Mark Scheme July 2016 - phanosiacovou.com · Pearson LCCI Certificate in Bookkeeping and Accounting...

Mark Scheme

July 2016

Results Pearson LCCI

Certificate in Bookkeeping and Accounting Level 2

(ASE20093)

ASE20093

2 July 2016

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ASE20093

3 July 2016

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

4 July 2016

Abbreviations

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

5 July 2016

Question Number

Answer (AO1) 1 Mark

1 (a) Award 1 mark for correct response Statement of Account (1) (1)

Question Number

Answer (AO2) 2 Mark

1 (b) Award 1 mark for correct response.

(i) $1 124 (1) (ii) $1 090 (1) (2)

Question Number

Answer (AO1) 1 Mark

1 (c) Award 1 mark for a valid comment. E.g.

Customers are reminded of the amount to pay (1)

Customers can check the accuracy of the details in the suppliers or their own books (1) (1)

Question

Number

Answer (AO1) 4

Mark 1 (d) Award 1 mark for each correct response

Transaction

Date Document Book of original

entry

10 January 2016 Sales invoice (1)

Sales day book (1)

16 January 2016 Credit note (1) Sales returns book (1)

(4)

Question Number

Answer (AO1) 2 Mark

1 (e)(i) Award 1 mark for identification and 1 mark for development. Maximum 2 marks.

E.g. Cash discount is given to credit customers in order to encourage prompt payment (1). This will improve the cash flow of the business (1) enabling them to take advantage of business opportunities (1) and reducing the possibility of irrecoverable debts (1) (2)

ASE20093

6 July 2016

Question Number

Answer (AO2) 4 Mark

1 (e) (ii) Award 1 mark for each correct response.

Account to be debited

Account to be credited

Books of Lunar Discount allowed (1)

Saturn Trading (1)

Books of Saturn Trading

Lunar (1)

Discount received (1)

(4)

(TOTAL FOR QUESTION 1 = 14 MARKS)

Question Numnber

Answer (AO2) 11

Mark

2 (a) Award marks for correct date, details and amounts in combination.

Trade Receivables Control Account

Date Details $ Date Details $

1 Dec Balance b/f 12 800 (1)

31 Dec Cash book (bank)

11 450 (1)

31 Dec

Sales day book

21 780 (1)

31 Dec Cash book (discount)

125 (1)

31 Dec

Cash book 250 (1) 31 Dec Sales returns book

1 290 (1)

31 Dec

Cash book 25 (1) 31 Dec Journal (Trade payables ledger set off)

350 (1)

31 Dec Journal (Irrecoverable debt)

400 (1)

31 Dec Balance c/d 21 240

34 855 34 855

1 Jan Balance b/d 21 240 (2 cf)/(1

of)

(11)

ASE20093

7 July 2016

Question Number

Answer (AO3) 2 Mark

2 (b) Award 1 mark for identification of a valid reason and a further 1 mark for developing the response. Maximum 2

marks. E.g. A set off (contra entry) can arise when a customer is also a supplier of the business (1). Instead of the customer paying us for goods or services supplied their balance is offset against the amount owing to them for good or services supplied to us (1).

(2)

Question Number

Answer (AO2) 12 Mark

2 (c) Award 1 mark for correct figures and narratives as indicated

Date Details Debit $ Credit $

1 Jan Drawings 300 (1)

Purchases

300 (1)

Being correction of error of goods withdrawn by owner (1)

Suspense

245 (1)

Sales

245 (1)

Being correction of error where sales was omitted from its account (1)

Motor vehicle repairs

45 (1)

Motor vehicles

45 (1)

Being correction of error of principle (1)

Suspense

6 (1)

T Wong

6 (1)

Being correction of error when payment from customer recorded in their account (1)

(12)


ASE20093

8 July 2016

Question Number

Answer (AO2) 10

Mark 3 (a) Award 1 mark for correct figures and narratives as

indicated Poynter Manufacturing Manufacturing Account

For the year ended 31 December 2015

$ $

Cost of raw materials

Opening inventory 5 000(1 – for both)

Purchases 64 300(1)

Closing inventory 6 750

Cost of raw materials 62 550(1)

Factory wages 37 450(1)

Prime cost 100 000(1o/f)

Overheads

Factory power 26 389(1)

Depreciation charge 7 000(1)

Supervisors salaries 18 011(1)

51 400

151 400

Opening WIP 3 211

Closing WIP 4 611 (1 400)(1)

Cost of Finished Goods completed

150 000(1of)

(10)

Question Number

Answer (AO2) 4 Mark

3 (b) Award marks for correct date, details and amounts in combination. Rent Received Account


31 Dec

Income Statement

6 600 (1of)

20 Dec

Balance b/f

6050 (1)

31 Dec

Balance c/d

550 31 Dec

Bank 1100 (1)

7 150 7150

1 Jan Balance b/d

550 (1)

(4)

ASE20093

9 July 2016

Question Number

Answer (AO2) 4 Mark

3 (c) Award marks for correct date, details and amounts in combination.

