

21 C 1

22 B 1

23 D 1

24 A 1

25 B 1

26 D 1

27 A 1

28 D 1

© UCLES 2021 Page 2 of 3

0452/12 Cambridge IGCSE – Mark Scheme October/November
PUBLISHED 2021

Question Answer Marks

29 C 1

30 B 1

31 D 1

32 B 1

33 B 1

34 C 1

35 B 1

© UCLES 2021 Page 3 of 3

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 12 March 2020
MARK SCHEME
Maximum Mark: 35

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination.

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 March 2020 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 3 printed pages.

© UCLES 2020 [Turn over

0452/12 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED

Question Answer Marks

1 D 1

2 D 1

3 A 1

4 C 1

5 A 1

6 D 1

7 A 1

8 D 1

9 A 1

10 B 1

11 A 1

12 B 1

13 C 1

14 C 1

15 C 1

16 C 1

17 A 1

18 C 1

19 B 1

20 B 1

21 A 1

22 D 1

23 B 1

24 A 1

25 C 1

26 D 1

27 A 1

28 D 1

© UCLES 2020 Page 2 of 3

0452/12 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED

Question Answer Marks

29 C 1

30 C 1

31 B 1

32 B 1

33 C 1

34 D 1

35 C 1

© UCLES 2020 Page 3 of 3

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 Multiple Choice February/March 2020
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*4741387681*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

INSTRUCTIONS
• There are thirty-five questions on this paper. Answer all questions.
• For each question there are four possible answers A, B, C and D. Choose the one you consider correct
and record your choice in soft pencil on the multiple choice answer sheet.
• Follow the instructions on the multiple choice answer sheet.
• Write in soft pencil.
• Write your name, centre number and candidate number on the multiple choice answer sheet in the
spaces provided unless this has been done for you.
• Do not use correction fluid.
• Do not write on any bar codes.
• You may use a calculator.

INFORMATION
• The total mark for this paper is 35.
• Each correct answer will score one mark. A mark will not be deducted for a wrong answer.
• Any rough working should be done on this question paper.

This document has 12 pages. Blank pages are indicated.

IB20 03_0452_12/2RP
© UCLES 2020 [Turn over
2

1 Which task would be carried out by a book-keeper but not an accountant?

A comparing one year’s results with those of previous years

B interpreting the accounting records
C preparing financial statements
D recording transactions in the ledgers and cash book

2 A business provided the following information on 1 February 2019.

non-current assets 75 000

current assets 40 000
current liabilities 25 000

The business made a profit of $10 000 for the year ended 31 January 2020.

The owner did not make any drawings during the year.

What was the capital on 31 January 2020?

A $35 000 B $50 000 C $70 000 D $100 000

3 Dilip is a manufacturer. He purchased a machine on credit from Sachin.

How did Dilip record this?

account to account to
be debited be credited

A machinery Sachin
B purchases Sachin
C Sachin machinery
D Sachin purchases

© UCLES 2020 0452/12/F/M/20

4 Mui owns a household appliance store. He took home a washing machine for his personal use.
Mui recorded this transaction as follows.

account debited account credited

drawings sales

Did Mui make the correct entries to record this transaction?

debit entry credit entry

A no no
B no yes
C yes no
D yes yes

5 The following account appeared in the books of Abdul.

Hanif account
2020 $ 2020 $

Jan 18 returns 100 Jan 1 balance b / d 400

31 bank 392 4 purchases 250
discount 8
balance c / d 150
650 650

Which statement is correct?

A On 1 January Abdul owed Hanif $400.

B On 4 January Hanif purchased goods, $250, from Abdul.
C On 31 January Abdul allowed Hanif $8 trade discount.
D On 31 January Hanif owed Abdul $150.

6 Which business document contains details of purchases, returns and payments occurring during
a trading period?

A credit note
B debit note
C invoice
D statement of account

© UCLES 2020 0452/12/F/M/20 [Turn over

7 Rashida sells goods on credit and allows her customers a trade discount.

Which statements are correct?

1 A debit entry is made in the customer’s account in the sales ledger for the net value
of the goods sold.
2 The date of sale, name of the customer, cost price and trade discount are entered in
the sales journal.
3 The trade discount is debited to the customer’s account and credited to the discount
allowed account.

A 1 and 2 B 1 and 3 C 2 only D 2 and 3

8 The totals of a trial balance agreed but it was found that the purchase of office equipment had
been debited to office expenses account.

Which type of error has been made?

A commission
B compensating
C original entry
D principle

9 On 31 January, Somraj’s bank statement showed a credit balance of $740. Comparing the bank
statement with the cash book he found the following.

bank charges not recorded in the cash book 30

cheque paid but not presented to the bank 150

Somraj updated his cash book as required.

What was the updated cash book balance on 31 January?

A $590 B $620 C $860 D $890

10 When Mark started a car repair business, he purchased premises and equipment.

Two years later he spent $5000 on building an extension, $600 on new equipment and $750 on
repainting the original premises.

By how much will the non-current assets increase because of these transactions?

A $5000 B $5600 C $5750 D $6350

© UCLES 2020 0452/12/F/M/20

11 A farmer sold a piece of land at market value.

How should the proceeds of this sale be treated?

A as a capital receipt
B as a revenue receipt
C as capital expenditure
D as revenue expenditure

12 Why should a trader provide for the depreciation of a non-current asset?

1 to match the cost against the revenue of the years which benefit from the use of the
asset
2 to provide a cash fund to enable the asset to be replaced at the end of its useful life
3 to recognise that most non-current assets lose value with the passage of time
4 to spread the cost of the asset over its expected working life to avoid overstating
profit

A 1 and 2 only B 1, 3 and 4 C 2 and 3 only D 2, 3 and 4

13 Equipment costing $20 000 was purchased on 1 January 2019. It has a useful working life of
5 years and a residual value of $3000. Depreciation using the straight-line method was included
in the income statement for the year ended 31 December 2019.

It was then found that the reducing balance method at 30% per annum should have been used.

What was the effect on the profit for the year ended 31 December 2019 of this error?

A $2000 overstated
B $2000 understated
C $2600 overstated
D $2600 understated

© UCLES 2020 0452/12/F/M/20 [Turn over

14 A business provided the following information about two expenses.

amount paid during

1 January 2019 year ended 31 December 2019
$ 31 December 2019 $
$

electricity 240 accrued 1500 360 accrued

insurance 180 prepaid 1200 220 prepaid

Which amounts will be charged to the income statement for the year ended 31 December 2019?

electricity insurance
$ $

A 900 800
B 1380 1240
C 1620 1160
D 2100 1600

15 Anjum rents part of her premises to Ajay for $6120 per annum. At the beginning of the year Ajay
had paid two months rent in advance. At the end of the year Ajay had paid three months rent in
advance.

How much rent was received from Ajay during the year?

A $3570 B $5610 C $6630 D $8670

16 A business maintains a provision for doubtful debts of 5% of trade receivables. The balance on
the provision for doubtful debts account on 31 December 2018 was $2700.

On 31 December 2019 the trade receivables amounted to $50 000.

How will the provision for doubtful debts be recorded on 31 December 2019?

provision for
$ income statement $
doubtful debts account

A credit 200 added to gross profit 200

B credit 200 deducted from gross profit 200
C debit 200 added to gross profit 200
D debit 200 deducted from gross profit 200

© UCLES 2020 0452/12/F/M/20

17 At the end of the financial year Cindy valued her inventory at cost. This valuation incorrectly
included damaged goods costing $300. Cindy estimated these goods could be sold for $100.

What is the effect of correcting the inventory valuation?

gross profit profit for the year current assets

A decreases by $200 decreases by $200 decrease by $200

B decreases by $300 decreases by $300 decrease by $300
C increases by $100 increases by $100 decrease by $100
D increases by $200 increases by $200 decrease by $200

18 Hassan had the following assets on 31 January 2020.

premises 12 000
inventory 500
balance at bank 360
goodwill 3 000
cash 120

There were no liabilities on 31 January 2020.

Which entries will be made in Hassan’s statement of financial position on 31 January 2020?

intangible non-current current

capital
assets assets assets
$
$ $ $

A nil 12 000 980 12 980

B nil 15 000 480 15 480
C 3000 12 000 980 15 980
D 3000 15 000 480 18 480

19 AB Stores had the following transactions.

1 The owner invested a further $20 000 capital.

2 $2000 was paid to trade payables.
3 A long-term loan of $5000 was repaid.

By how much would the working capital increase after these transactions?

A $13 000 B $15 000 C $20 000 D $27 000

© UCLES 2020 0452/12/F/M/20 [Turn over

20 The balances in the books of a business included the following.

goodwill 10 000
premises 25 000
trade receivables 9 500
trade payables 6 000
inventory 15 000
cash at bank 500 debit
long-term loan 5 000

What was the capital employed?

A $50 000 B $54 000 C $60 000 D $65 000

21 What is a disadvantage of operating a business as a partnership?

A Partners may not agree on how to run the business.

B Partners may not have the same skills.
C The financial statements must be published.
D The risks and responsibilities are shared.

22 What does not affect the total equity of a limited company?

A issue of ordinary shares

B ordinary share dividend paid
C profit for the year
D transfer from retained earnings to general reserve

23 What is called-up share capital?

A the amount received by the company for issued shares

B the amount requested from shareholders by the company
C the value of shares the company could issue
D the value of shares actually issued by the company

© UCLES 2020 0452/12/F/M/20

24 A limited company provided the following information.

issued share capital (50 000 ordinary shares of $1 each) 50 000

profit for the year ended 31 December 2019 13 000
transfer to general reserve on 31 December 2019 6 000
interim ordinary share dividend paid during the year 3 000

On 31 December 2019 it was decided to use the remaining profit to pay a final ordinary share
dividend.

What percentage final dividend would the ordinary shareholders receive?

A 8% B 14% C 20% D 26%

25 A cricket club set up a snack bar on 1 January 2019.

The following information is available.

for the year ended 31 December 2019

receipts from sales of snacks 3250
cost of purchases of snacks 2500
wages of snack bar assistant 250
at 31 December 2019
cost of snacks unsold 520

What was the profit made by the snack bar?

A $500 B $750 C $1020 D $1270

© UCLES 2020 0452/12/F/M/20 [Turn over

26 A social club had the following assets and liabilities.

non-current assets 6550

cafe expenses owing 25
subscriptions owing by members 50
balance at bank 500 debit
owing to credit suppliers 300
cafe inventory 500

What was the accumulated fund?

A $6275 B $6325 C $7175 D $7275

27 A manufacturing business provided the following information for the year ended
30 November 2019

factory supervisor’s salary 25 000

factory power 5 000
machinery depreciation 11 000
machinery operators’ wages 29 000
raw materials consumed 82 000

What was the total of the direct costs?

A $111 000 B $116 000 C $127 000 D $152 000

28 What would be included in the statement of financial position of a manufacturing business but not
a wholesale business?

A cash
B office equipment
C trade receivables
D work in progress

29 The average inventory of a business was $40 000. The rate of inventory turnover was 5 times a
year. Mark-up was 20%.

What was the revenue for the year?

A $160 000 B $200 000 C $240 000 D $250 000

© UCLES 2020 0452/12/F/M/20

30 Sumit does not maintain a full set of accounting records.

What does Sumit not need to calculate his credit sales?

A customer’s dishonoured cheque

B discounts allowed
C discounts received
D returns from credit customers

31 Jake had current liabilities of trade payables and had current assets of inventory, trade
receivables and cash at bank.

Which measure would improve his current ratio?

A buying additional inventory and paying in cash

B decreasing drawings
C revaluing non-current assets
D selling inventory on credit rather than for cash

32 Flo and Mo are traders selling similar goods at similar prices. They provided the following
information.

Flo Mo

gross margin 50% 40%

profit margin 10% 8%

Which trader has better control of cost of sales and expenses?

costs of sales expenses

A Flo Flo
B Flo Mo
C Mo Flo
D Mo Mo

33 Which is an application of the materiality principle?

A always using the straight-line method when depreciating assets

B buying raw materials on credit rather than paying immediately
C charging the cost of light bulbs and batteries to operating expenses
D recording goods sold only when its legal title passes to the buyer

© UCLES 2020 0452/12/F/M/20 [Turn over

34 Which accounting principle states that revenue should not be recorded before it is earned?

A consistency
B matching
C money measurement
D realisation

35 Which accounting objective requires that financial statements are free from bias and errors?

A comparability
B relevance
C reliability
D understandability

© UCLES 2020 0452/12/F/M/20

Cambridge IGCSE™
* 2 5 5 7 8 2 3 3 0 2 *

ACCOUNTING 0452/22
Paper 2 Structured Written Paper February/March 2020

1 hour 45 minutes

You must answer on the question paper.

No additional materials are needed.

This document has 20 pages. Blank pages are indicated.

DC (RCL (GO)) 186087/2

1 Amara maintains a petty cash book using the imprest system. The imprest amount of $200 is
restored on the first day of each month. On 1 January 2020 Amara had a balance of $65 in her
petty cash.

All payments of less than $100 are made from petty cash.

On 1 January 2020, Amara owed $85 to Razvan, a credit supplier.

Amara provided the following information for January 2020.

January 1 The petty cash imprest was restored from the business bank account.

3 Purchased stationery for cash, $24

7 Paid travelling expenses, $49

14 Paid Razvan the amount outstanding on his account

19 Purchased goods on credit from Razvan, $200 less 10% trade discount

22 Paid taxi fare, $18

28 Returned goods to Razvan which had been purchased on 19 January, list price
$40

29 Paid postage, $11

REQUIRED

(a) Prepare Amara’s petty cash book for the month of January 2020, on the page opposite.

Balance the petty cash book and bring down the balance on 1 February 2020.

© UCLES 2020 0452/22/F/M/20

Amara
Petty Cash Book

Total Date Details Total Travel Postage and Ledger

…….......…… …….......…… ……………………………………........... …................... …................... …..................... ….....................

0452/22/F/M/20
…….......…… …….......…… ……………………………………........... …................... …................... …..................... ….....................

…….......…… …….......…… ……………………………………........... …................... …................... …..................... ….....................

…..................... …..................... ……………………………………........... …..................... …..................... …..................... ….....................

[10]

[Turn over
4

Amara’s supplier, Razvan, maintains a full set of accounting records.

REQUIRED

(b) Prepare the account of Amara as it would appear in the ledger of Razvan.

Balance the account and bring down the balance on 1 February 2020.

Razvan
Amara account

Date Details $ Date Details $

……….... …………………………………… ………..... ……….... …………………………………. ……….....

……….... …………………………………… ………..... ……….... …………………………….…… ……….....

……….... …………………………………… ………..... ……….... …………………………………. ……….....

[6]

On 2 February 2020 Amara paid the balance due to Razvan. She deducted cash discount of 2%.

REQUIRED

(c) Complete the following table by placing a tick (ü) in the correct column to show how Razvan
should record the cash discount. Where an account has no entry, tick ‘no entry’.

debit credit no entry

Amara account
Discount allowed account
Discount received account
[2]

Amara usually pays Razvan by cash or cheque.

REQUIRED

(d) State two other methods which Amara could use to pay Razvan from her bank account.

1 ..............................................................................................................................................................

2 ........................................................................................................................................................ [2]

[Total: 20]

© UCLES 2020 0452/22/F/M/20

PLEASE TURN OVER

© UCLES 2020 0452/22/F/M/20 [Turn over

2 GHB Limited maintains a full set of accounting records and prepares monthly control accounts.

The following information was provided for November 2019.

$
Purchases ledger control account balance at 1 November ?

Totals for November:

Purchases journal 14 200
Purchases returns journal 1 160
Cash purchases 5 390
Commission receivable 2 110
Cash discount received 650
Cash discount allowed 710
Cheques paid to trade payables 11 420
Sales ledger contras 250
Interest charged by trade payables 95
Cheque refunds from trade payables 330
Purchases ledger control account balance at 30 November 13 195

REQUIRED

(a) Prepare the purchases ledger control account for GHB Limited for November 2019.

Balance the account on 30 November 2019 and bring down the balance on 1 December
2019.

GHB Limited
Purchases ledger control account

Date Details $ Date Details $

……….... …………………………………… ………..... ……….... …………………………………… ……….....

[9]

© UCLES 2020 0452/22/F/M/20

A delivery vehicle was purchased by cheque during November 2019.

REQUIRED

(b) State two reasons why the purchase of the delivery vehicle was not recorded in the purchases
ledger control account.

1 ................................................................................................................................................

...................................................................................................................................................

2 ................................................................................................................................................

.............................................................................................................................................. [2]

...................................................................................................................................... [1]

(ii) State three reasons for your answer to (c) (i).

1 .........................................................................................................................................

...........................................................................................................................................

2 .........................................................................................................................................

...........................................................................................................................................

3 .........................................................................................................................................

...................................................................................................................................... [3]

© UCLES 2020 0452/22/F/M/20 [Turn over

The directors of GHB Limited are planning to finance a major expansion of the fleet of delivery
vehicles. $250 000 will be required for this expansion. The directors are considering whether to
issue additional ordinary shares or to obtain a long-term bank loan.

REQUIRED

(d) Advise the directors which of these two methods of finance is more appropriate.

Justify your answer with one advantage and one disadvantage of each option.

...................................................................................................................................................

............................................................................................................................................. [5]
[Total: 20]

© UCLES 2020 0452/22/F/M/20

PLEASE TURN OVER

© UCLES 2020 0452/22/F/M/20 [Turn over

3 Tia and Sarna are partners in a trading business.

Their trial balance at 31 December 2019 was as follows:

Tia and Sarna

Trial Balance at 31 December 2019

debit credit
$ $
Revenue 124 000
Inventory at 1 January 2019 5 390
Purchases 55 440
Discount allowed 2 400
Discount received 1 385
Carriage outwards 6 160
Insurance 7 920
General expenses 8 100
Wages 9 600
Trade receivables 11 590
Trade payables 6 051
Bank 8 136
Premises at cost 90 000
Furniture at cost 24 000
Provision for depreciation on furniture 5 600
Capital accounts
Tia 80 000
Sarna 40 000
Current accounts
Tia 2 100
Sarna 1 600
Drawings
Tia 15 000
Sarna 17 000

260 736 260 736

Additional information

1 Inventory at 31 December 2019 was valued at $5165.

2 Depreciation on furniture is to be charged at 20% per annum using the straight-line method.

3 The insurance includes a payment of $2160 for the 12 months from 1 July 2019 to 30 June
2020.

4 The partnership agreement provides for

interest on capital of 5% per annum
a salary to Tia of $6000 per annum
residual profits and losses to be shared equally

© UCLES 2020 0452/22/F/M/20

REQUIRED

(a) Prepare the income statement for Tia and Sarna for the year ended 31 December 2019.

Tia and Sarna

Income Statement for the year ended 31 December 2019

$ $
……………………………………………………………....... ……………. …………….

……………………………………………………………....... ……………. …………….

……………………………………………………......…........ ……………. …………….

……………………………………………………………....... ……………. …………….

[8]

© UCLES 2020 0452/22/F/M/20 [Turn over

(b) Prepare the appropriation account for Tia and Sarna for the year ended 31 December 2019.

Tia and Sarna

Appropriation Account for the year ended 31 December 2019

$ $
……………………………………………………………....... ……………. …………….

……………………………………………………………....... ……………. …………….

[4]

(c) Prepare the current account for Sarna for the year ended 31 December 2019. Balance the
account and bring down the balance on 1 January 2020.

Tia and Sarna

Sarna current account

Date Details $ Date Details $

……….... …………………………………… ………..... ……….... …………………………………… ……….....

[4]

© UCLES 2020 0452/22/F/M/20

Tia and Sarna are considering transferring $7000 from the business bank account to an interest-
bearing deposit account.

REQUIRED

(d) Advise the partners whether or not they should make this transfer. Justify your answer by
providing advantages and disadvantages.

.................................................................................................................................................................

............................................................................................................................................................ [4]

[Total: 20]

© UCLES 2020 0452/22/F/M/20 [Turn over

4 Arjun is a sole trader.

Arjun prepared a trial balance on 31 January 2020. The totals of the debit and credit sides differed.
This difference was placed in a suspense account.

Arjun later discovered the following errors.

1 The total of the discount received column in the cash book for January, $135, had been
credited to the commission receivable account.

2 $200 received from the sale of fittings (net book value $150) had been correctly debited but
had been credited to the fixtures and fittings account.

3 Cash drawings, $40, had been correctly debited but had been credited to the purchases
account.

4 The total of the analysis column for cleaning in the petty cash book, $73, had been transferred
to both the cleaning account and the office expenses account.

