Book Keeping and Accounts Level 2 Model Answers Series 4 2013
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Transcript of Book Keeping and Accounts Level 2 Model Answers Series 4 2013
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Pearson LCCI Level 2 Certificate in Book-Keeping and Accounts (VRQ)
Model Answers Series 4 2013 (ASE2007)
For further information contact us:
Tel. +44 (0) 247 6518951 Email. [email protected] www.lcci.org.uk, www.pearson.com/uk
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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.
Pearson Education Ltd 2013 All rights reserved; no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without prior written permission of the Publisher. The book may not be lent, resold, hired out or otherwise disposed of by way of trade in any form of binding or cover, other than that in which it is published, without the prior consent of the Publisher.
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LCCI IQ SERIES 4 EXAMINATION 2013 CERTIFICATE IN BOOK-KEEPING AND ACCOUNTS LEVEL 2 MARKING SCHEME ________________________________________________________________________________ DISTINCTION MARK 75% Key: MERIT MARK 60% PASS MARK 50% 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 1 Realisation 11,250 1 Yi 3,750 1 __ ___ 11,250 11,250
(3 marks) (b) Realisation Account
Goodwill 11,250 1 Creditors 4,400 1 Premises 70,000 Capital: Wen 4,000
Motor Vehicles 8,000 1 for all Yi 4,000 1 both Equipment 23,450 Chen plc Stock 21,075 (100,000 x 1.05) + 10,000 115,000 1 Debtors 5,475 1 Capital Accounts: Wen 7,900 1of ______ Yi 3,950 1of 139,250 139,250
(8 marks) (c) Capital Accounts
Wen Yi Wen Yi Current Account 3,425 1 both Balances b/d 75,000 43,750 1 both Realisation/Vehicles 4,000 4,000 1 both Current Account 5,050 Chen Plc 70,000 35,000 1 both Goodwill 7,500 3,750 1 both Realisation 7,900 3,950 1of both Bank 5,650 1,125 1of both _____ _____ 87,550 47,500 87,550 47,500
(7 marks)
2007/4/13A/MS Page 1 of 8 Pearson Education Ltd 2013 All rights reserved.
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Question 1 continued
(d) Bank Account
Chen plc 10,000 1 Balance b/d 3,225 1 Capital Accounts: Wen 5,650 1of Yi 1,125 1of 10,000 10,000
(4 marks)
(e) Chen plc Account
Realisation 115,000 1 Bank 10,000 1 Capital Account: Wen 70,000 1of for both 115,000 Yi 35,000 115,000 115,000
(3 marks)
(Total 25 marks)
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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
Land and buildings 56,000 Equipment 11,800 Bank 2,105 Subscriptions in arrears 1,105 Stock of refreshments 140 71,150 1 Less: Subscriptions in advance 125 Creditors 310 (435) 1 70,715 1+1of
(4 marks) (b) (i)
Subscriptions Account
Balance b/d 1,105 Balance b/d 125 Income and Expenditure a/c 29,190 1of Bank 29,345 1 Bad debts 70 [W1] 1 Balance c/d 150 Balance c/d 905 30,445 30,445 Balance b/d 905 Balance b/d 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 Add:Purchases (2,600 310 + 200) 2,490 2,630 Less:Closing stock ( 270) (2,360) Gross profit 2,190 Wages (2,000) 1 Net profit 190 1of
(4 marks)
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Question 2 continued (b) (iii)
Abacus Tennis Club Income and Expenditure Account for the year ended 31 December 2012
Subscriptions 29,190 1of Tennis court hire fees 4,090 Equipment hire Receivable 305 Profit on sale of refreshments 190 1of 33,775 Wages and salaries (18,050 2,000) 16,050 1 Insurance 1,825 Maintenance 4,050 Bad debts 70 1of General expenses 715 Depreciation - Equipment ((11,800 + 9,050) x 0.20) 4,170 1 (26,880) Surplus 6,895 1of
