Mark Scheme
January 2017
Results
Pearson LCCI
Certificate in Book-keeping and
Accounts (VRQ) (ASE20093)
Level 2
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© Pearson Education Ltd 2017
Publication code: 54249_MS
ASE20093
2 January 2017
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.
Where marks are awarded for own figure answers, these marks can only be
awarded if evidence of how the candidate arrived at their values has been
provided (their workings).
If candidate's fail to provide their workings when instructed in the paper, it may
not be possible to achieve all marks associated with the question, even if the final
answer is correct.
For calculation questions full marks can be awarded where correct answer is seen
with no workings shown, unless question states that candidate must provide
workings.
ASE20093
3 January 2017
Abbreviation
of Own Figure rule
Accuracy marks can be awarded where the candidates’ answer does not match the
mark scheme, though is accurate based on their valid method.
cao Correct Answer Only rule
Accuracy marks will only be awarded if the candidates’ answer is correct, and in
line with the mark scheme.
ASE20093
4 January 2017
Question Answer (AO1) 4 Mark
Number
1 (a) Award 1 mark for each correct error.
Situation Type of error
A sales invoice has not been entered Omission (1)
in any of the accounting records.
A motor vehicle purchased for Principle (1)
business use has been entered in the
accounts as a motor expense.
Payment to J Smith has been entered Commission
in the account of T Smith. (1)
Rent paid account and sales account Compensating
have both been overstated by $100 (1)
(4)
ASE20093
5 January 2017
Question Answer (AO2) 12
Number Mark
1(b) Award 1 mark (AO2) for each correct entry on correct side
and 1 mark for correct narratives and dates.
Motor Vehicle Account
Date Details $ Date Details $
1 Jan Balance b/d 6 000 31 Dec Disposal 6 000
16 16 (1)
31 Dec Disposal 2 500 Balance c/d 9 000
(1)
Bank 6 500
15 000 15 000
1 Jan Bal b/d 9 000
17 (1of for
both)
Accumulated Depreciation Account
Date Details $ Date Details $
31 Dec Disposal 4 102 1 Jan Balance b/d 4 102
16 (1) 16
Balance c/d 2 250 31 Dec Income 2 250
statement (1)
6 352 6 352
Bank Account
Date Details $ Date Details $
1 Jan Balance b/d 8 920 31 Dec Motor vehicle 6 500
16 16 (1)
Balance c/d 2 420
8 920 8 920
1 Jan Balance b/d 2 420
17 (1of for
both)
Disposal Account
Date Details $ Date Details $
31 Dec Motor vehicle 6 000 31 Dec Accumulated 4 102
16 (1) 16 dep’n (1of)
Income 602 Motor vehicle 2 500
statement (1of) (1)
6 602 6 602
Correct narratives and dates (1) (12)
Question Answer (AO1) 1
Number Mark
1(c) Award 1 mark for appropriate response based on response
in 1(b).
If Loss = Expenses
If Profit = Additional Income (1)
TOTAL FOR QUESTION 1 – 17 MARKS
ASE20093
6 January 2017
Question Answer (AO2) 3 Mark
Number
2(a) Award marks as shown, labels need not be shown but
directions MUST be clear.
Assets 22 500+6 000+30 000+4 000 = 62 500 (1 of)
Liabilities 20 000 –2 500-10 000 = 32 500 (1 of)
Equity 30 000 (1 of)
OR
Equity = 30 000 (3) (3)
ASE20093
7 January 2017
Question Answer (AO2) 20 Mark
Number
2(b) Award marks for correct figures and labels shown.
Mazy
Statement of financial position at 31 July 2016
Assets $ $ $
Cost Accumulated Carrying
depreciation value
Non-current assets
Fixtures and fittings 27 500 10 000(1) 17 500(1 of)
Motor vehicle 40 000 19 000(1) 21 000(1 of)
67 500 29 000 38 500
Current assets
Inventory 5 700(1)
Trade receivables 22 700
(1)
Allowance for (681) 22 019(1)
doubtful debts
Other receivables 550(1)
Cash in hand 150(1)
28 419
Total Assets *66 919
Equity and
liabilities
Opening Equity 30 000
(1 of)
Profit for the year 15 000(1)
Drawings (9 000) (1)
36 000(1of)
Current liabilities
Trade payables 19 000(1)
Other payables 669 (1)
Bank 1 250(1)
Bank loan 2 000 (1)
22 919
Non-current
liabilities
Bank loan 8 000(1)
Total equity and *66 919
liabilities
* Award two marks for 66 919 and one mark (of) provided
both figures are the same (20)
TOTAL FOR QUESTION 2 – 23 MARK
ASE20093
8 January 2017
Question Answer (AO1) 2 (AO3) 4 Mark
Number
3(a) Award 1 mark each for identifying one advantage and one
disadvantage. Award up to 2 marks for explaining each
advantage and disadvantage.
E.g.
Advantage
Cover for other partner (1)
Explanation - with more partners available it will be easier
to cover for partners if they go off sick or take holidays (1)
ensuring the business can continue earning revenue and
offering services (1).
Increase in capital (1)
Explanation –both partners will bring capital to the
business (1) this will allow them to increase the scale of
operation (1).
Disadvantage
Partners will have to make decisions together (1)
Explanation - this could take time (1) and potentially
cause disagreements (1).
Increase the risk (1)
Explanation – if a partner is unable to clear their debt to
the business (1) the other partner will take responsibility
for that partner’s debt (1). (6)
Question Answer (AO2) 4 Mark
Number
3(b) Award marks for each correct entry including date and
details.