5 The purchase of equipment, $575, had been credited to the equipment repairs account. The
bank account had been correctly credited.

6 No entries had been made for a cheque payment for office expenses, $90.

7 A cheque, $69, paid to Simone had been posted to the account of Simon.

© UCLES 2020 0452/22/F/M/20

REQUIRED

(a) Prepare journal entries to correct errors 1, 2 and 3.

Narratives are required.

Arjun
Journal

Error Details Debit Credit

number $ $

………….. ………………………………………………………………….... …………………….. ……………………..

………….. …………………………………...………………………………. …………………….. ……………………..

………….. ………………………………………………………………….... …………………….. ……………………..

[9]

© UCLES 2020 0452/22/F/M/20 [Turn over

(b) Prepare the suspense account. Include the original difference on the trial balance, as a
balancing figure.

Arjun
Suspense account

Date Details $ Date Details $

…………… ………………………………… ………..…… …………… ………………………………. ………..……

…………… ………………………………… ………..…… …………… …………………………….… ………..……

…………… ………………………………… ………..…… …………… ………………………………… ………..……

…………. ………………………………… ………..…… …………… ………………………………… ………..……

[4]

(c) Complete the following table by placing a tick (ü) in the correct column to indicate how each
of the errors would affect Arjun's capital.

The first one has been completed as an example.

Ignore depreciation of non-current assets.

Error number Increases Decreases No effect

capital capital on capital
3 ü
4
5
6
7
[4]

© UCLES 2020 0452/22/F/M/20

(d) State three advantages to Arjun of operating as a sole trader.

1 ................................................................................................................................................

...................................................................................................................................................

2 ................................................................................................................................................

...................................................................................................................................................

3 ................................................................................................................................................

............................................................................................................................................................ [3]

[Total: 20]

© UCLES 2020 0452/22/F/M/20 [Turn over

5 Adit provided the following information.

For the year to 31 January 2020 $

Profit for the year 27 900
Revenue 186 000
Credit purchases 93 075

At 31 January 2020
Non-current assets at book value 43 700
Inventory 9 340
Trade receivables 14 010
Trade payables 9 435
Bank overdraft 2 240
Bank loan (repayable 2023) 6 000

All goods are sold on credit terms.

REQUIRED

(a) Calculate the following ratios. Show your workings.

profit margin
workings answer

trade payables turnover (days)

workings answer
(round up to nearest
whole day)

© UCLES 2020 0452/22/F/M/20

trade receivables turnover (days)

workings answer
(round up to nearest
whole day)

liquid ratio
workings answer

[8]

The bank overdraft limit is $2500.

The trade payables turnover for the year to 31 January 2019 was 35 days.

REQUIRED

(b) Advise Adit whether or not he should delay paying trade payables in order to reduce the bank
overdraft. Justify your answer by considering the effect on both the bank balance and the trade
payables.

...................................................................................................................................................

.............................................................................................................................................. [5]

© UCLES 2020 0452/22/F/M/20 [Turn over

1 ................................................................................................................................................

...................................................................................................................................................

2 ................................................................................................................................................

...................................................................................................................................................

3 ................................................................................................................................................

............................................................................................................................................................ [3]

(d) (i) State two reasons why Adit should produce an annual income statement.

1 .........................................................................................................................................

...........................................................................................................................................

2 .........................................................................................................................................

.................................................................................................................................................... [2]

(ii) State two reasons why Adit should apply the money measurement principle.

1 ........................................................................................................................................

...........................................................................................................................................

2 ........................................................................................................................................

...........................................................................................................................................

...................................................................................................................................... [2]

[Total: 20]

© UCLES 2020 0452/22/F/M/20

Cambridge IGCSE™

ACCOUNTING 0452/22
Paper 22 March 2020
MARK SCHEME
Maximum Mark: 100

Published

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 March 2020 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 14 printed pages.

© UCLES 2020 [Turn over

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Generic Marking Principles

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

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:

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.

© UCLES 2020 Page 2 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
GENERIC MARKING PRINCIPLE 5:

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.

© UCLES 2020 Page 3 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

1(a) Amara 10
Petty Cash Book

Total Date Details Total Travel Postage Ledger

received paid and accounts
stationery
$ $ $ $ $

2020
65 Jan 1 Balance b/d
135 Bank (1)
3 Stationery (1) 24 24
7 Travel (1) 49 49
14 Razvan (1) 85 85
22 Taxi fare (1) 18 18
29 Postage (1) 11 11
187 67 35 85
31 Balance c/d 13
200 200
13 Feb 1 Balance b/d (1)

+ (1) dates
+ (1) OF totalling analysis columns
+ (1) OF for 2 matching totals

© UCLES 2020 Page 4 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

1(b) Razvan 6
Amara account

2020 $ 2020 $
Jan 1 Balance b/d 85 (1) Jan 14 Petty cash 85 (1)
19 Sales 180 (1) 28 Sales returns 36 (1)
31 Balance c/d 144
265 265
Feb 1 Balance b/d 144 (1)OF

+ (1) dates

1(c) 2
debit credit no entry

Amara account  (1)

Discount allowed account  }

Discount received account  }(1)

1(d) Direct debit (1) 2

Credit card/Debit card (1)
Online/electronic payment (1)
Telephone transfer (1)
Credit transfer (1)
Accept other valid points
Max (2)

© UCLES 2020 Page 5 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

2(a) GHB Limited 9

Purchases ledger control account
2019 $ 2019 $
Nov 30 Purchases returns 1 160 (1) Nov 1 Balance b/d 12 050 (1) OF
Discount received 650 (1) 30 Purchases 14 200 (1)
Bank 11 420 (1) Interest 95 (1)
Sales ledger 250 (1) Bank 330 (1)
Balance c/d 13 195
26 675 26 675
Dec 1 Balance b/d 13 195 (1)

2(b) The purchases ledger control account does not include capital expenditure/non-current assets (1) 2
The purchases ledger control account only includes purchases of goods for resale (1)
The purchases ledger control account only includes transactions relating to trade payables (1)
Accept other valid points
Max (2)

2(c)(i) Reducing balance method (1) 1

2(c)(ii) More depreciation is charged in the early years of its life (1) 3
Most of the benefit of the asset is gained in the early years (1)
The net book value is more likely to relate to the amount which will be realised on sale (1)
The vehicle may become out-of-date quickly depending on the vehicle type (1)
As repair costs are likely to be minimal in the early years, the overall charge to the income statement each year is more likely
to be fairly constant if the reducing balance method is used (1)
Accept other valid points
Max (3)

© UCLES 2020 Page 6 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

2(d) Ordinary shares 5

Advantages:
Shares could be sold to new or existing shareholders (1)
Shares are permanent capital/do not have to be repaid (1)
Dividends vary according to the profit (1)
Accept other valid points
Max (1)

Disadvantages:
It may take longer to raise the funds (1)
Increased dividends may have to be paid (1)
All the shares need to be sold in order to raise the amount required (1)
Less control for existing shareholders (1)
Accept other valid points
Max (1)

Bank loan
Advantages:
Easier to set up/quicker to obtain funds (1)
May be repaid early (1)
Accept other valid points
Max (1)

Disadvantages:
A fixed rate of interest needs to be paid each year (1)
The interest would be payable irrespective of profit (1)
Must be re-paid in full within a fixed period (1)
Security would have to be provided (1)
Accept other valid points
Max (1)
Recommendation (1)

© UCLES 2020 Page 7 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

3(a) Tia and Sarna 8

Income Statement for the year ended 31 December 2019

$ $
Revenue 124 000
Cost of sales
Opening inventory 5 390
Purchases 55 440
60 830
Less Closing inventory 5 165
55 665 (1)
Gross profit 68 335 (1)OF
Discount received 1 385 (1)
69 720
Less Expenses
Discount allowed 2 400 }
Carriage outwards 6 160 }(1)
Insurance (7 920 – 1 080) 6 840 (1)
General expenses 8 100 }
Wages 9 600 }(1)
Depreciation on Furniture (20% × 24 000) 4 800 (1) 37 900
Profit for the year 31 820 (1)OF

3(b) Tia and Sarna 4

Appropriation Account for the year ended 31 December 2019

$ $
Profit for the year 31 820 (1) OF
Less Interest on capital Tia 4 000
Sarna 2 000
6 000 (1)
Salary Tia 6 000 (1) 12 000
19 820
Profit share Tia 9 910 }(1) OF
Sarna 9 910 } 19 820

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

3(c) Tia and Sarna 4

Sarna Current account
2019 $ 2019 $
Dec 31 Drawings 17 000 (1) Jan 1 Balance b/d 1 600
Dec 31 Interest on capital 2 000 (1)OF
Profit 9 910 (1)OF
Balance c/d 3 490
17 000 17 000
2020
Jan 1 Balance b/d 3 490 (1)OF

3(d) Advantages 4
It would reduce cash sitting idle in the business bank account (1)
The levels of trade receivables and trade payables suggest that there will be future net cash inflow (1)
Interest would be earned on the amount transferred (1)
Accept other valid points
Max (2)

Disadvantages
It may not be possible to withdraw money from the deposit account without giving notice (1)
Cash may not be available if Tia decides to draw the full amount to which she is entitled at the end of the year (1)
Will decrease working capital/will reduce liquidity (1)
Tia and Sarna may be considering other uses for the cash (1)
Accept other valid points
Max (2)

Max (3) for advantages and disadvantages

Recommendation (1)

© UCLES 2020 Page 9 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

4(a) Arjun 9
Journal
Error Details Debit Credit
number $ $

1 Commission receivable 135 (1)

Discount received 135 (1)
Correction of error – cash book total for discount received incorrectly posted (1)

2 Fixtures and fittings 200 (1)

Disposal of fixtures and fittings 200 (1)
Correction of error – proceeds of sale of fittings incorrectly posted (1)

3 Purchases 40 (1)
Cash 40 (1)
Correction of error – cash drawings posted in error to purchases (1)

4(b) Arjun 4
Suspense account

2020 $ 2020 $
Jan 31 Difference on trial 1 077 (1)OF Jan 31 Equipment repairs 575 (1)
balance Equipment 575 (1)
Office expenses 73 (1)
1 150 1 150

© UCLES 2020 Page 10 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

4(c) 4
Error number Increases Decreases No effect
capital capital on capital

3 

4 (1)

5  (1)

6  (1)

7 (1)

4(d) Full control of the business (1) 3

Decisions can be taken quickly (1)
Profits do not have to be shared/distributed (1)
Book-keeping and accounting are simpler (1)
Financial statements do not have to be published (1)
Accept other valid points
Max (3)

© UCLES 2020 Page 11 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

5(a) 8
profit margin

workings answer

27 900 100 (1) whole formula 15% (1)

×
186 000 1

Trade payables turnover (days)

workings answer

9 435 365 (1) whole formula 37 days (1)

×
93 075 1

Trade receivables turnover (days)

workings answer

14 010 365 (1) whole formula 28 days (1)

×
186 000 1

Liquid ratio

workings answer

14 010 : 11 675 (1) whole formula 1.2 : 1 (1)

© UCLES 2020 Page 12 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

5(b) Bank 5
May damage relationship with bank (1)
Already has a bank loan as well as the overdraft (1)
Has nearly reached his overdraft limit (1)
Bank may charge increased interest if overdraft limit is exceeded (1)
Accept other valid points
Max (2)

Trade payables
Relationship with suppliers may be damaged if he delays paying them (1)
Is taking longer to pay trade payables than he did last year (1)OF
May already be taking longer to pay than the credit period allowed (1)
Trade payables may refuse future supplies (1)
Interest may be charged on the overdue amount/cash discount will be forfeited (1)
Accept other valid points
Max (2)

Recommendation (1)

5(c) Sell surplus non-current assets (1) 3

Increase bank loan/additional bank loan (1)
Obtain loan from another source (1)
Convert to a partnership/limited company (1)
Introduce additional capital (1)
More efficient credit control (1)
Sell on a cash basis (1)
Reduce drawings (1)
Accept other valid points
Max (3)

© UCLES 2020 Page 13 of 14

0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
Question Answer Marks

5(d)(i) To calculate the profit for the year (1) 2

To assess progress of the business (1)
To provide information for calculation of ratios (1)
For comparison purposes (1)
To indicate where corrective action is required (1)
To assist planning (1)
To provide required information for the tax authorities (1)
Accept other valid points
Max (2)

5(d)(ii) Non-monetary items cannot be recorded/only items which can be expressed in monetary terms can be recorded (1) 2
Money is a widely used/understood unit of measure (1)
Transactions are traditionally recorded in money terms (1)
Subjectivity/personal opinion is avoided (1)
Easier to make comparisons year-on-year/with other businesses (1)
Accept other valid points
Max (2)

© UCLES 2020 Page 14 of 14

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 Multiple Choice February/March 2021
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*6889339018*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

INFORMATION
 The total mark for this paper is 35.
 Each correct answer will score one mark.
 Any rough working should be done on this question paper.

This document has 16 pages. Any blank pages are indicated.

IB21 03_0452_12/3RP
© UCLES 2021 [Turn over
2

1 A business employs a book-keeper and an accountant.

Which task would the accountant perform?

A extracting balances from the ledger accounts to produce a trial balance

B making entries in the general journal to adjust a provision for doubtful debts
C preparing a monthly report that analyses the profitability of the company
D recording sales and purchase invoices in the books of prime entry

2 What are assets?

amounts owed amounts owed items owned

to a business by a business by a business

A no no yes
B no yes yes
C yes no yes
D yes yes no

3 On 15 February, Kalou made the following entries in his accounts.

debit $ credit $

bank 228 Droghba 240

discount allowed 12

Which transaction was being recorded?

A Droghba paid Kalou by cheque after taking a cash discount.

B Droghba paid Kalou by cheque after taking a trade discount.
C Kalou paid Droghba by cheque after taking a cash discount.
D Kalou paid Droghba by cheque after taking a trade discount.

© UCLES 2021 0452/12/F/M/21

4 Jai is a manufacturer. On 1 February he purchased a machine costing $15 000 from Vinita. He
paid $10 000 immediately with a cheque from his personal bank account. The balance was to be
paid in June.

Which entries did Jai make on 1 February?

accounts debited $ accounts credited $

A machinery 10 000 bank 10 000

B machinery 10 000 capital 10 000
C machinery 15 000 bank 10 000
Vinita 5 000
D machinery 15 000 capital 10 000
Vinita 5 000

5 Jameel’s financial year ends on 31 December. On 1 January 2021 he brought down a debit
balance on his stationery account.

What does this balance represent?

A amount owing for stationery on 1 January 2021

B amount paid for stationery during 2020
C cost of stationery used during 2020
D inventory of stationery on 1 January 2021

6 Daksha returned goods to Amina.

Which entries did Daksha make in her books?

debit entry credit entry

account ledger account ledger

A Amina general purchases returns purchases

B Amina purchases purchases returns general
C purchases returns general Amina purchases
D purchases returns purchases Amina general

7 Which book of prime entry is written up from the copies of credit notes issued by a trader?

A purchases journal
B purchases returns journal
C sales journal
D sales returns journal

© UCLES 2021 0452/12/F/M/21 [Turn over

8 Which transaction is recorded in the general journal?

A correction of an error in recording sales returns

B drawings in cash by the owner
C purchase of a motor vehicle by cheque
D purchase of goods on credit

9 Raminder maintains a petty cash book using the imprest system. The monthly imprest of $250 is
restored on the first day of each month.

In January the petty cashier spent $105 and received a refund of $15 from a stationery supplier.

How much was given to the petty cashier on 1 February to restore the imprest?

A $90 B $105 C $145 D $160

10 The totals of a trial balance failed to agree. The total of the credit column was $10 000. Two
errors were later found.

The sales journal had been overcast by $100.

Goods sold to Sarah on credit for $200 had been incorrectly debited to Zara.

What was the total of the debit column of the trial balance?

A $9700 B $9900 C $10 100 D $10 300

11 On 31 December 2020, the bank column in Farad’s cash book showed an overdrawn balance
of $2000.

The following items had not been entered in the cash book.

standing order for rent 200

interest on bank overdraft 50
credit transfer from X Limited 2900

What was the corrected balance of the bank column in the cash book at 1 January 2021?

A $650 credit
B $650 debit
C $1150 credit
D $1150 debit

© UCLES 2021 0452/12/F/M/21

12 Raj is both a customer of and a supplier to Balbir.

Raj’s account in Balbir’s sales ledger showed a debit balance of $300. There was a credit
balance of $100 on Raj’s account in the purchases ledger. A contra entry between the two
accounts was agreed.

Which entry would Balbir make in his purchases ledger control account?

A credit $100
B credit $200
C debit $100
D debit $200

13 Motor vehicle repairs, $2000, were debited to the motor vehicles account.

Motor vehicles are depreciated at 20% per annum on the balance of the account at the year end.

What was the effect of the error?

effect on motor vehicles

effect on
in statement of financial
profit for the year
position

$ $

A overstated 1600 overstated 1600

B overstated 2000 overstated 2000
C understated 1600 understated 1600
D understated 2000 understated 2000

14 Mandeep depreciates his motor vehicles at the rate of 20% using the straight-line method.

A full year’s depreciation is provided in the year of purchase.

Mandeep bought a motor vehicle on 1 January 2017 for $20 000. On 1 June 2020 he bought a
second motor vehicle for $10 000.

What was the depreciation charge on motor vehicles for the year ended 31 December 2020?

A $2000 B $4000 C $5000 D $6000

© UCLES 2021 0452/12/F/M/21 [Turn over

15 The following ledger account appeared in the books of a trader.

Rates account
$ $

Jan 1 Balance b / d 240 Dec 31 Income statement 2880

June 30 Bank 2160
Dec 31 Balance c / d 480
2880 2880

Which statement is correct?

A Rates are accrued at both the start and the end of the year.
B Rates are accrued at the start of the year and prepaid at the end of the year.
C Rates are prepaid at both the start and the end of the year.
D Rates are prepaid at the start of the year and accrued at the end of the year.

16 A book-keeper made the following ledger entry.

account debited account credited

bank debts recovered

Which transaction has been recorded?

A A credit customer has paid his account by the due date.

B A late payment has been received for a debt not yet written off.
C A payment has been received for a debt that had been written off.
D An irrecoverable debt has been written off.

© UCLES 2021 0452/12/F/M/21

17 The following accounts appeared in the ledger of Delta Limited.

Total trade receivables account

$ $

Jan 1 Balance b / d 30 000 Dec 31 Bank 109 000

Dec 31 Sales 101 000 Balance c / d 22 000
131 000 131 000

Provision for doubtful debts account

$ $

Dec 31 Income statement 100 Jan 1 Balance b / d 1 200

Balance c / d 1 100
1 200 1 200

How had the total of trade receivables and the rate of provision for doubtful debts changed by
the end of the year?

total of trade rate of provision

receivables for doubtful debts

A decreased decreased
B decreased increased
C increased decreased
D increased increased

18 On 31 December 2020 Helmut had the following liabilities.

bank loan repayable 1 September 2021 1500

bank overdraft repayable on demand 1000
loan from finance company repayable 30 June 2024 5000
mortgage repayable 1 March 2022 2000

What was the total of Helmut’s non-current liabilities on 31 December 2020?

A $5000 B $7000 C $8500 D $9500

© UCLES 2021 0452/12/F/M/21 [Turn over

19 Vinita’s credit customer paid the amount owing in cash, after deducting 2% discount for prompt
payment.

How did this affect Vinita’s financial statements?

statement of financial
income statement
position

A increase expenses decrease current assets

B increase expenses increase current assets
C increase revenue decrease current assets
D increase revenue increase current assets

20 Mohan and Dipak are in partnership. They provided the following information at the end of the
financial year.

$ $

profit for the year 30 600

interest on capital Mohan 1 000
Dipak 1 500 2 500
interest on drawings Mohan 40
Dipak 320 360
salary Mohan 4 000

How much was available for distribution to the partners?

A $23 740 B $24 460 C $27 740 D $29 460

21 Raj and Rohit are in partnership sharing profits and losses in the ratio of 2 : 1. Raj is entitled to an
annual salary of $3000. The profit for the year ended 31 December 2020 was $14 100.

On 1 January 2020, Raj’s current account had a debit balance of $1800.

What was the credit balance on Raj’s current account on 1 January 2021?

A $8600 B $10 400 C $12 200 D $12 400

22 Which items appear in the capital and reserves section of a statement of financial position of a
limited company?

A debentures, ordinary share dividend, general reserve

B debentures, retained earnings, general reserve
C ordinary share capital, debentures, retained earnings
D ordinary share capital, general reserve, retained earnings

© UCLES 2021 0452/12/F/M/21

23 The issued share capital of AN Limited consists of ordinary shares.

On 1 January 2020, the retained earnings were $78 000.

