June 2003

INTERNATIONAL GCSE

MARK SCHEME

MAXIMUM MARK: 90

SYLLABUS/COMPONENT: 0452/02

ACCOUNTING
Paper 2 (Structured Questions)

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 Page 1 Mark Scheme Syllabus Paper
IGCSE EXAMINATIONS – JUNE 2003 0452 2

Question Part
Mark Scheme Details
Number Mark
1 (a) Trade creditors, accrued expense(s), bank overdraft
Or acceptable alternative 1

(b) N.P. is undervalued/understated 1

(c) One from: Correction of errors

Opening entries
Purchase/sale of fixed asset
Other transfers/adjustments 1

(d) 1. P/L Appropriation (1)

2. P/L (1)
3. P/L Appropriation (1) 3

(e) 1. Revenue
2. Capital
3. Capital 3

(f) Asset (1) or expense (1) 2

(g) Cost 1/1/01 20000

- Depn. 31/12/01 (30%) 6000 (1) C/F
N.B.V. 31/12/01 14000 (1)
- Depn. 31/12/02 (30%) 4200 (1) O/Fs
N.B.V. 31/12/02 9800 (1) 4

(h) Current liabilities 1

(i) Imprest system 1

(j) Error of commission 1

(k) Advantage of business due to its:

- reputation
- well-established clientele Or other acceptable
- location reason for paying
- good staff relations/reliable workforce premium price
- goodwill 1

19

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 Page 2 Mark Scheme Syllabus Paper
IGCSE EXAMINATIONS – JUNE 2003 0452 2

Question Part
Mark Scheme Details
Number Mark
2 (a) Danbi Wyske
Trial Balance as at 30 April 2003

Dr Cr
$ $
Stock 1 May 2002 4000 (1)
Sales 80000 (1)
Purchases 62000 (1)
Debtors 10000 (1)
Creditors 9000 (1)
Electricity 3000 (1)
General expenses 7000 (1)
Cash at bank 5000 (1)
Drawings 8000 (1)
Equipment at cost 45000 (1)
Provision for depreciation of
equipment 16000 (1)
Rent and insurance paid 6000 (1)
Capital 45000 (2) -1 O/F
150000 150000 14

(b) Suspense Account 1

15

2 (a) An own figure mark for the Capital figure should only be awarded if a credit balance
is shown.

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of Cambridge Local Examinations Syndicate 2003
 Page 3 Mark Scheme Syllabus Paper
IGCSE EXAMINATIONS – JUNE 2003 0452 2

Question Part
Mark Scheme Details
Number Mark
3 (a) (i) $12000 (1)
(ii) Purchase returns (accept ‘returns’) (1)
(iii) Closing stock (accept ‘Stock at 31 March 2003’) (1)
(iv) $5000 (1)
(v) received (1)
(vi) £15000 (1) 6

(b)
$30000 x 100 (1) = 15% (1) C/F
200000 2

(c) Capital employed: $200000

+ 50000
250000

$30000 x 100 (1) = 12% (2) O/F 1

250000 (1) 3

(d) N.P. as percentage of capital employed:

- measures overall profitability of the business in relation to resources
used
- indicates adequacy of return on owner’s investment
- enables comparisons to be made, e.g. against other investments,
earlier years, similar firms
- assists decision-making, e.g. in production, cost of borrowing or other
acceptable points 4

For each reason given: 2 marks 15

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 4 (a) Karl
Cash Book

Date Discount Cash Bank Date Discount Cash Bank

$ $ $ $ $ $
2003 1 Balances b/d 200 2500 2003 6 Cash 300 (1)
April 4 M Fynne 10 (1) 190 (1) April 8 S Ghalli 15 (1) 600 (1)
Page 4

6 Bank 300 (1) 10 Wages 250 (1)

14 J Bildt 40 (1) 1460 (1) 17 Cash 400 (1)
17 Bank 400 (1) 21 T Daktyl 30 (1) 800 (1)
28 Sales (cash) 800 (1) 25 Wages 350 (1)
30 Cash 500 (1) 30 Bank 500 (1)
Balances 600 2550
c/d
50 (1) 1700 4650 45 (1) 1700 4650

May 1 Balances b/d 600 (1) 2550 (1) C/Fs 21

Mark Scheme

(b) Nominal Ledger

Discount Allowed Account
IGCSE EXAMINATIONS – JUNE 2003

2003 $
April 30 Total for April (or similar
acceptable wording) (1) 50 (1)

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Cambridge Local Examinations Syndicate 2003
Discount Received Account
0452
Syllabus

2003 $
April 30 Total for April (or similar
acceptable wording) (1) 45 (1) 4
2
Paper

25
 Page 5 Mark Scheme Syllabus Paper
IGCSE EXAMINATIONS – JUNE 2003 0452 2

Question Part
Mark Scheme Details
Number Mark
5 (a) Carrie Okie
Balance Sheet as at 1 April 2002
$ $
Fixed assets 50000 (1)
Current assets 20000 (1)
Less Current liabilities 15000 (1) 5000
55000

Capital 55000 (1) 4

(Horizontal format also acceptable)

(b) Balance Sheet as at 31 March 2003

$ $
Fixed assets 75000 (1)
Less Depreciation (20%) 15000 (1) 60000 (1)
Current assets 30000 (1)
Less Current liabilities 20000 (1) 10000
70000

Capital 1/4/02 55000 (1) O/F

Add Net profit 25000 (2) 1 O/F
80000
Less Drawings 10000 (1)
70000 (1) O/F
(Horizontal layout also acceptable) 10

$ $ $
Fixed assets 75000 (1) Capital 1/4/02 55000 (1) O/F
Less Depreciation 15000 (1) 60000 (1) Add Net profit 25000 (2) 1 O/F
80000
Current assets 30000 (1) Less Drawings 10000 (1)
70000 (1)
Current
liabilities 20000 (1)
90000 90000
(10)

(c) Prudence is observed by:

- not overstating profits,

as depreciation is charged in P/L a/c 1 mark per acceptable
- allowing for foreseeable loss point x 2
asset values shown in B/S) 2

16

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