CAMBRIDGE INTERNATIONAL EXAMINATIONS JUNE 2002 INTERNATIONAL GCSE SYLLABUS/COMPONENT : 0452/3 ACCOUNTING Unaverstry of Camprioge ‘Local Examinations SyndicatePage 1 of 7 Mark Scheme Syllabus | Paper TOCSE Examinations - June 2002 0452 3 Question One Part (a) w@ Equipment account 2000 $ 2001 $ April AB Ltd. 10000(t) Oct 1 Disposals 5 000(1) 2002 Mar 31 Balance c/d 5.000 (1) 10.000. 10.000 2002 April | Balance b/d 5.000 (1)O/F i ai) Provision for Depreciation of Equipment account 2003 $ 2001 5 Mar 31 Balance cfd 2000(1) Mar 31 Profit & Loss 2.000 (1) 2.000 2.000 2001 2001 Oct_1 Disposals 1000 (2) April t Balance bid 2.000 (1) OFF 2002 2002 Mar3i Balance cfd 2000(L) Mar 31 Profit & Loss 1.000 (1) 1.000 3.000 2002 April | Balance b/d 2 000(t) OF 18} Disposal of Equipment account 2001 $ 2001 $ Oct | Equipment 50001) Oct 1 Prov for Dep 1000 (1) Zeta Lid 3.500 (1) 2002 Mar 31 Profit & Lass (1) _$00(1) 5.900 2 3 8 [5] + (1) for dates [18]Page 2 of 11 ‘Mark Scheme “Syllabus | Paper IGCSE Examinations - June 2002 0452 3 Question One Continued Part (a) — Alternative presentation @ Equipment account Debit Credit Balance 1 2000 $ 8g s \ April! AB Lid 10.000 (1) 19.600 Dr. 2001 Oct 31 Disposals 5.000 (1) 5.000 Dr.{(2) CF (jor \4 i) Provision for Depreciation of Equipment account Debit Credit Balance 2001 $ $ $ Mar 31 Profit & Loss 2.000(1) 2.000 Cr. (2) CF 2001 QO) OF Oct_1 Disposals 1.000 @2) 1000 Cr. 2002 Mar 31 Profit & Loss 1000 (1) 2.000 Cr. (2) C/F (or (8) (ii) Disposal of Equipment account Debit Credit ‘Balance 2001 3 $ $ Oct 1 Equipment 5.000 (1) $000 Dr. Prov for Dep 1000 (1) 4.000 Dr. Zeta Lid 3.500 (1) 500 Dr. 2002 Mar 31 Profit & Loss (1) soo(ow} oo L am + (1) for dates 15] 118]Mark Scheme Syllabus | Paper IGCSE Examinations - June 2002 0452 a Page 3 of 1t Question One Continued Part (b) Against the concept of consistency Should spread the cost as fairly as possible to each period benefiting from the use of the asset Should not change simply to manipulate profits Or other suitable points Any 2 points (2) each fa] [Total 22][Page dof 71 Mark Scheme ‘Syllabus Paper {GCSE Examinations « June 2002 0452 Question 2 Part (a) April 10 10 21 an 25 Bank Kadwani paid a cheque to Hassan Debit — Bank account (Cash book) Discount Hassan allowed Kadwani a cash discount Debit — Discount allowed column in Cash Book ‘Or Discount Allowed account Goods Hassan sold goods (1) on credit (1) to Kadwani Credit - Sales account Delivery charge Hassan charged Kadwani for delivering the goods 10 Kadwani's premises Credit — Carriage Outwards account Or Cash Book Returns Kadwani retumed goods to Hassan Debit — Sales Returns account Significance of $325 Ditference between the two sides (the balance), representing the amount still outstanding (1) The amount Kadwani owes Hassan (1) a) aw ay a (ay Q@) ap «ty a f14]Page 5 of 11 Mark Scheme ‘Syllabus | Paper IGCSE Examinations - june 2002 0452 a Question Two Continued Part (b) Rent Received account 2001 8 2001 3 May 1 Balance 601) July 1 Bank 900 (1) 2002 April 30 Profit & Loss 720 (2) Balance cid 120. 00 8 S| 2002 May 1 Balance bid 120 (1) OF + (1) for dates 161 Alternative presentation Rent Received account Debit Credit Balance 2001 $ 8 $ May 1 Balance 60 (1) 60 Dr July | Bank 900 (1) 40 Cr 2002 April 30 Profit & Loss 720 (2) 120 Cr. (1) O/F + (1) for dates 16} [otal 20]Page 6 of 17 ‘Mark Scheme Syllabus | Paper IGCSE Examinations - June 2002 0452 3 ‘Question Three Part (a) Departmental Trading Account for the year ended 31 Match 2002 Department A Department B ¥ s Ss 3 Sales 22.000 66400 | (1) Less Returns inwards 400 |) 22.000 66 000 Less Cost of Sales (1) Opening stock 1100 3900 w Purchases 12.300 43.200 a Carriage inwards 200 Qo 13.600 47 100 Less Closing stock 300 4.800 a 12.800 42300 | (1) Gross Profit 9200 23700 | (1) OF Torizontat format accepiable Vi Part (b} More meaningful than a single Trading Account Identifies Gross Profit of each department Enables trading results to be analysed Enables overall profitability to be increased Poor performance of a department can be identified and investigated Or other suitable points Any 2 poiats (1) exch Rp Part(c) Cannot compare Gross Profit in $ as each department had different amounts of sates, Gross Profit must be related to the sales. 