cieeton Mark Scheme Detalls Had 2] @ Danbi Wyske Trial Balance as at 30 April 2003 Dr cr $ 8 Stock 1 May 2002 4000 «1) Sales 80000 (1) Purchases 62000 (1) Debiors 10000 (1) Creditors 9000 (1) Electricity 3000 (1) General expenses 7000 (1) Gash at bank 5000 (1) Drawings 8000 (1) Equipment at cost 45000 (1) Provision for depreciation of equipment 16000 (1) Rent and insurance paid 6000 (1) Capital 45000 2) -1 oF 750000 750000 14 (b) | Suspense Account 1 16 2(a) An own figure mark for the Capital figure should only be awarded if a credit balance is shown.Question Number Mark Scheme Details Part Mark 7] @ (b) (e) (d) @ $1200 (ii) Purchase returns (accept ‘returns’) (il) Closing stock (accept ‘Stock at 31 March 2003') (i) $5000 (v) received (vi) £15000 $30000 x 100(1) = 15% (1) OF 200000, Capital employed: $200000 + 50000 250000 $30000 x 100 (1)= 12% @) or 1 250000 (1) N.P. as percentage of capital employed: - measures overall profitability of the business in relation to resources used - indicates adequacy of return on owner's investment - enables comparisons to be made, e.g. against other investments, earlier years, similar firms - assists decision-making, e.g. in production, cost of borrowing or other acceptable,points For each reason given: 2 marks a a) a) a) a) 4a) 15Page 2 Mark Scheme Syllabus: Paper IGCSE - OCTINOV 2006 0452 Question 1 s 89.500 1400 10260 64.440 74700 8.400 (4) (4) a (1)01F $ 88 400 68.300 (1)0/F ‘Salem Ahmed Trading and Profit and Loss Account for the year ended 31 July 2006 $ Sales Less Sales retums Less Cost of Sales — (Opening stock Purchases 5700 (1) Less goods for own use 1260 (1) Less Closing stock Gross Profit Discount received Bad debts recovered Carriage outwards Discount allowed ‘Administration expenses Increase in provision for doubtful debts (180 130) Depreciation Equipment Fixtures (7800 - 7250) Net loss Horizontal presentation acceptable 210 600 24215 50. 405 550 (1) a) (a) a) (a) a) 22100 (2) sto (1) 170 (1) BI (1)01F [Total 18]2 (a) (i) 5000 (1) (il) 1 April 2006 (must include year) [1] (iii) 80 000 (t) iv) Inwards/(accept ‘i ] (vy) 37.000 tt) (vi) 5600 t) (vil) Net profit (must show “net”) [1] (vill) 27 800 [1]OF only if wrong gross profit (8) (b) Rate of stock tumover = Cost of sales / average stock = 88 000 [1] / (42 000 + 36 000) [1] /2 [1] = 2.26 times [1]OF (accept 2.25 times) Alternative (reciprocal) calculation gives 161 or 162 days 4) (c) (i) Newsagent, petfal station Joodstore 616. ) hairdressing salon, clothing shop, but not bank 2 (ii) Furniture, carpets, cars, machines, etc. 2] [Total: 16]Page 4 Mark Scheme: Teachers’ version Syllabus: Paper IGCSE — October/November 2010 0452 43 4 (a) A trial balance is a list of balances (1) on the accounts in the books ledgers / records (1) at a particular date (1) used to check the accuracy of accounts. Allow “check accuracy’ if linked with ‘list of balances’. ) Gorman Limited Income statement (trading and profit and loss account) ‘Year ended 30 September 2010 $ s Revenue (sales) 92 000 (1) Inventory (stock) at 1 October 2009 13.900 (1) Purchases 70 300 (1) Carriage inwards 600 (1) % 800 Less: inventory (stock) at 30 Sept 2010 14.300 (1) Cost of goods sold 70500 Gross profit 21500 OF (1) Rent 2600} (1) Electricity 850} Property tax (1500-300) 1200 (1) Wages and salaries 5750 (1) Repairs and maintenance 