Cambridge IGCSE Accounting 0452 — 2003 Oct/Nov Paper 2 · Variant 1

This document consists of 12 printed pages. BR S37615/5 © CIE 2003 [Turn over CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ACCOUNTING 0452/02 Paper 2 October/November 2003 1 hour 30 minutes Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your Centre name, candidate number and name on all the work you hand in. Write in dark blue or black pen in the spaces provided on the Question Paper. You may use a soft pencil for rough working. Do not use staples, paper clips, highlighters, glue or correction fluid. Answer all questions. 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. You may use a calculator. Where layouts are to be completed, you may not need all the lines for your answer. Centre Number Candidate Number Name If you have been given a label, look at the details. If any details are incorrect or missing, please fill in your correct details in the space given at the top of this page. Stick your personal label here, if provided. For Examiner’s Use 1 2 3 4 5 Total www.theallpapers.com

For Examiner’s Use 2 0452/02/O/N/03 1 (a) Oscar sold goods on credit to Felix. Felix later returned some of the goods because they were damaged. (i) Name the document Felix sent to Oscar when the goods were returned. …[1] (ii) Name the book of prime (original) entry in which the return of the goods was recorded 1. in Oscar’s books …[1] 2. in Felix’s books …[1] (b) Name the final account to which the total of the Discounts Received account is transferred at the end of the financial year. …[1] (c) The following information relates to a sole trader’s business for the year ended 31 August 2003. $ Cost of goods sold 60000 Stocks: At 1 September 2002 7000 At 31 August 2003 3000 Calculate the rate of stock turnover for the year ended 31 August 2003. Show your workings. … … … … …[3] (d) A business sold goods on credit to a customer for $5000, offering a discount of 2
 % for payment within 30 days. The customer paid within 30 days. Calculate the amount paid by the customer. Show your workings. … … …[3] www.theallpapers.com

For Examiner’s Use 3 0452/02/O/N/03 [Turn over (e) Name the accounting principle which is described in the following sentence. “The same accounting treatment should be applied to similar items at all times.” …[1] (f) In which final account would bank charges appear? …[1] (g) State one reason why a supplier of goods on credit sends a statement of account to the customer. … …[1] (h) Name the account which is brought up to date before a bank reconciliation statement is prepared. …[1] (i) On 30 September 2003 Joe’s business included the following assets and liabilities: $ Stock 18000 Trade debtors 9000 Bank overdraft 2000 Trade creditors 16000 (1) Calculate Joe’s working capital. Show your workings. … … … … … … …[3] (2) Calculate Joe’s quick ratio. Show your workings. … … … …[3] www.theallpapers.com

2 Jim Dee is a sole trader who buys and sells on credit and keeps full accounting records. His transactions for the month of September 2003 include the following. Date Transaction Customer’s name Amount ($) September 6 Goods sold Whizzo Products 400 10 Goods sold T Culpepper 750 14 Goods returned Whizzo Products 100 20 Goods sold Sam Beesi 1500 26 Goods returned T Culpepper 150 (a) Enter these transactions in Jim’s Sales Journal and Sales Returns Journal below and show the totals for the month. [7] 4 0452/02/O/N/03 For Examiner’s Use Sales Journal Date Amount 2003 Customer $ Sales Returns Journal Date Amount 2003 Customer $ www.theallpapers.com

5 0452/02/O/N/03 [Turn over 2 (b) Make the necessary entries in the ledger accounts below. Jim Dee Sales Ledger Whizzo Products account … … … … T Culpepper account … … … … Sam Beesi account … … … … Nominal Ledger Sales account … … … Sales Returns account … … …[7] For Examiner’s Use www.theallpapers.com

6 0452/02/O/N/03 2 (c) On 3 October 2003 Jim sent an invoice for $800 to Rachel Smith for goods sold to her on credit. Rachel paid for these goods by cheque on 12 October 2003, deducting 2
 % cash discount. Enter these transactions in Rachel’s account in Jim’s Sales Ledger below. Rachel Smith account … … … … …[3] For Examiner’s Use www.theallpapers.com

7 0452/02/O/N/03 [Turn over 3 Frankie and Johnny are in partnership. Their financial year ends on 31 August. After the preparation of their Trading and Profit and Loss Account for the year ended 31 August 2003, the following balances remained on the books. $ Capital Accounts: Frankie 50000 Johnny 30000 Current Accounts: Frankie 15000 Johnny 5000 (Dr) Fixed assets at cost 85000 Provision for depreciation of fixed assets 10000 Stock 8000 Debtors 14000 Bank balance 5000 (Dr) Creditors 12000 Prepare the Balance Sheet of the partnership as at 31 August 2003. Show the working capital. Frankie and Johnny Balance Sheet as at 31 August 2003 … … … … … … … … … … … … … … … … … …[12] For Examiner’s Use www.theallpapers.com

8 0452/02/O/N/03 4 On 1 August 2003 Polly Glotte started a furniture business with the following assets: $ Freehold shop premises 20000 Stock of furniture 8000 Cash (paid into a business bank account) 5000 Polly obtained a loan of $7000 from her uncle, Sven, on the same date and also paid this into the bank account. (a) (i) Show how Polly’s Journal records the above transactions. No narrative is required. Polly Glotte Journal Dr Cr $ $ [7] For Examiner’s Use www.theallpapers.com

9 0452/02/O/N/03 [Turn over (a) (ii) During August 2003 Polly discovered the following matters. 1. New shop fittings had been purchased on credit from Quickbuild Supplies for $6000, but no entry had been made in Polly’s books. 2. A sale on credit to S Holmes, $601, had been entered in the Sales account and in S Holmes’s account as $610. 3. Goods bought on credit from J Robertson, $1000, had been entered in J Robertshaw’s account. 4. The purchase of office equipment for $3000 had been entered in the Purchases account. Make the required entries in Polly’s Journal to correct each of the above errors. No narratives are required. Polly Glotte Journal Dr Cr $ $ [8] For Examiner’s Use www.theallpapers.com

10 0452/02/O/N/03 (b) If error 4 above is not corrected, what are the effects on: (i) Polly’s Trading and Profit and Loss Account, … … …[2] (ii) Polly’s Balance Sheet? … … …[2] 5 Elmer Gantry is a self-employed builder whose financial year ends on 30 September. His trial balance drawn up on 30 September 2003 included the following balances. Dr Cr $ $ Sales 100000 Purchases 66000 Purchases returns 4000 Stock 1 October 2002 12000 Insurance 4250 Wages 6000 General expenses 1000 Motor expenses 2600 Rent 5000 Motor vehicle at cost 10000 You are given the following additional information. 1. On 30 September 2003: insurance prepaid was $250, motor expenses due but unpaid were $400. 2. Stock on 30 September 2003 was $9000. 3. Depreciation is to be charged on the motor vehicle at 20% on cost. For Examiner’s Use www.theallpapers.com

11 0452/02/O/N/03 [Turn over (a) Prepare Elmer Gantry’s Trading and Profit and Loss Account for the year ended 30 September 2003. Elmer Gantry Trading and Profit and Loss Account for the year ended 30 September 2003 … … … … … … … … … … … … … … … … … … … … … …[18] For Examiner’s Use www.theallpapers.com

12 0452/02/O/N/03 (b) (i) State what is meant by the accounting concept of matching. … … … … … …[2] (ii) Explain how the matching principle is applied to insurance in Elmer’s Profit and Loss Account. … … … … …[2] For Examiner’s Use www.theallpapers.com