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Cambridge International Examinations

Cambridge International General Certificate of Secondary Education
* 6 5 0 6 0 2 1 2 2 2 *

ACCOUNTING 0452/12
Paper 1 February/March 2017
1 hour 45 minutes
Candidates answer on the Question Paper.
No Additional Materials are required.

READ THESE INSTRUCTIONS FIRST

Write your Centre number, candidate number and name on all the work you hand in.
Write in dark blue or black pen.
You may use an HB pencil for any diagrams or graphs.
Do not use staples, paper clips, glue or correction fluid.
DO NOT WRITE IN ANY BARCODES.

Answer all questions.

You may use a calculator.

Where layouts are to be completed, you may not need all the lines for your answer.
The businesses mentioned in this Question Paper are fictitious.

At the end of the examination, fasten all your work securely together.
The number of marks is given in brackets [ ] at the end of each question or part question.

This document consists of 20 printed pages.

DC (RCL (JDA)) 131298/2

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There are 10 parts to Question 1.

For each of the parts (a) to (j) below there are four possible answers, A, B, C and D. Choose the one
you consider correct and place a tick (3) in the box to indicate the correct answer.

1 (a) The purchase on credit of a motor vehicle, $10 100, was entered in the general journal as
$11 000.

Which error was made?

A commission

B compensating

C original entry

D principle [1]

(b) An invoice for $100 sent to Ahmed was entered in the sales journal as $10.

What was the double entry needed to correct this error?

debit entry $ credit entry $

A Ahmed 90 sales 90

B sales 90 Ahmed 90

C sales 90 suspense 90

D suspense 90 sales 90
[1]

(c) A trader compared his cash book (bank column), which had a debit balance of $70, with his
bank statement. He found that bank charges, $10, had not been recorded in his books, and
that a cheque for $18 which he had issued had not been presented.

What was the balance on his bank statement?

A $62 credit

B $62 debit

C $78 credit

D $78 debit [1]

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(d) Which statement is true?

A Bad debts are deducted from trade receivables after the provision
for doubtful debts is calculated.
B Bad debts are deducted from trade receivables before the provision
for doubtful debts is calculated.
C Bad debts are only written off if there is no provision for doubtful
debts.
D Provision is only made for doubtful debts if no bad debts have been
written off in the year. [1]

(e) An item cost $128. It is slightly damaged and can only be sold for $120. The salesman’s
commission is 15%.

At which value is the item included in inventory in the financial statements?

A $102

B $110

C $120

D $128 [1]

(f) Why is an income statement prepared?

A to account for the revenues and costs of a period

B to calculate the surplus or deficit of an organisation

C to list the ledger balances on a particular date

D to summarise the business bank account [1]

(g) A trader provided the following information.

Net assets at start of year $8000

Drawings – cash $2100
Drawings – goods cost $50, selling price $90
Net assets at end of year $8200

What was his profit for the year?

A $1950

B $2210

C $2350

D $2390 [1]

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(h) Where are interest on partners’ loans and interest on capital recorded?

income statement appropriation account

A interest on capital interest on loan

B interest on loan interest on capital

interest on capital and
C neither
interest on loan
interest on capital and
D neither
interest on loan [1]

(i) A business provided the following information.

$
Cost of raw materials consumed 8000
Decrease in work in progress 450
Machine operators’ wages 4800
Factory overheads 4100

What was the cost of production?

A $12 800

B $16 450

C $16 900

D $17 350 [1]

(j) A business provided the following information.

$
Sales 3000
Opening inventory 400
Closing inventory 700

Mark-up 50%

What were the purchases for the year?

A $1200

B $1700

C $1800

D $2300 [1]

[Total:10]

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2 Amitav sells goods on credit to Barry. An invoice is issued.

REQUIRED

(a) Name the person who issues the invoice and the person who receives it.

Person issuing ..........................................................................................................................

Person receiving ...................................................................................................................[1]

(b) State why a credit note may later be issued.

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

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

(c) Name the book of prime entry in which Barry would record a credit note from Amitav.

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

(d) State one reason why both Amitav and Barry would keep books of account.

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

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

(e) State the meaning of the accounting principle of duality.

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

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

(f) Complete the following sentences using the words and phrases ‘credit’, ‘debit’, ‘income
statement’ and ‘statement of financial position’.