Mair Choi Account


31 Dec Balance b/f

1 750 (1)

31 Dec

Irrecovareable debts

1 750 (1)

Irrecoverable Debts Account


31 Dec Mair Choi 1 750 (1) 31 Dec Income Statement

1 750 (1)

(4)

Question Number

Answer (AO2) 7 Mark

3 (d) Award marks for correct date, details and amounts in combination.

Subscriptions Account


1 Jan

Balance b/f

230 (1)

1 Jan Balance b/f

300 (1)

31 Dec

Income and Exp

7 390 (1o/f)

31 Dec

Bank 7 500 (1)

31 Dec

Balance c/d

420 31 Dec

Income and Exp

30 (1)

31 Dec

Balance c/d

210

8 040 8 040

1 Jan

Balance b/d

210 (1)

1 Jan Balance b/d

420 (1)

(7)


ASE20093

10 July 2016

Question Number

Answer (AO2) 3 Mark

4 (a) Award 1 mark for correct figures and narratives as indicated.

Mary Martha and Margaret Appropriation Account

For the year ended 29 February 2016

$ $

Profit for the year 75 000

Appropriations

Share of profits Mary 25 000 (1) Martha 25 000 (1) Margaret 25 000 (1)

75 000

(3)

Question Number

Answer (AO2) 3 Mark

4 (b) Award marks for correct date, details and amounts in combination.

Capital account – Mary


29 Feb Balance c/d

20 000 1 Mar Bank 10 000 (1)

1 Aug Bank 10 000 (1)

20 000 20 000

1 Mar Balance b/d

20 000 (1)

(3)

ASE20093

11 July 2016

Question Number

Answer (AO2) 6 Mark

4 (c) Award marks for correct date, details and amounts in combination.

Current Account – Martha


29 Feb

Drawings 2 600 (1 for both)

29 Feb Share of

profits

25 000 (1 for both)

29 Feb

Drawings/ Purchases

395 (1)

29 Feb

Balance c/d

22 005

25 000 25 000

1 Mar Balance b/d

22 005 (1of)

Current Account - Margaret


29 Feb

Drawings 1 650 29 Feb Share of

profits

25 000

29 Feb

Balance c/d

24 100 1 Feb Rent 750 (1)

25 750 25 750

1 Mar Balance

b/d 24 100

(1of)

(6)

Question Number

Answer (AO3) 4 Mark

4 (d)(i) Award 1 mark for identification of the procedure and a further 1 mark for developing each valid response. Maximum 2 marks per procedure.

1. Partners could agree to introduce interest on drawings (1) which would charge each partner an agreed percentage on the amounts withdrawn (1) 2. Partners could agree to introduce partners salaries (1) which would reward a partner who carried out a specific task in the partnership (1)

(4)

ASE20093

12 July 2016

Question Number

Answer (AO1) 4 Mark

4 (d)(ii) Award 1 mark for each correct entry

Current Account Appropriation Account

Debit Credit Debit Credit

1 ✓ ✓

2 ✓ ✓

(4)


Question Number

Answer (AO3) 4 Mark

5 (a) Award 1 mark for each correct explanation Award 1 mark for development.

Business Entity

This concept states that the business is treated as being completely separate from the owner of the business (1) e.g owners drawings would be not be shown on the income statement (1).

Going Concern

This concept states that it is to be assumed that the business will continue to operate for an indefinite period of time and that there is no intention to close down the business or reduce the size of the business by any significant amount (1) e.g valuation of non-current assets assumes the business is going to carry on for the foreseeable future (1).

(4)

ASE20093

13 July 2016

Question Number

Answer (AO2) 6 Mark

5 (b) Award 1 mark for correct figures and method Ratio Formula Ratio

Gross profit as a percentage of revenue.

Gross profit/revenue x 100 (1)

30% (1)

Profit for the

year as a

percentage of

revenue.

Profit for the year/revenue x 100 (1)

9% (1)

Return of capital employed

Profit for the year/capital employed x 100 (1)

8% (1)

(6)

Question Number

Answer (AO4) 6 Mark

5 (c) Award up to 2 marks for each correct suggestion for each ratio E.g. Gross profit as a percentage of revenue. Robin may have purchased his goods from a cheaper supplier (1) or sold his goods at a higher price than Jay Bird (1). Profit for the year as a percentage of revenue. Jay Bird may have better control of his overheads than Robin (1) in spite of a lower gross profit percentage. (1) Return of capital employed Robin is making more effective use of his capital (1) which would benefit Jay Bird if he invested in this business (1) (6)


Mark Scheme July 2016 - phanosiacovou.com · Pearson LCCI Certificate in Bookkeeping and Accounting...

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