Pearson LCCI

Level 2 Certificate in Book-Keeping

and Accounts (VRQ)

Model Answers
Series 4 2013 (ASE2007)

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Level 2 Certificate in Book-keeping and Accounts

Series 4 2013

How to use this booklet

Model Answers have been developed to offer additional information and guidance to Centres,
teachers and candidates as they prepare for LCCI International Qualifications.
(1)

Model Answers

summary of the main points that the Chief Examiner expected to

see in the answers to each question in the examination paper,
plus a fully worked example or sample answer (where applicable)

Teachers and candidates should find this booklet an invaluable teaching tool and an aid to success.
Pearson provides Model Answers to help candidates gain a general understanding of the standard
required. The general standard of model answers is one that would achieve a Distinction grade.
Pearson accepts that candidates may offer other answers that could be equally valid.

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LCCI IQ SERIES 4 EXAMINATION 2013

CERTIFICATE IN BOOK-KEEPING AND ACCOUNTS
LEVEL 2
MARKING SCHEME
________________________________________________________________________________
DISTINCTION MARK 75%
MERIT MARK 60%
PASS MARK 50%

Key:
of = own figure

TOTAL 100 MARKS

Question 1
Syllabus Topic 2.6: Dissolution of partnership (2.6.1), (2.6.2), (2.6.4), (2.6.8), (2.6.10)
(a)

Goodwill Account

Capital Accounts:

Wen

7,500

Yi

3,750

Realisation

11,250

__ ___

11,250

11,250
(3 marks)

(b)

Realisation Account

11,250

Goodwill
Premises

70,000

Motor Vehicles

Creditors

4,400

Capital: Wen

4,000

1 for all

8,000

Yi

Equipment

23,450

Chen plc

Stock

21,075

(100,000 x 1.05) + 10,000

Debtors

5,475

4,000
115,000

1
1 both
1

Capital Accounts:
7,900

1of

3,950
139,250

1of

Wen
______
139,250

Yi

(8 marks)
(c)

Capital Accounts
Wen

Yi

Wen

Yi

75,000

43,750

1 both
1 both

3,425

1 both

Balances b/d

4,000

4,000

1 both

Current Account

5,050

70,000

35,000

1 both

Goodwill

7,500

3,750

Realisation

7,900

3,950

1of both

Bank

5,650

1,125

1of both

_____

_____

87,550

47,500

87,550

47,500
(7 marks)

Current Account
Realisation/Vehicles
Chen Plc

2007/4/13A/MS

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Question 1 continued
(d)

Bank Account

Chen plc

10,000

3,225

Wen

5,650

1of

Yi

1,125

1of

Balance b/d
Capital Accounts:

10,000

10,000
(4 marks)

(e)

Chen plc Account

Realisation

115,000
115,000

Bank
Capital Account: Wen
Yi

115,000

10,000
70,000
35,000

1
1of for both

115,000
(3 marks)
(Total 25 marks)

2007/4/13A/MS

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Question 2
Syllabus Topic 7: Non-trading organisations (7.2.3), (7.3), (7.4.2 7.4.4), (7.4.10), (7.5)
(a)

Accumulated fund at 1 January 2012

56,000
11,800
2,105
1,105
140
71,150 1

Land and buildings

Equipment
Bank
Subscriptions in arrears
Stock of refreshments
Less:
Subscriptions in advance
Creditors

125
310
(435) 1
70,715 1+1of
(4 marks)

(b)

(i)
Subscriptions Account
Balance b/d
Income and Expenditure a/c
Balance c/d
Balance b/d

1,105
29,190 1of
150
30,445
905

Balance b/d
Bank
Bad debts
Balance c/d
Balance b/d

125
29,345 1
70 [W1] 1
905
30,445
150
(3 marks)

W1 1105 - 1035 = 70

(b)

(ii)
Abacus Tennis Club
Refreshments Trading Account for the year ended 31 December 2012

Sales
4,550
Less: Cost of sales
Opening stock
140
1
1
2,490
Add:Purchases (2,600 310 + 200)
2,630
Less:Closing stock
( 270)
(2,360)
Gross profit
2,190
Wages
(2,000) 1
Net profit
190 1of
(4 marks)

2007/4/13A/MS

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Question 2 continued
(b)

(iii)
Abacus Tennis Club
Income and Expenditure Account for the year ended 31 December 2012

29,190 1of
4,090
305
190 1of
33,775

Subscriptions
Tennis court hire fees
Equipment hire Receivable
Profit on sale of refreshments
Wages and salaries (18,050 2,000)
Insurance
Maintenance
Bad debts
General expenses
Depreciation Equipment ((11,800 + 9,050) x 0.20)

16,050
1,825
4,050
70
715

4,170

1of

(26,880)
6,895 1of

Surplus

(6 marks)
(c)
Balance Sheet at 31 December 2012

Fixed Assets
Land and buildings
Equipment (11,800 + 9,050 4,170)