An expense account usually has a ............................................................. balance.

At the end of the financial year the expense for the year is transferred to

the ............................................................. This transfer is recorded with an entry on

the ............................................................. side of the expense account. Any balance

remaining on the account is included in the .............................................................

[4]

(g) State what is meant by the accounting objective of understandability.

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

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

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(h) State how International Accounting Standards help to achieve understandability.

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

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

(i) Name two interested parties who might wish to look at the financial statements of a business.
Give a reason in each case.

Interested party Reason

[4]

[Total: 15]

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3 Simran’s statement of financial position was prepared on 31 January 2017. It showed the following
assets and liabilities.

$
Equipment at net book value 7200
Inventory 800
Trade receivables 1300
Trade payables 830
Other payables 510
Bank 180 debit
Cash 250

REQUIRED

(a) Calculate, at 31 January 2017,

(i) Working capital

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

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

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

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

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

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

(ii) Simran’s capital.

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

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

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

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On 1 February 2017 Simran had the following transactions.

1 Took cash, $100, as drawings.

2 Paid remaining cash into the bank.
3 Transferred her private motor vehicle, value $2500, to the business.
4 Sent a cheque, $48, to Neel, a credit supplier. Simran received 4% cash discount when
making this payment.
5 Paid wages, $350, for January 2017, by credit transfer.

REQUIRED

(b) Complete the following table stating the double entry needed to record each transaction. The
first has been completed as an example.

account debited $ account credited $

1 drawings 100 cash 100

[9]

(c) Identify the following:

(i) the transaction which increased profit and Simran’s capital

Transaction number.......................

(ii) the transaction which increased Simran’s capital but not profit

Transaction number.......................

(iii) the transaction which increased working capital.

Transaction number....................... [3]

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(d) State where the wages owed at 31 January 2017 were shown in the statement of financial
position. Name the item and the section.

Item ...........................................................................................................................................

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

(e) Prepare the bank column of the cash book on 1 February 2017. Bring down the balance
on 2 February.

Simran
Cash book (bank column only)

Date Details $ Date Details $

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

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

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

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

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

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

[3]

Question 3 (f) is on the next page.

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Simran had further transactions in the period 2 February to 28 February 2017. These were as
follows:

$
Credit sales 6300
Cheques received from credit customers 5830
Returns from credit customers 190

The cheques received included one for $95 from Paul which was later dishonoured. Paul then
paid Simran $20 in cash and she wrote the remaining amount off as a bad debt.

REQUIRED

(f) Prepare the sales ledger control account for February, starting with the balance on 1 February
of $1300. Balance the account and bring down the balance on 1 March.

Simran
Sales ledger control account for February 2017

Date Details $ Date Details $

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

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

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

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

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

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

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

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

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

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

[8]

[Total: 30]

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4 Sonia started her business on 1 January 2015. She decided on the following depreciation policy.

Motor vehicles were to be depreciated at the rate of 25% per annum using the reducing
(diminishing) balance method.

Equipment was to be depreciated at the rate of 10% per annum using the straight line
(equal instalment) method.

A full year’s depreciation was to be provided in the year of purchase.

Sonia provided the following information about her purchases of assets.

in the year ended in the year ended

31 December 2015 31 December 2016
$ $
motor vehicle A 30 000
motor vehicle B 20 000
equipment 28 000 18 000

REQUIRED

(a) Complete the following table. Indicate with a tick (3) in which column of a trial balance each
ledger account balance would appear.

debit column credit column

equipment
provision for depreciation of equipment
[1]

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(b) Complete the following table showing the depreciation charges, the accumulated depreciation
and the net book values of the different assets on the dates shown. A space is provided for
your workings.

motor vehicle A motor vehicle B equipment

$ $ $
depreciation charge for
the year ended
31 December 2015
net book value at
31 December 2015

depreciation charge for

the year ended
31 December 2016
accumulated
depreciation at
31 December 2016
net book value at
31 December 2016

workings

[13]
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(c) Prepare the extract from the statement of financial position at 31 December 2016 showing full
details of the value of motor vehicles and equipment.

Sonia
Statement of Financial Position (extract) at 31 December 2016

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

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

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

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

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

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

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

(d) Name the section of the statement of financial position where motor vehicles and equipment
appear.

