Cambridge IGCSE Accounting 0452 — 2015 Oct/Nov Paper 2 · Variant 3

This document consists of 19 printed pages and 1 blank page. IB15 11_0452_23/5RP © UCLES 2015 [Turn over *7045330115* Cambridge International Examinations Cambridge International General Certificate of Secondary Education ACCOUNTING 0452/23 Paper 2 October/November 2015 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.

2 © UCLES 2015 0452/23/O/N/15 1 Paul Chew is a trader. He made the following entries in his cash book in September 2015. Paul Chew Cash Book for September 2015 Sept Discount $ Cash $ Bank $ Sept Discount $ Cash $ Bank $ 1 11 27 30 Balances b/d Bank Sales Yeung & Co 3 30 70 20 117 560 267 4 11 19 24 W Law (dishonoured cheque) Cash General expenses K Tan 13 80 90 70 507 REQUIRED (a) (i) Suggest one reason why the cheque on 4 September was dishonoured. [1] (ii) Explain the entry on 11 September. [2] (iii) Explain the entry on 27 September. [1] (iv) Calculate the percentage of the discount on 24 September. [1]

3 © UCLES 2015 0452/23/O/N/15 [Turn over (v) State how the total of the discount column on the debit side of the cash book would be entered in the ledger on 30 September. [2] (vi) Calculate the bank balance on 30 September. [1] On 30 September 2015 Paul Chew’s bank statement showed an overdrawn balance of $43. On comparing the bank statement and the cash book it was found that the bank had not recorded the transactions shown in the cash book on the following dates: 24 September 27 September 30 September REQUIRED (b) Prepare a bank reconciliation statement at 30 September 2015. Paul Chew Bank Reconciliation Statement at 30 September 2015 [5]

4 © UCLES 2015 0452/23/O/N/15 Paul Chew sells goods on credit terms to Kim Chan. REQUIRED (c) Complete the table to name the business document and the books of prime (original) entry for each of the following transactions. If the document is not recorded in a book of prime (original) entry write “No entry”. The first transaction has been completed as an example. Document Paul Chew’s book of prime (original) entry Kim Chan’s book of prime (original) entry Paul Chew received payment from Kim Chan Cheque Cash book Cash book Paul Chew sold goods on credit to Kim Chan Kim Chan notified Paul Chew of an overcharge Paul Chew notified Kim Chan that he agreed the overcharge Paul Chew sent Kim Chan a summary of the month’s transactions [12] [Total: 25]

5 © UCLES 2015 0452/23/O/N/15 [Turn over 2 Ishmael Makumbo runs a general store. His financial year ends on 31 August. He sublets part of his premises for an annual rent of $8400, payable quarterly in advance. On 1 September 2014 the tenant owed $2100. Ishmael Makumbo received cheques for rent as follows: $ 2 September 2014 4200 3 January 2015 2100 4 May 2015 2100 REQUIRED (a) Prepare the rent receivable account for the year ended 31 August 2015. Balance the account and bring down the balance on 1 September 2015. Ishmael Makumbo Rent receivable account Date Details $ Date Details $ ….…. ……………..…..………. …..…. ……… ……………………… …..….. …….. ……………………… …..…. ….….. ………..…..………… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… ……... …..…. ………..……..……… …..…. ….…. ……………….……… …..…. …..…. ………..……..……… …..…. ….…. ………..……..……… ….…. …..…. ………..……..……… …..…. ….…. ………..……..……… ….…. …..…. ………..……..……… …..…. ….…. ………..……..……… ….…. …..…. ………..……..……… …..…. [6] (b) State the section of Ishmael Makumbo’s statement of financial position at 31 August 2015 in which the balance of the rent receivable account would appear. Give a reason for your answer. Section of statement of financial position [1] Reason [1]

6 © UCLES 2015 0452/23/O/N/15 On 1 September 2014 Ishmael Makumbo owed $274 for motor expenses. He paid this by cheque on 7 September 2014. On 1 February 2015 Ishmael Makumbo paid $96 in cash for motor expenses. On 30 August 2015 Ishmael Makumbo received an invoice for motor expenses, $113. He paid this invoice in September 2015. REQUIRED (c) Prepare the motor expenses account for the year ended 31 August 2015. Balance the account and bring down the balance on 1 September 2015. Ishmael Makumbo Motor expenses account Date Details $ Date Details $ ….…. ……………..…..………. …..…. ……… ……………………… …..….. …….. ……………………… …..…. ….….. ………..…..………… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… ……... …..…. ………..……..……… …..…. ….…. ……………….……… …..…. …..…. ………..……..……… …..…. ….…. ………..……..……… ….…. …..…. ………..……..……… …..…. ….…. ………..……..……… ….…. …..…. ………..……..……… …..…. [6]