56,000
16,680 1
72,680

Current Assets
Stock
Subscriptions in arrears
Bank and cash

270
905
4,605
5,780

Creditors: Amounts Falling Due Within one Year

Creditors
Subscriptions in advance

1
1

200 1
150 1
(350)

Net Current Assets

5,430
78,110

Accumulated Fund at 1 January

Surplus for the year
Donation

70,715 1of
6,895 1of
500 1
78,110
(8 marks)
(Total 25 marks)

2007/4/13A/MS

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Question 3
Syllabus Topic 9: Suspense Accounts (9.7), (9.8), (9.9)
(a)
Journal entries

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Dr

39

General expenses
Suspense
Motor vehicle
Motor vehicle expenses

Cr

39

1
1

12,500

1
1

18

1
1

5,700

1
1

275
275

1
1
1

20
20

1
1
1

185

1
1

90

1
1

12,500

Suspense
Rent Payable

18

Purchases
Bank

5,700

Suspense
Po Wa Li
Lai Wo Lo

550

Suspense
Discount received
Discount allowed

40

No debit entry/Trial Balance

Suspense
Man Yin Yip
Suspense

90

(18 marks)
(b)
Suspense Account
Rent Payable
Po Wa Li
Lai Wo Lo
Discount allowed
Discount received

1
1 both

1 both

18
275
275
20
20

Difference on Trial Balance

General expenses
Insurance
Man Yin Yip

608

1of
1
1
1

294
39
185
90

608
(7 marks)
(Total 25 marks)

2007/4/13A/MS

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Question 4
Syllabus Topic 8: Control accounts (8.6), (8.7), (8.8), (8.9) and (8.1)
(a)

(i)

Purchases Ledger Control Account

2012
July 01
July 31

Aug 01

Balance b/d
Returns outwards
Bank
Contra
Discount received
Balance c/d
Balance b/d

2,458
6,499
290,440
13,825
8,728
112,487
434,437
4,535

2012
1
1
1
1
1
1

July 01
July 31

Aug 01

Balance b/d
Purchases
Balance c/d

112,129
317,773
4,535

1
1

Balance b/d

___ ___
434,437
112,487

1 of

(9 marks)
(ii)

Sales Ledger Control Account

2012
July 01
July 31

Aug 01

Balance b/d
Carriage
Interest
Sales
Bank: Dishonoured
cheques
Balance c/d

Balance b/d

2012

197,326
15,805
2,467
598,804
12,877

1
1
1
1

11,693

______
838,972
130,419

1 of

July 01
July 31

Aug 01

Balance b/d
Contra
Returns inwards
Bad debts
Discount allowed

6,580
13,825
9,721
4,840
17,647

Bank
Sung allowance
Balance c/d

652,690
3,250
130,419
_ _____
838,972
11,693

Balance b/d

1
1
1
1
1
1
1

(14 marks)
(b)

Fixed assets
Accumulated depreciation for fixed assets
Stock
Petty cash
Bank
Wages
General/Nominal ledger

(2 marks)
(Total 25 marks)

2007/4/13A/MS

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Question 5
Syllabus Topic 1: Advanced aspects of the syllabus for Level 1 Book-keeping (1.4.2), (1.4.3),
(1.4.5), (1.4.6)
(a)

(i)

Bad Debts Account

2011 - 2012
Mar 31 Debtors

2012 - 2013
Mar 31 Debtors

1,500

2012
Mar 31

P&L

1,500

2,300

2013
Mar 31

P&L

2,300

(4 marks)
(ii)

Provision for Doubtful Debts Account

2012
Mar 31

Balance c/d
(44,400 x 4%)

1,776
____
1,776

2013
Mar 31

P&L
Balance cld
(40,150 x 4%)

1of
1

170
1,606
1,776

2011
Apr 01
2012
Mar 31

Balance b/d

1,215

P&L

1of

561
1,776

2012
Apr 01

Balance b/d

1of

1,776
__ __
1,776

2013
Apr 01

Balance b/d

1of

1,606
(7 marks)

(b)
Wai Hui
Balance Sheet extract at 31 March 2013
Current assets 1
Debtors
Less provision for doubtful debts

1 both

40,150
(1,606)
38,544

1of
1of
(4 marks)

(c)

(i)

Bad debts are debts that have proved to be irrecoverable (1) and are therefore written off as
an expense in the P & L Account. (1)
(2 marks)

(ii)

Provision for doubtful debts are debts that are estimated on the debt uncertain to be paid
(1) and are therefore deducted from the debtors on the Balance Sheet. (1)
(2 marks)

2007/4/13A/MS

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Question 5 continued
(d)

Journal

Lee
Bad debts recovered

Dr

500

Cash/Bank
Lee

500

Bad debts recovered

Profit & Loss

500

Cr

500

1
1

500

1
1

500

1
1
(6 marks)
(Total 25 marks)

2007/4/13A/MS

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