Mark Scheme

September 2019

Pearson LCCI Certificate in

Bookkeeping and Accounting (VRQ)
Level 2
(ASE20093)
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Publication Code: 64215_MS

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© Pearson Education Ltd 2019

2 ASE20093 September 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.

• 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.

3 ASE20093 September 2019

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.

fb Both entries/answers should be present

4 ASE20093 September 2019

Question Answer AO2 (10) Mark
Number
1(a) Award 1 mark for correct figures with account names as indicated.

Date Account Debit $ Credit $

31 July 2019 Trade payables (ledger 1 750 (1)
control)

Suspense 1 750 (1)

Bank 3 500 (1)

Cash 9 (1)

Sales 9 (1)

Discount allowed 376 (1)

Discount received 376 (1)

Suspense 752 (1)

Drawings 180 (1)

Insurance 180 (1)

(10)

5 ASE20093 September 2019

Question Answer AO2 (4) Mark
Number
1(b) Award marks for dates, details and amounts in combination.

Suspense Account

Date Details $ Date Details $

31 July Bank 3 500 31 July Balance b/d 998

(1) (1of)
Trade 1 750
payables (1)
leger
control
Discount 376
allowed (1fb)
Discount 376
received

3 500 3 500
(4)
Additional guidance
Do not award own figure mark if balance is carried down.

Question Answer AO1(1) Mark

Number
1(c) Award mark as indicated.

C (1) (1)

Question Answer AO1(1) Mark

Number
1(d) Award mark as indicated.

B (1) (1)

6 ASE20093 September 2019

Question Answer AO1(5) Mark
Number
1(e) Award marks as indicated.

Debit Credit side Not

side entered

Opening balance – minority  (1)

balance

Irrecoverable debt written  (1)

off
 (1)
Interest charged on overdue
account
 (1)
Cash sales

 (1)
Credit sales

(5)

TOTAL FOR QUESTION 1 = 21 MARKS

7 ASE20093 September 2019

Question Answer AO2 (7) Mark
Number
2(a) Award 1 mark for each correct figure as indicated.
Award 1 mark for all correct dates and details.

Subscriptions Account
Date Details $ Date Details $
1 June Balance b/d 450 (1) 1 June Balance b/d 858 (1)
31 May Income and 31 980 31 May Receipts 32 226
expenditure (1of) and (1)
payments
Balance c/d 1 200 Balance c/d 546
33 630 33 630
1 June Balance b/d 546 (1) 1 June Balance b/d 1 200 (1)

(7)

Question Answer AO2 (7) Mark

Number
2(b) Award marks as indicated.
Cost Depreciation charge Accumulated
$ $ depreciation
$

36 750 (1) 8 925 (3) 26 825 (3)

7 080 24 300
45 (1) 8 925 (1of)
1 800 (1) (6 400) (1)
8 925 (1of) 26 825 (1of)

Or

7 110
590 (1)
1 225 (1)
8 925 (1of)

(7)
Additional guidance
No specific layout is required.
Correct answers only score 7 marks.

8 ASE20093 September 2019

Question Answer AO2 (8) Mark
Number
2(c) Award 1 mark for each correct figure with label as indicated.

The Bess Social Club

Statement of financial position at 31 May 2019

$ $
Assets
Non–current assets
Equipment 9 925 (1of)

Current assets
Inventory 19 005
Subscriptions in arrears 546 (1)
Bank deposit 150 000
Cash at bank 1 293 170 844 (1)
Total assets 180 769

Accumulated fund and

liabilities
Opening balance 35 393
Deficit for the year (10 564) (1of)
Donations 150 000 (1)
Total accumulated fund 174 829 (1of)

Current liabilities
Trade payables 4 740
Subscriptions in advance 1 200
Total liabilities 5 940 (1)
Total accumulated fund and 180 769 (1of)
liabilities

(8)
Additional guidance
Award OF for accumulated funds and liabilities only if it matches to total
assets

TOTAL FOR QUESTION 2 = 22 MARKS

9 ASE20093 September 2019

Question Answer AO2 (5) Mark
Number
3(a) Award marks for correct dates, details and amounts in
combination.

Royalties Account
Date Details $ Date Details $
31 March Cash book 57 400 1 April Balance b/d 9 220
(1) (1)
Balance 6 100 31 March Manufacturing 54 280
c/d (1) (1)

63 500 63 500
1 April Balance b/d 6 100
(1)
(5)

Question Answer AO2 (12) Mark

Number
3(b) Award 1 mark for each correct figure with label as indicated.

Anya
Manufacturing account for the year ended 31 March 2019

$ $
Raw materials
Opening inventory of raw 87 100
materials
Purchases of raw materials 244 380
Carriage inwards 1 485 (1)
332 965
Closing inventory of raw (99 700)
materials (1fb)
Cost of raw materials 233 265 (1of)
consumed
Direct labour / wages 42 350 (1)
Direct expenses / royalties 54 280 (1of)
Prime cost 329 895 (1of)
Overheads
Depreciation 18 300 (1)
Indirect labour / supervisor 19 700 (1)
salary
General expenses W1 45 780 (2) 83 780
413 675
Add: opening work in 38 870
progress
Less: closing work in (42 960) (4 090) (1)
progress
Production cost 409 585 (1of)

W1 65 400 (1) x 70% = 45 780 (1of) (12)

10 ASE20093 September 2019

Question Answer AO3 (2) Mark
Number
3(c) Award 1 mark for identification and 1 mark for linked
justification/reasoning.