7 © UCLES 2015 0452/23/O/N/15 [Turn over During the year ended 31 August 2015 Ishmael Makumbo took goods, cost $300, for his own use. This was not entered in the accounting records. The telephone expenses for the year ended 31 August 2015 amounted to $432. It was estimated that one quarter of this was for Ishmael’s personal use. No adjustment had been made for this. REQUIRED (d) Prepare the journal entries Ishmael Makumbo would make to record the above. Narratives are required. Ishmael Makumbo Journal Debit $ Credit $ ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. [6] [Total: 20]

8 © UCLES 2015 0452/23/O/N/15 3 Sally Rickard is a trader. Despite having little knowledge of book-keeping, she decided to prepare a trial balance at the end of her financial year on 31 October 2015. The trial balance she prepared was as follows. $ $ Revenue 160 400 Purchases 99 300 Wages 27 000 Motor expenses 1 600 General expenses 7 250 Premises at cost 80 000 Equipment and fixtures at cost 10 000 Motor vehicle at cost 13 930 Provision for depreciation of equipment and fixtures 1 050 Provision for depreciation of motor vehicle 5 750 Trade receivables 26 800 Provision for doubtful debts 670 Trade payables 8 150 Cash 350 Bank overdraft 4 810 Loan from AB Loans 10 000 Drawings 12 500 Capital (balancing figure) 186 440 328 000 328 000 Inventory 1 November 2014 $7100 Inventory 31 October 2015 $8300 In addition to the obvious errors in the trial balance, the following errors were also discovered. 1 General expenses paid in cash, $150, had not been recorded. 2 Motor expenses, $430, had been debited to the motor vehicles account. 3 A cheque, $260, received from a credit customer had been credited to the bank account and debited to the customer’s account. REQUIRED (a) For each of the items 1-3 state the type of error that was made. Error 1 Error 2 Error 3 [3]

9 © UCLES 2015 0452/23/O/N/15 [Turn over (b) Prepare a corrected trial balance at 31 October 2015. Sally Rickard Corrected Trial Balance at 31 October 2015 Debit $ Credit $ Revenue …………….. …………….. Purchases …………….. …………….. Wages …………….. …………….. Motor expenses …………….. …………….. General expenses …………….. …………….. Premises at cost …………….. …………….. Equipment and fixtures at cost …………….. …………….. Motor vehicle at cost …………….. …………….. Provision for depreciation of equipment and fixtures …………….. …………….. Provision for depreciation of motor vehicle …………….. …………….. Trade receivables …………….. …………….. Provision for doubtful debts …………….. …………….. Trade payables …………….. …………….. Cash …………….. …………….. Bank overdraft …………….. …………….. Loan from AB Loans …………….. …………….. Drawings …………….. …………….. Capital …………….. …………….. …………………………….. …………….. …………….. …………………………….. …………….. …………….. [13]

10 © UCLES 2015 0452/23/O/N/15 After the trial balance was corrected, Sally Rickard attempted to prepare an income statement to calculate her profit for the year, but made some errors. REQUIRED (c) Complete the table, by placing a tick (9) in the appropriate column, to show how correcting each of the following errors would affect the profit for the year. Name the accounting principle being applied. The first one has been completed as an example. Effect on profit Accounting principle Increase Decrease The depreciation charge had been calculated at a lower rate than in previous years. 9 Consistency An amount owing by a credit customer should have been written off. General expenses included rates which were prepaid until 31 December 2015. Goods invoiced and despatched to a customer were not recorded as the customer did not receive them until 3 November 2015. No record had been made of goods taken for personal use. [8] [Total: 24]

