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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.

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. Blank pages are indicated.

DC (RCL (GO)) 186087/2

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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.

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 Amara
Petty Cash Book

Total Date Details Total Travel Postage and Ledger

© UCLES 2020
received paid stationery accounts
$ $ $ $ $

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3

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[10]

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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 $

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

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[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]

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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 $

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

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[9]

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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]

(c) (i) State the most appropriate method of depreciation for the new delivery vehicle.

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

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

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

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

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

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

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

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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.

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

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

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[Total: 20]

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10

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

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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

$ $
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[8]

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(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

$ $
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[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 $

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[4]

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13

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.

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

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[Total: 20]

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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.

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REQUIRED

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

Narratives are required.

Arjun
Journal

Error Details Debit Credit

number $ $

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

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[9]

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

Arjun
Suspense account

Date Details $ Date Details $

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

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

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

[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]

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

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

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

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

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

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

[Total: 20]

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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)

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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.

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

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(c) Suggest three other actions which Adit could take to reduce the bank overdraft.

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]

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 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.

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Cambridge IGCSE™

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

Published

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

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

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

Cambridge International is publishing the mark schemes for the 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.

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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0452/22 Cambridge IGCSE – Mark Scheme March 2020
PUBLISHED
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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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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)

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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)

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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)

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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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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)

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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)

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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)

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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)

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0452/22 Cambridge IGCSE – Mark Scheme March 2020
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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)

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