To arrive at an accurate cost of production (1) general expenses relating

to production are charged to the manufacturing account, all others are
charged to the statement of profit or loss (1).

Accept any other appropriate responses. (2)

Question Answer AO3 (2) Mark

Number
3(d) Award 1 mark for identification and 1 mark for linked
justification/reasoning.

Carriage inwards is added to the purchase price, whereas carriage

outwards is an expense in the statement of profit or loss (1) to ensure
that the true cost of purchasing the goods is reflected in the gross profit.
(1)

Accept any other appropriate responses. (2)

TOTAL FOR QUESTION 3 = 21 MARKS

11 ASE20093 September 2019

Question Answer AO2 (4) Mark
Number
4(a)(i) Award marks as indicated.

Ratio
Gross profit as a percentage of revenue 56.25 %
(margin) correct to two decimal places
(1)

Gross profit as a percentage of cost of 128.57%

goods sold (mark up) correct to two
decimal places (1)

Accounts receivables collection period 44 days

(assuming 360 days in a year)
(1)

Accounts payables payment period 39 days

(assuming 360 days in a year)
(1)

(4)
Additional guidance
No specific layout is required.
Correct answer only scores 4 marks.

Question Answer AO1(1) Mark

Number
4(a)(ii) Award mark as indicated up to a maximum of 1 mark

Profit for the year as a percentage of revenue (1)

Return on capital employed (1)

Accept any other appropriate responses.

(1)

Question Answer AO1(1) Mark

Number
4(a)(iii) Award mark as indicated up to a maximum of 1 mark

Current (working capital) (1)

Liquid (acid test) (1)
Inventory turnover (1)
(1)

12 ASE20093 September 2019

Question Answer AO1(1) Mark
Number
4(b) Award mark as indicated.

D (1)
(1)

Question Answer AO1(1) Mark

Number
4(c) Award mark as indicated.

C (1)
(1)

Question Answer AO2(4) Mark

Number
4(d) Award 1 mark for correct figures with account names as indicated.
Award 1 mark for correct narrative.

Date Account Debit $ Credit $

1 January 2019 Office equipment 24 000 (1)

Bank 6 500 (1)

8% Loan 17 500 (1)

Being purchase of photocopier (financed by bank and loan). (1)

(4)

Question Answer AO2 (1) Mark

Number
4(e)(i) Award mark as indicated.

$1 400 (1)
(1)
Additional guidance
No specific layout is required.
Correct answer only scores 1 mark.

Question Answer AO2 (1) Mark

Number
4(e)(ii) Award mark as indicated.

$3 000 (1) (1)

Additional guidance
No specific layout is required.
Correct answer only scores 1 mark.

13 ASE20093 September 2019

Question Answer AO4 (4) Mark
Number
4(f) Award 1 mark for each valid point of assessment up to a maximum
of 4 marks.

Profitability (max 2 marks)

Profitability may improve as he would not be paying rent of $5 000 (1)
however he will have depreciation as an expense which may exceed the
cost of rent. (1)

Cashflow (max 2 marks)

Initially cash flow will deteriorate as he will have to pay $30 000 (1)
however he will no longer have the cost of renting the vehicle in
subsequent years. (1)

Accept any other appropriate responses. (4)

TOTAL FOR QUESTION 4 = 18 MARKS

14 ASE20093 September 2019

Question Answer AO2 (2) Mark
Number
5(a)(i) Award marks as indicated.

$5 625 (2) W

W
$
4 050
1 575 (1)
5 625 (1of)
(2)
Additional guidance
No specific layout is required.
Correct answer only scores 2 marks.

Question Answer AO2 (3) Mark

Number
5(a)(ii) Award marks as indicated.

$80 175 (3) W

W
$
122 000
(36 200) (1)
(5 625) (1of)
80 175 (1of)
(3)
Additional guidance
No specific layout is required.
Correct answer only scores 3 marks.

Question Answer AO2 (1) Mark

Number
5(a)(iii) Award mark as indicated.

$35 250 (1) (1)

Additional guidance
No specific layout is required.
Correct answer only scores 1 mark.

15 ASE20093 September 2019

Question Answer AO2 (9) Mark
Number
5(b) Award 1 mark for each correct figure against correct label as
indicated.

Taun Ltd
Statement of changes in equity for the year ended 31
July 2019
Share Share Retained
capital premium earnings Total
$ $ $ $
Balance at 1 August 68 000 13 000 16 190 97 190
2018 (1)
Share issue 2 500 6 500 9 000
(1) (1)
Profit for the year 80 175 80 175
(1of)
Dividend (35 250) (35
250)
(1of)
Balance at 31 July 2019 70 500 19 500 61 115 151
(1of) (1of) (1of) 115
(1of)
(9)

Question Answer AO1(1) Mark

Number
5(c) Award mark as indicated.

B (1) (1)

Question Answer AO3 (2) Mark

Number
5(d) Award 1 mark for identification and 1 mark for linked
justification/reasoning.

Limited liability means that the shareholders are only liable for the
company debts up to the amount they have invested (1). Therefore, their
personal possessions cannot be used to pay the company’s debts (1).

Accept any other appropriate responses. (2)

Total for Question 5 = 18 marks

TOTAL FOR PAPER = 100 MARKS

16 ASE20093 September 2019