11 © UCLES 2015 0452/23/O/N/15 [Turn over 4 Sanchi and Syed Mirza are in partnership, sharing profits and losses equally. Their summarised income statement for the year ended 31 July 2015 was as follows. $ $ Revenue 45 000 Cost of sales Opening inventory 5 500 Purchases 33 500 39 000 Closing inventory 6 500 32 500 Gross profit 12 500 Expenses 3 500 Profit for the year 9 000 REQUIRED (a) (i) State the formula for the calculation of the rate of inventory turnover. [1] (ii) Calculate the rate of inventory turnover. The calculation should be correct to two decimal places. [2] (iii) Suggest two reasons why the rate of inventory turnover is lower than it was in the previous year. 1 2 [2]

12 © UCLES 2015 0452/23/O/N/15 (b) (i) State the basis on which inventory should be valued. [1] (ii) Name the accounting principle which is being applied when inventory is valued on this basis. [1] After the preparation of the appropriation account for the year ended 31 July 2015, Sanchi and Syed Mirza updated their capital and current accounts. At 31 July 2015 the partners’ accounts were as follows. Capital accounts Date Details Sanchi Syed Date Details Sanchi Syed $ $ $ $ 2014 1 Aug Balance b/d 20 000 60 000 2015 1 Feb Current a/c 10 000 Current accounts Date Details Sanchi Syed Date Details Sanchi Syed $ $ $ $ 2015 2014 1 Feb Capital a/c 10 000 1 Aug Balance b/d 16 000 4 000 31 Jul Drawings 14 000 6 000 2015 31 Jul Profit share 4 500 4 500

13 © UCLES 2015 0452/23/O/N/15 [Turn over REQUIRED (c) Prepare an extract from the statement of financial position at 31 July 2015 to show the total funds provided by the partners. Extract from Statement of Financial Position at 31 July 2015 Sanchi Mirza $ Syed Mirza $ Total $ Capital account …………… …………… …………… Current account …………… …………… …………… …………… …………… …………… [5] (d) (i) State the formula for the calculation of the return on capital employed (ROCE). [1] (ii) Calculate the return on capital employed (ROCE), using your answer to (c) and the profit for the year. The calculation should be correct to two decimal places. [2] (iii) Suggest one reason why the return on capital employed (ROCE) is lower than it was in the previous year. [1] (e) (i) Suggest two reasons why Syed Mirza would like to have interest on capital included in the partnership agreement. 1 2 [2]

14 © UCLES 2015 0452/23/O/N/15 (ii) Suggest one reason why Syed Mirza would like to have interest on drawings included in the partnership agreement. [1] (iii) Suggest one reason why Sanchi Mirza would like to have partner’s salary included in the partnership agreement. [1] On 31 July 2015 the trade payables amounted to $4100. The period of credit allowed is 30 days. The purchases for the year ended 31 July 2015 were: $ Cash purchases 2 500 Credit purchases 31 000 REQUIRED (f) (i) State the formula for the calculation of the payment period for trade payables. [1] (ii) Calculate the payment period for trade payables. Round up your answer to the next whole day. [2] (iii) Comment on the payment period for trade payables. [2]

15 © UCLES 2015 0452/23/O/N/15 [Turn over The period of credit allowed to trade receivables is 30 days. The collection period was 55 days. REQUIRED (g) Suggest two ways how this may affect the liquidity of Sanchi and Syed Mirza. 1 2 [2] [Total: 27]

16 © UCLES 2015 0452/23/O/N/15 5 The treasurer of the Hills Road Youth Club provided the following information at the end of the financial year on 31 October 2015. 1 Receipts during the year $ Subscriptions 6180 Sale of refreshments 3100 2 Payments during the year $ Purchase of refreshments 2650 Purchase of equipment 2000 Repairs to equipment 220 Insurance for 15 months to 31 January 2016 1350 Rent of premises for 11 months to 30 September 2015 1430 General expenses 2540 3 Other information 1 November 31 October 2014 2015 $ $ Subscriptions paid in advance 450 270 Subscriptions accrued 360 - Inventory of refreshments 280 310 Equipment at valuation 6000 6800 There were no sales of equipment during the year. REQUIRED (a) Calculate the subscriptions for the year ended 31 October 2015. [5]

17 © UCLES 2015 0452/23/O/N/15 [Turn over (b) Prepare the refreshments income statement for the year ended 31 October 2015. Hills Road Youth Club Refreshments Income Statement for the year ended 31 October 2015 $ $ ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. [5] Question 5(c) is on the next page.