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

[Total: 20]

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5 A group of friends set up LMN Chess Club, on 1 January 2016.

The club hosts chess tournaments, and organises trips for members to attend tournaments
elsewhere.

The annual subscription is $100.

A member made an interest-free loan of $1000 to the club when it started. Before the end of the
first year the treasurer was able to repay half of the loan.

The treasurer provided the following additional information.

For the year ended 31 December 2016

$
Subscriptions received 4100
Entry fees received for tournaments 1600
Cost of trophies and prizes for tournaments 670
Receipts for coach travel 980
Travel costs 1020
Equipment purchased 2500
Rent paid 2100
Other expenses 450

At 31 December 2016:

1 The club owed $200 in rent.

2 The club held an inventory of trophies and prizes costing $60.

3 Four members had paid their subscription for the year

ending 31 December 2017 while one member still owed his
subscription for 2016.
4 Three members owed the club amounts for coach travel, total
$80.
5 The equipment was expected to be used steadily for ten years.
At the end of this time it would be sold for an expected amount
of $300.

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REQUIRED

(a) Prepare the receipts and payments account for the year ended 31 December 2016. Balance
the account and bring down the balance on 1 January 2017.

LMN Chess Club

Receipts and Payments Account for the year ended 31 December 2016

Date $ Date $

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

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

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

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

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

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

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

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

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

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

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

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

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

[5]

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(b) Prepare the subscriptions account for the year ended 31 December 2016. Balance the
account and bring down the balance on 1 January 2017.

Subscriptions Account

Date Details $ Date Details $

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

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

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

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

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

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

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

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

[5]

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(c) Prepare the income and expenditure account for the year ended 31 December 2016.

LMN Chess Club

Income and Expenditure Account for the year ended 31 December 2016

$ $

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[10]

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18

(d) State two reasons why the closing balance in the receipts and payments account is different
from the final figure in the income and expenditure account. For each reason give one
example taken from the question.

Reason 1 ..................................................................................................................................

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

Example ....................................................................................................................................

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

Reason 2 ..................................................................................................................................

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

Example ....................................................................................................................................

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

[Total: 24]

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6 D Limited provided the following information:

On 1 July 2015
The company had in issue 400 000 ordinary shares of $0.50 each.
Retained earnings were $80 000.
The general reserve amounted to $25 000.

During the year ended 30 June 2016

Debentures, $100 000, were issued.
A dividend of $0.09 per share was paid.
The profit for the year was $78 600.
$10 000 was transferred to general reserve.

REQUIRED

(a) Calculate the retained earnings at 30 June 2016.

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

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

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

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

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

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

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

(b) Prepare an extract from the statement of financial position at 30 June 2016 showing the
capital and reserves section.

D Limited
Statement of Financial Position (extract) at 30 June 2016

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

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

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

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

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

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

(c) State one reason why D Limited paid a dividend.

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

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

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(d) Suggest two reasons why the directors decided that the total dividend should be less than
the profit for the year.

Reason 1 ..................................................................................................................................

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

Reason 2 ..................................................................................................................................

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

(e) Calculate, to two decimal places, the return on capital employed (ROCE) for the year ended
30 June 2016.

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

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

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

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

(f) State two possible reasons why the return on capital employed (ROCE) had decreased from
the previous year.

Reason 1 ..................................................................................................................................

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

Reason 2 ..................................................................................................................................

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

D Limited wishes to raise additional finance and is considering issuing more ordinary shares or
taking out a long-term bank loan.

REQUIRED

(g) Advise the company of three factors it might take into consideration when making its decision.

Factor 1 ....................................................................................................................................

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

Factor 2 ....................................................................................................................................

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

Factor 3 ....................................................................................................................................

...............................................................................................................................................[3]
[Total: 21]
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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 International
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the live examination series.

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Cambridge International Examinations

Cambridge International General Certificate of Secondary Education

ACCOUNTING 0452/12
Paper 1 March 2017
MARK SCHEME
Maximum Mark: 120

Published

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

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

Cambridge will not enter into discussions about these mark schemes.

Cambridge is publishing the mark schemes for the March 2017 series for most Cambridge IGCSE®,
Cambridge International A and AS Level components and some Cambridge O Level components.