For the year ended 31 December 2020, the company earned a profit of $65 000.

An ordinary share dividend of $20 000 was paid during the year and a further dividend for the
year of $15 000 was proposed. A transfer was made to general reserve of $40 000.

What was the balance of retained earnings at 31 December 2020?

A $3000 B $5000 C $68 000 D $83 000

24 Which group contains only items which may be recorded in both the income statement of a
trading business and the income and expenditure account of a club?

A bank charges, depreciation, wages

B bank charges, gross profit, sales revenue
C deficit, sales revenue, treasurer’s expenses
D depreciation, treasurer’s expenses, wages

25 The following ledger account appeared in the books of a club for the year ended
31 December 2020.

Subscriptions account
$ $

2020 2020
Jan 1 Balance b / d 2 000 Dec 31 Bank 29 000
Dec 31 Income and expenditure 24 000
Balance c / d 3 000
29 000 29 000

Which statement is correct?

A Subscriptions prepaid on 1 January 2020 amounted to $2000.

B Subscriptions prepaid on 31 December 2020 amounted to $3000.
C Subscriptions received during the year ended 31 December 2020 amounted to $24 000.
D Subscriptions relating to the year ended 31 December 2020 amounted to $29 000.

© UCLES 2021 0452/12/F/M/21 [Turn over

26 The following costs were incurred by a clothing manufacturer.

1 purchase of fabric
2 purchase of buttons
3 repairs to sewing machine
4 wages of factory supervisors
5 wages of sewing machinists

Which costs are indirect costs?

A 1, 2 and 5 B 1, 4 and 5 C 2 and 3 D 3 and 4

27 A manufacturer calculated the cost of production for the year at $57 000.

It was found that lighting and heating, $2000, had been omitted from the financial statements.

Lighting and heating is allocated 75% to the factory and 25% to the offices.

What was the correct cost of production?

A $55 500 B $56 500 C $57 500 D $58 500

28 Tariq provided the following information.

31 January 2020 31 January 2021

$ $

non-current assets 60 000 70 000

current assets 20 000 25 000
current liabilities 15 000 19 000

Tariq’s drawings for the year ended 31 January 2021 were $5000.

What was the profit for the year ended 31 January 2021?

A $6000 B $11 000 C $14 000 D $16 000

© UCLES 2021 0452/12/F/M/21

29 Nour does not keep full accounting records. She provided the following information at the end of
the financial year.

decrease in trade receivables during the year 2 000

receipts from trade receivables 58 000
discount allowed 1 200
sales returns 1 500

What were the credit sales for the year?

A $55 700 B $57 300 C $58 700 D $62 700

30 A trader provided the following information.

non-current assets 132 000

current assets 28 000
current liabilities 12 000
interest paid on loan 2 000

Return on capital employed was 12.5%.

What was the profit for the year before loan interest?

A $16 500 B $18 250 C $18 500 D $20 500

31 Which change would cause an increase in the liquid (acid test) ratio?

A a decrease in inventory
B an increase in inventory
C a decrease in the provision for doubtful debts
D an increase in the provision for doubtful debts

© UCLES 2021 0452/12/F/M/21 [Turn over

32 Abhinav provided the following information.

year ended year ended

31 December 2019 31 December 2020
$ $

purchases 112 500 124 000

cost of sales 115 500 120 000

inventory $

1 January 2019 7000

31 December 2019 4000
31 December 2020 8000

What was the rate of turnover of inventory for the year ended 31 December 2020?

A 15 times B 20 times C 21 times D 30 times

33 Which action will improve the gross margin?

A increasing expenses
B increasing selling price
C reducing expenses
D reducing selling price

34 Amaira depreciates her non-current assets by the same rate and using the same method every
year.

Which group of accounting principles is she applying?

A business entity, consistency, matching

B business entity, prudence, realisation
C consistency, matching, prudence
D matching, prudence, realisation

© UCLES 2021 0452/12/F/M/21

35 Kamika’s financial statements did not comply with the accounting principle of money
measurement.

What had Kamika done?

A included a value for the skill of her employees

B forgot to include prepaid insurance
C recorded her drawings in wages and salaries
D valued her inventory above original cost

© UCLES 2021 0452/12/F/M/21

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© UCLES 2021 0452/12/F/M/21

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© UCLES 2021 0452/12/F/M/21

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© UCLES 2021 0452/12/F/M/21

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 March 2021
MARK SCHEME
Maximum Mark: 35

Published

This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the
examination.

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 March 2021 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 3 printed pages.

© UCLES 2021 [Turn over

0452/12 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED

Question Answer Marks

1 C 1

2 C 1

3 A 1

4 D 1

5 D 1

6 B 1

7 D 1

8 A 1

9 A 1

10 B 1

11 B 1

12 C 1

13 A 1

14 D 1

15 D 1

16 C 1

17 B 1

18 B 1

19 A 1

20 B 1

21 A 1

22 D 1

23 D 1

24 A 1

25 B 1

26 D 1

27 D 1

28 D 1

© UCLES 2021 Page 2 of 3

0452/12 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED

Question Answer Marks

29 C 1

30 C 1

31 C 1

32 B 1

33 B 1

34 C 1

35 A 1

© UCLES 2021 Page 3 of 3

Cambridge IGCSE™
* 2 1 8 5 9 7 1 3 4 1 *

ACCOUNTING 0452/22
Paper 2 Structured Written Paper February/March 2021

1 hour 45 minutes

You must answer on the question paper.

No additional materials are needed.

This document has 20 pages. Any blank pages are indicated.

DC (PQ) 200799/4
© UCLES 2021 [Turn over
2

1 Shilpa is a trader. The following transactions took place in January 2021.

January 2 Paid rent, $450, by direct debit

3 Bought goods on credit from Dilip, list price $120, subject to a trade discount of
25%

6 Sold goods on credit to Kabir, list price $200, subject to a trade discount of 20%

9 Sold surplus office fittings for $110 which was paid by credit transfer

10 Returned goods to Dilip, list price $20. These goods had been purchased on
3 January

11 Paid $50 to Dilip in cash

15 Cash sales, $85, were immediately paid into the bank

17 Paid office expenses, $30, by credit transfer

20 Sold goods on credit to Pari, $150

21 Kabir paid by cheque for the goods he purchased on 6 January, after deducting
cash discount of 7½%

24 Pari paid $141, by cheque, in full settlement of the purchases made on 20 January

26 Sold goods on credit to Yash, $62, offering him a discount of 5% if he paid within
21 days

REQUIRED

(a) Prepare Shilpa’s sales journal for January 2021.

Total the journal and indicate the ledger account to which the total would be posted.

Shilpa
Sales journal
Date Details $ $

................... .......................................................................... ................... ...................

[4]

(b) Complete Shilpa’s cash book on the page opposite.

Balance the cash book and bring down the balances on 1 February 2021.
© UCLES 2021 0452/22/F/M/21
Shilpa
Cash Book
Date Details Discount Cash Bank Date Details Discount Cash Bank

Jan 1 Balance b/d ................ 200 814 ........... ....................................... ................ ................ ................

........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................

0452/22/F/M/21
........... ....................................... ................ ................ ................ ........... ....................................... ................ ................ ................

[11]

[Turn over
4

(c) Prepare the ledger account of Dilip for January 2021. Balance the account and bring down
the balance on 1 February 2021.
There was no balance on Dilip’s account on 1 January 2021.

Shilpa
Dilip account
Date Details $ Date Details $

……….. ………......................... ………... ……….. ………......................... ………..

[4]

(d) Complete the table by placing a tick (3) to indicate which document Dilip would send to
Shilpa for the return of goods on 10 January.

Debit note

Credit note
[1]

[Total: 20]

© UCLES 2021 0452/22/F/M/21

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© UCLES 2021 0452/22/F/M/21 [Turn over

2 Zamir is in business providing legal services. Zamir provided the following balances from his
books of account at 31 December 2020.

$
Fee income 151 750
Rent and rates 26 000
Salaries 55 000
Stationery and advertising 6 450
Electricity 8 000
Bank charges 4 100
Office equipment – cost 60 000
Office equipment – provision for depreciation 22 500
Proceeds of disposal of office equipment 1 000
Bank overdraft 7 900
Trade receivables 15 600
Capital 57 000
Drawings 65 000

Additional information

1 The annual rent is $16 000. On 31 December 2020 rent was paid to cover the period from
1 January to 31 March 2021.
There was no accrual or prepayment of rent at 1 January 2020.

2 Rates of $6000 were paid during the year to 31 December 2020. This payment covered the
period 1 January 2020 to 31 October 2020 only. From 1 November 2020 annual rates were
$7560.

3 Depreciation is to be charged on office equipment at 15% per annum using the straight-line
method. No depreciation is charged in the year of disposal.

4 In February 2020 office equipment was sold for $1000. This equipment had been purchased
for $1800 on 1 January 2018. The sales proceeds have been debited to the bank account
and credited to the proceeds of disposal of office equipment account. No other entries have
been made in respect of the disposal.

5 One of Zamir’s clients has become bankrupt. The client owed $1885. Zamir does not expect
to recover this amount.

© UCLES 2021 0452/22/F/M/21

REQUIRED

(a) Prepare Zamir’s income statement for the year ended 31 December 2020.

Zamir
Income Statement for the year ended 31 December 2020
$ $

.......................................................................................... ................... ...................

[10]

© UCLES 2021 0452/22/F/M/21 [Turn over

(b) Prepare the assets section of Zamir’s statement of financial position at 31 December 2020.

Zamir
Statement of Financial Position (assets section) at 31 December 2020

$ $ $

.......................................................................... ................... ................... ...................

[3]

1 ................................................................................................................................................

...................................................................................................................................................

2 ................................................................................................................................................

...................................................................................................................................................
[2]

© UCLES 2021 0452/22/F/M/21

Zamir employs Sharif, who is another lawyer. Sharif also keeps the books of account for the
business. Zamir would like to ensure that Sharif does not leave to start work for a rival legal
business.

REQUIRED

(d) Advise Zamir whether he should offer Sharif an increase in salary or invite him to become a
partner in the business. Justify your answer with two advantages of each course of action.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2021 0452/22/F/M/21 [Turn over

3 Rachel prepared her trial balance at 31 January. The total of the debit side was more than the total
of the credit side. Rachel entered the difference in a suspense account.

(a) Explain how the use of a suspense account allows a draft statement of financial position to be
prepared.

...................................................................................................................................................

............................................................................................................................................. [2]

Rachel later discovered the following errors.

1 A repair to the premises, $220, had been debited to the premises account.

2 The purchase of a motor vehicle, $3400, on credit from Neil’s Wheels, had not been recorded
in the accounting records.

3 Both the sales journal and the purchases journal had been overcast by $100.

4 Returns inwards, $19, had not been recorded in the returns inwards account.

5 Bank interest received, $25, had been debited to the bank charges account. The entry in the
bank account had been correctly made.

REQUIRED

(b) Prepare the journal entries to correct errors 1–5. Narratives are not required.

© UCLES 2021 0452/22/F/M/21

Rachel
Journal
Error Details Debit Credit
number $ $

............ ................................................................................ ................... ...................

[11]

© UCLES 2021 0452/22/F/M/21 [Turn over

(c) State the number of the error which is

(i) a compensating error

.................................... [1]

(ii) an error of omission

.................................... [1]

(d) Complete the table to indicate the effect of each error on gross profit and on profit for the
year. The first one has been completed as an example.

Gross Profit Profit for the year

Error
number No effect Understated Overstated No effect Understated Overstated
$ $ $ $
1 3 220

5
[4]

(e) State why a balance may remain on the suspense account after errors 1–5 have been
corrected.

...................................................................................................................................................

............................................................................................................................................. [1]

[Total: 20]

© UCLES 2021 0452/22/F/M/21

4 Chaaya provided the following information.

$
For the year to 31 December 2020
Credit sales 114 400
Credit purchases 63 110
Gross profit 51 480

At 31 December 2020
Inventory 2 850
Trade receivables 15 400
Trade payables 7 430
Bank overdraft 6 190

REQUIRED

(a) Complete the following table.

ratio working answer

gross margin

trade receivables
turnover days
(round up to next whole day)

current ratio
(correct to two decimal places)

[6]

Chaaya is comparing her ratios with those of Sara, her main competitor. Based on Sara’s most
recent financial statements, her trade receivables turnover is 28 days.

© UCLES 2021 0452/22/F/M/21 [Turn over

REQUIRED

(b) (i) Compare Chaaya’s trade receivables turnover with Sara’s trade receivables turnover.

...........................................................................................................................................

..................................................................................................................................... [3]

(ii) State two problems with the inter-firm comparison in 4(b)(i).

1 ........................................................................................................................................

...........................................................................................................................................

2 ........................................................................................................................................

...........................................................................................................................................
[2]

Chaaya is considering stopping selling on credit and instead selling on a cash only basis. Chaaya
would offer a trade discount of 12% to regular customers in order to maintain a good relationship
with customers.

REQUIRED

(c) Advise Chaaya whether she should start to make cash sales only and offer the trade discount.
Justify your answer by providing two advantages and two disadvantages.

...................................................................................................................................................

............................................................................................................................................. [5]

© UCLES 2021 0452/22/F/M/21

(d) (i) State two reasons why Chaaya’s employees would be interested in her financial
statements.

1 ........................................................................................................................................

...........................................................................................................................................

2 ........................................................................................................................................

...........................................................................................................................................
[2]

(ii) State two types of users of Chaaya’s financial statements, other than Chaaya and her
employees.

1 ........................................................................................................................................

2 ........................................................................................................................................
[2]

[Total: 20]

© UCLES 2021 0452/22/F/M/21 [Turn over

5 Maira opened a shop on 1 January 2020.

She provided the following trading information.

Gross margin: 40%

Purchase price: $70 per unit
Carriage inwards: $2 per unit
Inventory: 130 units at 31 December 2020

REQUIRED

(a) Calculate the cost of Maira’s inventory at 31 December 2020.

...................................................................................................................................................

............................................................................................................................................. [2]

Maira has not kept a full set of accounting records, but provided the following information.

1 All sales were made on cash terms. The sales for the first year were:

for the first two months: $10 800 each month

for the next eight months: $12 000 each month
for the last two months: $16 200 each month

2 During the year Maira purchased 1400 units. Carriage was paid on these units.

3 Maira took goods from the business during the year ended 31 December 2020. No record
was kept of these drawings.

© UCLES 2021 0452/22/F/M/21

REQUIRED

(b) Prepare Maira’s income statement (trading section) for the year ended 31 December 2020.

Maira
Income Statement (trading section) for the year ended 31 December 2020
$ $

.......................................................................................... ................... ...................

[8]

© UCLES 2021 0452/22/F/M/21 [Turn over

Maira has been too busy to keep a full set of accounting records. However, she is now considering
using double-entry book-keeping for her business.

(c) Advise Maira on whether or not she should start to keep a full set of accounting records.
Justify your answer with two advantages and two disadvantages.

...................................................................................................................................................

............................................................................................................................................. [5]

(d) Place a tick (3) in the correct column to indicate to Maira the book of prime entry in which
each of the following should be recorded.

Cash book Purchases journal Purchases

returns journal
Discount received from a
supplier for prompt payment
Credit note received from a
supplier
Direct debit paid to a
supplier
[3]

(e) Complete the table by placing a tick (3) in the correct column to indicate to Maira the
accounting objective which is described in each statement.

Comparability Relevance Reliability

Maira’s financial statements should be
free from significant errors.
Maira’s financial statements should be
provided in time for her to use them
when making decisions about her shop.
[2]

[Total: 20]

© UCLES 2021 0452/22/F/M/21

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© UCLES 2021 0452/22/F/M/21

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© UCLES 2021 0452/22/F/M/21

Cambridge IGCSE™

ACCOUNTING 0452/22
Paper 2 March 2021
MARK SCHEME
Maximum Mark: 100

Published

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 March 2021 series for most Cambridge
IGCSE™, Cambridge International A and AS Level components and some Cambridge O Level components.

This document consists of 19 printed pages.

© UCLES 2021 [Turn over

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Generic Marking Principles

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

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:

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.

© UCLES 2021 Page 2 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
GENERIC MARKING PRINCIPLE 5:

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.

© UCLES 2021 Page 3 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Social Science-Specific Marking Principles
(for point-based marking)

1 Components using point-based marking:

From this it follows that we:

2 Presentation of mark scheme:

© UCLES 2021 Page 4 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
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.

© UCLES 2021 Page 5 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

1(a) Shilpa 4
Sales journal

Date Details $

2021
Jan 6 Kabir (200 – 40) 160 (1)
20 Pari 150 (1)
26 Yash 62 (1)
31 Transfer to sales account 372 (1) OF

1(b) Shilpa 11
Cash Book

Disc. Cash Bank Disc. Cash Bank

Alld Recd
2021 $ $ $ 2021 $ $ $

Jan 1 Balance b/d 200 814 Jan 2 Rent (1) 450

9 Disposal 11 Dilip (1) 50
of office fittings (1) 110 17 Office
15 Sales (1) 85 expenses (1) 30
21 Kabir (1) 12 148 31 Balance c/d 150 818
24 Pari (1) 9 ___ 141 ___ ____
21 200 1298 200 1298
Feb 1 Balance b/d (1)OF 150 818
(1)OF (1)OF

+ (1) dates

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0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

1(c) Shilpa 4
Dilip account
Date Details $ Date Details $

2021 2021
Jan 10 Purchases returns (1) 15 Jan 3 Purchases (1) 90
(20–5) (120 – 30)
11 Cash (1) 50
31 Balance c/d 25
90 90
Feb 1 Balance b/d (1)OF 25

© UCLES 2021 Page 7 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

1(d) 1
Debit note

Credit note (1)

© UCLES 2021 Page 8 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

2(a) Zamir 10
Income Statement for the year ended 31 December 2020

$ $
Fee income 151 750
Less Expenses
*Rent and rates
(26 000 – 4 000 (1) + 1 260 (1)) 23 260
Salaries 55 000 }
Stationery and advertising 6 450 } (1)
Electricity 8 000 }
Bank charges 4 100 } (1)
Irrecoverable debts 1 885 (1)
Loss on disposal of office equipment
(1 000 – (1 260) (1) 260 (1)OF
Depreciation of office equipment
(60 000 – 1 800 = 58 200 × 15% (1) 8 730 (1)OF 107 685
Profit for the year 44 065 (1)OF

* Rent and rates alternative calculation

rent 4 000 × 4 16 000 (1)
rates 6 000 + (2/12 × 7 560) 7 260 (1)
23 260

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0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

2(b) Zamir 3
Statement of Financial Position (assets section) at 31 December 2020

$ $ $
Assets
Non-current Assets Cost Accumulated Net book
depreciation value
*Office equipment 58 200 (1) 30 690 (1)OF 27 510 OF

Current Assets
Trade receivables (15 600 – 1 885) 13 715 } (1)
Other receivables 4 000 }
17 715
Total assets 45 225

* workings: cost 60 000 – 1800 = 58 200

acc dep (22 500 – 540) = 21 960 + 8730 OF = 30 690 OF

2(c) High level of drawings (1) 2

High level of trade receivables/trade receivables slow to settle debts (1)
Expenses not controlled efficiently (1)
To meet short-term debts when they fall due (1)
To improve cash flow/liquidity (1)
To be able to take advantage of business opportunities as they arise (1)
To purchase additional non-current assets/expand the business (1)
Accept other valid answers
Max (2)

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0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

2(d) Salary increase – advantages 5

Sharif would only be entitled to his salary and not a share of the profit (1)
Zamir would not need to consult Sharif before making decisions (1)
Disagreements about decisions etc. would not arise (1)
Sharif’s motivation and commitment may improve (1)
No changes would be required to the (legal) structure of the business (1)
Accept other valid points
Max (2)

Partnership offer – advantages

Sharif may be required to introduce capital (1)
The risks/losses and responsibilities would be shared (1)
The decision-making would be shared (1)
Sharif’s salary as an employee would not need to be paid (1)
Sharif may be more committed (1)
Accept other valid points
Max (2)

Recommendation (1)

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0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

3(a) The suspense account balance is entered on the trial balance (1) 2
This means that there are equal debits and credits on the trial balance/the trial balance will balance (1)

3(b) Rachel 11
Journal
Error Details Debit Credit
number $ $

Premises repairs 220 (1)

