Cambridge IGCSE Accounting 0452 — 2009 Oct/Nov Paper 2 · Variant 1

This document consists of 13 printed pages and 3 blank pages. IB09 11_0452_02/3RP © UCLES 2009 [Turn over *2818284815* 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 October/November 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/O/N/09 For Examiner's Use 1 (a) Give two examples of a final account. (i) (ii) [2] (b) In the table below, place a tick (
) under the correct heading to show whether each item is income or an expense: Income Expense (i) Discount received (ii) Carriage outwards (iii) Bank charges [3] (c) When updating the cash book from a bank statement, give one example of an item for which the cash book may need to be adjusted. [1] (d) Petrus owes $250 to Quintus. Petrus is declared bankrupt and cannot pay Quintus. Quintus decides to write off the debt. Show the necessary journal entry in Quintus’ books to record this. A narrative is not required. Dr $ Cr $ [2] (e) State in which specialist area of the ledger you would find: (i) a supplier’s account (ii) the repairs account [2] www.theallpapers.com

3 © UCLES 2009 0452/02/O/N/09 [Turn over For Examiner's Use (f) Saleem pays rent on his workshop by cheque quarterly in advance. On 1 October 2009 he pays $960 for the period 1 October to 31 December 2009. Write up his rent account for the month of October 2009. Show the transfer to profit and loss account for the month and any balance brought down at 1 November 2009. Saleem Rent account [4] (g) Tacit and Ursa set up in partnership. (i) In which document will they record how profits and losses are to be shared? (ii) Name one other financial matter which might also be included in this document. [2] [Total: 16] www.theallpapers.com

4 © UCLES 2009 0452/02/O/N/09 For Examiner's Use 2 (a) State which accounting document would show the amount of: (i) trade discount (ii) cash discount [2] Chen makes the following sales on credit in the week ending 16 October 2009. October Customer Reference $ 12 Artelis A4 230 14 Brook B1 300 15 Chadri C7 55 He writes up his sales journal at the end of the week as shown below. Chen Sales journal October Reference $ 12 14 16 Artelis Brook Total sales for week A4 B1 250 300 550 REQUIRED (b) From the entries in the sales journal, write up the accounts in Chen’s ledger shown on the next page to record the transactions for the month. Sales account [2] Artelis account [2] Brook account [2] www.theallpapers.com

5 © UCLES 2009 0452/02/O/N/09 [Turn over For Examiner's Use Chen realises he has made two errors in writing up the sales journal. He decides to correct these errors by journal entries. REQUIRED (c) Show the two separate journal entries necessary to correct these errors. Narratives are not required. Dr $ Cr $ Dr $ Cr $ [4] (d) State the balance on each of the accounts in Chen’s ledger after correcting the two errors. Dr $ Cr $ Sales account Artelis account Brook account Chadri account [6] [Total: 18] www.theallpapers.com

6 © UCLES 2009 0452/02/O/N/09 For Examiner's Use 3 Dindas has prepared his final accounts for the year ended 30 September 2009 and his balance sheet is as follows. Dindas Balance Sheet at 30 September 2009 $ $ $ Fixed assets at net book value 9 600 Current assets Stock 2 400 Debtors 11 200 Bank 3 250 Prepaid expenses 850 17 700 Current liabilities Creditors 8 100 Accrued expenses 1 300 9 400 Net current assets 8 300 17 900 Long term liabilities Bank loan repayable 2012 6 200 11 700 Financed by: Capital at 1 October 2008 10 000 Add: Net profit 12 500 22 500 Less: Drawings 10 800 Capital at 30 September 2009 11 700 REQUIRED (a) From the information in Dindas’s balance sheet above, calculate the following. Show your workings and give the ratios to two decimal places. (i) Current ratio [3] www.theallpapers.com

7 © UCLES 2009 0452/02/O/N/09 [Turn over For Examiner's Use (ii) Quick ratio [4] (iii) Working capital [3] Dindas wishes to know the effect on his working capital of making changes to his business. REQUIRED (b) In the table below, for each proposed change, place a tick (
) under the correct heading to show the effect on his working capital. Working capital Increase Decrease No effect Introduce additional money as capital Reduce debtors by collecting outstanding amounts Repay outstanding amount of loan from bank Reduce personal drawings [8] [Total: 18] www.theallpapers.com

8 © UCLES 2009 0452/02/O/N/09 For Examiner's Use 4 Rashida has a business selling office machines, office supplies and stationery from her warehouse. REQUIRED (a) In the following table, place a tick (
) under the correct heading to show the correct category of each asset shown on her balance sheet. Tangible fixed assets Intangible fixed assets Current assets Goodwill Motor van Warehouse Stock [4] Cleo is in business and prepares her accounts to 30 September each year. On 1 October 2008 she bought a new photocopier from Rashida for $2100. Cleo decides to depreciate the photocopier over three years using the straight line method. She expects the scrap value of the photocopier at the end of this period to be $300. REQUIRED (b) Calculate the amount of depreciation to be charged in Cleo’s profit and loss account for each of the two years ended 30 September 2009 and 30 September 2010. [4] www.theallpapers.com