1100} (4) ‘Administrative expenses 4.000} Depreciation 1700 (1) Bank charges 420! ay 17320 Profit for the year (net profit) (©) (i) Prudence, consistency, lower of cost and net realizable value (any one) (2) (ii) Accruals, matching (any one) (2) ‘4 180 OF (1) (d) (Rate of inventory (stock) turnover = cost of goods sold / average stock 5 (A) times (41) 70 500 (1) / (13 900 + 14 300) (1) /2 (1) [Max 3] (e) Collect receivables, reduce inventory, delay payment of payables, sell Fixed Assets {any one). Total: 13) [4] [5] 2) 27)3° (a) Business entity or ownership (2) (b) Suspense account (1) (2 1 (e) Stella Maris Trial Balance at 31 October 2008 Debit Credit $ $ Capital 40000 (4) Shelving & equipment 5000 (1) Purchases 24.000 (1) Rent payable 6000 (1) Sales 34900 (4) Stock at 1 May 2008 0 (4) General expenses 2500 (1) Bank 7400 (2) 44300 (OF) 44300 (OF)(1) (to agree) Award mark for correct account name, amount and correct side of trial balance. Stock should have date shown or be “Opening stock”. if candidate has value for stock or any other date then no mark. ifno entry for stock then award the stock mark. ‘No mark for any suspense account shown for unexplained balance. Award totals mark only if shown and Dr and Cr sides agree. [10](a) Stella Maris Profit and Loss Account for the six months ended 31 October 2008 $ $ Sales 34900 (1) Stock at 1 May 2008 nil Purchases 24.000 (1) 24 000 Stock at 31 October 2008 5300 (1) Cost of sales 18700 (1) Gross profit 16200 (1)0F Expenses 8 Rent 6000 (1) General expenses 2500 (1) 8500 (2) Net profit 1700 (1)0F i) If candidate has value for opening stock then do not award cost of sales mark. ‘Award marks for correct amount only, except for gross and net profit amounts which can be ‘own figures if incorrect amounts are shown in the account but the profit figures are arithmeticaly correct. Allow OF marks whether gross or net amounts are shown as profit or loss. [otal: 22]Page ® ‘Mark Scheme: Teachers’ version Syllabus: Paper IGCSE — May/June 2009, 0452 02 (a) Gordon Capital account ‘2008 1 April Balance b/d 6 400 (1) (accept capital) 2009 2008 31 March Drawings 12.000 (1) | 31 March Net profit 12 900 (1) 31 March Balance cid _7:300 (1(QF)" is Is 79300 1 April Balance bld “7 300 (‘award OF mark if Dr or Cr balance, and no alien figures) (dates not required, narrative and figures only) (b) Gordon — Balance sheet at 31 March 2009 Cost Fixed assets $ Plant and equipment 8000 Motor vehicles 4.000 (corect narratives) 32.000 Current assets Stock Debtors Bank (must show narrative and figures) Current liabilities Creditors Net current assets (working capital) (award 1 mark if horizontal balance sheet and CA and CL are correct) Less long term liability Bank loan repayable 2011 (may be shown under ‘Financed by’) Financed by: Capital 4] Provision for Net book depreciation value s s 1600 6 400 (1) 4.000 3.000 (4) 2600 9.400 4 900 3.400 700 © 000 (1) 2.400 (1) 3.900 (1) 13.300 6.000 (1) 7-300 (1)OF (total to agree with total below, must be arithmetically correct) 7.300 (1) (or balance from part (a) only) [8]5 (e) (a) @ (i Current assets / Current iabilities 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) 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) current ratio uick ratio V(2) [2] (Total: 20]4 (a) (i) Lower (1) of cost (1) and net realisable value (1) (il) $2 700(1) (iii) Reduces profit (not overstated or understated) (1) by $300 (1) ) Timpani Limited Balance Sheet at 31 March 2010 Non-current (fixed) assets Plant and equipment at cost 20000 (1) Accumulated depreciation 12.000 (1) Net book value Current assets Taventory (stock) 2700 (1) Trade receivables (debtors) 1.000 (4) Bank 500 (1) 4200 Current Liabilities Trade payables (creditors) 700 (4) Bank loan (must be shown as current liability) 2800 (1) 3.500 Net current assets Total assets Equity Share capital Profit for the year Note: award marks for acceptable layout, not list of balances. (), 8) {1 2) 8.000 (1) 100 8700 5 000 (1) 3.700 (2) 8700 1) Successful Not Successful Reduce dividend %@ Reduce depreciation v (2) Reduce trade payables (creditors) ¥ (2) () (Going concern (1) (il) Expected sale values (2) (accept net realisable value) 1 8) [Total: 26]4° (a) Used to prepare final accounts. Can trace or identify errors. Other sensible comment. (1) $ 125.000 (1) 2300 (1) One reason (b) Deati ‘Trial Balance at 31 March 2010 $ Revenue (sales) Inventory (stock) 44 500 (1) Purchases 76 000 (1) Bank (overdrait) Equioment 9000 (1) Trade receivables (debtors) 1700 (1) Trade payables (creditors) Expenses 37500 (1) Capital Drawings 8.000 (1) ‘Suspense 146700 OF only if arithmetically correct (e) 2.800 (1) 45500 (1) 1100 (1)0F 146700 1) Dr cr Suspense (1) 7100 (A) Revenue (sales) (1) T 100 (1) ‘Sales omitted from the ledger (1) must be related to error Marks for narrative not dependent upon correct figures. Marks carried with narrative. 6)(@) Deali Summary Income Statement (Trading and Profit and Loss Account) for the year ended 31 March 2010 Revenue (sales) Inventory (stock) at 1 April 2009 Purchases Inventory (stock) at 31 March 2010 Costof sales Gross profit Expenses Net profit $ s 426 100 14500 76 000 90 500 18000 (a) (a) a) 72500 53 600 37 500 16 100 (1) (1) OF (1) OF (1) (1) OF 8) [Total marks: 25]Robbie McDonald Income Statement (Trading and Profit and Loss Account) for the year ended 30 September 2010 $ $ $ Revenue (sales) 216 000 (1) Less Cost of sales ‘Opening inventory (stock) 19.500 (1) Purchases 476 000 (1) Less Goods for own use 4900 (1) 174100 493 600 Less Closing inventory (stock) 20 800 (2)C/F (1)07F 472 800 (1)O/F Gross profit 43200 (2) Bad debts recovered 160 (1) Decrease in provision for doubtful debis (372-362) 20 (2) 43 380 Less Wages 28 200 (1) Property tax and insurance (8900 (1) - 600 (1)) 8300 Administration expenses 4410 (1) Bank interest 1550 (1) Depreciation Motor vehicles (20% x 4800) 960 (1) Equipment (3000 - 2340) 660 (1) 44.080 Loss for the year (Net loss) 700 (1)O/F Horizontal format acceptable [20] [Total: 20]‘Sabena Khan Income Statement for the year ended 31 January 2011 s Revenue Less Cost of sales ‘Opening inventory Purchases S1'400(1) Less purchases returns 2.300 (1) Less Closing inventory Gross profit Bad debts recovered Provision for doubtful debts (116-98) Bad debts Carriage outwards Administration expenses Discount allowed Depreciation - Equipment (4500 - 3800) Fixtures and fittings 10% x 5400 Profit for the year Horizontal format acceptable $ 7, 5004) 49 100 56 600 10.040 (2) CIF (1) OF 50 (1) 700 (1) 7 960 (1) 182 (1) 700 (1) —S40 (1) $ 58 200 (1) 46.560 11640 (2) 150 (1) 18(2) 17608 10132 41676 (1) OF [Total: 18]2 @ Amir Sadiq ‘Trading and