® IGCSE is a registered trademark.

This document consists of 8 printed pages.

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0452/12 Cambridge IGCSE – Mark Scheme March 2017
PUBLISHED

Question Answer Marks

Glossary for Q1
(c) 62 = 70 + 10 – 18
78 = 70 – 10 + 18

(e) A 120 × 0.85 = 120 – 18

B 128 – 18
C selling price
D cost

(g) A –200 + 2100 + 50

B 200 + 2100 – 90
C 200 + 2100 + 50
D 200 + 2100 + 90

(i) A 8000 + 4800 (prime cost)

B 8000 + 4800 + 4100 – 450
C 8000 + 4800 + 4100
D 8000 + 4800 + 4100 + 450

(j) A (3000 × ½) – 700 + 400

B (3000 × 2/3) – 700 + 400
C (3000 × ½) + 700 – 400
D (3000 × 2/3) + 700 – 400

1(a) C (1) 1

1(b) A (1) 1

1(c) C (1) 1

1(d) B (1) 1

1(e) A (1) 1

1(f) A (1) 1

1(g) C (1) 1

1(h) B (1) 1

1(i) D (1) 1

1(j) D (1) 1

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0452/12 Cambridge IGCSE – Mark Scheme March 2017
PUBLISHED

Question Answer Marks

2(a) Person issuing Amitav 1

Person receiving Barry (1) for both

2(b) If goods are returned 1

If goods are reported faulty
If there has been an overcharge on an invoice

Any one reason for (1)

2(c) Purchases returns journal (1) 1

2(d) To record business transactions 1

To be able to prepare financial statements
To know balances of credit customers and suppliers or bank

Any one reason for (1)

2(e) Every transaction has a two-fold aspect (1) 1

2(f) An expense account usually has a DEBIT (1) balance. At the end of the financial year the 4
cost for the year is transferred to the INCOME STATEMENT (1). This transfer is recorded
with an entry on the CREDIT (1) side of the expense account. Any balance remaining on
the account is included in the STATEMENT OF FINANCIAL POSITION. (1)

2(g) A financial report must be capable of being understood by the users of that report. (1) 1

2(h) By narrowing areas of difference in financial statements (1) 1

2(i) 4
Interested party Reason
Owner To see progress of business
Government department To check on tax payable
Trade payables To check on likelihood of receiving money
Bank manager To decide on whether to give/continue overdraft
Customer To check on viability of business for continued supply
of goods
Potential partner To see potential rewards for investment
Manager To see progress of business
Any two for (1) each Any two related reasons for (1) each
Reasonable alternatives may be rewarded

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3(a)(i) current assets = 800 + 1300 + 180 + 250 = $2530 (1) 3

current liabilities = 830 + 510 = $1340 (1)

working capital = 2530 – 1340 = $1190 (1)OF

3(a)(ii) Simran’s capital = 1190 + 7200 (1) = $8390 (1)OF 2

3(b) 9
account debited $ account credited $
1 drawings 100 cash 100
2 bank 150 (1) cash 150 (1)
3 vehicle 2500 (1) capital 2500 (1)
4 Neel 50 (1) bank 48 (1)
discount received 2 (1)
5 wages 350 (1) bank 350 (1)

3(c)(i) 4 (1) 1

3(c)(ii) 3 (1) 1

3(c)(iii) 4 (1) 1

3(d) item – other payables (1) 2

section – current liabilities (1)

3(e) Simran 3
Cash book (bank column only)
Date Details $ Date Details $
Feb 1 Balance b/d 180 } (1) Feb 1 Neel 48 } (1)
Cash 150 } Wages 350 }
Balance c/d 68
398 398
Feb 2 Balance b/d 68 (1)OF

3(f) Simran 8
Sales ledger control account for February 2017
2017 $ 2017 $
Feb 1 Balance b/d 1 300 (1) Feb Bank 5 830 (1)
28
Feb 28 Sales 6 300 (1) Sales returns 190 (1)
Bank 95 (1) Cash 20 (1)
Bad debts 75 (1)
Balance c/d 1 580
7 695 7 695

Mar 1 Balance b/d 1 580 (1)OF

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4(a) 1
debit side credit side
equipment 9
provision for depreciation of equipment 9 (1)for both

