Pearson LCCI

Wednesday 8 December 2021

Time: 3 hours Paper Reference ASE20093

Certificate in Bookkeeping and

Accounting (VRQ)
Level 2

Resource Booklet
Do not return this Booklet with the question paper.

Instructions
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workings and answers must be given in the question paper.
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Resource for Question 1 – Parts (d) and (e).
On 30 November 2021 Naomi provided the following information.

Land and buildings at valuation 125 000

Motor vehicles
– cost 66 560
– provision for depreciation 16 300

Bank 780 Cr

Cash 3 910

Equity at 1 December 2020 161 900

Inventory 18 150

Other payables 770

Suspense 560

Trade payables ledger control 10 220

Trade receivables ledger control 14 330

The draft profit for the year ended 30 November 2021 was $37 420, before adjusting for
the following errors.
• Returns inwards, $160, had been entered correctly in the returns inwards account. No
other entry had been made.
• No entries had been made for discount received, $410
• During the year she had purchased inventory costing $400 with her own money. This
had been recorded correctly in the purchases account, but no other entry had been
made.
• Cash, $3 000, taken from the business for her own use had not been recorded.
• A cheque payment, $152, for motor expenses, had been recorded as $125

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Resource for Question 2 – Parts (a), (b) and (c).
Albert provided the following information.
At 1 December 2020

Non-current asset Cost Accumulated Carrying

depreciation value
$ $ $

Motor vehicles 95 800 68 200 27 600

Equipment 47 400 21 690 25 710

During the year ended 30 November 2021

2021 Transaction

A motor vehicle costing $28 000 with a carrying value

1 January
of $8 859 was sold for $8 950
A motor vehicle costing $11 547 was purchased by
1 September
cheque.

1 October Equipment costing $2 020 was purchased by cheque.

Equipment costing $1 100 with accumulated

1 November
depreciation of $660 was sold for $440

• Equipment is depreciated at 15% per annum using the straight line method.
• Motor vehicles are depreciated at 25% per annum using the reducing (diminishing)
balance method.
For all non-current assets a full year’s depreciation is charged in the year of purchase and
none in the year of disposal.

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Resource for Question 3 – Parts (b), (c) and (d).
Alesha and Bruce were in partnership sharing profits and losses in the ratio 2:1.
On 30 September 2021 the partnership was dissolved. The partners provided the
following information at that date.

Partner Capital account Current account

$ $

Alesha 30 000 550 Dr

Bruce 30 000 1 420

Realisation Account

Date Details $ Date Details $

30 September Equipment 42 190 30 September Trade payables 9 390

Trade receivables 7 520 Capital – Alesha 9 000

Bank 9 100 Bank 21 900

Bank 7 060

Capital
Alesha 7 640
Bruce 3 820

58 810 58 810

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Resource for Question 4 – Parts (b), (c) and (d).
The Little Pedals Cycling Club provided the following information.

1 October 30 September
2020 2021
$ $

Sports equipment – carrying value 19 800 17 350

Other payables – general expenses – 85

Other receivables – rent 320 –

Subscriptions in advance – 280

Subscriptions in arrears 680 –

Summary of receipts and payments

Receipts

Competition fees 1 840

Subscriptions 13 300

Payments

General expenses 1 960

Insurance 630

Rent 7 100

Competition prizes 750

• Receipts from subscriptions included $560 of the arrears at 1 October 2020, the
balance was to be written off as irrecoverable.
• Sports equipment is depreciated using the revaluation method. There were no
additions or disposals of sports equipment during the year.
• Insurance includes $20 for the competition.

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Resource for Question 5 – Parts (a) and (b).
Xyo Ltd provided the following information.

At 1 August 2020 $

Share capital (ordinary shares of $1 each) 46 000

Share premium 8 000

Retained earnings 18 150

On 1 January 2021 18 000 ordinary shares were issued at a premium of $0.40 per share.
On 1 August 2021 an ordinary share dividend of 6% was paid on all shares in issue
on that date.
Extract from the statement of profit or loss for the year ended 31 August 2021

Revenue 136 000

Cost of sales 95 200

Expenses 24 480

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