1
Premises 220 (1)

Motor vehicles 3400 (1)

2
Neil’s Wheels 3400 (1)

Sales 100 (1)

3
Purchases 100 (1)

Sales returns 19 (1)

4
Suspense 19 (1)

Suspense 50 (1)
5 Bank interest received 25 (1)
Bank charges 25 (1)

3(c)(i) Error 3 (1). 1

3(c)(ii) Error 2 (1). 1

© UCLES 2021 Page 12 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

3(d) 4
Gross Profit Profit for the year
Error
number

No effect Understated Overstated No effect Understated Overstated

$ $ $ $

1  220

2   (1)

3   (1)

4 19 19 (1)

5  50 (1)

3(e) The accounting records may contain other errors which have not yet been found (1) 1

© UCLES 2021 Page 13 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

4(a) 6
ratio working answer

51 480 100
gross margin × (1) whole formula 45% (1)
114 400 1

trade receivables 15 400 365

turnover (days) × (1) whole formula 50 days (1)
114 400 1
(round up to next whole day)

current ratio 2 850 + 15 400 18 250

= (1) whole formula 1.34:1 (1)
(correct to two decimal places) 7 430 + 6 190 13 620

4(b)(i) If Chaaya’s trade receivables turnover (in answer to (a)) is greater than Sara’s (Sara’s was 28 days) 3
Chaaya’s trade receivables turnover is slower than Sara’s (1)
Chaaya may be allowing her credit customers longer to pay (1)
Chaaya’s credit customers may not be paying within a stated credit period (1)
Chaaya’s credit control policy may not be efficient (1)
This may be causing Chaaya to have more cash flow problems than Sara (1)
This may result in Chaaya having more irrecoverable debts than Sara (1)
Accept other valid points
Max (3)

If Chaaya’s trade receivables turnover (in answer to (a)) is less than Sara’s (Sara’s was 28 days)
Chaaya’s trade receivables turnover is faster than Sara’s (1)
Chaaya may be allowing her credit customers less time to pay (1)
Chaaya’s customers may be paying within a stated credit period (1)
Chaaya is less likely to have irrecoverable debts than Sara (1)
Chaaya’s credit control policy is more efficient than Sara’s (1)
This may be causing Chaaya to have fewer cash flow problems than Sara (1)
Accept other valid points
Max (3)

© UCLES 2021 Page 14 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

4(b)(ii) Chaaya and Sara may allow different credit periods (1) 2
Chaaya and Sara may use different accounting policies (1)
Chaaya and Sara may have different year-ends (1)
The figures relate to one year only. It would be more meaningful to look at trends (1)
Accept other valid points
Max (2)

4(c) Advantages 5
Cash would be received quicker (1)
The bank overdraft may be reduced (1)
Overdraft interest may be reduced (1)
There would be no irrecoverable debts (1)
There would be fewer administration costs (1)
Accept other valid points
Max (2)

Disadvantages
May lose customers who prefer to buy on credit / damage relationship with customers (1)
Less profit due to trade discount/reduction in selling price/reduction in sales(revenue) (1)
If sales are usually one-off rather than regular, the trade discount may have little effect (1)
Increased risk of fraud or theft/ increased security measures required (1)
Accept other valid points
Max (2)

Recommendation (1)

© UCLES 2021 Page 15 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

4(d)(i) If the business has sufficient profitability/liquidity to continue to offer them employment (1) 2
Whether Chaaya could afford to pay them an increase in wages (1)

4(d)(ii) Bank manager (1) 2

Trade payables (1)
Customers (1)
Government departments/tax office (1)
Potential buyers of Chaaya’s business/potential partner (1)
Investors/potential investors (1)
Accept other valid answers
Max (2)

© UCLES 2021 Page 16 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

5(a) (70 + 2) (1) × 130 = 9360 (1)OF 2

5(b) Maira 8
Income Statement (trading section) for the year ended 31 December 2020

$ $

Revenue 150 000 (1)

Cost of sales
Purchases (1 400 × 70) 98 000 (1)
Carriage inwards (1400 × 2) 2 800 (1)
100 800
Less Goods taken for own use 1 440 (2)CF/(1)OF
99 360
Less Closing inventory 9 360 (1)OF from (a)
90 000 (1)OF
Gross profit 60 000 (1)OF (40% × revenue)

Revenue
2 × 10 800 = 21 600
8 × 12 000 = 96 000
2 × 16 200 = 32 400
150 000

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0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

5(c) Advantages 5
Maira would have all the necessary figures e.g. balances of individual ledger accounts (1)
If the business grows, it will be more difficult to prepare financial statements from incomplete records (1)
Detailed records would be available for future reference (1)
More accurate comparisons year-on-year/with other businesses is possible (1)
More informed decision making will be possible (1)
The government/tax office may require an adequate amount of accounting records (1)
If Maira wishes to sell the business, a potential buyer may wish to see full accounting records (1)
Lenders/potential lenders can be provided with adequate information (1)
Maira should be able to prepare financial statements more easily (1)
Maira should be able to prepare financial statements more accurately (1)
Assist in location of errors/checking procedures, e.g. control accounts may be used (1)
The possibility of fraud would be minimised (1)
Accept other valid points
Max (2)

Disadvantages
Maira’s financial statements may be prepared from incomplete records (1)
Maira is busy so she may not have time for book-keeping (1)
It may take Maira time to learn double-entry book-keeping (1)
Any spare time which Maira can find may be better spent on e.g. marketing (1)
If Maira pays a book-keeper to write up her books, the cost of this will reduce her profits (1)
Accept other valid points
Max (2)

Recommendation (1)

© UCLES 2021 Page 18 of 19

0452/22 Cambridge IGCSE – Mark Scheme March 2021
PUBLISHED
Question Answer Marks

5(d) 3
Cash book Purchases Purchases
journal returns journal

Discount received from a

(1)
supplier for prompt payment

Credit note received from a

 (1)
supplier

Direct debit paid to a supplier (1)

5(e) 2
Comparability Relevance Reliability

Maira’s inventory valuation should be free

(1)
from significant errors.

Maira’s financial statements should be

provided in time for her to use them when (1)
making decisions about her shop.

© UCLES 2021 Page 19 of 19

Cambridge IGCSE™

ACCOUNTING 0452/11
Paper 1 Multiple Choice May/June 2020
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*9287386594*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

This document has 12 pages. Blank pages are indicated.

IB20 06_0452_11/4RP
© UCLES 2020 [Turn over
2

1 Which statement is correct?

A Accounting involves measuring profits and losses.

B Accounting is the recording of financial transactions.
C Book-keeping involves communicating financial data.
D Book-keeping requires the use of ratio analysis.

2 The balances remaining on the books of a business after the preparation of the income statement
included the following.

loan from XY Finance 10 000

wages due 620
rent prepaid 240
trade receivables 3 300
trade payables 4 650
motor vehicles 8 000
provision for depreciation of motor vehicles 2 000

What was the total of the liabilities?

A $13 920 B $14 890 C $15 270 D $17 270

3 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was
returned unpaid by the bank.

What entry would Nina make on 12 April?

account to be debited account to be credited

A irrecoverable debts bank

B irrecoverable debts Zaffar
C provision for doubtful debts Zaffar
D Zaffar bank

© UCLES 2020 0452/11/M/J/20

4 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The
following transactions took place during April.

April 2 Ann returned goods, $30, to Cindy.

14 Ann bought goods, $210, from Cindy, and paid in cash.

Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?

A Ann owes Cindy $490.

B Ann owes Cindy $700.
C Cindy owes Ann $490.
D Cindy owes Ann $700.

5 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo
keeps a full double entry system.

Where will Tumelo record the return of goods?

A cash book and sales ledger

B general ledger only
C general ledger and purchases ledger
D purchases ledger only

6 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or
received the following documents in April.

April 7 invoice 360

12 cheque (after deducting $11 cash discount) 429
13 debit note 50
15 credit note 50

What was the closing balance on the statement of account on 30 April?

A $260 B $310 C $321 D $421

7 What is recorded in the sales journal?

A all money received from sales

B all sales transactions
C cash sales transactions
D credit sales transactions

© UCLES 2020 0452/11/M/J/20 [Turn over

8 Which statement about a two-column cash book is correct?

A It is a ledger account for bank transactions only.

B It is a ledger account for cash transactions only.
C It is a book of prime entry.
D It records cash discounts.

9 Which statements about trade discount are correct?

1 It is debited to the supplier’s account.

2 It is only given if the invoice is paid within the period allowed by the supplier.
3 It is shown as a deduction from the price of the goods on an invoice.
4 It is used to encourage bulk buying.

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

10 Why is a trial balance prepared?

A to analyse the financial information

B to assist preparation of financial statements
C to control the costs of the business
D to evaluate the performance of the business

11 The income statement of a business showed a loss for the year of $16 000. On checking the
books the following errors were discovered.

1 No adjustment had been made for insurance prepaid, $480.

2 No entry had been made for bank charges, $620.

What was the correct loss for the year?

A $14 900 B $15 860 C $16 140 D $17 100

© UCLES 2020 0452/11/M/J/20

12 Peter’s bank statement showed a debit balance of $600 on 1 April. The following transactions
took place in April.

total cheque deposits 7400

total cheque payments 6200
direct debit for insurance premium 180
credit transfer from customer 450

What was the bank statement balance on 30 April?

A $870 credit
B $870 debit
C $2070 credit
D $2070 debit

13 A sales ledger control account had a debit balance of $10 000.

It was found that a $2000 contra entry to the purchases ledger control account had been entered
on the wrong side of the sales ledger control account.

What was the correct debit balance on the sales ledger control account?

A $6000 B $8000 C $12 000 D $14 000

14 A business had a new extension to its workshop premises. It incurred the following expenditure.

building cost 65 000

legal fees 1 800
air conditioning system for the original workshop 2 300
air conditioning system for the new workshop extension 1 100
decorating the original workshop 1 400
decorating the new workshop extension 800

What was the total capital expenditure of the business?

A $67 900 B $70 200 C $71 000 D $72 400

© UCLES 2020 0452/11/M/J/20 [Turn over

15 A non-current asset was depreciated at the end of the first year of ownership using the
straight-line method based on the following information.

cost $20 000

working life 4 years
residual value $4000

It was then found that the reducing balance method at 30% per annum should have been used.

What was the effect on the profit for the year of correcting this error?

A decrease by $2000
B increase by $2000
C decrease by $6000
D increase by $6000

16 A company’s financial year ended on 31 December 2019. On 1 December 2019 it paid rent,
$8000, for the four months ending 31 March 2020.

What was the opening balance on the rent account on 1 January 2020?

A $2000 credit
B $2000 debit
C $6000 credit
D $6000 debit

17 Alice’s financial year ends on 31 December.

The balances on her books on 1 January 2020 included the following.

commission receivable 250 debit

rent receivable 500 credit

What do these balances represent?

commission receivable rent receivable

A income outstanding income outstanding

B income outstanding income prepaid
C income prepaid income outstanding
D income prepaid income prepaid

© UCLES 2020 0452/11/M/J/20

18 Joseph sells goods on credit and maintains a provision for doubtful debts. He wants to increase
his provision for doubtful debts by $250.

Which journal entry records an increase in the provision for doubtful debts?

debit credit
$ $
A credit customer 250
income statement 250
B income statement 250
credit customer 250
C income statement 250
provision for doubtful debts 250
D provision for doubtful debts 250
income statement 250

19 Which items are deducted from the gross profit when calculating the profit for the year?

1 balance on the provision for doubtful debts account

2 carriage paid on goods supplied to customers
3 drawings made by the owner during the year
4 wages paid to employees during the year

A 1, 2 and 3 B 1 and 4 C 2 and 3 only D 2 and 4

20 On 31 December 2019 John had net assets of $2000 and capital of $2000.

On 1 January 2020, goods costing $140 were sold on credit for $220.

What was the effect of this transaction on the statement of financial position?

net assets capital

$ $
A 80 decrease 80 decrease
B 80 increase 80 increase
C 220 decrease 220 decrease
D 220 increase 220 increase

© UCLES 2020 0452/11/M/J/20 [Turn over

21 At the end of his financial year, Raminder made an adjustment for rent owed by a tenant.

How did this affect Raminder’s financial statements?

profit for
current assets
the year

A decrease decrease
B decrease increase
C increase decrease
D increase increase

22 The owner of a business took goods for his own use but forgot to make an entry in the accounts.

What was the effect of this error?

profit for the year capital employed

A overstated no effect
B overstated understated
C understated no effect
D understated overstated

23 Rajid and Sunil formed a partnership on 1 January 2019 but did not prepare a partnership
agreement.

They provided the following information.

Rajid Sunil

capital introduced 1 January 2019 $40 000 $20 000

during the year ended 31 December 2019
drawings $5 000 $3 500
share of work 50% 50%

They decided to draw up a partnership agreement for future years.

Which item would be most beneficial to Rajid in 2020?

A interest on capital
B interest on drawings
C limit on annual drawings
D partnership salaries

© UCLES 2020 0452/11/M/J/20

24 Harry and Jane are in partnership. The following information relates to Harry for the financial
year.

salary 8000
drawings 2800
share of profit 4600

The opening credit balance on Harry’s current account was $28 200.

What was the closing balance on his current account?

A $30 000 B $38 000 C $40 800 D $43 600

25 Which item is shown in the income statement of a company and statement of changes in equity?

A interest on debentures accrued

B ordinary share dividend paid
C profit for the year
D transfer to general reserve

26 Hassan’s capital decreased by $200 over the year, even though he made a profit of $7000.

Which transactions caused this?

capital introduced drawings

$ $

A 1000 8200
B 1200 6000
C 2000 8800
D 2200 4600

© UCLES 2020 0452/11/M/J/20 [Turn over

27 Ahmed provided the following information.

trade receivables at 1 January 2019 15 000

for the year ended 31 December 2019:
credit sales 85 000
cash sales 12 000
cheques received from trade receivables 65 000
irrecoverable debts 2 000

By how much had the trade receivables increased by the end of the financial year?

A $18 000 B $30 000 C $33 000 D $45 000

28 Gordon provided the following information for the year.

revenue $90 000

opening inventory $8 000
closing inventory $2 000
mark up 50%

Gordon took goods, $7000, for his own use.

What were the purchases?

A $43 000 B $47 000 C $54 000 D $61 000

29 A trader provided the following information.

for the year ended 31 March 2020

revenue 250 000
purchases: cash 125 000
credit 115 000
at March 2020
trade payables 9 765

What was the trade payables turnover?

A 14 days B 15 days C 29 days D 31 days

© UCLES 2020 0452/11/M/J/20

30 On 1 January 2019 current assets totalled $16 000 and the current ratio was 2 : 1.

On 31 December 2019 the current liabilities had increased by 50% and the current ratio was
1.5 : 1.

What was the value of the current assets on 31 December 2019?

A $16 000 B $18 000 C $32 000 D $36 000

31 A company provided the following information about its liquid (acid test) ratio.

Year 1 1.2 : 1
Year 2 1.4 : 1
Year 3 1.6 : 1

Which would explain the changes in the ratio?

A Inventory is increasing.
B Other payables are decreasing.
C Trade payables are increasing.
D Trade receivables are decreasing.

32 Which user of accounting statements is interested in past performance and taking remedial action
where necessary?

A government
B investors
C managers
D suppliers

33 Rashid’s financial year ends on 31 December. He paid rent on 1 February, 1 May, 1 August and
1 November.

An adjustment was made in the income statement for rent prepaid.

Which accounting principle was applied?

A duality
B matching
C money measurement
D prudence

© UCLES 2020 0452/11/M/J/20 [Turn over

34 Which statement describes the going concern principle?

A Accounting methods must be used consistently from one accounting period to the next.
B It is assumed that the business will continue to operate for the foreseeable future.
C Revenue is earned when legal title to goods passes from the seller to the buyer.
D The business is treated as being completely separate from the owner of the business.

35 Brad purchased a machine for $1000 on 1 January 2019. The machine was expected to last for
four years and have no residual value. On 31 December 2019 the same machine cost $1200 to
purchase.

At which value should the machine be included in the statement of financial position on
31 December 2019?

A current cost with no depreciation

B current cost with one year’s depreciation
C original purchase price with no depreciation
D original purchase price with one year’s depreciation

© UCLES 2020 0452/11/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/11
Paper 1 May/June 2020
MARK SCHEME
Maximum Mark: 35

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

This mark scheme is published to support teachers and students and should be read together with the
question paper. It shows the requirements of the exam.

Mark schemes should usually be read together with the Principal Examiner Report for Teachers. However,
because students did not sit exam papers, there is no Principal Examiner Report for Teachers for the June
2020 series.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 3 printed pages.

© UCLES 2020 [Turn over

0452/11 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

1 A 1

2 C 1

3 D 1

4 A 1

5 C 1

6 B 1

7 D 1

8 C 1

9 D 1

10 B 1

11 C 1

12 A 1

13 A 1

14 C 1

15 A 1

16 D 1

17 B 1

18 C 1

19 D 1

20 B 1

21 D 1

22 C 1

23 A 1

24 B 1

25 C 1

26 A 1

27 A 1

28 D 1

© UCLES 2020 Page 2 of 3

0452/11 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

29 D 1

30 B 1

31 B 1

32 C 1

33 B 1

34 B 1

35 D 1

© UCLES 2020 Page 3 of 3

Cambridge IGCSE™

ACCOUNTING 0452/11
Paper 1 Multiple Choice May/June 2020
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*9287386594*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

This document has 12 pages. Blank pages are indicated.

IB20 06_0452_11/4RP
© UCLES 2020 [Turn over
2

1 Which statement is correct?

A Accounting involves measuring profits and losses.

B Accounting is the recording of financial transactions.
C Book-keeping involves communicating financial data.
D Book-keeping requires the use of ratio analysis.

2 The balances remaining on the books of a business after the preparation of the income statement
included the following.

loan from XY Finance 10 000

wages due 620
rent prepaid 240
trade receivables 3 300
trade payables 4 650
motor vehicles 8 000
provision for depreciation of motor vehicles 2 000

What was the total of the liabilities?

A $13 920 B $14 890 C $15 270 D $17 270

3 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was
returned unpaid by the bank.

What entry would Nina make on 12 April?

account to be debited account to be credited

A irrecoverable debts bank

B irrecoverable debts Zaffar
C provision for doubtful debts Zaffar
D Zaffar bank

© UCLES 2020 0452/11/M/J/20

4 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The
following transactions took place during April.

April 2 Ann returned goods, $30, to Cindy.

14 Ann bought goods, $210, from Cindy, and paid in cash.

Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?

A Ann owes Cindy $490.

B Ann owes Cindy $700.
C Cindy owes Ann $490.
D Cindy owes Ann $700.

5 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo
keeps a full double entry system.

Where will Tumelo record the return of goods?

A cash book and sales ledger

B general ledger only
C general ledger and purchases ledger
D purchases ledger only

6 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or
received the following documents in April.

April 7 invoice 360

12 cheque (after deducting $11 cash discount) 429
13 debit note 50
15 credit note 50

What was the closing balance on the statement of account on 30 April?

A $260 B $310 C $321 D $421

7 What is recorded in the sales journal?

A all money received from sales

B all sales transactions
C cash sales transactions
D credit sales transactions

© UCLES 2020 0452/11/M/J/20 [Turn over

8 Which statement about a two-column cash book is correct?

A It is a ledger account for bank transactions only.

B It is a ledger account for cash transactions only.
C It is a book of prime entry.
D It records cash discounts.

9 Which statements about trade discount are correct?

1 It is debited to the supplier’s account.

2 It is only given if the invoice is paid within the period allowed by the supplier.
3 It is shown as a deduction from the price of the goods on an invoice.
4 It is used to encourage bulk buying.

A 1 and 2 B 1 and 3 C 2 and 4 D 3 and 4

10 Why is a trial balance prepared?

A to analyse the financial information

B to assist preparation of financial statements
C to control the costs of the business
D to evaluate the performance of the business

11 The income statement of a business showed a loss for the year of $16 000. On checking the
books the following errors were discovered.

1 No adjustment had been made for insurance prepaid, $480.

2 No entry had been made for bank charges, $620.

What was the correct loss for the year?

A $14 900 B $15 860 C $16 140 D $17 100

© UCLES 2020 0452/11/M/J/20

12 Peter’s bank statement showed a debit balance of $600 on 1 April. The following transactions
took place in April.

total cheque deposits 7400

total cheque payments 6200
direct debit for insurance premium 180
credit transfer from customer 450

What was the bank statement balance on 30 April?

