Mark Scheme (Results)

January 2019

Pearson Edexcel International GCSE

In Accounting (4AC0)

Paper 1
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January 2019
Publications Code 4AC0_01_1901_MS
All the material in this publication is copyright
© Pearson Education Ltd 2019
General Marking Guidance

 All candidates must receive the same treatment. Examiners

must mark the first candidate in exactly the same way as they
mark the last.
 Mark schemes should be applied positively. Candidates must
be rewarded for what they have shown they can do rather than
penalised for omissions.
 Examiners should mark according to the mark scheme not
according to their perception of where the grade boundaries
may lie.
 There is no ceiling on achievement. All marks on the mark
scheme should be used appropriately.
 All the marks on the mark scheme are designed to be awarded.
Examiners should always award full marks if deserved, i.e. if the
answer matches the mark scheme. Examiners should also be
prepared to award zero marks if the candidate’s response is not
worthy of credit according to the mark scheme.
 Where some judgement is required, mark schemes will provide
the principles by which marks will be awarded and
exemplification may be limited.
 When examiners are in doubt regarding the application of the
mark scheme to a candidate’s response, the team leader must
be consulted.
 Crossed out work should be marked UNLESS the candidate has
replaced it with an alternative response.
Section A: multiple choice
Question Answer Mark
Number
1 C Account to be debited – cash (1)
Account to be credited - sales

Question Answer Mark

Number
2 B Journal (1)

Question Answer Mark

Number
3 B Interest charged (1)

Question Answer Mark

Number
4 B Business entity (1)

Question Answer Mark

Number
5 D Principle (1)

Question Answer Mark

Number
6 D Standing order (1)

Question Answer Mark

Number
7 B Receipts and payments account (1)

Question Answer Mark

Number
8 B $2 040 (1)

Question Answer Mark

Number
9 B $223 200 (1)

Question Answer Mark

Number
10 D Trading account (1)
Question Answer Mark
Number
11(a) Award marks as indicated
Book of Account Account
Source
Transaction original to be to be
document
entry debited credited
Sold goods Sales
Sales E Paige
on credit to (day) Sales (1)
invoice (1) (1)
E Paige book (1)
Returned Credit Purchase T Purchase
goods to T note (1) returns Williams returns
Williams, a (day) (1) (1)
credit book (1)
supplier
Purchase Journal Fixtures Fixashop
Purchased invoice (1) (1) and (1)
fixtures and fittings
fittings on (1)
credit from
Fixashop

(12)

Question Answer Mark

Number
11(b) Award marks for correct amounts as indicated.
Award 1 mark for ALL correct dates and narratives

Sales ledger control account

Date Narrative £ Date Narrative £

Nov 1 Balance b/d 24 100 (1) Nov 30 Cash book 122 900
(1)
Nov Sales day 132 789(1) Cash book 876 (1)
30 book
Journal/bad 600 (1)
debts
Sales 5 213 (1)
returns day
book
Balance c/d 27 300
156 889 156 889
Dec 1 Balance b/d 27300(1of)
(8)

(Total for Question 11 = 20 marks)

estion Mark
mber
(a)
Award marks as indicated

Petty Cash Book

Receipts Date Details Voucher Total Postage Travel Ledger

No and Accounts
Nov Stationery
£ £ £ £ £
166 (1) 1 Balance
b/d
84 (1) 1 Cash book
1 Interviewee 46 15 15
travel (1)
6 Postage 47 12.50 12.50
stamps (1)
10 Jones 48 26 26
(1)
14 Taxi Fare 49 21 21
(1)
22 Paper 50 35.50 35.50
(1)
30 Peters 51 27 27
(1)
137 48 36 53
(1of)
30 Balance c/d 113
250 250

113 (1of) Dec Balance

1 b/d

(10)
Question Mark
Number
12 (b) Award marks for correct amounts as indicated.
Award 1 mark for ALL correct dates and narratives

Travel Account
Date Narrative £ Date Narrative £
Nov 1 Balance b/d 28 Nov Balance 64
(1) 30 c/d
Nov Petty cash 36
30 book (1 of)
64 64
Dec 1 Balance b/d 64
(1of) (4)

Question Mark
Number
12 (c) Award mark as indicated

Current assets (1) (1)

(Total for Question 12 = 15 marks)

Question Mark
Number
13 (a) (i) Award marks for correct amounts as indicated.
Award 1 mark for ALL correct dates and narratives

Rent and Rates Account

Date Narrative £ Date Narrative £

Aug Balance 350 Aug Balance b/d 250 (1)
1 b/d (1) 1
Cash book 1 800 Jul Income 7 720
(1 all 4) 31 Statement (1of)
Oct 1 Cash book Balance c/d 180
1 600
Feb Cash book 2000
1
Apr Cash book 2 200
1
Jul Balance 200
31 c/d
8 150 8 150