2 Part (d) Effect on staff morale Effect on custamers Effect on reputation of the business Effect on suppliers (Or other suitable points Any 2 points (2) each Wi (Total 17)Page 7 of 11 Wark Scheme ‘Syllabus | Paper TGOSE Examinations - June 2002 0452 3 Question Four Part (a} (i) Debts previously written off as irrecoverable which are subsequently paid, [2] (ii) Estimate by a business of the likely amount of debtors who will not pay their accounts. Part (b) @ diy 2000 | Jan 21 Sales May 4 Sales Patsy Peacock account 2000 170(1) Feb 28 Bank 90.1) Dec 30 Bad debts 260 Bad Debts account Q] 1701) 901) 299 * Alternatively tr 2600 Dec 30P.Peacock 90(t) Dec 31 Profit & Loss 90), 2 0 2001 2001 July 31 B.Bruno 11S(1) Dec 31 Profit & Loss 1s ¢) ls us te 1 Bad Debts Recovered account 2003 2001 Dec 31 Profit & Loss* 90 (i) | Nov 7 Bank 99(1) 90 co) RI + (0) for dates nsfer to Bad Debts account, In which case the transfer from Bad Debts account to Profit and Loss Account will be $25, 1Page 8 of Tt Mark Scheme ‘Syllabus | Paper IGCSE Examinations - June 2002 (0452 3 Question Four Continued Part (a) ~ Alternative presentation a Patsy Peacack account Debit | Credit Balance | 2000 3 los s Jan 21 Sales wpa) | | voDr Feb 28 Bank | 17003 0 | May 4 Sales 90 (4) 90 Dr. | Dec 30 Bad debts sort) | id] diy Bad Debts account Debit Credit Balance 2000 5 ; 3 ; 3 Dec 30 P.Peacack 96(1) 90 Dr. 31 Profit & Loss 90(1) 0 2001 i | July 31 B. Bruno 1s) 115 Dr. Dee 31 Profit & Loss | }usay | 0 14 (ii) Bad Debts Recovered account Debit Credit | Balance 2001 $ $ | 8 Nov 7 Bank | 90 (1) 90Cr. Dec 31 Profit & Loss * | 90 (4) ° I I + (1) for dates *Altcrnativeiy transfer to Bad Debts account, in which case the transfer from Bad Debts account to Profit and Loss Account wili be $25.Paper Page Sof 17 Mark Scheme ‘Syllabus 0452 Question Four Continued Part (b) Obtain references from new credit customers Fix a credit limit for each customer Issue invoices and statements promptly Follow up overdue accounts promptly Supply goods on a cash only basis Refuse further supplies until outstanding account is paid Or other suitable points Any 3 points (1) cach BI (Total 18)Page 10 of 11 Mark Scheme ‘Syllabus |" Paper 1GCSE Examinations - June 2002 0452 3 Question Five Part (a) (i) Avoid disagreements/misunderstandings later pI i) Interest on capital Or interest on drawings nN i) Partner's salary i} Part (b) i) Statement of Corrected Net Profit for the year ended 30 April 2002 Net Profit before corrections Effect on Net Profit + - 5 $ Error 1 500, 2 900 (1) 3 30(1) 4 — —50(l) 30 450 Corrected Net Profit Part (c) Diviston of corrected Net Profit—-Mark $2. 400 (1) O/F John $2. 460 (1) OF $ 6220 420 4.800 (2) C/F (1) OfF (5) RIPage tof 11 Wark Schema ‘Syllabus | Paper TGCSE Examinations - June 2002 0452 a Question Five Continued Part (4) Balance Sheet as ai 30 April 2002 $ 3 $ Fixed Assets Cost Depreciation Book Value Machinery 22-200 2220 19 980 Fixtures & Fittings 4500 900 (1) 3.600 Motor vehicles 12.000 2.009 40.000 38.700 6120 33 5801) Current Assets Stock (5 200 - $00) 4 700 (1) Debtors $5500 Bank (3 420-50) 3.370 (1) 13 $70 (1) OF Creditors 4200 Accruals —150 4350 (1) Working Capital 9220(1) OfF 42 800 Mark Joba Total Capital Accounts 25.000 17.000 42.000 Cyrrent Accounts Share of profit, 2.400 OF 2.400 O/F Less Drawings 1.800 2.500 900 0) OFF | (100). a) O”F 800 42.800 (1) O/F + (1) Presentation 132 Horizontal format acceptable {Total 23]CAMBRIDGE INTERNATIONAL EXAMINATIONS JUNE 2002 INTERNATIONAL GCSE MARK SCHEME ADDITIONAL NOTES SYLLABUS/COMPONENT : 0452/3 ACCOUNTING Unaverstry of Canunioce Local Examinations SyidicacePage 1 ofS Mark Scheme ‘Syllabus | Paper TGCSE Examinations - June 3002 0452 3 QUESTION ONE Part (a) Complete reversal of any or all accounts ~ mo marks. Basicatly the marks are for a suitable description, correct amount (or correct OFF) on correct side of account Allow “Bal’ or ‘Ble’ - but not ‘B bd’/"B cd’, and not ‘bd’/‘cd’. Accept ‘Balance'/ ‘Bal’ Ble’ without ‘b/d'‘cld" Allow *P & L’ for ‘Profit and Loss’. In Equipment account balance must be brought down on debit side to gain O/F mark. Where Provision account is not balanced on 31 March 2001 - allow (2) for Balance carried down on 3{ March 2002 and (2) for Balance brought down on 1 April 2002. ‘Balance must be brought down on credit side to gain O/F mark, In Disposal account ~ ‘Need words Profit and Loss (or P & L) ~ not just ‘profit’ or “loss? Allow transfer to P & L Account on debit side if correct on O/Fs. ‘Mast transfer amount to P & L at end of year to gain the wording mark. Allow ‘Depreciation’/"Dep'/*Prov for Dep'/*Provision’ ‘Where running balance method is used, make suse that the figure is in the correct column before awarding the mark In running balance account itis not necessary to indicate Dr/Cr after every entry, but - Balance on Equipment account must be a debit to gain the marks Balance on Provision account must be a credit to gain the marksPage 2at® ‘Mark Schamo: Syllabus | Paper TGCSE Examinations - June 2002 0452 3 QUESTION TWO Pari (a) ‘Accept any reasonable explanation for the description of each transaction, so long as itis clear who is seiling/buying/paying etc Need both the name of the account and on which side the entry will appear to gain the mark for the ‘double entry’ part of each item. Part (b) Complete reversal — no marks. Basically the marks are for a suitable description, correct amount (or correct O/F) on the correct side of account. Allow “Bal? or ‘Bic’ - but not “B bd’/ °B cd’, and mot “bd’*cd’. Accept ‘Balance’/ “Bal'Blc’ without *b/d'/*c/d’ Accept ‘P & L” for ‘Profit and Loss’ Allow ‘Cash Book’ for ‘Bank’ — but not ‘Cash’ and not ‘Cheque’ Allow *Accrual’/*Acerued! in place of “Balance’ on 1 May 2001 Allow ‘Prepayment’/Prepaid’ in place of ‘Balance’ on 1 May 2002. Balance brought down on 1 May 2062 — allow on either side of the account so long as it is correct on the candidate’s account, Where running balance method is used, make sure that the figure is in the correct column before awarding the mark. In running balance account it is not necessary to indicate Dr/Cr after every entryPage 3 of 5 Mark Scheme ‘Syllabus | Paper 1GESE Examinations - June 2002 0452 a QUESTION THREE Part (a) Troms require suitable wording and to be correctly treated to gain the marks Accept ‘Sales returns’ for ‘Returns inward” Accept stocks with appropriate dates, or "stock al start’/'stock at end’, or ‘opening stock’? ‘closing stock’. in horizontal version ~ allow closing stock on credit side, provided is added to sales. Need wards ‘Cost of sales’ or ‘Cost of goods sold’ (in a suitable position) to gain the mark = aot ‘C of S’ Need words ‘Gross Profit’ to gain the mark for the appropriate figures - not “GP”Page TOS Wark Schore Syllabus | Paper IGESE Examinations « June 2002 0452 a QUESTION FOUR Part (a) (i) Important that they indicate that debt has actually been written off, and is paid by the debtor at some time later. Part (b) Complete reversal or any or all accounts — no marks. Basically the marks are for a suitable description, correct amount on correct side of account. ‘Accept “Cash Book” for ‘Bank’. Allow ‘P & L’ for ‘Profit and Loss” Where running balance method is used, make sure that the figure is in the correct column before awarding the mark. In running balance account it is not necessary to indicate Dr/Cr after every transaction, Take care to give the appropriate marks where the Bad Debts Recovered account is transferred to the Bad Debts account rather than directly to Profit & Loss Account.Pages a6 ‘Mark Scheme Syllabus | Paper IGCSE Examinations « June 2002 0452 3 QUESTION FIVE Part (d) Allow any acceptable Balance Sheet format. Need words ‘Working Capital’ or ‘Net Current Assets’ plus a correct O/F to gain the mark. Current Assets — only award O/F Mark if there are no aliens and no omissions Presentation mark - only award if all the section headings are present and items are shown in the correct section