A $870 credit
B $870 debit
C $2070 credit
D $2070 debit

13 A sales ledger control account had a debit balance of $10 000.

It was found that a $2000 contra entry to the purchases ledger control account had been entered
on the wrong side of the sales ledger control account.

What was the correct debit balance on the sales ledger control account?

A $6000 B $8000 C $12 000 D $14 000

14 A business had a new extension to its workshop premises. It incurred the following expenditure.

building cost 65 000

What was the total capital expenditure of the business?

A $67 900 B $70 200 C $71 000 D $72 400

© UCLES 2020 0452/11/M/J/20 [Turn over

15 A non-current asset was depreciated at the end of the first year of ownership using the
straight-line method based on the following information.

cost $20 000

working life 4 years
residual value $4000

It was then found that the reducing balance method at 30% per annum should have been used.

What was the effect on the profit for the year of correcting this error?

A decrease by $2000
B increase by $2000
C decrease by $6000
D increase by $6000

16 A company’s financial year ended on 31 December 2019. On 1 December 2019 it paid rent,
$8000, for the four months ending 31 March 2020.

What was the opening balance on the rent account on 1 January 2020?

A $2000 credit
B $2000 debit
C $6000 credit
D $6000 debit

17 Alice’s financial year ends on 31 December.

The balances on her books on 1 January 2020 included the following.

commission receivable 250 debit

rent receivable 500 credit

What do these balances represent?

commission receivable rent receivable

A income outstanding income outstanding

B income outstanding income prepaid
C income prepaid income outstanding
D income prepaid income prepaid

© UCLES 2020 0452/11/M/J/20

18 Joseph sells goods on credit and maintains a provision for doubtful debts. He wants to increase
his provision for doubtful debts by $250.

Which journal entry records an increase in the provision for doubtful debts?

19 Which items are deducted from the gross profit when calculating the profit for the year?

1 balance on the provision for doubtful debts account

2 carriage paid on goods supplied to customers
3 drawings made by the owner during the year
4 wages paid to employees during the year

A 1, 2 and 3 B 1 and 4 C 2 and 3 only D 2 and 4

20 On 31 December 2019 John had net assets of $2000 and capital of $2000.

On 1 January 2020, goods costing $140 were sold on credit for $220.

What was the effect of this transaction on the statement of financial position?

net assets capital

$ $
A 80 decrease 80 decrease
B 80 increase 80 increase
C 220 decrease 220 decrease
D 220 increase 220 increase

© UCLES 2020 0452/11/M/J/20 [Turn over

21 At the end of his financial year, Raminder made an adjustment for rent owed by a tenant.

How did this affect Raminder’s financial statements?

profit for
current assets
the year

A decrease decrease
B decrease increase
C increase decrease
D increase increase

22 The owner of a business took goods for his own use but forgot to make an entry in the accounts.

What was the effect of this error?

profit for the year capital employed

A overstated no effect
B overstated understated
C understated no effect
D understated overstated

23 Rajid and Sunil formed a partnership on 1 January 2019 but did not prepare a partnership
agreement.

They provided the following information.

Rajid Sunil

capital introduced 1 January 2019 $40 000 $20 000

during the year ended 31 December 2019
drawings $5 000 $3 500
share of work 50% 50%

They decided to draw up a partnership agreement for future years.

Which item would be most beneficial to Rajid in 2020?

A interest on capital
B interest on drawings
C limit on annual drawings
D partnership salaries

© UCLES 2020 0452/11/M/J/20

24 Harry and Jane are in partnership. The following information relates to Harry for the financial
year.

salary 8000
drawings 2800
share of profit 4600

The opening credit balance on Harry’s current account was $28 200.

What was the closing balance on his current account?

A $30 000 B $38 000 C $40 800 D $43 600

25 Which item is shown in the income statement of a company and statement of changes in equity?

A interest on debentures accrued

B ordinary share dividend paid
C profit for the year
D transfer to general reserve

26 Hassan’s capital decreased by $200 over the year, even though he made a profit of $7000.

Which transactions caused this?

capital introduced drawings

$ $

A 1000 8200
B 1200 6000
C 2000 8800
D 2200 4600

© UCLES 2020 0452/11/M/J/20 [Turn over

27 Ahmed provided the following information.

trade receivables at 1 January 2019 15 000

for the year ended 31 December 2019:
credit sales 85 000
cash sales 12 000
cheques received from trade receivables 65 000
irrecoverable debts 2 000

By how much had the trade receivables increased by the end of the financial year?

A $18 000 B $30 000 C $33 000 D $45 000

28 Gordon provided the following information for the year.

revenue $90 000

opening inventory $8 000
closing inventory $2 000
mark up 50%

Gordon took goods, $7000, for his own use.

What were the purchases?

A $43 000 B $47 000 C $54 000 D $61 000

29 A trader provided the following information.

for the year ended 31 March 2020

revenue 250 000
purchases: cash 125 000
credit 115 000
at March 2020
trade payables 9 765

What was the trade payables turnover?

A 14 days B 15 days C 29 days D 31 days

© UCLES 2020 0452/11/M/J/20

30 On 1 January 2019 current assets totalled $16 000 and the current ratio was 2 : 1.

On 31 December 2019 the current liabilities had increased by 50% and the current ratio was
1.5 : 1.

What was the value of the current assets on 31 December 2019?

A $16 000 B $18 000 C $32 000 D $36 000

31 A company provided the following information about its liquid (acid test) ratio.

Year 1 1.2 : 1
Year 2 1.4 : 1
Year 3 1.6 : 1

Which would explain the changes in the ratio?

A Inventory is increasing.
B Other payables are decreasing.
C Trade payables are increasing.
D Trade receivables are decreasing.

32 Which user of accounting statements is interested in past performance and taking remedial action
where necessary?

A government
B investors
C managers
D suppliers

33 Rashid’s financial year ends on 31 December. He paid rent on 1 February, 1 May, 1 August and
1 November.

An adjustment was made in the income statement for rent prepaid.

Which accounting principle was applied?

A duality
B matching
C money measurement
D prudence

© UCLES 2020 0452/11/M/J/20 [Turn over

34 Which statement describes the going concern principle?

35 Brad purchased a machine for $1000 on 1 January 2019. The machine was expected to last for
four years and have no residual value. On 31 December 2019 the same machine cost $1200 to
purchase.

At which value should the machine be included in the statement of financial position on
31 December 2019?

A current cost with no depreciation

B current cost with one year’s depreciation
C original purchase price with no depreciation
D original purchase price with one year’s depreciation

© UCLES 2020 0452/11/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/11
Paper 1 May/June 2020
MARK SCHEME
Maximum Mark: 35

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

This mark scheme is published to support teachers and students and should be read together with the
question paper. It shows the requirements of the exam.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 3 printed pages.

© UCLES 2020 [Turn over

0452/11 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

1 A 1

2 C 1

3 D 1

4 A 1

5 C 1

6 B 1

7 D 1

8 C 1

9 D 1

10 B 1

11 C 1

12 A 1

13 A 1

14 C 1

15 A 1

16 D 1

17 B 1

18 C 1

19 D 1

20 B 1

21 D 1

22 C 1

23 A 1

24 B 1

25 C 1

26 A 1

27 A 1

28 D 1

© UCLES 2020 Page 2 of 3

0452/11 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

29 D 1

30 B 1

31 B 1

32 C 1

33 B 1

34 B 1

35 D 1

© UCLES 2020 Page 3 of 3

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 Multiple Choice May/June 2020
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*3976346872*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

This document has 12 pages. Blank pages are indicated.

IB20 06_0452_12/3RP
© UCLES 2020 [Turn over
2

1 Which are examples of book-keeping?

1 entering details of a cheque received from a customer in a cash book

2 entering details of goods purchased on credit in a purchases journal
3 producing an income statement to calculate the profit for the year
4 recording details of credit sales in the account of a credit customer

A 1, 2 and 3 B 1, 2 and 4 C 1 and 2 only D 3 and 4

2 How does a trader use the information provided by financial statements?

A to calculate the amount of cash drawings taken

B to calculate the amount that is owed by trade receivables
C to check the balance shown on a bank statement
D to compare the business performance over a number of years

3 A trader bought new fixtures. He paid half of the purchase price in cash and agreed to pay the
balance in two months’ time.

How does this purchase affect the accounting equation?

owner’s
assets liabilities
equity

A decrease decrease no effect

B decrease no effect increase
C increase decrease increase
D increase no effect increase

4 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was
returned unpaid by the bank.

What entry would Nina make on 12 April?

account to be debited account to be credited

A irrecoverable debts bank

B irrecoverable debts Zaffar
C provision for doubtful debts Zaffar
D Zaffar bank

© UCLES 2020 0452/12/M/J/20

5 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The
following transactions took place during April.

April 2 Ann returned goods, $30, to Cindy.

14 Ann bought goods, $210, from Cindy, and paid in cash.

Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?

A Ann owes Cindy $490.

B Ann owes Cindy $700.
C Cindy owes Ann $490.
D Cindy owes Ann $700.

6 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo
keeps a full double entry system.

Where will Tumelo record the return of goods?

A cash book and sales ledger

B general ledger only
C general ledger and purchases ledger
D purchases ledger only

7 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or
received the following documents in April.

April 7 invoice 360

12 cheque (after deducting $11 cash discount) 429
13 debit note 50
15 credit note 50

What was the closing balance on the statement of account on 30 April?

A $260 B $310 C $321 D $421

© UCLES 2020 0452/12/M/J/20 [Turn over

8 A business sold goods with a list price of $50 each.

The terms of trade were:

trade discount for more than 20 items bought 10%

cash discount if customer pays within 30 days 4%

How much was received in full settlement from a customer who bought 25 items and paid after
35 days?

A $900 B $1075 C $1125 D $1200

9 Paul rents premises from John and pays the rent by credit transfer.

How would John record this?

account debited account credited

A bank rent receivable

B cash rent receivable
C rent receivable bank
D rent receivable cash

10 Sita discovers that $1000 received from the sale of fixtures had been entered in the sales
account.

Which journal entry corrected this error?

debit credit
$ $

bank 1000
A
disposal of fixtures 1000
bank 1000
B
fixtures 1000
sales 1000
C
disposal of fixtures 1000
sales 1000
D
fixtures 1000

© UCLES 2020 0452/12/M/J/20

11 The totals of a trial balance did not agree and $200 was debited to a suspense account. On
checking the books it was found that two errors had been made.

1 A sales invoice for $700 had been recorded in the sales journal as $770.
2 The sales journal had been totalled incorrectly.

What was the error made in totalling the sales journal?

A overcast by $130
B overcast by $200
C undercast by $130
D undercast by $200

12 The income statement of a business showed a loss for the year of $16 000. On checking the
books the following errors were discovered.

1 No adjustment had been made for insurance prepaid, $480.

2 No entry had been made for bank charges, $620.

What was the correct loss for the year?

A $14 900 B $15 860 C $16 140 D $17 100

13 What would result in a cash book balance being lower than the balance showing on a bank
statement?

A A cheque received from a customer was not recorded in the bank statement.
B A customer’s cheque dishonoured by the bank appeared only on the bank statement.
C Payment by a customer directly into the bank was not recorded in the cash book.
D Payment of insurance by standing order was not recorded in the cash book.

14 Thembi is preparing her sales ledger control account. She needs to know:

1 The total for goods which have been returned by credit customers.
2 The amount owed by credit customers which have been written off as irrecoverable.

Where can she obtain this information?

goods returned irrecoverable debts

A purchase returns account irrecoverable debts account

B purchase returns journal general journal
C sales returns account irrecoverable debts account
D sales returns journal general journal

© UCLES 2020 0452/12/M/J/20 [Turn over

15 The following payments were made when a new machine was purchased.

cost of the machine 32 000

charge for delivering the machine 1 800
insurance of the machine 2 000
wages of employees installing the machine 1 300

How much was the capital expenditure?

A $32 000 B $33 300 C $35 100 D $37 100

16 A non-current asset was depreciated at the end of the first year of ownership using the
straight-line method based on the following information.

cost $20 000

working life 4 years
residual value $4000

It was then found that the reducing balance method at 30% per annum should have been used.

What was the effect on the profit for the year of correcting this error?

A decrease by $2000
B increase by $2000
C decrease by $6000
D increase by $6000

17 Elzevir purchased a motor vehicle costing $8000 on 1 January 2018. It is depreciated at 40% on
the reducing balance basis.

Which journal entry records the depreciation for the year ended 31 December 2019?

debit credit
A income statement 1920
provision for depreciation of motor vehicles 1920
B income statement 3200
provision for depreciation of motor vehicles 3200
C provision for depreciation of motor vehicles 1920
motor vehicles 1920
D provision for depreciation of motor vehicles 3200
motor vehicles 3200

© UCLES 2020 0452/12/M/J/20

18 Alice’s financial year ends on 31 December.

The balances on her books on 1 January 2020 included the following.

commission receivable 250 debit

rent receivable 500 credit

What do these balances represent?

commission receivable rent receivable

A income outstanding income outstanding

B income outstanding income prepaid
C income prepaid income outstanding
D income prepaid income prepaid

19 Annual rental income due from Kumar, a tenant, is $3600. At the start of the year Kumar had
prepaid rent of $900. At the end of the year he owed two months’ rent.

How much rent was received from Kumar during the year?

A $2100 B $3300 C $3900 D $5100

20 Joel’s inventory on 31 December 2019 was valued at $4800. It was discovered that:

1 Goods, cost $100, had not been included.

2 Goods, cost $170, had been included at net realisable value $210.

What was the effect of the incorrect inventory valuation on Joel’s financial statements at
31 December 2019?

profit for
$ inventory $ equity $
the year

A overstated 40 understated 40 nil

B overstated 60 understated 60 nil
C understated 40 understated 40 understated 40
D understated 60 understated 60 understated 60

© UCLES 2020 0452/12/M/J/20 [Turn over

21 The owner of a business took goods for his own use but forgot to make an entry in the accounts.

What was the effect of this error?

profit for the year capital employed

A overstated no effect
B overstated understated
C understated no effect
D understated overstated

22 Rajid and Sunil formed a partnership on 1 January 2019 but did not prepare a partnership
agreement.

They provided the following information.

Rajid Sunil

capital introduced 1 January 2019 $40 000 $20 000

during the year ended 31 December 2019
drawings $5 000 $3 500
share of work 50% 50%

They decided to draw up a partnership agreement for future years.

Which item would be most beneficial to Rajid in 2020?

A interest on capital
B interest on drawings
C limit on annual drawings
D partnership salaries

23 Harry and Jane are in partnership. The following information relates to Harry for the financial
year.

salary 8000
drawings 2800
share of profit 4600

The opening credit balance on Harry’s current account was $28 200.

What was the closing balance on his current account?

A $30 000 B $38 000 C $40 800 D $43 600

© UCLES 2020 0452/12/M/J/20

24 The statement of financial position of X Limited at 31 December 2018 included the following:

ordinary share capital 40 000

general reserve 8 000
retained earnings 65 000
8% debentures (repayable 2025) 30 000

Profit for the year ended 31 December 2019 was $42 000 and dividends paid totalled $10 000.

What was the total equity on 31 December 2019?

A $137 000 B $145 000 C $155 000 D $175 000

25 Which is a feature of debentures?

A are a long-term liability of a company

B carry a fixed rate of dividend
C carry voting rights
D on liquidation are paid back after shareholders

26 Which cost is part of the prime cost for a manufacturing business?

A carriage inwards
B carriage outwards
C factory rent
D factory supervisor’s salary

27 A manufacturing business provided the following information.

prime cost 236 000

factory overheads 42 000
opening work in progress 8 000
closing work in progress 6 000

What was the factory cost of production?

A $234 000 B $238 000 C $276 000 D $280 000

© UCLES 2020 0452/12/M/J/20 [Turn over

28 A trader provided the following information.

trade receivables at start of the year 5 000

trade receivables at end of the year 8 500
cash received from trade receivables 34 700
irrecoverable debts written off 200
discount allowed 185

What was the amount of the credit sales?

A $38 200 B $38 385 C $38 400 D $38 585

29 Gordon provided the following information for the year.

revenue $90 000

opening inventory $8 000
closing inventory $2 000
mark up 50%

Gordon took goods, $7000, for his own use.

What were the purchases?

A $43 000 B $47 000 C $54 000 D $61 000

30 Sabelo’s liquid (acid test) ratio was higher on 1 January 2019 than it was on 31 December 2019.

What could have caused this?

A bank overdraft decreased

B inventory decreased
C other payables decreased
D trade receivables decreased

© UCLES 2020 0452/12/M/J/20

31 The following ratios have been calculated for a trader.

year 1 year 2

profit margin 15% 20%

return on capital employed (ROCE) 9% 6%

What explains these changes?

A Drawings have increased by more than profit for the year.

B Gross profit has increased but profit for the year has decreased.
C Profit for the year has increased and capital has been introduced.
D Profit for the year has increased and a long-term loan has been repaid.

32 Which external parties would be interested in the accounting ratios of a business?

A government
B investors
C managers
D tax authorities

33 At the end of the financial year, a company did not account for the unused stationary valued
at $50.

Which accounting principle did the company apply?

A matching
B materiality
C money measurement
D prudence

34 A trader wrote off the balance on a credit customer’s account as irrecoverable.

Which accounting principle was applied?

A business entity
B consistency
C money measurement
D prudence

© UCLES 2020 0452/12/M/J/20 [Turn over

35 A limited company applied the accounting objective of comparability in preparing its financial
statements.

What is the effect of this on the interested parties?

A They can be sure that information in the financial statements is up to date.

B They can identify similarities with the financial statements of other businesses.
C They can understand the financial statements easily.
D They can use the financial statements in decision-making.

© UCLES 2020 0452/12/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/12
Paper 1 May/June 2020
MARK SCHEME
Maximum Mark: 35

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

This mark scheme is published to support teachers and students and should be read together with the
question paper. It shows the requirements of the exam.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 3 printed pages.

© UCLES 2020 [Turn over

0452/12 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

1 B 1

2 D 1

3 D 1

4 D 1

5 A 1

6 C 1

7 B 1

8 C 1

9 A 1

10 C 1

11 B 1

12 C 1

13 C 1

14 D 1

15 C 1

16 A 1

17 A 1

18 B 1

19 A 1

20 D 1

21 C 1

22 A 1

23 B 1

24 B 1

25 A 1

26 A 1

27 D 1

28 D 1

© UCLES 2020 Page 2 of 3

0452/12 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

29 D 1

30 D 1

31 C 1

32 B 1

33 B 1

34 D 1

35 B 1

© UCLES 2020 Page 3 of 3

Cambridge IGCSE™

ACCOUNTING 0452/13
Paper 1 Multiple Choice May/June 2020
1 hour 15 minutes

You must answer on the multiple choice answer sheet.

*4322546424*

You will need: Multiple choice answer sheet

Soft clean eraser
Soft pencil (type B or HB is recommended)

This document has 12 pages. Blank pages are indicated.

IB20 06_0452_13/FP
© UCLES 2020 [Turn over
2

1 Which are examples of book-keeping?

1 entering details of a cheque received from a customer in a cash book

A 1, 2 and 3 B 1, 2 and 4 C 1 and 2 only D 3 and 4

2 How does a trader use the information provided by financial statements?

A to calculate the amount of cash drawings taken

B to calculate the amount that is owed by trade receivables
C to check the balance shown on a bank statement
D to compare the business performance over a number of years

3 A trader bought new fixtures. He paid half of the purchase price in cash and agreed to pay the
balance in two months’ time.

How does this purchase affect the accounting equation?

owner’s
assets liabilities
equity

A decrease decrease no effect

B decrease no effect increase
C increase decrease increase
D increase no effect increase

4 On 2 April Nina received a cheque from Zaffar, a credit customer. On 12 April the cheque was
returned unpaid by the bank.

What entry would Nina make on 12 April?

account to be debited account to be credited

A irrecoverable debts bank

B irrecoverable debts Zaffar
C provision for doubtful debts Zaffar
D Zaffar bank

© UCLES 2020 0452/13/M/J/20

5 Ann is a trader. On 1 April Cindy’s account in Ann’s ledger showed a credit balance of $520. The
following transactions took place during April.

April 2 Ann returned goods, $30, to Cindy.

14 Ann bought goods, $210, from Cindy, and paid in cash.

Which statement about the balance on Cindy’s account in Ann’s ledger on 30 April is correct?

A Ann owes Cindy $490.

B Ann owes Cindy $700.
C Cindy owes Ann $490.
D Cindy owes Ann $700.

6 Goods bought on credit by Tumelo from Tebogo are returned before they are paid for. Tumelo
keeps a full double entry system.