4(b) 13
vehicle A vehicle B equipment
$ $ $
depreciation charge for 7 500 (1) 2 800 (1)
the year ended
31 December 2015
net book value at 22 500 (1) 25 200 (1)
31 December 2015
depreciation charge for 5 625 (1) 5 000 (1) 4 600 (1)
the year ended
31 December 2016
accumulated 13 125 (1)OF 5 000 (1)OF 7 400 (1)OF
depreciation at
31 December 2016
net book value at 16 875 (1)OF 15 000 (1)OF 38 600 (1)OF
31 December 2016

4(c) Sonia 5
Statement of Financial Position (extract) at 31 December 2016
Cost Accumulated Net book
depreciation value
$ $ $
Vehicles 50 000 (1) 18 125 } 31 875 }
Equipment 46 000 (1) 7 400 }(1)OF 38 600 }(1)OF
96 000 25 525 70 475 (1)OF

4(d) Non-current assets (1) 1

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5(a) LMN Chess Club 5

Receipts and Payments Account for the year ended 31 December 2016
2016 Receipts $ 2016 Payments $
Jan 1 Loan 1 000 (1) Dec 31 Loan 500 (1)
Dec 31 Subscriptions 4 100 Equipment 2 500
Entry fees 1 600 Rent 2 100
Coach travel 980 Travel 1 020 (1)
Trophies and prizes 670 (1)
Other expenses 450
Balance c/d 440
7 680 7 680
2017
Jan 1 Balance b/d 440 (1)

5(b) Subscriptions account 5

2016 $ 2016 $
Dec 31 Income and 3 800 (1)OF Dec 31 Bank 4 100 (1)
expenditure
account
Balance c/d 400 Balance c/d 100
4 200 4 200
2017 2017
Jan 1 Balance b/d 100 (1) Jan 1 Balance b/d 400 (1)

+(1) for dates

5(c) LMN Chess Club 10

Income and Expenditure Account for the year ended 31 December 2016
Income $ $
Subscriptions 3 800 (1)OF
Tournaments [ 1600 (1) – 610 (1) ] 990
Surplus on coach travel [ 980 + 80 (1) – 1020 (1) ] 40
4 830
Expenditure
Depreciation – equipment [ 2500 – 300 (1) / 10 ] 220 (1)OF
Rent [ 2100 + 200] 2 300 (1)
Other expenses 450 (1)
2 970
Surplus 1 860 (1)OF

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5(d) 4
Reason Example
Only the receipts and payments account contains Loan received
capital receipts
Only the receipts and payments account contains Equipment
capital expenditure Loan repayment
Only the income and expenditure account contains Depreciation
non-cash items
Figures in the income and expenditure account are Rent owed
adjusted for prepayments and accruals Subscriptions in advance
Subscriptions in arrears
Money owed for coach travel

Any two reasons for (1) each with a related example for (1) each

Question Answer Marks

6(a) $ 5
At 1 July 2015 80 000 (1)
Profit for the year 78 600 (1)
Dividend paid (36 000) (1)
Transfer to general reserve (10 000) (1)
At 30 June 2016 112 600 (1)OF

6(b) D Limited 4
Statement of Financial Position at 30 June 2016
Capital and reserves $
Ordinary shares of $0.50 200 000 (1)
Retained earnings 112 600 (1)OF
General reserve 35 000 (1)
347 600 (1)OF

6(c) To distribute profit to shareholders (1) 1

OR To reward shareholders for their investment (1)

6(d) Because insufficient cash was available to pay more (1) 2

To retain cash/profits for investment in the business (1)

6(e) 78 600 (1) 100 4

ROCE = × = 17.56% (1of)
347 600 (1of) + 100 000 (1) 1

6(f) Profit has fallen 2

Selling price has decreased
Worse control of expenses
Worsening credit control/increased bad debts
Poorer control of inventory
Capital employed has increased/non-current liability created
Any two reasonable comments for (1) each

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6(g) It may not be easy to sell the shares. 3

There will be loss of control by existing shareholders.
Dividends payable may increase.
If the interest rate is variable interest payable could increase.

The company would have to pay interest irrespective of profit made.

The bank may require security.

Any three reasonable comments for (1) each

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