(6 marks)
(c)
Balance Sheet at 31 December 2012 Fixed Assets Land and buildings 56,000 Equipment (11,800 + 9,050 4,170) 16,680 1 72,680 Current Assets Stock 270 Subscriptions in arrears 905 1 Bank and cash 4,605 1 5,780 Creditors: Amounts Falling Due Within one Year Creditors 200 1 Subscriptions in advance 150 1 (350) Net Current Assets 5,430 78,110 Accumulated Fund at 1 January 70,715 1of Surplus for the year 6,895 1of Donation 500 1 78,110
(8 marks)
(Total 25 marks)
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Question 3 Syllabus Topic 9: Suspense Accounts (9.7), (9.8), (9.9) (a)
Journal entries
Dr Cr (1) General expenses 39 1 Suspense 39 1 (2) Motor vehicle 12,500 1 Motor vehicle expenses 12,500 1 (3) Suspense 18 1 Rent Payable 18 1 (4) Purchases 5,700 1 Bank 5,700 1 (5) Suspense 550 1 Po Wa Li 275 1 Lai Wo Lo 275 1 (6) Suspense 40 1 Discount received 20 1 Discount allowed 20 1 (7) No debit entry/Trial Balance 1 Suspense 185 1 (8) Man Yin Yip 90 1 Suspense 90 1
(18 marks) (b)
Suspense Account Rent Payable 1 18 Difference on Trial Balance 1of 294 Po Wa Li 1 both 275 General expenses 1 39 Lai Wo Lo 275 Insurance 1 185 Discount allowed 20 Man Yin Yip 1 90 Discount received 1 both 20 608 608
(7 marks)
(Total 25 marks)
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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 2012 July 01 Balance b/d 2,458 July 01 Balance b/d 112,129 July 31 Returns outwards 6,499 1 July 31 Purchases 317,773 1
Bank 290,440 1 Balance c/d 4,535 1 Contra 13,825 1 Discount received 8,728 1 Balance c/d 112,487 1 ___ ___ 434,437 434,437
Aug 01 Balance b/d 4,535 1 Aug 01 Balance b/d 112,487 1 of
(9 marks)
(ii) Sales Ledger Control Account
2012 2012 July 01 Balance b/d 197,326 July 01 Balance b/d 6,580 July 31 Carriage 15,805 1 July 31 Contra 13,825 1
Interest 2,467 1 Returns inwards 9,721 1 Sales 598,804 1 Bad debts 4,840 1
Bank: Dishonoured cheques 12,877 1 Discount allowed 17,647 1
Balance c/d 11,693 1 Bank 652,690 1 Sung allowance 3,250 1 Balance c/d 130,419 1 ______ _ _____ 838,972 838,972
Aug 01 Balance b/d 130,419 1 of Aug 01 Balance b/d 11,693 1
(14 marks)
(b) Fixed assets
Accumulated depreciation for fixed assets
Stock
Petty cash
Bank
Wages
General/Nominal ledger
(2 marks)
(Total 25 marks)
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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
2012
Mar 31 Debtors 1 1,500 Mar 31 P & L 1 1,500
2012 - 2013
2013 Mar 31 Debtors 1 2,300 Mar 31 P&L 1 2,300
(4 marks)
(ii) Provision for Doubtful Debts Account
2012
2011
Mar 31 Balance c/d 1 1,776 Apr 01 Balance b/d 1 1,215
(44,400 x 4%)
2012
____ Mar 31 P&L 1of 561
1,776
1,776
2013
2012 Mar 31 P&L 1of 170 Apr 01 Balance b/d 1of 1,776
Balance cld 1 1,606
__ __
(40,150 x 4%)
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 1 both
Current assets 1 Debtors 40,150
Less provision for doubtful debts (1,606) 1of
38,544 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)
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Question 5 continued
(d) Journal Dr Cr
Lee 500
1 Bad debts recovered
500 1
Cash/Bank 500
1 Lee
500 1
Bad debts recovered 500
1 Profit & Loss
500 1
(6 marks)
(Total 25 marks)
2007/4/13A/MS Page 8 of 8 Pearson Education Ltd 2013 All rights reserved.
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