Profit and Loss Account for the year ended 31 March 2003 ‘0900 686001) 22300 (1) OF 300 22600 49100 3500 (1) o1F 17] 2] $ $ Sales 92100 (1) Less Sales returns 1200 (1) Less Cost of Sales - Opening stock 9900 (1) Purchases 68500 (1) Less goods for own use 3001) 68200 Carriage inwards 700(1) 78800 Less Closing stock 10200 (1) Gross Profit Discount received 250.1) Reduction in provision for doubtful debts 50¢) Motor vehicle expenses 1240. General expenses 2030 Wages 11940 + 1080 13020 (1) Insurance 1470 - 210 126011) Depreciation - Motor vehicles 20% x 4750 950 (1) Fixtures and equipment 3400 - 2800 600 (1) Net Profit Horizontal presentation acceptable. (b) Cost of goods cold = — 88600 oF - 6.83 times (1) OF ‘Average stock 410050 {c) (Accounts are prepared on the basis that the business will continue to operate for an indefinite period of time. (il) Lower of cost and net realisable value. BI 1] [otal 22]2 (ant) ii) ity (iv) ” (vi) (vil) (byt) ii) () 36000 \(1), Stock (1) $71.00 (1) Inwards (1) $14.00 (1) Received (1) (accept income} $7000 (1) $30000 100000 +100-30% (2) (1) OF *100=12% (2) (1) OF 28.3% (1) $1200, 700000 11.3% (1) 1. No effect 2. Reduction in expenses would increase NP: sales percentage 34.0% (1) } 38.0% Must refer to % Gross profitinet profit only — no marks (1) a) (a)Question ‘Question (including any source details) Part mark number 2 a) Bonnie Clyde Balance Sheet at 31 March 2005 s $s Fixed Assets Machinery at cost, 20 000 (1) Provision for depreciation 12.000 (1) Net book value 8.000(1) Current Assets Stock 3.000 (1) Debtors 1.000 (1) Bank 500 (1) 4500 Current Liabilties Creditors 200 (1) Working capital 3.800 11800 Long term Liability Bank loan (accept if under capital) 2.800 (1) 9.000 Capital Balance at 1 April 2004 6.000 (1) Profit for the year 1500 (1) 13500 less drawings 4500 (1) 2.000 (1) for matching totals [Horizontal format acceptable] 112] () | a Current assets less current liablitios (1) Capital needed for day to day running of business (1) 0) Working capital $4 500 (10F) less $700 (1)OF = $3 800 (1) [4] [Total: 16) |Pages ‘Mark Scheme ‘Syllabus Paper IGCSE - November 2005 0452 02 Question Question (including any source details) Number 3 @ Smith Trading and Profit and Loss Account ‘Year ended 30 June 2005 8 $ Sales 102 000 (1) Opening stock 8400 (1) Purchases (75,600-+4,000) 79 600 (2) Carriage inwards 7001) 88 700 less: closing stock 7.100 (1) Cost of sales (1) 81.600 (1) Gross profit 20400 (1) OF Advertising 400 (1) Provision for depreciation of fixed assets 700.) Gehdralexpeases 306), Insurance 420 (1) Lighting and heating 600) Motor expenses (860 +350) 1210 (I) Office expenses 280) Rent 720 (1) Postage and stationery 180) Wages and salaries 5250 () 10150 Net profit 10250 (1)OF (Horizontal presentation acceptable) (b) (i) Gross profit percentage = gross profit/sales =20 400 / 102 000 x 100 = 20.00% (ii)Net profit percentage net profit/sales = 10250 / 102 000 x 100 = 10.05% Part mark {161 (oF a (DoF aQuestion Question (including any source details) Part Number © mark Jones may charge higher prices for his goods, possibly because they are in high demand Jones can buy his goods more cheaply, take advantage of trade discount Other similar points up to 2 marks each 14 (Total 241Page 6 Mark Scheme Syllabus Paper TGCSE — November 2005 0452 @ Question Question (including any source details) Part Number mark 5 (a) Anvil Balance Sheet at 31 August 2005 Fixed assets Cost Depreciation Net Book Value $ $ $ Plant and machinery 45000(1) 1200001) 33000 () Motor cars 22000(1) _S400(1) 16600 (1) 67.000 17400 49.600 Current assets Stock 16 000 (1) Debtors 52.000 (1) Prepayments 1800 (1) Bank and cash 22.400 (1 92200 less: Current liabilities Accruals 3.300 (1) Creditors 32.000 (1) 35.300 Net currénb/assits ( working capital) 56.900 106500 Long term liability — Bank loan 5.000 (1) 91 500 Capital Balance at 1 September 2004 91000 (1) Net profit 30.500 (1) 121500 less: drawings 30.000 (1) 91.500 [16]Question Question (including any source details) Number ) @ Gi) Bank + Debtors + Prepayments + Stock Accruals + Cre sditors 22 400 + 52.000 + 1 800 + 16 000 = 92 200 (1) 3300 + 32000 Current ratio = 2.61:1 (OF As above without stock 76 200 (1)/35 300 (1) Quick ratio= 16:1 (OF = 35300 (1) Part mark 13] (3) [Total 22]Page4 Mark Scheme Syllabus | Paper TGCSE - May/June 2006 0452, 02 Question Question (including any source details) Part Number Mark 3 @ Hilota — Trial balance at 31 March 2006 $s s Fixed assets 22000 (1) Provision for depreciation 9.300 (1) ‘Stock at 1 April 2005 3200 (1) Balance at bank 1550 (1) Sales 56 500 (1) Sales returns 500 (1) Purchases 34200 (1) Carriage outwards 950 (1) Rent 4000 Wages 7.200 (1) General expenses 2600 Capital 20.000 (1) Drawings 9600 (1) Totals 85 800 85 800 (1) to agree total (12) (b) Hilota Trading account for the year ended 31 March 2006 $ $ Sales 56500 (1) less sales vetluns, —500 (1) 56000 Opening stock 3.200 (1) Purchases 34200 (1) 37400 lass closing stack 3.800 (1) Cost of goods sold 33.600 (1) Gross profit 22.400 (1) OF m (€) Gross profit percentage = Gross profitinet sales = 22 400 (1)(OFY/56 000 (1) x 100 = 40.00% (1) BI (4) Ino sales returns, use gross sales: Gross profit percentage = 22 900 (1)(OFY/56 500 (1) x 100 = 40.43% (1) [3] Total marks [25]3 (a) () Realisation, prudence, matching (any one) ‘Accruals ¥ (i) Prudence, consistency (any one) (b) Morgan Balance sheet at 31 August 2006 Cost Provision for s Fixed assets ‘Machinery 7000 1.400 Office equipment 2.500 4.000 9500 (1) 2400 for both Current assets entries ‘Stock 3.900 Debtors 3.500) Prepayments 600) Cash 200) 8200 Less current liabilities Creditors, 1 800) Accrued expenses Bank (overdrawn) 220° (1) 4.300 Netcurent assets/working capital Total assets Long torm liability Loan repayable 2011 Finanoed by Capital at 1 September 2005 ‘Add Profit for the year Less drawings (1) = not in Current Assets or in calculation of Capital @ @ 4 Net book value $ 5.600 1.500 “ 7100 (4) for both ontrios “) a for all - Description three needed entries 3200 (Noh 71000 narrative neodod 5000 (t) 6.000 9000 (1) 18000 (i) 27000 21000 (1) 6000 (1)(of) to.agree balances (no aliens) 113)(c) Overdraft may be reduced by collecting debtors, recucing stock, delaying payment of creditors, delaying drawings, increasing capital (any one). Sell fixed assets Long Term Loan 7” Reduce expenditure @) Tnorease Decrease | No effect (__| Bank overdraft va (ii)__[ Loan account v1) (ii)__| Working capital 7 (1) (iv)_[ Profit for the year| vo (v) [Capital wy o Total [24]f@) (b) (©) Rachel Smith Income Statement for the year ended 31 March 2012 $ $ Revenue Less Cost of sales ‘Opening inventory 