Capital Account - Ruby
Date Detail $
1 Jan Bank 10 000
14 (1)
Capital Account - Lucy
Date Detail $
1 Jan Bank 10 000
14 (1)
Bank Account
Date Detail $
1 Jan Capital – 10 000
14 Ruby (1)
Capital - Lucy 10 000
(1) (4)
ASE20093
9 January 2017
Question Answer (AO2) 6 Mark
Number
3(c) Award 1 mark for each correct amount against correct
label.
Ruby & Lucy
Appropriation Account
for year ended 31 December 2016
$ $ $
Profit for the year 56 000
Interest on
drawings
Ruby 126(1)
Lucy 204(1)
330
56 330
Salary - Lucy 6 000(1)
Interest on
capital
Ruby 500
Lucy 500(1 for both)
1 000
7 000
Profit available for 49 330
distribution
Profit share
Ruby 29 598
(1 of)
Lucy 19 732
(1 of)
49 330 (6)
ASE20093
10 January 2017
Question Answer (AO2) 4 Mark
Number
3(d) Award marks for each correct entry including date and
details.
Current Account - Lucy
Date Detail $ Date Detail $
31 Dec Drawings 6 800 1 Jan Balance 900
16 (1) 16 b/d (1)
Interest 204 31 Dec Interest 500
on 16 on capital
drawings
Balance 20 128 Profit 19 732
c/d share (1 of)
Salary 6 000
27 132 27 132
1 Jan Balance 20 128
17 b/d (1of for
both)
(4)
Question Answer (AO2) 4 Mark
Number
3(e) Award marks for each correct entry including date and
details.
Goodwill Account
Date Detail $ Date Detail $
1 Jan Ruby – 2 400 1 Jan Ruby – 2 800
17 capital (1) 17 capital (1)
Lucy – capital 1 600 Lucy – 1 200
(1) capital (1)
4 000 4 000
Accept figures netted off. (4)
Question Answer (AO1) 2 Mark
Number
3(f) Award marks for correct response.
Goodwill will be shown in the statement of financial position
(1) as an intangible non-current asset. (1) (2)
TOTAL FOR QUESTION 3 – 26 MARKS
ASE20093
11 January 2017
Question Answer (AO1) 5 (AO2) 5 Mark
Number
4(a) Award 1 mark for each correct formula and 1 mark for
each correct calculation.
Formula Answer
Gross profit as a % Gross profit 63.75%
of revenue x 100
Revenue
Account Trade 88 days
receivables receivables x 365
collection period Revenue
Account payables Trade payables x 103 days
payment period Cost of goods sold 365
Return on capital Profit for the year 17.81%
employed x 100
Capital employed
OR
Profit for the year
x 100
Equity
Liquid (acid test) Current assets-inventory 2.59:1
ratio Current liabilities (10)
Question Answer (AO4) 4 Mark
Number
4(b) Award 1 mark for identification of impact and an additional
mark for development.
Account receivables collection period
E.g.
Impact:
This could impact on cash flows (1)
Development:
… this could be the reason why they can’t pay their trade
payables on time (1).
Account payables payment period
E.g.
Impact:
If they continue paying their trade payables late then they
could have orders withheld (1)
Development:
… and therefore their reputation could be at stake (1).
(4)
TOTAL FOR QUESTION 4 – 14 MARKS
ASE20093
12 January 2017
Question Answer (AO3) 2 Mark
Number
5(a)(i) Award 2 marks for explaining the treatment of
Subscriptions in Advance.
This is a liability (1) in the statement of financial position which
means that the subscription has been collected in advance for the
next accounting period (1). (2)
Question Answer (AO3) 2 Mark
Number
5(a)(ii) Award 2 marks for explaining the treatment of
Subscriptions in Arrears.
This is an asset (1) in the statement of financial position which
means that the subscription has not been collected in this
accounting period (1). (2)
Question Answer (AO2) 5 Mark
Number
5(b) Award marks as shown for values. Award 1 mark for all
correct dates and labels.
Life Subscriptions Account
Date Details $ Date Details $
29 Feb Income and 900 1 Mar Balance b/d 6 000
16 Expenditure (1) 15 (1)
Balance c/d 8 100 Receipts and 3 000
payments (1)
9 000 9 000
1 Mar Balance b/d 8 100
16 (1of
for
both)
All correct dates and labels (1) (5)
ASE20093
13 January 2017
Question Answer (AO2) 7 Mark
Number
5(c) Award marks for correct dates, figure and narrative.
Trade Payables Control Account
Date Details $ Date Details $
29 Feb Returns 90 1 Mar Balance b/d 175
16 outwards (1) 15 (1)
Bank 225 29 Purchases 170
(1) Feb (2/1of)
16
Balance c/d 55 Interest 25
(1)
370 370
1 Mar Balance b/d 55
16 (1 for
both) (7)
Question Answer (AO2) 4 Mark
Number
5(d) Award marks as shown.
Bella Sports Club
Trading account for the year ended 29 February 2016
$ $
Revenue 225
Cost of sales
Opening inventory 250
Purchases 170 (1of)
Returns outwards 90 (1)
Closing inventory 180
150 (1of)
Gross profit 75 (1of)
Do not accept Surplus/Deficit. (4)
TOTAL FOR QUESTION 5 – 20 MARKS
TOTAL FOR PAPER = 100 MARKS
ASE20093
14 January 2017