Where will Tumelo record the return of goods?

A cash book and sales ledger

B general ledger only
C general ledger and purchases ledger
D purchases ledger only

7 Dave supplies goods to Peter on credit. On 1 April, Peter owed Dave $440. Dave sent or
received the following documents in April.

April 7 invoice 360

12 cheque (after deducting $11 cash discount) 429
13 debit note 50
15 credit note 50

What was the closing balance on the statement of account on 30 April?

A $260 B $310 C $321 D $421

© UCLES 2020 0452/13/M/J/20 [Turn over

8 A business sold goods with a list price of $50 each.

The terms of trade were:

trade discount for more than 20 items bought 10%

cash discount if customer pays within 30 days 4%

How much was received in full settlement from a customer who bought 25 items and paid after
35 days?

A $900 B $1075 C $1125 D $1200

9 Paul rents premises from John and pays the rent by credit transfer.

How would John record this?

account debited account credited

A bank rent receivable

B cash rent receivable
C rent receivable bank
D rent receivable cash

10 Sita discovers that $1000 received from the sale of fixtures had been entered in the sales
account.

Which journal entry corrected this error?

debit credit
$ $

bank 1000
A
disposal of fixtures 1000
bank 1000
B
fixtures 1000
sales 1000
C
disposal of fixtures 1000
sales 1000
D
fixtures 1000

© UCLES 2020 0452/13/M/J/20

11 The totals of a trial balance did not agree and $200 was debited to a suspense account. On
checking the books it was found that two errors had been made.

1 A sales invoice for $700 had been recorded in the sales journal as $770.
2 The sales journal had been totalled incorrectly.

What was the error made in totalling the sales journal?

A overcast by $130
B overcast by $200
C undercast by $130
D undercast by $200

12 The income statement of a business showed a loss for the year of $16 000. On checking the
books the following errors were discovered.

1 No adjustment had been made for insurance prepaid, $480.

2 No entry had been made for bank charges, $620.

What was the correct loss for the year?

A $14 900 B $15 860 C $16 140 D $17 100

13 What would result in a cash book balance being lower than the balance showing on a bank
statement?

14 Thembi is preparing her sales ledger control account. She needs to know:

1 The total for goods which have been returned by credit customers.
2 The amount owed by credit customers which have been written off as irrecoverable.

Where can she obtain this information?

goods returned irrecoverable debts

A purchase returns account irrecoverable debts account

B purchase returns journal general journal
C sales returns account irrecoverable debts account
D sales returns journal general journal

© UCLES 2020 0452/13/M/J/20 [Turn over

15 The following payments were made when a new machine was purchased.

cost of the machine 32 000

charge for delivering the machine 1 800
insurance of the machine 2 000
wages of employees installing the machine 1 300

How much was the capital expenditure?

A $32 000 B $33 300 C $35 100 D $37 100

16 A non-current asset was depreciated at the end of the first year of ownership using the
straight-line method based on the following information.

cost $20 000

working life 4 years
residual value $4000

It was then found that the reducing balance method at 30% per annum should have been used.

What was the effect on the profit for the year of correcting this error?

A decrease by $2000
B increase by $2000
C decrease by $6000
D increase by $6000

17 Elzevir purchased a motor vehicle costing $8000 on 1 January 2018. It is depreciated at 40% on
the reducing balance basis.

Which journal entry records the depreciation for the year ended 31 December 2019?

© UCLES 2020 0452/13/M/J/20

18 Alice’s financial year ends on 31 December.

The balances on her books on 1 January 2020 included the following.

commission receivable 250 debit

rent receivable 500 credit

What do these balances represent?

commission receivable rent receivable

A income outstanding income outstanding

B income outstanding income prepaid
C income prepaid income outstanding
D income prepaid income prepaid

19 Annual rental income due from Kumar, a tenant, is $3600. At the start of the year Kumar had
prepaid rent of $900. At the end of the year he owed two months’ rent.

How much rent was received from Kumar during the year?

A $2100 B $3300 C $3900 D $5100

20 Joel’s inventory on 31 December 2019 was valued at $4800. It was discovered that:

1 Goods, cost $100, had not been included.

2 Goods, cost $170, had been included at net realisable value $210.

What was the effect of the incorrect inventory valuation on Joel’s financial statements at
31 December 2019?

profit for
$ inventory $ equity $
the year

A overstated 40 understated 40 nil

B overstated 60 understated 60 nil
C understated 40 understated 40 understated 40
D understated 60 understated 60 understated 60

© UCLES 2020 0452/13/M/J/20 [Turn over

21 The owner of a business took goods for his own use but forgot to make an entry in the accounts.

What was the effect of this error?

profit for the year capital employed

A overstated no effect
B overstated understated
C understated no effect
D understated overstated

22 Rajid and Sunil formed a partnership on 1 January 2019 but did not prepare a partnership
agreement.

They provided the following information.

Rajid Sunil

capital introduced 1 January 2019 $40 000 $20 000

during the year ended 31 December 2019
drawings $5 000 $3 500
share of work 50% 50%

They decided to draw up a partnership agreement for future years.

Which item would be most beneficial to Rajid in 2020?

A interest on capital
B interest on drawings
C limit on annual drawings
D partnership salaries

23 Harry and Jane are in partnership. The following information relates to Harry for the financial
year.

salary 8000
drawings 2800
share of profit 4600

The opening credit balance on Harry’s current account was $28 200.

What was the closing balance on his current account?

A $30 000 B $38 000 C $40 800 D $43 600

© UCLES 2020 0452/13/M/J/20

24 The statement of financial position of X Limited at 31 December 2018 included the following:

ordinary share capital 40 000

general reserve 8 000
retained earnings 65 000
8% debentures (repayable 2025) 30 000

Profit for the year ended 31 December 2019 was $42 000 and dividends paid totalled $10 000.

What was the total equity on 31 December 2019?

A $137 000 B $145 000 C $155 000 D $175 000

25 Which is a feature of debentures?

A are a long-term liability of a company

B carry a fixed rate of dividend
C carry voting rights
D on liquidation are paid back after shareholders

26 Which cost is part of the prime cost for a manufacturing business?

A carriage inwards
B carriage outwards
C factory rent
D factory supervisor’s salary

27 A manufacturing business provided the following information.

prime cost 236 000

factory overheads 42 000
opening work in progress 8 000
closing work in progress 6 000

What was the factory cost of production?

A $234 000 B $238 000 C $276 000 D $280 000

© UCLES 2020 0452/13/M/J/20 [Turn over

28 A trader provided the following information.

trade receivables at start of the year 5 000

trade receivables at end of the year 8 500
cash received from trade receivables 34 700
irrecoverable debts written off 200
discount allowed 185

What was the amount of the credit sales?

A $38 200 B $38 385 C $38 400 D $38 585

29 Gordon provided the following information for the year.

revenue $90 000

opening inventory $8 000
closing inventory $2 000
mark up 50%

Gordon took goods, $7000, for his own use.

What were the purchases?

A $43 000 B $47 000 C $54 000 D $61 000

30 Sabelo’s liquid (acid test) ratio was higher on 1 January 2019 than it was on 31 December 2019.

What could have caused this?

A bank overdraft decreased

B inventory decreased
C other payables decreased
D trade receivables decreased

© UCLES 2020 0452/13/M/J/20

31 The following ratios have been calculated for a trader.

year 1 year 2

profit margin 15% 20%

return on capital employed (ROCE) 9% 6%

What explains these changes?

A Drawings have increased by more than profit for the year.

32 Which external parties would be interested in the accounting ratios of a business?

A government
B investors
C managers
D tax authorities

33 At the end of the financial year, a company did not account for the unused stationary valued
at $50.

Which accounting principle did the company apply?

A matching
B materiality
C money measurement
D prudence

34 A trader wrote off the balance on a credit customer’s account as irrecoverable.

Which accounting principle was applied?

A business entity
B consistency
C money measurement
D prudence

© UCLES 2020 0452/13/M/J/20 [Turn over

35 A limited company applied the accounting objective of comparability in preparing its financial
statements.

What is the effect of this on the interested parties?

A They can be sure that information in the financial statements is up to date.

B They can identify similarities with the financial statements of other businesses.
C They can understand the financial statements easily.
D They can use the financial statements in decision-making.

© UCLES 2020 0452/13/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/13
Paper 1 May/June 2020
MARK SCHEME
Maximum Mark: 35

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

This mark scheme is published to support teachers and students and should be read together with the
question paper. It shows the requirements of the exam.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 3 printed pages.

© UCLES 2020 [Turn over

0452/13 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

1 B 1

2 D 1

3 D 1

4 D 1

5 A 1

6 C 1

7 B 1

8 C 1

9 A 1

10 C 1

11 B 1

12 C 1

13 C 1

14 D 1

15 C 1

16 A 1

17 A 1

18 B 1

19 A 1

20 D 1

21 C 1

22 A 1

23 B 1

24 B 1

25 A 1

26 A 1

27 D 1

28 D 1

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0452/13 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED

Question Answer Marks

29 D 1

30 D 1

31 C 1

32 B 1

33 B 1

34 D 1

35 B 1

© UCLES 2020 Page 3 of 3

Cambridge IGCSE™
* 8 9 1 1 3 1 4 5 8 2 *

ACCOUNTING 0452/21
Paper 2 Structured Written Paper May/June 2020

1 hour 45 minutes

You must answer on the question paper.

No additional materials are needed.

This document has 24 pages. Blank pages are indicated.

DC (RCL (GO)) 186085/2

1 The ZED Sports Club has a shop which sells sportswear. The following details relate to the shop
for the year ended 29 February 2020.

$
Opening inventory 900
Closing inventory 970
Purchases 7600

Mark-up 40%

REQUIRED

(a) Calculate the shop sales for year ended 29 February 2020.

...................................................................................................................................................

............................................................................................................................................. [4]

All the shop sales and purchases are for cash. All the club’s receipts are paid into the bank and
all payments are made by cheque. On 1 March 2019 the club’s bank balance was overdrawn by
$845.

In addition to the shop sales and purchases, the following receipts and payments were made
during the year ended 29 February 2020.

$
Subscriptions received 11 400
Competition fees received 915
Payments for competition prizes 390
Purchases of fittings 4 000
Rent and insurance 4 575
Wages of shop assistant 2 000

© UCLES 2020 0452/21/M/J/20

REQUIRED

(b) Prepare the receipts and payments account for the ZED Sports Club for the year ended
29 February 2020. Balance the account and bring down the balance on 1 March 2020.

ZED Sports Club

Receipts and Payments Account for the year ended 29 February 2020

Date Details $ Date Details $

……… …….………………… ……… ……… …….………………… ………

……… …….………………… ……… ……… …….………………… ……...

……… …….………………… ……… ……… …….………………… ………

[8]

© UCLES 2020 0452/21/M/J/20 [Turn over

The club’s bank statement at 29 February 2020 showed a positive balance of $7162.

On comparing the bank statement with the cash book, the treasurer found:

1 Competition fees, $260, had not been recorded by the bank.

2 A cheque paid for $25 for competition prizes had been charged twice by the bank.

3 The payment for fittings, $4000, was made on 27 February 2020, and had not been recorded
on the bank statement.

REQUIRED

ZED Sports Club

Bank Reconciliation Statement at 29 February 2020

...................................................................................................................................................

............................................................................................................................................. [5]

(d) State three differences between a receipts and payments account and an income and
expenditure account.

Receipts and payments account Income and expenditure account

[3]

[Total: 20]
© UCLES 2020 0452/21/M/J/20
5

PLEASE TURN OVER

© UCLES 2020 0452/21/M/J/20 [Turn over

2 Ame provided the following balances from his books at 31 March 2020.

$
Capital 10 369
Drawings 4 000
Equipment at cost 15 500
Provision for depreciation of equipment 3 100
Inventory at 1 April 2019 1 765
Trade receivables 1 290
Bank overdraft 475
Trade payables 1 600
Sales 31 250
Purchases 18 330
Purchases returns 910
Carriage inwards 640
Discount received 815
Commission receivable 1 500
Rent and insurance 5 700
Office expenses 2 425

© UCLES 2020 0452/21/M/J/20

REQUIRED

(a) Prepare Ame’s trial balance at 31 March 2020.

Show the difference in the trial balance totals as a suspense account balance.

Ame
Trial Balance at 31 March 2020

Debit Credit
$ $

Capital …………………… ……………………

Drawings …………………… ……………………

Equipment at cost …………………… ……………………

Provision for depreciation of equipment …………………… ……………………

Inventory at 1 April 2019 …………………… ……………………

Trade receivables …………………… ……………………

Bank overdraft …………………… ……………………

Trade payables …………………… ……………………

Sales …………………… ……………………

Purchases …………………… ……………………

Purchases returns …………………… ……………………

Carriage inwards …………………… ……………………

Discount received …………………… ……………………

Commission receivable …………………… ……………………

Rent and insurance …………………… ……………………

Office expenses …………………… ……………………

Suspense …………………… ……………………

…………………… ……………………

______________ ______________

[6]

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Ame later discovered several errors had been made in the accounting records.

REQUIRED

(b) Complete the table to show the entries required to correct each error.
The first one has been completed as an example.

Entries required to correct the error

Error Debit Credit
Account $ Account $

No entry had been made for cash Cash 60 Sales 60

sales, $60.

Office expenses, $240, had been …………….. ………. …………… ………..

credited to the wages account.
No debit entry had been made. ……………… ………. …………….. ……….

The purchases journal total for

March 2020 was $2165. This ……………… ………. …………….. ……….
amount was incorrectly recorded
in the purchases account as ……………… ………. …………….. ……….
$2651.

An insurance payment, $375, had

been correctly recorded in the ……………… ………. …………….. ……….
cash book but no other entry had
been made. ……………… ………. …………….. ……….

The purchase of equipment,

$800, was correctly recorded in ……………… ………. …………….. ……….
the cash book but debited to the
office expenses account. ……………… ………. …………….. ……….

[9]

© UCLES 2020 0452/21/M/J/20

(c) Prepare the suspense account. Start with the difference on the trial balance prepared in
Part (a). Balance or total the account as necessary.

Ame
Suspense account

Date Details $ Date Details $

……… ……………………… ……… ……… …………………… ………

……… ……………………… ……… ……… …………………… ……...

[5]

[Total 20]

© UCLES 2020 0452/21/M/J/20 [Turn over

3 Chippo owns a manufacturing business which produces product S. She provided the following
information for the year ended 30 April 2020.

$
Revenue 254 000
Purchases of raw materials 46 500
Purchases of finished goods 59 000
Wages of factory operatives 38 250
Royalties paid to the inventor of product S 7 690
Factory general expenses 4 500
Factory fuel and power 5 325
Rent and insurance 28 000
Factory machinery at cost 60 000
Provision for depreciation of factory machinery 21 600
Inventory at 1 May 2019: raw materials 3 120
work in progress 5 400
finished goods 8 220

Additional information

1 Factory machinery is depreciated at 20% per annum using the reducing balance method.

2 Rent and insurance is to be split equally between the factory and the office.

3 The annual salary of the factory supervisor is $28 500.

4 Closing inventory at 30 April 2020 was:

$
Raw materials 3000
Work in progress 5590
Finished goods 7885

© UCLES 2020 0452/21/M/J/20

REQUIRED

(a) Prepare Chippo’s manufacturing account for the year ended 30 April 2020.

Chippo
Manufacturing Account for the year ended 30 April 2020
$ $

………………………………………………………… ……………… ………………

[10]
© UCLES 2020 0452/21/M/J/20 [Turn over
12

(b) Prepare Chippo’s income statement (trading account section) for the year ended
30 April 2020.

Chippo
Income Statement (Trading Account section) for the year ended 30 April 2020

$ $

………………………………………………………… ……………… ………………

[4]

(c) Complete the table by placing a tick (ü) in the correct column, to indicate whether each of the
following actions would increase or decrease Chippo’s gross margin.

Action Increase gross margin Decrease gross margin

Increase wages of
factory supervisor
Reduce trade discount
allowed to customers
[2]

© UCLES 2020 0452/21/M/J/20

Chippo is considering converting her sole trader business into a limited company because she
thinks that this will make it easier for her to obtain finance for future expansion.

REQUIRED

(d) Advise Chippo whether or not she should convert her business to a limited company, in order
to obtain finance. Justify your answer by providing advantages and disadvantages.

...................................................................................................................................................

............................................................................................................................................. [4]

[Total: 20]

© UCLES 2020 0452/21/M/J/20 [Turn over

4 Rani is a trader. Her financial year ends on 31 March.

She provided the following information about her three types of inventory at 31 March 2020.

Inventory Number Cost Selling price Selling expenses

item of units per unit per unit per unit
$ $ $
A 110 17 20 2
B 85 18 19 1
C 90 15 16 2

REQUIRED

(a) Calculate the total value of Rani’s inventory at 31 March 2020.

...................................................................................................................................................

............................................................................................................................................. [4]

Rani later discovered that she had an amount of inventory of item D at 31 March 2020. This
inventory originally cost $1660. She considered this inventory to be obsolete.

REQUIRED

(b) Explain to Rani how the value of the inventory of item D affected the profit for the year ended
31 March 2020.

...................................................................................................................................................

............................................................................................................................................. [2]

© UCLES 2020 0452/21/M/J/20

(c) Advise Rani whether or not she should stop purchasing item D to avoid having obsolete
inventory in the future. Justify your answer by providing advantages and disadvantages.

...................................................................................................................................................

............................................................................................................................................. [5]

© UCLES 2020 0452/21/M/J/20 [Turn over

Rani earns advertising income by placing advertising boards in her shop window. The
following details relate to her advertising income.

On 1 April 2019 Rani had received $420 in advance, and $300 was owed to her.

During the year ended 31 March 2020, Rani received cheque payments totalling $6000. She
decided to write off the amount of $300 due to her.

On 31 March 2020 Rani had received $500 in advance, and $400 was owed to her.

REQUIRED

(d) Prepare the advertising income account in the ledger of Rani for the year ended 31 March
2020. Balance the account and bring down the balances on 1 April 2020.

Rani
Advertising income account

Date Details $ Date Details $

……… ……………………… ……… ……… …………………… ………

……… ……………………… ……… ……… …………………… ……...

……… ……………………… ……… ……… …………………… ………

[7]

(e) Explain to Rani the effect on gross profit of recording sales of inventory as advertising income.

...................................................................................................................................................

............................................................................................................................................. [2]

[Total: 20]

© UCLES 2020 0452/21/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/21/M/J/20 [Turn over

5 MPT Limited prepares its financial statements to 30 April each year.

The company’s retained earnings at 1 May 2019 were $14 000. The general reserve was $35 000.

During the year ended 30 April 2020 the following took place.

1 The company made a profit for the year of $28 000 after charging debenture interest.

2 A transfer of $5000 was made to the general reserve.

3 A dividend of $4500 was paid. No other dividends were payable for the year.

MPT Limited provided the following balances at 30 April 2020.

$
Fixtures and equipment at book value 152 000
Motor vehicles at book value 60 400
Inventory 30 330
Bank overdraft 6 200
Trade payables 24 900
Trade receivables 31 500
Provision for doubtful debts 630
5% Debentures (repayable 2025) 20 000
Ordinary share capital 150 000

REQUIRED

(a) Calculate the retained earnings of MPT Limited at 30 April 2020.

...................................................................................................................................................

............................................................................................................................................. [3]

© UCLES 2020 0452/21/M/J/20

(b) Prepare the statement of financial position for MPT Limited at 30 April 2020.

MPT Limited
Statement of Financial Position at 30 April 2020

$ $ $

………………………………………………… ……………… ……………… ………………

[7]

© UCLES 2020 0452/21/M/J/20 [Turn over

The directors of MPT Limited are considering using the general reserve to repay the bank
overdraft.

REQUIRED

...................................................................................................................................................

............................................................................................................................................. [1]

(d) Calculate the return on capital employed (ROCE) for the year ended 30 April 2020. The
calculation should be correct to two decimal places and should be based on closing capital
employed.

...................................................................................................................................................

............................................................................................................................................. [4]

© UCLES 2020 0452/21/M/J/20

The directors are considering increasing dividend in 2021 as a way of increasing return on capital
employed (ROCE).