Aug Balance 180 Aug Balance b/d 200 (1) (7)

1 b/d (1) 1

Question Mark
Number
13 (a) (ii) Award marks for correct amounts as indicated.
Award 1 mark for ALL correct dates and narratives

Rent Received Account

Date Narrative £ Date Narrative £
Jul Income 1 050 (1) Aug Balance b/d 150 (1)
31 statement 1
Balance 200 Sep Cash book 850 (1 for
c/d 1 both)
Mar Cash book 250
1
1 250 1 250
Aug Balance b/d 200 (1)
(4)
1
 Question Mark
Number
13 (b) Award 1 mark for identification of the accruals concept and
up to 2 marks for the application of this to the scenario.

Sample answer
Ciao has applied the accruals concept (1) as he has accounted
correctly for the rent received which relates to that financial year
(1) with any balances for the previous year and the next year
being excluded (1)
(3)

(Total for Question 13 = 15 marks)

Question Mark
Number
14 (a) Award marks as indicated

Stylos and Kristos

Profit and loss, and Appropriation account
For the year ended 30 November 2018
£ £
Gross profit 109 150 (1)
Expenses
Wages and salaries W1 29 300 (2)
Provision for doubtful debts 1 450 (1)
Depreciation charge W2 6 000 (2)
Rent rates and insurance 16 800 (1)
53 550
Profit for the year 55 600(1of)
Appropriations
Interest on capital:
Stylos 4 800
Kristos 2 800 (1)
Salary Stylos 8 000 (1)
15 600
Residual profit 40 000 (1of)
Share of profits: 30 000(1of)
Stylos 10 000 (1of)
Kristos
40 000

W1 26 500 (1) + 2 800 (1) = 29300

W2 36 000 (1) – 6000 (1) x 20% = 6 000
(13)
Question Mark
Number
14 (b) Award marks for correct amounts as indicated.
Award 1 mark for ALL correct dates and narratives

Current Account - Stylos

Date Narrative £ Date Narrative £

Nov Drawings 12000(1) Dec Balance 13 750 (1)
30
1 b/f

Balance 44 550 Nov Salary 8 000 (1)

c/d 30
Interest 4 800 (1of)
on capital
Share of 30000(1of)
profits
56 550 56 550
(7)
Dec Balance 44550(1of)

1 b/d
Question Mark
Number
14 (c) Award up to 2 marks for advantages of this proposal, a further
2 marks for any disadvantages

Award (1) mark for a conclusion.

Sample response

Advantages

Both partners will become shareholders of the business and as

such will have limited liability which means that the extent of
their liability for business debts will be limited to the amount of
money they have invested in the business (1).

The partners may also become employees of this new business as

directors and as such will receive a directors salary as opposed to
just one of them receiving a salary as at present (1)

They may be able to attract more investment from outside

agencies such as banks that are more likely to lend money where
the ownership of the business is wider (1).

Disadvantages

However they may find that they have less control over the day
to day operations of the business as they may have other
shareholders who have a say in the running of the business (1).

There will also be a change to the way in which the accounts are
prepared and to the type of taxation paid on the business profits
(1)

They will also have to ensure that they abide by all the
legislation which relates to the management and administration
of companies. (1)

Conclusion

Although there are many advantages to the partnership of this

proposal Stylos and Kristos will be well advised to seek
professional advice before embarking on this change as they need (5)
to be aware of the disadvantages too. (1)

(Total for Question 14 = 25 marks)

Question Mark
Number
15 (a) Award 1 mark for each correct response as indicated

Capital Revenue Capital Revenue

receipt receipt expenditure expenditure
Additional  (1)
capital
invested by
Javid
Bank  (1)
interest
received

Discount  (1)
allowed

Discount  (1)
received
Installation  (1)
cost of new
machine
Interest on  (1)
bank loan

Maintenance  (1)
contract on
new
machine
New bank  (1)
loan

Payment by  (1)
tenant of
rent.
Purchase of
goods for  (1)
resale (10)
Question Mark
Number
15 (b) Award (1) mark for comment related to the effect on the
income statement and (1) mark for the effect on the
balance sheet.

Award up to (2) marks for a relevant example

Award (1) mark for a conclusion.

Sample response

The incorrect treatment of revenue expenditure would result

in the net profit being either overstated or understated (1).

The incorrect treatment of capital expenditure would result

in the fixed assets section of the balance sheet being either
overstated or understated (1).

If, for example, a business enters the purchase of a motor

vehicle in the motor expenses account this would result in
the net profit being understated (1) and the value of the
motor vehicles in the balance sheet being understated (1).

By treating capital expenditure and revenue expenditure

incorrectly this would result in the financial statements not
providing a true and fair view of the business (1). (5)

(Total for Question 15 = 15

marks)

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