9 © UCLES 2009 0452/02/O/N/09 [Turn over For Examiner's Use (c) Prepare the provision for depreciation account in Cleo’s ledger for the two years ended 30 September 2009 and 30 September 2010. Balance the account at the end of each year and show the amount transferred to the profit and loss account for each year. Cleo Provision for depreciation account [4] (d) Complete the following extract from Cleo’s balance sheet on 30 September 2010. Cleo Balance Sheet at 30 September 2010 (extract) Cost Provision for depreciation Net book value $ $ $ [3] www.theallpapers.com

10 © UCLES 2009 0452/02/O/N/09 For Examiner's Use (e) Explain what the balance at 30 September 2010 on Cleo’s provision for depreciation account represents. [2] [Total: 17] www.theallpapers.com

11 BLANK PAGE 0452/02/O/N/09 [Turn over Question 5 is on the next page. www.theallpapers.com

12 © UCLES 2009 0452/02/O/N/09 For Examiner's Use 5 Khalid earns fees and commissions from his insurance business. His capital account at 1 November 2008 showed $3000 Cr. A summary of the bank columns in his cash book for the year ended 31 October 2009 showed: Bank $ Bank $ Clients – fees received 12 000 Rent 9 600 Clients – commissions received 32 000 Staff wages 8 800 Office expenses 6 400 Motor expenses 3 600 Drawings - Khalid 25 000 Fees are invoiced when work is completed. Debtors for fees were: $ 1 November 2008 2600 31 October 2009 4100 There were no prepaid or accrued expenses. REQUIRED (a) Calculate the fees earned by Khalid for the year ended 31 October 2009. [5] www.theallpapers.com

13 © UCLES 2009 0452/02/O/N/09 [Turn over For Examiner's Use (b) From the information above and your answer to (a), prepare Khalid’s profit and loss account for the year ended 31 October 2009. Khalid Profit and Loss Account for the year ended 31 October 2009 [7] (c) Prepare Khalid’s capital account for the year ended 31 October 2009 and bring down the balance at 1 November 2009. Khalid Capital account [5] www.theallpapers.com

14 © UCLES 2009 0452/02/O/N/09 For Examiner's Use (d) Suggest two ways in which Khalid might reduce or eliminate the deficit on his capital account. (i) (ii) [4] [Total: 21] www.theallpapers.com

15 BLANK PAGE 0452/02/O/N/09 www.theallpapers.com

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/O/N/09 www.theallpapers.com

UNIVERSITY OF CAMBRIDGE INTERNATIONAL EXAMINATIONS International General Certificate of Secondary Education MARK SCHEME for the October/November 2009 question paper for the guidance of teachers 0452 ACCOUNTING 0452/02 Paper 2, maximum raw mark 100 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 October/November 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 – October/November 2009 0452 02 © UCLES 2009 1 (a) Trading account (accept manufacturing account) Profit and loss account (accept income and expenditure account) Profit and loss appropriation account Balance sheet (any two, one mark each) (Accept abbreviations if the meaning is clear) [2] (b) Income Expense (i) Discount received √ (1) (ii) Carriage outwards √ (1) (iii) Bank charges √ (1) [3] (c) Standing orders, credit transfers Direct debits Bank charges Dishonoured cheque (or similar acceptable item) (Not unpresented cheques, uncleared deposits) [1] (d) Dr Cr Bad debts 250 (1) Petrus (or Debtor) 250 (1) One mark for both items on each line, in either order [2] (e) (i) Purchases (creditors) (ledger) (1) (ii) Nominal (general) (ledger) (1) [2] (f) Saleem – Rent account 2009 2009 1 October Bank 960 (1) 31 October P/L account 320 (1) 31 October Balance c/d 640 (1) 960 (accept prepayment) 1 November Balance b/d 640 (1) OF (accept prepayment) Note: mark is for correct narrative and correct or OF amount, not date. [4] www.theallpapers.com

Page 3 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – October/November 2009 0452 02 © UCLES 2009 (g) (i) Partnership agreement (accept deed, contract) or Profit and loss appropriation account (Not partnership document, statement) [1] (ii) Capital to be contributed, drawings Profit sharing ratio Interest on capital Interest on drawings Partners’ salaries (or other acceptable item) [1] [Total: 16] 2 (a) (i) Invoice [1] (ii) Invoice, statement of account [1] (b) Note: in following accounts, 1 mark for date and narrative, 1 mark for amount. Sales account 2009 16 October Total sales 550 (2) (accept 30/31) (accept debtors, sales journal) If separate entries for Artelis and Brook are shown, award mark only if total 550 is shown. Artelis account 2009 12 October Sales (journal) 250 (2) Brook account 2009 14 October Sales (journal) 300 (2) [6] (c) Dr $ Cr $ Sales (NOT Suspense) 20 (1) Artelis 20 (1) Dr $ Cr $ Chadri 55 (1) Sales (NOT Suspense) 55 (1) [4] (not receipt, cash book or other books of account) www.theallpapers.com