REQUIRED

(e) Advise the directors how the return on capital employed (ROCE) can be increased. Justify
your answer by commenting on both profit and capital employed.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2020 0452/21/M/J/20

BLANK PAGE

© UCLES 2020 0452/21/M/J/20

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© UCLES 2020 0452/21/M/J/20

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© UCLES 2020 0452/21/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/21
Paper 2 May/June 2020
MARK SCHEME
Maximum Mark: 120

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

This mark scheme is published to support teachers and students and should be read together with the
question paper. It shows the requirements of the exam. The answer column of the mark scheme shows the
proposed basis on which Examiners would award marks for this exam. Where appropriate, this column also
provides the most likely acceptable alternative responses expected from students. Examiners usually review
the mark scheme after they have seen student responses and update the mark scheme if appropriate. In the
June series, Examiners were unable to consider the acceptability of alternative responses, as there were no
student responses to consider.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 18 printed pages.

© UCLES 2020 [Turn over

0452/21 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Generic Marking Principles

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

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:

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:

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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0452/21 Cambridge IGCSE – Mark Scheme May/June 2020
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Question Answer Marks

1(a) $ $ 4
Sales 10 542 (2)CF/(1)OF
Cost of sales
Opening inventory 900 *
Purchases 7 600
8 500
Less Closing inventory 970 *(1) 7 530 (1)OF
Gross profit 3 012

* mark for opening and closing inventory

Any format acceptable

1(b) ZED Sports Club 8

Receipts and Payments Account for the year ended 29 February 2020

Date Details $ Date Details $

2020 2019
Feb 29 Shop sales (1)OF 10 542 Mar 1 Balance b/d (1) 845
Subscriptions } 11 400 2020
Competition fees }(1) 915 Feb 29 Shop purchases (1) 7 600
Competition prizes } 390
Fittings }(1) 4 000
Rent and insurance } 4 575
Wages – shop assistant }(1) 2 000
Balance c/d 3 447
22 857 22 857
2020
Mar 1 Balance b/d (1)OF 3 447

(1) Dates

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Question Answer Marks

1(c) ZED Sports Club 5

Bank Reconciliation Statement at 29 February 2020

$ $

Balance on bank statement 7 162 (1)

Add: Amount not yet credited – competition fees 260 (1)
Bank error 25 (1) 285
7 447
Less Cheque not yet presented – fittings 4 000 (1)
Balance in cash book 3 447 (1) OF

Alternative presentation

$ $

Balance in cash book 3 447 (1) OF

Add: Cheque not yet presented – fittings 4 000 (1)
7 447
Less: Amount not yet credited – competition fees 260 (1)
Bank error 25 (1) 285
Balance on bank statement 7 162 (1)

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Question Answer Marks

1(d) 3
Receipts and payments account Income and expenditure account

Includes all money received and paid Includes income and expenses (1)

No adjustment made for accruals or Adjustments made for accruals and (1)
prepayments prepayments

Includes only monetary items Includes non-monetary items (1)

Includes only revenue receipts and
expenditure

Includes both capital and revenue items Balancing figure represents surplus/deficit (1)

Balancing figure represents bank balance (1)

Accept other valid points
Max (3) for comparative statements

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Question Answer Marks

2(a) Ame 6
Trial Balance at 31 March 2020

Debit Credit
$ $

Capital 10 369 }
Drawings 4 000 }(1)
Equipment at cost 15 500 }
Provision for depreciation of equipment 3 100 }(1)
Inventory at 1 April 2019 1 765
Trade receivables 1 290
Bank overdraft 475 (1)
Trade payables 1 600
Sales 31 250
Purchases 18 330
Purchases returns 910 }(1)
Carriage inwards 640 }
Discount received 815 }
Commission receivable 1 500 }(1)
Rent and Insurance 5 700
Office expenses 2 425
Suspense 369
50 019 50 019 (1)OF

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Question Answer Marks

2(b) 9

Entries required to correct the error

Error Debit Credit

Account $ Account $

No entry had been made for cash sales, $60. Cash 60 Sales 60

Office expenses 240 (1) Suspense 480 (1)

Office expenses, $240, had been credited to the
wages account. No debit entry had been made.
Wages 240 (1)

The purchases journal total for March 2020 was Suspense 486 (1) Purchases 486 (1)
$2165. This amount was incorrectly recorded in
the purchases account as $2651.

An insurance payment, $375, had been correctly Rent and 375 (1) Suspense 375 (1)
recorded in the cash book but no other entry has insurance
been made.

The purchase of equipment, $800, was correctly Equipment 800 (1) Office expenses 800 (1)
recorded in the cash book but debited to the
office expenses account.

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Question Answer Marks

2(c) Ame 5
Suspense account
Date Details $ Date Details $

2020 2020

Mar 31 Difference on trial balance (1) OF 369 Mar 31 Office expenses (1) 240

Wages (1) 240

Purchases (1) 486 Rent and insurance (1) 375

855 855

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Question Answer Marks

3(a) Chippo 10
Manufacturing Account for the year ended 30 April 2020

$ $
Cost of material consumed
Opening inventory of raw material 3 120
Purchases of raw material 46 500
49 620
Less Closing inventory of raw material 3 000 46 620 (1)
Direct wages 38 250 (1)
Direct expenses – royalties 7 690 (1)
Prime cost 92 560 (1)OF
Factory overheads
Wages – factory supervisor 28 500 (1)
Factory general expenses 4 500
Factory fuel and power 5 325
Rent and insurance (28 000 × 50%) 14 000 (1)
Depreciation of machinery (60 000 – 21 600) × 20% 7 680 (1) 60 005
152 565 (1)OF
Add opening work in progress 5 400 *
157 965
Less closing work in progress 5 590 *(1) both
Cost of production 152 375 (1) OF

*mark for both opening and closing work-in-progress

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Question Answer Marks

3(b) Chippo 4
Income Statement (Trading Account section) for the year ended 30 April 2020

$ $
Revenue 254 000
Less Cost of sales
Opening inventory of finished goods 8 220
Cost of production 152 375 (1)OF
Purchases of finished goods 59 000 (1)
219 595
Less Closing inventory of finished goods 7 885 211 710 (1) OF
Gross profit 42 290 (1)OF

3(c) 2
Action Increase gross profit Decrease gross profit

Increase wages of factory

(1)
supervisor

Reduce trade discount

(1)
allowed to customers

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Question Answer Marks

3(d) Advantages 4
A manufacturing business such as Chippo’s, which requires machinery as well as premises, would usually operate as a
limited company (1)
Chippo would be able to raise some money by issuing shares (1)
It may be easier for Chippo to obtain finance for the proposed expansion if the business is a limited company (1)
If Chippo converts the business to a limited company, her personal assets will be safer (1)
If Chippo continues to manufacture as a sole trader, the lender could take her personal assets if the assets of the business
were insufficient to cover any loans (1)
Accept other valid points
Max (2)

Disadvantages
The lender is likely to require security over the company’s assets (1)
The lender could take possession of the assets of the business if payments were not made in accordance with the agreed
terms (1)
There will be costs involved in setting up and running a limited company (1)
Accept other valid points
Max (2)

Max (3) overall for advantages and disadvantages

Recommendation (1)

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Question Answer Marks

4(a) 4
Item Net realisable Lower of cost and Number of units
value net realisable Total value
value
$ $ $

A 20 – 2 = 18 17 110 1 870 (1)

B 19 – 1 = 18 18 85 1 530 (1)

C 16 – 2 = 14 14 90 1 260 (1)

Total 4 660 (1)

4(b) The net realisable value is lower than the cost so item D should be recorded at its net realisable of zero (1) 2
There will be no effect on profit (1)

4(c) Advantages 5
The obsolete inventory is a loss to Rani’s business (1)
She will wish to avoid such losses in the future (1)
Holding inventory necessitates storage costs (1)
If Rani stops buying item D, she may have funds available for other business opportunities (1)
Rani had difficulty in monitoring four types of inventory (1)
Accept other valid points
Max (2)

Disadvantages
Rani needs to consider that it may be risky to stock only three of the four lines of inventory in the future (1)
There may be customer demand in future for item D (1)
Customers who have to start buying item D from another supplier may also buy items A, B and C from them (1)
Accept other valid points
Max (2)

Recommendation (1)

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Question Answer Marks

4(d) Rani 7
Advertising income account
Date Details $ Date Details $
2019 2019
Apl 1 Balance b/d *(1) 300 Apl 1 Balance b/d* 420
2020 2020
Mar 31 Income statement (1)OF 6 320 Mar 31 Bank (1) 6 000
Balance c/d 500 Irrecoverable debts (1) 300
Balance c/d 400
7 120 7 120
2020 2020
Apl 1 Balance b/d (1) 400 Apl 1 Balance b/d (1) 500
(1) Dates
* mark for both balances

4(e) Sales of inventory are included in calculation of the gross profit (1) 2
Advertising income is included as other income after the calculation of the gross profit (1)
If sales of inventory are included as advertising income the gross profit will be understated (1)
Accept other valid points
Max (2)

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Question Answer Marks

5(a) $ $ 3
Retained earnings 1 May 2019 14 000 }
Profit for the year 28 000 } (1)
42 000
Less Transfer to general reserve 5 000 }
Dividend 4 500 }(1) 9 500
Retained earnings 30 April 2020 32 500 (1) OF

Any format acceptable

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Question Answer Marks

5(b) MPT Limited 7

Statement of Financial Position at 30 April 2020

$ $
Assets
Non-current Assets
Fixtures and equipment at book value 152 000
Motor vehicles at book value 60 400
212 400 (1)
Current Assets
Inventory 30 330
Trade receivables 31 500
Less Provision for doubtful debts 630 30 870 (1)
61 200 (1)OF
Total assets 273 600

Equity and Liabilities

Equity
Ordinary share capital 150 000
General reserve (35 000 + 5 000) 40 000 (1)
Retained earnings 32 500 (1)OF
222 500

Non-current Liabilities
5% Debentures 20 000 (1)

Current Liabilities
Trade payables 24 900
Bank 6 200
31 100 (1)
Total Equity and Liabilities 273 600

5(c) General reserves may not necessarily be matched by cash balances (1) 1

Accept other valid points

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Question Answer Marks

5(d) Either 4

28 000 + 1000 (1) 100

×
150 000 + 40 000 (1)OF + 32 500OF + 20 000 (1) 1

29 000 100
= ×
242 500 1

= 11.96% (1)OF

28 000 + 1000 (1) 100

×
273 600 (1)OF − 31100 (1) 1

= 11.96% (1)OF

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Question Answer Marks

5(e) Basic statements – Increase profit for the year (1) 5

Reduce capital employed (1)
Use capital employed more effectively (1)
Max (3)

Expansion of basic statements –

Ways to increase profit for the year – Increase profit by increasing gross profit (1)
Reduce expenses (1)
Increase other income (1)
Max (2)

Ways to reduce capital employed – Increase dividend (so reducing reserves) (1)
Reduce non-current liabilities (1)
Max (2)

Ways to use capital employed more effectively – combine lower costs with higher sales (1)
sell off surplus/inefficient assets that generate little revenue/increase costs (1)

Max (2)

Max (5)

© UCLES 2020 Page 18 of 18

Cambridge IGCSE™
* 7 2 7 2 2 3 5 6 0 7 *

ACCOUNTING 0452/22
Paper 2 Structured Written Paper May/June 2020

1 hour 45 minutes

You must answer on the question paper.

No additional materials are needed.

This document has 20 pages. Blank pages are indicated.

DC (RCL (GO)) 186086/3

1 Bilal is a trader. He buys goods on credit and for cash. He sells goods on a cash basis only.

The following transactions took place in April 2020.

April 4 Bought goods on credit from Milly, list price $320, subject to a trade discount of 20%

5 Bought goods on credit from EHL Limited, $500

6 Bought stationery, $145, paying by cheque

8 Cash sales, $280, were paid immediately into Bilal’s bank account

10 Paid $128 cash to Milly

12 Cash sales, $110

13 Bought goods on credit, $250, from Todd who offers 4% cash discount for payments
made within 14 days

17 Bought office equipment, $500, paying by bank transfer

21 Paid by cheque for the goods purchased from Todd on 13 April after deducting the cash
discount

24 Paid $485 to EHL Limited by telephone transfer, having deducted 3% cash discount

28 Sold old office equipment for $50 cash

REQUIRED

(a) Prepare the purchases journal for April 2020.

Total the journal and indicate the ledger account to which the total would be posted.

Bilal
Purchases journal

Date Details $ $

……..….... ………………………………………………............. …………... ………......

………...... ………………………………………………............. …………... …………..

……..….... ………………………………………………............. …………... …………..

………...... ………………………………………………............. …………... ………......

………...... ………………………………………………............. ………….. …………...

[4]

(b) Complete Bilal’s cash book on the page opposite.

Balance the cash book and bring down the balances on 1 May 2020.

© UCLES 2020 0452/22/M/J/20

Bilal
Cash Book

April 1 Balance b/d ................ 160 1960 ........... ......................................... ............... ............... …...........

........... ........................................ ................ ............... ............... ........... ......................................... ............... ............... ...............

.......... ....................................... ................ ............... ............... ........... ......................................... ............... ............... ...............

........... ........................................ ................ ............... ............... ........... ......................................... ............... ............... ...............

........... ........................................ ................ ............... ............... .......... ......................................... ............... ............... ...............

........... ........................................ ................ ............... ............... ........... ......................................... ............... ............... ...............
3

........... ........................................ ................ ............... .............. ........... ......................................... ............... ............... ...............

0452/22/M/J/20
.......... ....................................... ................ ............... ............... ........... ......................................... ............... .............. ...............
.
.......... ........................................ ................ ............... ............... …....... ......................................... ............... .............. ...............

…....... …..................................... …............ …............ …............ …....... …..................................... ............... …........... …...........

……… …..................................... …............ …........... …........... …....... …..................................... …............ …........... …...........

[12]

[Turn over
4

accounting principle
The double entry for the posting of the purchases journal
entries is completed by posting the individual amounts to
the purchases ledger.
The purchase of goods on 5 April did not include goods
costing $55 which Bilal bought for his own use.
The stationery purchased on 6 April had been recycled.
This is expected to improve the reputation of the business.
Reputation is not recorded in the accounting statements.
The value of office equipment shown in the financial
statements was based on its purchase price.
[4]

[Total: 20]

© UCLES 2020 0452/22/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/22/M/J/20 [Turn over

2 The K Music Club provides facilities for listening to music and also provides a refreshment bar for
members. The club had the following assets and liabilities at 1 April 2019.

$
Subscriptions in advance 250
Subscriptions in arrears 845
Cash at bank 1 570
Cash in hand 130
Wages outstanding (refreshment bar) 140
Inventory (refreshment bar) 615
Fixtures and fittings at book value 11 200

REQUIRED

(a) Calculate the accumulated fund at 1 April 2019.

...................................................................................................................................................

............................................................................................................................................. [4]

(b) State how the accumulated fund of a club is built up over time.

...................................................................................................................................................

............................................................................................................................................. [2]

The following information is available for the year ended 31 March 2020.

$
Subscriptions received (all by cheque) 8 500
Subscriptions written off as irrecoverable 155
Wages paid to refreshments bar staff 1 250

Balances at 31 March 2020 included the following.

$
Subscriptions in advance 215
Subscriptions in arrears 975
Wages outstanding (refreshments bar) 115

© UCLES 2020 0452/22/M/J/20

REQUIRED

...................................................................................................................................................

……………………………………………........ …………………………………………………… [2]

(d) Prepare the subscriptions account for the year ended 31 March 2020. Balance the account
and bring down the balances on 1 April 2020.

K Music Club
Subscriptions account
Date Details $ Date Details $

……… …………………………... ……….. ……… …………………………... ………..

[7]

© UCLES 2020 0452/22/M/J/20 [Turn over

(e) Advise the club treasurer whether or not club members should be required to pay their
subscriptions by direct debit. Justify your answer by providing two advantages and two
disadvantages.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2020 0452/22/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/22/M/J/20 [Turn over

3 Gok is a wholesaler. He prepares his financial statements to the end of February each year.

At 29 February 2020, Gok’s ledger account balances included the following.

$
Revenue 420 000
Purchases 311 400
Sales returns 12 000
Discount allowed 9 000
Wages 12 360
Rent and rates 11 750
General expenses 4 220
Irrecoverable debts 8 600
Insurance 4 500
Telephone expenses 4 565
Inventory at 1 March 2019 26 700
Drawings 9 500
Fixtures and equipment at cost 120 000
Provision for depreciation of fixtures and equipment 43 200

Additional information

1 Gok did not have time to count and value his inventory at 29 February 2020. His margin is
25%.

2 A loan of $60 000 was obtained from the bank on 1 July 2019. Interest is charged at 7% per
annum.

3 The fixtures and equipment are being depreciated at 20% per annum using the reducing
balance method.

4 The insurance includes $1500 which covers the period from 1 March to 30 September 2020.

5 Drawings include a payment of $1660 for Gok’s personal telephone expenses. One quarter
of this amount was for business use.

© UCLES 2020 0452/22/M/J/20

REQUIRED

(a) Prepare Gok’s income statement for the year ended 29 February 2020.

Gok
Income Statement for the year ended 29 February 2020

$ $
……………………………………………………………............ ……………. …………….

……………………………………………………………............ ……………. …………….

……………………………………………………………............ ................... …………….

[15]

© UCLES 2020 0452/22/M/J/20 [Turn over

The wages paid by Gok are to his part-time warehouse assistant, Aiman.

REQUIRED

(b) Advise Gok whether or not he should offer Aiman a partnership in the business. Justify your
answer with two advantages and two disadvantages.

...................................................................................................................................................

.............................................................................................................................................. [5]

[Total: 20]

© UCLES 2020 0452/22/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/22/M/J/20 [Turn over

4 Nadia is a trader. Her financial year ends on 31 March. She extracted a trial balance at 31 March
2020. The debit and credit totals did not agree. The difference was entered into a suspense
account.

After Nadia prepared draft financial statements, she discovered the following errors.

1 The purchases account was overcast by $110.

2 $13 for discount allowed in February 2020 had been credited to the discount allowed account
as $15.

3 A payment for insurance, $220, was correctly recorded in the cash book, but was recorded as
$202 in the insurance account.

4 Commission received, $65, had been debited to the account for commission payable. The
entry to the cash book had been correctly made.

5 Cash drawings, $85, were correctly entered in the cash book but were credited to the
drawings account.

6 The cost of a vehicle repair, $190, had been debited to the motor vehicles account.

7 A payment of $100 to Robert had been posted to the account of Roberta.

REQUIRED

(a) Prepare the suspense account. Include the original difference on the trial balance as a
balancing figure.

Nadia
Suspense account

Date Details $ Date Details $

………. .……………………… ……….. ………. .……………………… ………..

[7]

© UCLES 2020 0452/22/M/J/20

(b) Identify the type of error made in

(i) Error 6

...................................................................................................................................... [1]

(ii) Error 7

...................................................................................................................................... [1]

(c) Complete the following statement to show the effect on the profit for the year of correcting
errors 2–7. If there is no effect on profit write ‘nil’ in the ‘no effect’ column. Calculate the
corrected profit for the year. Ignore depreciation of non-current assets.

The first correction has been completed as an example.

Nadia
Statement of corrected profit for the year ended 31 March 2020
$
Draft profit for the year before corrections 6720
No Increase Decrease
Effect in profit in profit
$ $

Error 1 110

Error 2 ............... ............... ...............

Error 3 ............... ............... ...............

Error 4 ............... ............... ...............

Error 5 ............... ............... ...............

Error 6 ............... ............... ...............

Error 7 ............... ............... ...............

Corrected profit for the year [7]

© UCLES 2020 0452/22/M/J/20 [Turn over

At 31 March 2020 Nadia’s trade receivables owed $14 500. After the preparation of the draft
financial statements for the year ended 31 March 2020, Nadia discovered the following.

1 $300 owed by DD Supplies should have been written off as irrecoverable.

2 A provision of doubtful debts of 2% of trade receivables should have been created.

REQUIRED

(d) Prepare journal entries to record 1 and 2 above. Narratives are not required.

Nadia
Journal

Date Details Debit Credit

$ $

……….. ……………………………………………........... ……………… ………………

………… ……………………………………………........... ……………… ………………

[4]

[Total: 20]

© UCLES 2020 0452/22/M/J/20

5 The directors of JKY Limited provided the following information.

For the year to 30 April 2020:

Revenue 209 510

Purchases 121 618

At 30 April 2020:

Inventory 11 050
Trade receivables 28 700
Bank overdraft 6 280

All sales and purchases were made on credit terms.

Inventory at 1 May 2019 was valued at $8000

REQUIRED

(a) Calculate the following ratios. Show your workings.

Rate of inventory turnover

workings answer (to two decimal places)

Trade receivables turnover (days)

workings answer (round up to nearest whole day)

[5]

© UCLES 2020 0452/22/M/J/20 [Turn over

The rate of inventory turnover for the year ended 30 April 2020 was lower than that of the previous
year.

