Pearson LCCI

Certificate in Bookkeeping
(VRQ) Level 1
(ASE20091)

Examiner’s Report
April 2018
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April 2018
Publication code: ER57513

All the material in this publication is copyright

© Pearson Education Ltd 2018
Introduction
Pearson (LCCI) redeveloped the new specification at Level 1 Certificate in
Bookkeeping (VRQ) (ASE20091) in January 2015 as a part of the Finance and
Quantitative suite of qualifications from Level 1 to Level 4, and assessed for the
first time in November 2015. The purpose of this qualification is to give
candidates the essential skills and knowledge of double entry bookkeeping.

The assessment is of 100 marks comprising a total of five questions. All the
questions are compulsory.

This assessment covered these topics:

 Preparation of books of original entry

 Double entry bookkeeping
 Preparation of the petty cash book
 Preparation of a trial balance
 Identification of errors that do not affect the trial balance
 Classification of capital expenditure and revenue expenditure
 Preparation of the statement of financial position of a sole trader from a
given set of data
 Calculation of depreciation charge of non-current assets
 Adjustments for accrued and prepaid income.

Question 1 was a 25-mark question which required candidates to prepare the

purchases day book from a given set of invoices. They were then required to
prepare the ledger accounts for three trade payables as well as the purchases
and purchase returns account. The purposes of discounts were also assessed.

Most candidates were able to correctly prepare the purchase day book, with
many scoring full marks. A limited number failed to total the book. The trade
payables accounts were prepared to a high standard, although many failed to
deal correctly with the discount received in the Indian Industries account.
Despite the reasons for offering a trade discount being assessed before, a large
number of candidates were unable to state the required reasons but
performance was better on the reasons for offering an early payment discount.

Question 2 was a 23-mark question which required candidates to prepare a petty

cash book from given information and a list of transactions. Candidates were
then required to post entries to two expense accounts.

The petty cash book was prepared to a very high standard, with many answers
having no errors and there were no common errors. The posting to the expense
accounts was not performed very well and marks were lost for a range of errors
and omissions, including failing to enter the given year to date figures and
postings being made on the incorrect side of the account.

Question 3 was a 15-mark question that required candidates to prepare a trial

balance from a given list of balances and derive the missing bank figure.
Knowledge of errors was also tested.

LCCI Bookkeeping ASE20091 3

The trial balance was generally well prepared, with some fully correct answers.
The most common error was the incorrect treatment of interest paid. Most
candidates were able to state the correct types of error made from the given
scenarios, with the most common incorrect answer being given to the second
scenario (complete reversal). Most candidates were also able to state the correct
book of original entry used to record the correction of these errors.

Question 4 was a 22-mark question that firstly tested knowledge of the

difference between capital expenditure and revenue expenditure. Candidates
were then required to prepare a statement of financial position from a given list
of balances and some additional information. Finally, an explanation of the
consequences of a credit balance in the bank account was required.

The explanations of the difference between capital and revenue expenditure

were disappointing. The statement of financial position, however, was generally
well prepared, with most candidates obtaining high marks. The profit calculation
was invariably correctly calculated but common errors included the omission of
the total liabilities line and the incorrect treatment of the bank overdraft. Most
candidates provided a reasonable explanation of the credit balance.
Question 5 was a 15-mark question that required candidates to calculate the
total depreciation charge of non-current assets, adjust a given draft profit,
explain the adjustment for a prepaid expense and state the destination of some
given entries.

The depreciation calculation was very well answered, with many fully correct
solutions and no common errors. Although there were relatively few fully correct
adjusted profit statements, overall performance was acceptable, with the most
common error being the incorrect treatment of the prepaid insurance. The
explanation of this adjustment was answered very poorly, with very few
candidates providing an acceptable explanation. Most were able to state the
sections of the statement of financial position in which the given entries would
be shown, but the most common error arose with the rental income owing.

LCCI Bookkeeping ASE20091 4

Question 1 (b)(i)(ii)(iii)

Examiner Comments

Preparation of ledger accounts is regularly assessed.

Ensure that you are able to post given information to
these accounts.

Examiner Tip

When preparing ledger accounts, enter date, details

and amount.

The response shown below has gained all of the 13 available marks for
correctly posting all of the transactions to the trade payables accounts.
The date, details and amounts are all correct and the presentation is
excellent.

LCCI Bookkeeping ASE20091 5

LCCI Bookkeeping ASE20091 6
Question 4 (b)

Examiner Comments

Preparation of a statement of financial position is

regularly assessed.

Examiner Tip

Learn the layout of the statement and present your

work neatly.

LCCI Bookkeeping ASE20091 7

An excellent response is shown below which has gained all of the available
marks except for the omitted total liabilities.

LCCI Bookkeeping ASE20091 8

Paper Summary

Candidates should:
 ensure they are fully prepared
 read the paper before starting to answer
 write neatly
 show workings where appropriate
 ensure they can answer written questions
 refer to Appendix 1 of the specification
 manage their time efficiently
 practise using selected assessment materials.

LCCI Bookkeeping ASE20091 9

Grade Boundaries
Grade boundaries for this, and all other papers, can be found on the
website on this link:

http://qualifications.pearson.com/en/support/support-topics/results-
certification/grade-boundaries.html

LCCI Bookkeeping ASE20091 10