3.100 (1) Purchases 42.500 (1) Less Purchases returns 1900 (1) 70600 Carriage inwards 1050 (1) 416 44750 Less Closing inventory 3750 (1) Gross profit Less Carriage outwards 540 Bad debts 190 (1) Provision for doubtful debis 150 (1) Property tax (6000 - 1200) 4800 (2) Wages (7100 + 180) 7 280 (2) General expenses 1620 Depreciation — Equipment 1920 (1) Profit for the year 22100 OF}, 100 O Sia Ane s8026O) OF (li) Increase selling prices Reduce cost of purchases ‘Any 1 comment (2) S600 Ory yt 100 -a.8r% ()OF 63100 w (li) Reduce expenses Increase gross profit Increase other income ‘Any 1 comment (2) $ 63 100 (1) IS 8 is SI eo ao 5600 (1) OF 16) 2 (2) (2) (2) [Total: 24]fa) (o) (ce) (a) (e) ‘Mark Mutanda Income Statement for the year ended 31 January 2012 s Income from clients Rent received (2 600 - 200) Decrease in provision for doubtful debts (154-136) Less Insurance (5 630 - 2 320) 3.310 (2) Wages and salaries (33000 +3200) 96 200 (2) Rates 5200 (1) Loan interest (900 + 300) 4200 (2) Office expenses (17 177 ~ 214) 16 963 (2) Depreciation — Office equipment (1.900 + 600 (1) ~ 2 100 (1)) 400 Depreciation — Fixtures & fittings (10% x 5250) 525 (1) Profit for the year ‘Mark Mutanda Capital account 2012 s 2011 Jan 31 Office expenses Feb 1 Balance b/d (drawings) 214 (1) 2012 Cash (drawings) 16000 (1) Jan 31 Profit Balance cid 204 506 220-726. 2012 Feb 1 Balance b/d +(1) dates 20720(1)0F __, 100 _ 9 4996 «yor 200000 + 20000 (1) "4 s 82100 (1) 2.400 (2) ——18 (2) 84518 In iB Is by is Is (1)0F $s 200000 (1) 20720 (1)0F 220720 204506 (1)OF This shows the profit eamed for every $100 used in the business. (1) The higher the percentage the more efficiently the capital is being employed. (1) Lower profit for the year Higher capital employed Any 1 point (2) 118) {6 B) 2] 1c)5 (a) The cost of inventory is the actual purchase price of the goods (1) plus any additional costs (b) (c) (a) ib) (9) (h) incurred in bringing the goods to their present position and con n. (1) 2 The net realisable value is the estimated receipts from selling the goods (1) less any costs of completing the goods or costs of selling. (1) This ensures that the profit is not overstated (1) This ensures that the inventory is not overstated (1) overstated understated no effect (ii) | profit for the year ended 31 December 2012 (iii) | credit balance on capital account on 1 January 2013 ¥ Q) ~@) Cost of sales = 80% x 87 000 = 69 600 (1) ‘Bidob/+ 7460! ‘Average inventory = =" =6700(1) = 69600 _ 6700 Rate of turnover 0.39 times (1) Lower inventory levels More sales activity Any 1 reason (2) The business should be selling similar goods The business should be of a similar size Or other acceptable point Any 1 point (1) To assess the liquidity position To calculate the payment period for trade payables To determine the period of credit to be allowed To determine the credit limit To identify future prospects Any 2 reasons (1) each 1 [2] [4] 1] 2] 1 1)w @ (i Employee To assess the ability of the business to continue operating To consider the prospects for jobs and wages Any 4 point (1) i) Bank manager To assess the prospect of any requested loan/overdratt being repaid when due To assess the prospects of any interest on loan/overdraft being paid when due To determine the security available to cover any loan/overdraft Any 1 point (1) fo) [Total: 20]