Cambridge IGCSE Accounting 0452 — 2009 May/June Paper 2 · Variant 1

This document consists of 13 printed pages and 3 blank pages. IB09 06_0452_02/3RP © UCLES 2009 [Turn over *9568773481* For Examiner's Use 1 2 3 4 5 Total UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education ACCOUNTING 0452/02 Paper 2 May/June 2009 1 hour 30 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 a soft pencil for any diagrams or graphs. Do not use staples, paper clips, highlighters, 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. www.theallpapers.com

2 © UCLES 2009 0452/02/M/J/09 For Examiner's Use 1 (a) Name the accounting principle which states that sales are recognised when the ownership of goods sold and legal liability to pay passes to the customer. [1] (b) In the table below, place a tick (
) under the correct heading to show whether each item is an asset or a liability: Asset Liability (i) Prepaid expense (ii) Bank overdraft (iii) Provision for depreciation [3] (c) In a bank reconciliation statement, explain what is meant by an unpresented cheque. [2] (d) In the balance sheet, stock is valued at the lower of cost and [1] (e) In which final account will sales returns be shown? [1] (f) Working capital is calculated as follows: less [2] www.theallpapers.com

3 © UCLES 2009 0452/02/M/J/09 [Turn over For Examiner's Use (g) (i) Give one example of an item of capital expenditure. [1] (ii) Give one example of an item of revenue expenditure. [1] (h) Amhari’s business has sales for the year of $75 000, and her cost of goods sold was $52 500. Calculate her percentage of gross profit to sales. [3] [Total: 15] www.theallpapers.com

4 © UCLES 2009 0452/02/M/J/09 For Examiner's Use 2 Philo is in business and keeps his petty cash on the imprest system with a balance of $200. On 31 March 2009 there was $129.00 in the petty cash box and on 1 April 2009 Philo’s cashier made a transfer from the business bank account to restore the imprest balance. All the petty cash vouchers for March related to expenses incurred in that month. REQUIRED (a) What were the total expenses paid from petty cash in the month of March 2009? [1] When the cash was counted on 30 April 2009, there was $117.50 in the petty cash box and the following petty cash vouchers were found. $ April 5 Postage stamps 20.00 10 Refreshments 17.00 13 Menon – loan 100.00 17 Flowers for office 21.00 24 Stationery 14.50 Menon had repaid his loan in cash on 29 April. REQUIRED (b) What were the total expenses paid from petty cash in the month of April 2009? [1] (c) Calculate the amount of cash which should be in the petty cash box on 30 April. [2] www.theallpapers.com

5 © UCLES 2009 0452/02/M/J/09 [Turn over For Examiner's Use (d) Suggest two reasons for the difference in the actual amount of cash in the petty cash box and the amount which should be there. (i) (ii) [2] The petty cashier remembered a further petty cash payment of $10.00 was made on 28 April for cleaning the office windows. REQUIRED (e) Advise Philo’s petty cashier about the importance of keeping a record of business expenditure. [2] (f) Make the necessary entries for the month of April in the petty cash book as set out on the following page. Balance the book and carry down the balance. Show the entry on 1 May to restore the imprest balance to the correct amount. www.theallpapers.com

6 © UCLES 2009 0452/02/M/J/09 For Examiner's Use Other $ Cleaning $ Flowers $ Refreshments $ Postage and Stationery $ Total $ Details Date April Total $ Details Philo Petty Cash Book Date April [12] [Total: 20] www.theallpapers.com

7 BLANK PAGE 0452/02/M/J/09 [Turn over Question 3 is on the next page. www.theallpapers.com

8 © UCLES 2009 0452/02/M/J/09 For Examiner's Use 3 (a) Name the book of prime (original) entry used to record purchases. [1] Tom Charter received an invoice from the Office Supply Company. REQUIRED (b) Complete the missing items (words or figures) (i) to (vi) shown on the invoice. OFFICE SUPPLY COMPANY INVOICE Tom Charter 3 Mountain Close Tobermore 15 April 2009 Item Quantity Price per unit Total $ $ Boxes of staples 20 7.50 (i) Packets of envelopes (ii) 14.00 350.00 500.00 Less (iii) discount @ 3 % (iv) Net amount (v) ______ Terms: 2 ½ % (vi) discount for settlement within 14 days [6] www.theallpapers.com