The trade receivables turnover (days) for the year ended 30 April 2020 was higher than that of the
previous year.

REQUIRED

(b) Explain the effects of the change in:

(i) inventory turnover

...........................................................................................................................................

...................................................................................................................................... [3]

(ii) trade receivables turnover (days)

...........................................................................................................................................

...................................................................................................................................... [3]

© UCLES 2020 0452/22/M/J/20

The directors are concerned about the level of trade receivables. They are considering introducing
cash discount of 1% for payment within 21 days or charging interest on amounts outstanding after
30 days.

REQUIRED

(c) Advise the directors whether they should introduce the cash discount policy or the interest
charge policy. Justify your answer by providing one advantage and one disadvantage of
each policy.

...................................................................................................................................................

.............................................................................................................................................. [5]

The information in the accounting statements is affected by the company’s accounting policies.

REQUIRED

(d) Explain to the directors of JKY Limited the importance of the following objectives in selecting
the company’s accounting policies.

(i) comparability

...........................................................................................................................................

...................................................................................................................................... [2]

© UCLES 2020 0452/22/M/J/20 [Turn over

(ii) relevance

...........................................................................................................................................

...................................................................................................................................... [2]

[Total: 20]

© UCLES 2020 0452/22/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/22
Paper 2 May/June 2020
MARK SCHEME
Maximum Mark: 120

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 12 printed pages.

© UCLES 2020 [Turn over

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Generic Marking Principles

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

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:

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.

© UCLES 2020 Page 2 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
GENERIC MARKING PRINCIPLE 5:

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.

© UCLES 2020 Page 3 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

1(a) Bilal 4
Purchases journal

Date Details $

2020
April 4 Milly (320 – 64) 256 (1)
5 EHL Limited 500 (1)
13 Todd 250 (1)
30 Transfer to purchases account 1 006 (1)OF

1(b) Bilal 12
Cash Book
Disc. Cash Bank Disc. Cash Bank
Alld Recd
$ $ $ $ $ $
2020 2020
Apr 1 Balance b/d 160 1 960 Apr 6 Stationery (1) 145
8 Sales (1) 280 10 Milly (1) 128
12 Sales (1) 110 17 Office equip. (1) 500
28 Disposal (1) 50 21 Todd (1) 10 240
24 EHL Limited (1) 15 485
30 Balance c/d 192 870
320 2 240 25(1) 320 2 240
2020
May 1 Balance b/d 192 870
(1)OF (1)OF

Dates (1)

© UCLES 2020 Page 4 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

1(c) 4
accounting principle

The double entry for the posting of the purchases journal duality (1)
entries is completed by posting the individual amounts to
the purchases ledger.

The purchase of goods on 5 April did not include goods business entity (1)
costing $55 which Bilal bought for his own use.

The stationery purchased on 6 April had been recycled. This money measurement (1)
is expected to improve the reputation of the business.
Reputation is not recorded in the accounting statements.

The value of office equipment shown in the financial historic cost (1)
statements was based on its purchase price.

Question Answer Marks

2(a) $ $ 4
Subscriptions in arrears 845 (1)
Cash at bank 1 570
Cash in hand 130
Inventory 615
Fixtures and fittings 11 200
14 360 (1)
Subscriptions in advance 250
Wages outstanding 140 390 (1)
Accumulated fund 13 970 (1)(OF)

2(b) The accumulated fund is built up from the annual surpluses (1) less any annual deficits (1) 2
Accept other valid points

2(c) 1250 + 115 – 140 (1) = 1225 (1)OF 2

© UCLES 2020 Page 5 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

2(d) K Music Club 7

Subscriptions account

2019 $ 2019 $
Apr 1 Balance b/d 845 (1) Apr 1 Balance b/d 250 (1)
2020 2020
Mar 31 Income and Expenditure 8 820 (1)OF Mar 31 Bank 8 500 (1)
Balance c/d 215 Irrecoverable debts 155 (1)
Balance c/d 975
9 880 9 880
2020 2020
Apl 1 Balance b/d 975 (1)OF Apl 1 Balance b/d 215 (1)OF

2(e) Advantages 5
Subscriptions in arrears have risen from $845 to $975, so this may be a concern (1)
Subscriptions in arrears are significantly higher than subscriptions in advance (1)
Irrecoverable debts would be minimised particularly if the direct debits were set up for the start of the year (1)
The timing of cash receipts from members will be known (1)
Administration costs may be reduced (1)
Accept other valid points
Max (2)

Disadvantages
Members may prefer to choose their own method of payment (1)
They may prefer to pay their subscription at a time of their choosing (1)
Some members may decide not to renew their membership (1)
Accept other valid points
Max (2)

Recommendation (1)

© UCLES 2020 Page 6 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

3(a) Gok 15
Income Statement for the year ended 29 February 2020
$ $

Revenue 420 000

Less Sales returns 12 000 408 000 (1)
Cost of sales
Opening inventory 26 700
Purchases 311 400
338 100
Less Closing inventory 32 100 (1)OF 306 000 (1) OF
Gross profit 102 000 (1)

Less Expenses
Discount allowed 9 000 (1)
Wages 12 360 }
Rent and rates 11 750 }(1)
General expenses 4 220 }
Irrecoverable debts 8 600 (1)
Insurance (4 500 – 1 500) 3 000 (1)
Telephone expenses (4 565(1) + [1 660/4] (1)) 4 980
Depreciation on Fixtures and equipment (20% × 76 800) (1) 15 360 (1)OF 69 270
Profit from operations 32 730
Loan interest (60 000 × 7%)(1) × 8/12(1) 2 800
Profit for the year 29 930 (1)OF

© UCLES 2020 Page 7 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

3(b) Advantages 5
Gok would no longer need to pay wages to Aiman as he would not be an employee (1)
Aiman may invest capital into the business (1)
Gok would consider how much capital would be introduced by Aiman (1)
The risks and responsibilities would be shared with Aiman (1)
Aiman may have skills which could be used in the business, other than those which he currently uses as a warehouse
assistant (1)
Aiman may be prepared to work longer hours in the business if he became a partner (1)
Currently Gok has not had time to carry out an inventory count so it seems that any extra hours which Aiman may work would
be helpful (1)
Accept other valid points
Max (2)

Disadvantages
Gok would no longer be able to take all the decisions on his own (1)
Aiman would be entitled to a share of the profits (1)
Gok would consider how profits and losses are to be shared (1)
Aiman would expect to take drawings from the business (1)
Accept other valid points
Max (2)

Recommendation (1)

Question Answer Marks

4(a) Nadia 7
Suspense account
2020 $ 2020 $
Mar 31 Purchases 110 (1) Mar 31 Difference on trial balance 24 (1)OF
Commission payable 65 (1) Discount allowed 28 (1)
Insurance 18 (1)
Commission receivable 65 (1) Drawings 170 (1)
240 240

4(b)(i) Error of principle (1) 1

4(b)(ii) Error of commission (1) 1

4(c) 7
Nadia
Statement of corrected profit for the year ended 31 March 2020

$
Profit for the year before corrections 6720
No Increase Decrease
effect in profit in profit
$ $
Error 1 110
Error 2 28 (1)
Error 3 18 (1)
Error 4 130 (1)
Error 5 nil (1)
Error 6 190 (1)
Error 7 nil (1) ___ ___ 4(1)(OF)
Corrected profit for the year 240 236 6724

4(d) Nadia 4
Journal
Debit Credit
Date Details
$ $

2020
March 31 Irrecoverable debts 300 (1)
DD Supplies 300 (1)

March 31 Income statement 284 (1)

Provision for doubtful debts 284 (1)

© UCLES 2020 Page 9 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

5(a) Rate of inventory turnover 5

(8 000 + 121618 − 11050)(1) 118 568
= = 12.45 times (1)OF
(8 000 + 11050 / 2(1) 9 525

Trade receivables turnover

28 700 365
× (1) whole formula = 50 days (1)OF
209 510 1

5(b)(i) Risk of obsolete inventory (1) 3

Risk of damage to inventory (1)
Increased storage costs (1)
May need to reduce selling price to sell old inventory (1)
Cash is tied up longer in inventory (1)
May mean missed business opportunities if insufficient cash (1)
Accept other valid points
Max (3)

5(b)(ii) Risk of irrecoverable debts (1) 3

A provision for doubtful debts may be required (1)
Credit control may need to be reviewed (1)
Cash tied up in trade receivables (1)
May mean missed business opportunities if insufficient cash (1)
Effect may be significant as all sales are on credit (1)
Accept other valid points
Max (3)

© UCLES 2020 Page 10 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

5(c) Cash discount 5

Advantages Cash will be received significantly earlier (1)
Good customer relationships are maintained (1)
Credit control costs may be reduced (1)
Irrecoverable debts may be reduced (1)
Accept other valid points
Max (1)
Disadvantages Less cash will be received (1)
1% may not be enough to encourage earlier payment (1)
If customers have insufficient funds to pay the cash discount may have no effect (1)
Accept other valid points
Max (1)

Interest
Advantages More cash may be received (1)
Cash may be received earlier (1)
Interest received will increase profit (1)
Irrecoverable debts may be reduced (1)
Accept other valid points
Max (1)
Disadvantages Customer relationships may worsen (1)
Increased administration costs (1)
Customers may refuse to pay the interest (1)
Customers may find an alternative supplier (1)
Accept other valid points
Max (1)

Recommendation (1)

© UCLES 2020 Page 11 of 12

0452/22 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks

5(d)(i) Accounting policies should be applied consistently so that financial statements can be compared from year to year (1) 2
Financial statements can be compared with similar businesses (1)
Any change in the company’s accounting policies, and the effect of the change, should be disclosed (1)
Accept other valid points
Max (2)

5(d)(ii) Information is relevant if it is capable of influencing the decisions being made (1) 2
Information must be available in time for decisions to be taken (1)
Relevant information helps the directors to evaluate past, present and future events (1)
Accept other valid points
Max (2)

© UCLES 2020 Page 12 of 12

Cambridge IGCSE™
* 1 0 9 6 8 3 2 6 7 1 *

ACCOUNTING 0452/23
Paper 2 Structured Written Paper May/June 2020

1 hour 45 minutes

You must answer on the question paper.

No additional materials are needed.

This document has 20 pages. Blank pages are indicated.

DC (DH) 198491
© UCLES 2020 [Turn over
2

1 Bilal is a trader. He buys goods on credit and for cash. He sells goods on a cash basis only.

The following transactions took place in April 2020.

April 4 Bought goods on credit from Milly, list price $320, subject to a trade discount of 20%

5 Bought goods on credit from EHL Limited, $500

6 Bought stationery, $145, paying by cheque

8 Cash sales, $280, were paid immediately into Bilal’s bank account

10 Paid $128 cash to Milly

12 Cash sales, $110

13 Bought goods on credit, $250, from Todd who offers 4% cash discount for payments
made within 14 days

17 Bought office equipment, $500, paying by bank transfer

21 Paid by cheque for the goods purchased from Todd on 13 April after deducting the cash
discount

24 Paid $485 to EHL Limited by telephone transfer, having deducted 3% cash discount

28 Sold old office equipment for $50 cash

REQUIRED

(a) Prepare the purchases journal for April 2020.

Total the journal and indicate the ledger account to which the total would be posted.

Bilal
Purchases journal

Date Details $ $

……..….... ………………………………………………............. …………... ………......

………...... ………………………………………………............. …………... …………..

……..….... ………………………………………………............. …………... …………..

………...... ………………………………………………............. …………... ………......

………...... ………………………………………………............. ………….. …………...

[4]

(b) Complete Bilal’s cash book on the page opposite.

Balance the cash book and bring down the balances on 1 May 2020.

© UCLES 2020 0452/23/M/J/20

Bilal
Cash Book

April 1 Balance b/d ................ 160 1960 ........... ......................................... ............... ............... …...........

........... ........................................ ................ ............... ............... ........... ......................................... ............... ............... ...............

.......... ....................................... ................ ............... ............... ........... ......................................... ............... ............... ...............

........... ........................................ ................ ............... ............... ........... ......................................... ............... ............... ...............

........... ........................................ ................ ............... ............... .......... ......................................... ............... ............... ...............

........... ........................................ ................ ............... ............... ........... ......................................... ............... ............... ...............
3

........... ........................................ ................ ............... .............. ........... ......................................... ............... ............... ...............

0452/23/M/J/20
.......... ....................................... ................ ............... ............... ........... ......................................... ............... .............. ...............
.
.......... ........................................ ................ ............... ............... …....... ......................................... ............... .............. ...............

…....... …..................................... …............ …............ …............ …....... …..................................... ............... …........... …...........

……… …..................................... …............ …........... …........... …....... …..................................... …............ …........... …...........

[12]

[Turn over
4

[Total: 20]

© UCLES 2020 0452/23/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/23/M/J/20 [Turn over

2 The K Music Club provides facilities for listening to music and also provides a refreshment bar for
members. The club had the following assets and liabilities at 1 April 2019.

REQUIRED

(a) Calculate the accumulated fund at 1 April 2019.

...................................................................................................................................................

............................................................................................................................................. [4]

(b) State how the accumulated fund of a club is built up over time.

...................................................................................................................................................

............................................................................................................................................. [2]

The following information is available for the year ended 31 March 2020.

$
Subscriptions received (all by cheque) 8 500
Subscriptions written off as irrecoverable 155
Wages paid to refreshments bar staff 1 250

Balances at 31 March 2020 included the following.

$
Subscriptions in advance 215
Subscriptions in arrears 975
Wages outstanding (refreshments bar) 115

© UCLES 2020 0452/23/M/J/20

REQUIRED

...................................................................................................................................................

……………………………………………........ …………………………………………………… [2]

(d) Prepare the subscriptions account for the year ended 31 March 2020. Balance the account
and bring down the balances on 1 April 2020.

K Music Club
Subscriptions account
Date Details $ Date Details $

……… …………………………... ……….. ……… …………………………... ………..

[7]

© UCLES 2020 0452/23/M/J/20 [Turn over

(e) Advise the club treasurer whether or not club members should be required to pay their
subscriptions by direct debit. Justify your answer by providing two advantages and two
disadvantages.

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

© UCLES 2020 0452/23/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/23/M/J/20 [Turn over

3 Gok is a wholesaler. He prepares his financial statements to the end of February each year.

At 29 February 2020, Gok’s ledger account balances included the following.

Additional information

1 Gok did not have time to count and value his inventory at 29 February 2020. His margin is
25%.

2 A loan of $60 000 was obtained from the bank on 1 July 2019. Interest is charged at 7% per
annum.

3 The fixtures and equipment are being depreciated at 20% per annum using the reducing
balance method.

4 The insurance includes $1500 which covers the period from 1 March to 30 September 2020.

5 Drawings include a payment of $1660 for Gok’s personal telephone expenses. One quarter
of this amount was for business use.

© UCLES 2020 0452/23/M/J/20

REQUIRED

(a) Prepare Gok’s income statement for the year ended 29 February 2020.

Gok
Income Statement for the year ended 29 February 2020

$ $
……………………………………………………………............ ……………. …………….

……………………………………………………………............ ……………. …………….

……………………………………………………………............ ................... …………….

[15]

© UCLES 2020 0452/23/M/J/20 [Turn over

The wages paid by Gok are to his part-time warehouse assistant, Aiman.

REQUIRED

(b) Advise Gok whether or not he should offer Aiman a partnership in the business. Justify your
answer with two advantages and two disadvantages.

...................................................................................................................................................

.............................................................................................................................................. [5]

[Total: 20]

© UCLES 2020 0452/23/M/J/20

PLEASE TURN OVER

© UCLES 2020 0452/23/M/J/20 [Turn over

After Nadia prepared draft financial statements, she discovered the following errors.

1 The purchases account was overcast by $110.

2 $13 for discount allowed in February 2020 had been credited to the discount allowed account
as $15.

3 A payment for insurance, $220, was correctly recorded in the cash book, but was recorded as
$202 in the insurance account.

4 Commission received, $65, had been debited to the account for commission payable. The
entry to the cash book had been correctly made.

5 Cash drawings, $85, were correctly entered in the cash book but were credited to the
drawings account.

6 The cost of a vehicle repair, $190, had been debited to the motor vehicles account.

7 A payment of $100 to Robert had been posted to the account of Roberta.

REQUIRED

(a) Prepare the suspense account. Include the original difference on the trial balance as a
balancing figure.

Nadia
Suspense account

Date Details $ Date Details $

………. .……………………… ……….. ………. .……………………… ………..

[7]

© UCLES 2020 0452/23/M/J/20

(b) Identify the type of error made in

(i) Error 6

...................................................................................................................................... [1]

(ii) Error 7

...................................................................................................................................... [1]

The first correction has been completed as an example.

Nadia
Statement of corrected profit for the year ended 31 March 2020
$
Draft profit for the year before corrections 6720
No Increase Decrease
Effect in profit in profit
$ $

Error 1 110

Error 2 ............... ............... ...............

Error 3 ............... ............... ...............

Error 4 ............... ............... ...............

Error 5 ............... ............... ...............

Error 6 ............... ............... ...............

Error 7 ............... ............... ...............

Corrected profit for the year [7]

© UCLES 2020 0452/23/M/J/20 [Turn over

At 31 March 2020 Nadia’s trade receivables owed $14 500. After the preparation of the draft
financial statements for the year ended 31 March 2020, Nadia discovered the following.

1 $300 owed by DD Supplies should have been written off as irrecoverable.

2 A provision of doubtful debts of 2% of trade receivables should have been created.

REQUIRED

(d) Prepare journal entries to record 1 and 2 above. Narratives are not required.

Nadia
Journal

Date Details Debit Credit

$ $

……….. ……………………………………………........... ……………… ………………

………… ……………………………………………........... ……………… ………………

[4]

[Total: 20]

© UCLES 2020 0452/23/M/J/20

5 The directors of JKY Limited provided the following information.

For the year to 30 April 2020:

Revenue 209 510

Purchases 121 618

At 30 April 2020:

Inventory 11 050
Trade receivables 28 700
Bank overdraft 6 280

All sales and purchases were made on credit terms.

Inventory at 1 May 2019 was valued at $8000

REQUIRED

(a) Calculate the following ratios. Show your workings.

Rate of inventory turnover

workings answer (to two decimal places)

Trade receivables turnover (days)

workings answer (round up to nearest whole day)

[5]

© UCLES 2020 0452/23/M/J/20 [Turn over

The rate of inventory turnover for the year ended 30 April 2020 was lower than that of the previous
year.

The trade receivables turnover (days) for the year ended 30 April 2020 was higher than that of the
previous year.

REQUIRED

(b) Explain the effects of the change in:

(i) inventory turnover

...........................................................................................................................................

...................................................................................................................................... [3]

(ii) trade receivables turnover (days)

...........................................................................................................................................

...................................................................................................................................... [3]

© UCLES 2020 0452/23/M/J/20

REQUIRED

(c) Advise the directors whether they should introduce the cash discount policy or the interest
charge policy. Justify your answer by providing one advantage and one disadvantage of
each policy.

...................................................................................................................................................

.............................................................................................................................................. [5]

The information in the accounting statements is affected by the company’s accounting policies.

REQUIRED

(d) Explain to the directors of JKY Limited the importance of the following objectives in selecting
the company’s accounting policies.

(i) comparability

...........................................................................................................................................

...................................................................................................................................... [2]

© UCLES 2020 0452/23/M/J/20 [Turn over

(ii) relevance

...........................................................................................................................................

...................................................................................................................................... [2]

[Total: 20]

© UCLES 2020 0452/23/M/J/20

Cambridge IGCSE™

ACCOUNTING 0452/23
Paper 2 May/June 2020
MARK SCHEME
Maximum Mark: 120

Published

Students did not sit exam papers in the June 2020 series due to the Covid-19 global pandemic.

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

Cambridge International is publishing the mark schemes for the June 2020 series for most Cambridge
IGCSE™ and Cambridge International A & AS Level components, and some Cambridge O Level
components.

This document consists of 12 printed pages.

© UCLES 2020 [Turn over

0452/23 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Generic Marking Principles

GENERIC MARKING PRINCIPLE 1:

Marks must be awarded in line with:

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:

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.

© UCLES 2020 Page 2 of 12

0452/23 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
GENERIC MARKING PRINCIPLE 5:

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.

© UCLES 2020 Page 3 of 12

0452/23 Cambridge IGCSE – Mark Scheme May/June 2020
PUBLISHED
Question Answer Marks