Page 4 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – October/November 2009 0452 02 © UCLES 2009 (d) Dr $ Cr $ Sales* (550 (1) + 55 (1) – 20 (1)) 585* (3) Artelis (250 – 20) 230 (1) Brook 300 (1) Chadri 55 (1) (No marks for complete reversal) [6] *award 3 marks for correct figure with or without workings, 1 mark for 550 with or without workings, for other figures (e.g. 605, 530 or 515) award marks only for correct items if workings shown. [Total: 18] 3 (a) (i) Current ratio = 17 700 (1) / 9 400 (1) = 1.88 (: 1) (1)OF (accept 1.89 but not 1.9 or 1.90) (do not accept 1 : 1.88) [3] (ii) Quick ratio = 15 300 (2) / 9 400 (1) Note: mark for 15,300 is 2 or 0, correct figure only = 1.63 (: 1) (1)OF (accept 1.62 but not 1.6 or 1.60) (do not accept 1 : 1.63) [4] (iii) Working capital = 17 700 (1) – 9 400 (1) = 8 300 (1) Correct figures only For each of these, award marks for correct answer with or without workings but for other answers award marks only for correct items if workings shown. [3] (b) Working capital Increase Decrease No effect Increase capital √ (2) Reduce debtors √ (2) Repay bank loan √ (2) Reduce drawings √ (2) Note: 2 marks for each item [8] [Total: 18] www.theallpapers.com

Page 5 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – October/November 2009 0452 02 © UCLES 2009 4 (a) Tangible fixed assets Intangible fixed assets Current assests Goodwill √ (1) Motor van √ (1) Warehouse √ (1) Stock √ (1) Note: 1 mark for each item [4] (b) Depreciation on straight line over three years = (2 100 – 300) (1) / 3 (1) = 600 (1)OF – for OF mark must be spread over period of years Same amount for 2010: $600 (1)OF (Not $1200) Note: award OF mark if same amount is shown for each year [4] (c) Provision for depreciation 2009 2009 Balance c/d 600 Profit & Loss account (Depreciation account) 600 (1)OF 600 600 Balance b/d 600 (1)OF 2010 2010 Balance c/d 1200 Profit & Loss account 600 (1)OF 1200 1200 Balance b/d 1200 (1)OF Mark is for correct year, not exact date, narrative and amount. If date is shown with correct year, award mark. [4] (d) Cleo Balance Sheet at 30 September 2010 (extract) Cost Provision for Net book depreciation value $ $ $ Fixed assets Plant and equipment 2 100 (1) 1 200 (1)OF 900 (1)OF (Description and amount for mark) (Accept photocopier, office equipment, office machines or similar) [3] www.theallpapers.com

Page 6 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – October/November 2009 0452 02 © UCLES 2009 (e) The accumulated depreciation to date The amount of cost used up over the life of the machine The amount charged to P/L account to date Any one similar comment – 2 marks Not net book value, or any comment relating to disposal or profit or loss on sale. [2] [Total: 17] 5 (a) Fees earned = cash receipts 12 000 (1) less: opening debtors 2 600 (1) 9 400 add: closing debtors 4 100 (1) 13 500 (2) or (1)OF [5] Award 2 marks for correct answer with or without workings but for other answers award marks only for items correctly added or subtracted if workings shown: do not award any total mark(s) if any alien items are in calculation e.g. commissions figure. (b) Khalid Profit and Loss Account for the year ended 31 October 2009 $ $ Fees receivable (accept gross profit etc) 13 500 (1)(OF) Commissions received 32 000 (1) 45 500 (award 2 marks if just correct total figure 45 500 is shown) Expenses Rent 9 600 (1) Staff wages 8 800 (1) Office expenses 6 400 (1) Motor expenses 3 600 (1) 28 400 Net profit (or loss, if loss has been calculated) 17 100 (1)(OF) Award OF fees mark if the total from (a) is used; Award the commissions mark if shown whether or not it has been included in the total from (a); Award the net profit/loss mark only if no alien items in account e.g. drawings. [7] (c) Khalid – Capital account Balance b/d 3 000 (1) Drawings 25 000 (1) Net profit 17 100 (1)OF Balance c/d 4 900 25 000 25 000 Balance b/d 4 900 (2)OF Award balance OF mark only if no alien items in account. Dates not required. Vertical layout acceptable. [5] www.theallpapers.com

Page 7 Mark Scheme: Teachers’ version Syllabus Paper IGCSE – October/November 2009 0452 02 © UCLES 2009 (d) Contribute further capital – but not by taking (bank) loan Obtain capital by taking partner Reduce drawings Increase net profit (reduce loss if shown in (b)) (e.g. by increasing fees/commissions, reducing expenses (or any one specific expense) but only one example, so 2 marks for only any one method of increasing net profit) Any two (2) each [4] [Total: 21] www.theallpapers.com