9 © UCLES 2009 0452/02/M/J/09 [Turn over For Examiner's Use Tom Charter’s accounting records for the year ended 30 April 2009 showed the following. $ Stock at 1 May 2008 7 600 Purchases for the year 92 100 Purchases returns for the year 2 300 Stock at 30 April 2009 9 200 REQUIRED (c) Calculate Tom Charter’s cost of goods sold for the year. [4] (d) Calculate Tom Charter’s rate of stock turnover for the year. [4] (e) Give one example of each of the type of goods sold by a business with (i) a high rate of stock turnover; (ii) a low rate of stock turnover. [4] [Total: 19] www.theallpapers.com

10 © UCLES 2009 0452/02/M/J/09 For Examiner's Use 4 Rupa made the following bank payments in the month of March 2009. $ March 6 Motor expenses – repairs 120 12 Motor expenses – tyres 150 The bill for repairs had been received in February and $120 had been accrued in the motor expenses account at the end of that month. Rupa received a bill for motor fuel for $80 on 29 March but the bill was not paid until 7 April. REQUIRED (a) Prepare the motor expenses account in Rupa’s ledger for the month of March 2009. Show the amount transferred to the profit and loss account for the month and the balance brought down at 1 April. Rupa Motor expenses account [7] www.theallpapers.com

11 © UCLES 2009 0452/02/M/J/09 [Turn over For Examiner's Use Mopsa has to pay $400 rent on her shop each month. She was not able to pay all the rent due in March 2009 and $150 was outstanding on 1 April. From 1 April, her landlord increased the rent to $450 each month. On 27 April Mopsa made a payment of rent to her landlord of $500 in total. REQUIRED (b) Prepare the rent account in Mopsa’s ledger for the month of April 2009. Show the amount to be transferred to the profit and loss account for the month and the balance brought down at 1 May. Mopsa Rent account [7] Andrea does not include any accrual in her electricity account for electricity used, and invoiced, but not paid for at the end of the month. REQUIRED (c) Place a tick (
) in one of the boxes below to show whether the amount shown for electricity in her profit and loss account for the month will be understated overstated [2] [Total: 16] www.theallpapers.com

12 © UCLES 2009 0452/02/M/J/09 For Examiner's Use 5 Gordon has prepared the following trial balance after calculating his net profit for the year ended 31 March 2009. Gordon Trial balance at 31 March 2009 $ $ Bank 700 Bank loan repayable 2011 6 000 Capital at 1 April 2008 6 400 Creditors 2 100 Debtors 3 400 Drawings 12 000 Motor vehicles 4 000 Net profit for the year 12 900 Plant and equipment 8 000 Provision for depreciation Plant and equipment 1 600 Motor vehicles 1 000 Stock at 31 March 2009 1 900 30 000 30 000 REQUIRED (a) Prepare Gordon’s capital account for the year ended 31 March 2009. Gordon Capital account [4] www.theallpapers.com

13 © UCLES 2009 0452/02/M/J/09 [Turn over For Examiner's Use (b) Prepare Gordon’s balance sheet at 31 March 2009. Gordon Balance sheet at 31 March 2009 [8] www.theallpapers.com

14 © UCLES 2009 0452/02/M/J/09 For Examiner's Use (c) From Gordon’s balance sheet, calculate each of the following ratios to two decimal places. Show your workings. (i) Current ratio (ii) Quick ratio [6] (d) Place a tick (
) in one of the boxes below to show which of these two ratios Gordon should use to decide if he can afford to pay his creditors. current ratio quick ratio [2] [Total: 20] www.theallpapers.com

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16 BLANK PAGE 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. University of Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge. 0452/02/M/J/09 www.theallpapers.com