18 © UCLES 2015 0452/23/O/N/15 (c) Prepare the income and expenditure account for the year ended 31 October 2015. Hills Road Youth Club Income and Expenditure Account for the year ended 31 October 2015 $ $ ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. [9]

19 © UCLES 2015 0452/23/O/N/15 (d) Suggest two reasons why the surplus or deficit shown in the income and expenditure account is not equal to the bank balance. 1 2 [2] (e) Explain why a club does not distribute a surplus to its members. [2] (f) State how a club’s accumulated fund arises. [1] [Total: 24]

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 International Examinations Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cie.org.uk after the live examination series. 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. © UCLES 2015 0452/23/O/N/15 BLANK PAGE

® IGCSE is the registered trademark of Cambridge International Examinations. CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the October/November 2015 series 0452 ACCOUNTING 0452/23 Paper 2, maximum raw mark 120 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 October/November 2015 series for most Cambridge IGCSE®, Cambridge International A and AS Level components and some Cambridge O Level components.

Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 1 (a) (i) Lack of funds No signature Amount in words and figures differ No date Or other suitable reason Any 1 reason (1) [1] (ii) This is a contra entry (1) Cash has been withdrawn from the bank for business use (1) [2] (iii) Money received from sales: some retained in cash and some paid into the bank (1) [1] (iv) ( ) 13 507 13 + = 1 100 = 2½% (1) [1] (v) Debited (1) to the discount allowed account (1) [2] (vi) 944 – 667 = 277 (1) [1] (b) Paul Chew Bank Reconciliation Statement at 30 September 2015 $ $ Balance shown on bank statement (43) (1) Add Amounts not credited 560 (1) Cheque not yet credited – Yeung & Co 267 (1) 827 784 Less Cheque not yet presented – K Tan 507 (1) Balance shown in cash book 277 (1) OF Alternative form of presentation acceptable [5]

Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 (c) Document Paul Chew’s book of prime (original) entry Kim Chan’s book of prime (original) entry Paul Chew sold goods on credit to Kim Chan Invoice (1) Sales Journal (1) Purchases Journal (1) Kim Chan notified Paul Chew of an overcharge Debit note (1) No entry (1) No entry (1) Paul Chew notified Kim Chan that he agreed the overcharge Credit note (1) Sales Returns Journal (1) Purchases Returns Journal (1) Paul Chew sent Kim Chan a summary of the month’s transactions Statement of account (1) No entry (1) No entry (1) [12] [Total: 25]

Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 2 (a) Ishmael Makumbo Rent receivable account $ $ 2014 2014 Sept 1 Balance b/d 2 100 (1) Sept 2 Bank 4 200 (1) 2015 2015 Aug 31 Income statement 8 400 (1) Jan 3 Bank 2 100 }(1) May 4 Bank 2 100 } Aug 31 Balance c/d 2 100 10 500 10 500 2015 Sept 1 Balance b/d 2 100 (1)OF + (1) for dates Three column running balance presentation acceptable [6] (b) Current assets (1) It is an amount owing to Ishmael Makumbo (1) [2] (c) Ishmael Makumbo Motor expenses account $ $ 2014 2014 Sept 7 Bank 274 (1) Sept 1 Balance b/d 274 (1) 2015 2015 Feb 1 Cash 96 (1) Aug 31 Income statement 209 (1) Aug 31 Balance c/d 113 483 483 2015 Sept 1 Balance b/d 113 (1) + (1) for dates Three column running balance presentation acceptable [6]

Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 (d) Ishmael Makumbo Journal Debit $ Credit $ Drawings Purchases Goods taken for own use 300 300 (1) (1) (1) Drawings Telephone expenses Personal telephone expenses transferred to drawings account 108 108 (1) (1) (1) One composite journal entry acceptable [6] [Total: 20]

Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 3 (a) Error 1 – Error of omission (1) 2 – Error of principle (1) 3 – Error of reversal (1) [3] (b) Sally Rickard Corrected Trial Balance at 31 October 2015 Revenue Purchases Wages Motor expenses (1600 + 430) General expenses (7250 + 150) Premises at cost Equipment and fixtures at cost Motor vehicle at cost (13930 – 430) Provision for depreciation of equipment and fixtures Provision for depreciation of motor vehicles Trade receivables (26 800 – 520) Provision for doubtful debts Trade payables Cash (350 – 150) Bank overdraft (4810 – 520) Loan from AB Loans Drawings Capital Inventory 1 November 2014 Debit $ 99 300 27 000 2 030 7 400 80 000 10 000 13 500 26 280 200 12 500 7 100 Credit $ 160 400 1 050 5 750 670 8 150 4 290 10 000 95 000 (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)OF (1) (1)OF 285 310 285 310 [13]

Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 (c) Effect on profit Accounting principle Increase Decrease An amount owing by a credit customer should have been written off
(1) Prudence OR Accruals / matching (1) The general expenses includes rates which were prepaid until 31 December 2015.
(1) Accruals/ matching (1) Goods invoiced and despatched to a customer were not recorded as the customer did not receive them until 3 November 2015
(1) Realisation (1) No record had been made of goods taken for personal use
(1) Business Entity (1) [8] [Total: 24]

Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 4 (a) (i) Cost of sales } (1) Average inventory } [1] (ii) 32 500 } (1) = 5.42 times (1) 6 000 } [2] (iii) Higher inventory levels Lower sales activity Or other suitable reason Any 2 reasons (1) each [2] (b) (i) Lower of cost and net realisable value (1) [1] (ii) Prudence (1) [1] (c) Extract from Statement of Financial Position at 31 July 2015 Sanch Syed Mirza Mirza Total $ $ $ Capital account 30 000 (1) 60 000 (1) 90 000 Current account (3 500) (1) 2 500 (1) (1 000) 26 500 62 500 89 000 (1) [5] (d) (i) } }(1) 1 100 employed Capital interest) before year the for profit (or year the for Profit × [1] (ii) } }(1) OF 000 89 000 9 × 1 100 = 10.11% (1) OF [2] (iii) Lower profit for the year Higher capital employed Any 1 reason (1) [1]

Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 (e) (i) To compensate him for investing the most capital To encourage Sanchi to invest more Or other suitable reason Any 2 reasons (1) each [2] (ii) To penalise Sanchi for making more drawings To discourage Sanchi from making excessive drawings Or other suitable reason Any 1 reasons (1) mark [1] (iii) To compensate Sanchi for extra workload To reward Sanchi for extra skills Or other suitable reason Any 1 reasons (1) mark [1] (f) (i) } }(1) 1 365 purchases credit payable trade × [1] (ii) (1) } }(1) days 49 1 365 000 31 000 4 = × [2] (iii) Exceeds credit allowed May find it difficult to obtain further supplies May damage relationship with suppliers May not be able to take advantage of cash discount from suppliers Or other relevant comment Any 2 comments (1) each [2] (g) Reduces liquidity May find it difficult to pay trade payables May find it difficult to pay running expenses May lead to bank overdraft Cannot take advantage of business opportunities when they arise May not be able to take advantage of cash discount from suppliers Or other relevant comment Any 2 comments (1) each [2] [Total: 27]

Page 10 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 5 (a) $ Subscription received 6 180 (1) Less amount for previous year 360 (1) 5 820 Less amount for following year 270 (1) 5 550 Add amount prepaid at start 450 (1) Subscription for the year 6 000 (1) Alternative forms of presentation acceptable [5] (b) Hills Road Youth Club Refreshment Income Statement for the year ended 31 October 2015 $ $ Sales of refreshments 3 100 (1) Cost of sales Opening inventory 280 (1) Purchases 2 650 (1) 2 930 Closing inventory 310 (1) 2 620 Profit in refreshments 480 (1) [5] (c) Hills Road Youth Club Income and Expenditure Account for the year ended 31 October 2015 $ $ Subscriptions 6 000 (1)OF Profit on refreshments 480 (1)OF 6 480 Repairs to equipment 220 Insurance (1350 (1) – 270 (1)) 1 080 Rent of premises (1430 (1) + 130 (1)) 1 560 General expenses 2 540 Depreciation of equipment ((6000 + 2000) (1) – 6800 (1)) 1 200 6 600 Deficit 120 (1)OF [9]

Page 11 Mark Scheme Syllabus Paper Cambridge IGCSE – October/November 2015 0452 23 © Cambridge International Examinations 2015 (d) Income and expenditure account includes non-monetary items Income and expenditure account has adjustments for accruals and prepayments Income and expenditure account includes only revenue items Or other suitable reason Any 2 reasons (1) each [2] (e) The members of the club have not invested any capital (1) so there can be no dividends/profit share which represent a return on capital invested (1) [2] (f) Accumulated fund arises from the surpluses the club has made (1) [1] [Total: 24]