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the May/June 2009 question paper for the guidance of teachers 0452 ACCOUNTING 0452/02 Paper 2, maximum raw mark 90 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 must be read in conjunction with the question papers and the report on the examination. • CIE will not enter into discussions or correspondence in connection with these mark schemes. CIE is publishing the mark schemes for the May/June 2009 question papers for most IGCSE, GCE Advanced Level and Advanced Subsidiary Level syllabuses and some Ordinary Level syllabuses. www.theallpapers.com

Page 2 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 1 (a) Realisation [1] (not accruals or matching) (b) Asset Liability (i) Prepayment √ (1) (ii) Bank overdraft √ (1) (iii) Provision for depreciation √ (1) [3] (c) A cheque issued and entered in the cash book (1) but not yet shown on the bank statement as paid by the bank (1) [2] (accept “cheques not presented to the bank” for 1 mark) (d) “Net realisable value” (accept NRV) [1] (e) Trading (and Profit and Loss) account [1] (accept Profit & Loss account or Income statement) (f) Current assets (1) less current liabilities (1) not “CA less CL” [2] (g) (i) Land, buildings, plant, equipment, fixtures, motor vehicles (other acceptable fixed asset) [1] (ii) Any suitable revenue expense [1] (h) Gross profit percentage = gross profit/sales × 100% = 22 500 (1) / 75 000 (1) × 100% = 30% (1)OF [3] (need not show % sign but must not have any other term e.g. “times”) [Total: 15] www.theallpapers.com

Page 3 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 2 (a) $ 200.00 – $ 129.00 = $ 71.00 (1) [1] (accept $71 without .00) (b) $ 20.00 + 17.00 + 21.00 +14.50 = $ 72.50 (1) [1] (accept $72.5 without final 0 and throughout) (c) $ 200.00 (1) – $ 72.50 (1)(OF from (b)) = $127.50 [2] (award (2) for $127.50 but must show workings for OF mark) (d) (i) Missing voucher, error or fraud (1) (ii) Missing or stolen cash (1) [2] (e) Always complete (get) a petty cash voucher (1) with an invoice or receipt for expenditure (1) Record all petty cash transactions (1) [2] (do not accept general comments about business records – must relate to petty cash) (f) See next page www.theallpapers.com

Page 4 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 Date April Details Total $ Date April Details Total $ Postage/ stationery $ Refrshmnts $ Flowers $ Cleaning $ Other/Loan $ 1 Balance b/d (not “bank” but accept “imprest” or “float”) 129.00(1) or 200.00(1) (if no bank entry) 5 Postage 20.00 20.00 (1) 1 Bank (not “cash”) 71.00(1) 10 Refreshments 17.00 17.00 (1) 29 Menon/loan (not “cash”) 100.00(1) 13 Menon/loan 100.00 100.00 (1) 17 Flowers 21.00 21.00 (1) 24 Stationery 14.50 14.50 (1) 28 Cleaning 10.00 10.00 (1) _________ 30 Balance c/d 117.50 _______ _______ _______ _______ _______ 300.00 __300.00 34.50 17.00 21.00 10.00 100.00 May 1 Balance b/d (accept “imprest”) 117.50(1) (OF) to agree with bal c/d + (1) for all dates (Dr and Cr) 1 Bank (not “cash”) 82.50(1) (OF) to total $200 (for both debits and credits, mark is for narrative detail, correct total and correct extension) [12] [Total: 20] www.theallpapers.com

Page 5 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 3 (a) Purchases journal (day book) (1) (accept “purchases”, “purchases book”, not “account” or “ledger”) (b) OFFICE SUPPLY COMPANY INVOICE Tom Charter 3 Mountain Close Tobermore 15 April 2009 Item Quantity Price per unit Total $ $ Boxes of staples 20 7.50 (i) Packets of envelopes (ii) 14.00 350.00 500.00 Less (iii) discount @ 3 % (iv) Net amount (v) ______ Terms: 2 ½ % (vi) discount for settlement within 14 days [6] 25 (1) 150.00 (1) 15.00 (1) Trade (1) Cash (1) 485.00 (1) (correct figures only) www.theallpapers.com

Page 6 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 (c) Opening stock 7 600 (1) Purchases 92 100 (1) Less purchases returns (2 300) (1) 97 400 Less closing stock 9 200 (1) Cost of goods sold 88 200 [4] (narrative not required, award if correct numbers are shown) (d) Rate of stock turnover = cost of goods sold / average stock = (88 200 (1)(OF) / (7 600 + 9 200)(1) / 2(1)) times (award 2 marks for 8 400) = 10.5 times (1)(OF) (must be 10.5 – do not award for “10” or “11”) (award 4 marks if 10.5 shown without workings, otherwise only award marks in accordance with workings shown) (accept 10.5 without “times”, but do not accept with %, ratio or other description. Accept 34, 34.76 or 35 days if reciprocal formula is used) [4] (e) (i) Food, drinks, petrol, etc. (2) (ii) Jewellery, household appliances, cars, furniture etc. (2) [4] [Total: 19] www.theallpapers.com

Page 7 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 4 (a) Rupa Motor expenses account March March 6 Bank (not cash) 120.00 (1) 1 Balance b/d 120.00 (1) (not repairs) (accept accrued/owing/outstanding) 12 Bank (not tyres) 150.00 (1) 31 Balance c/d 80.00 (1) 31 Profit & Loss (not Trading) (accept accrued/owing) Account* 230.00 (1)OF 350.00 350.00 April 1 Balance b/d 80.00 (1) (correct figure only) (+ (1) for all correct dates) [7] (*award OF mark if Cr or Dr and amount closes account) (b) Mopsa Rent account April April 27 Bank (not cash, 500.00 (1) 1 Balance b/d 150.00 (1) not rent, landlord etc) (accept accrued/owing/outstanding) 30 Balance c/d 100.00 (2) 30 Profit & Loss (accept accrued/owing) Account* 450.00 (1)OF 600.00 600.00 May 1 Balance b/d 100.00 (1) (correct figure only) (+ (1) for all correct dates) [7] (*award OF mark if Cr or Dr and amount closes account) (c) understated √ (2) overstated [2] [Total: 16] www.theallpapers.com

Page 8 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 5 (a) Gordon Capital account 2008 1 April Balance b/d 6 400 (1) (accept capital) 2009 2009 31 March Drawings 12 000 (1) 31 March Net profit 12 900 (1) 31 March Balance c/d 7 300 (1)(OF)* 19 300 19 300 1 April Balance b/d 7 300 (*award OF mark if Dr or Cr balance, and no alien figures) (dates not required, narrative and figures only) [4] (b) Gordon – Balance sheet at 31 March 2009 Cost Provision for Net book depreciation value Fixed assets $ $ $ Plant and equipment 8 000 1 600 6 400 (1) Motor vehicles 4 000 1 000 3 000 (1) (correct narratives) 12 000 2 600 9 400 Current assets Stock 1 900 Debtors 3 400 Bank 700 6 000 (1) (must show narrative and figures) Current liabilities Creditors 2 100 (1) Net current assets (working capital) 3 900 (1) (award 1 mark if horizontal balance sheet and CA and CL are correct) 13 300 Less long term liability Bank loan repayable 2011 6 000 (1) (may be shown under “Financed by”) 7 300 (1)OF (total to agree with total below, must be arithmetically correct) Financed by: Capital 7 300 (1) (or balance from part (a) only) [8] www.theallpapers.com

Page 9 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – May/June 2009 0452 02 © UCLES 2009 5 (c) (i) Current assets / Current liabilities 6 000 (1)OF / 2 100 (1)OF = 2.86:1 (1)OF (accept 2.85 but not 2.8, 2.9 or 3, other correct OF calculations on same basis) (ii) Current assets – stock / Current liabilities (6 000 – 1 900) = 4 100 (1)OF / 2 100 (1)OF = 1.95:1 (1)OF (or debtors 3 400 + bank 700 = 4 100 (1)) (do not accept 1.9 or 2, accept other correct OF calculations on same basis) [6] (d) current ratio quick ratio √ (2) [2] [Total: 20] www.theallpapers.com