Pearson LCCI

Tuesday 18 April 2023

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
•• AllPlease
workings and answers must be given in the question paper.
note that any workings and answers written in the Resource Booklet will
not be marked.

Turn over

P76981A
©2023 Pearson Education Ltd.
1/1/1/1
*P76981A*
Resource for Question 1 – Parts (a), (b) and (c).
Data for parts (a) and (b).
On 31 March 2023 Luka’s trial balance did not balance. The difference was posted to a
suspense account.
He identified the following errors.
• No entries had been made for cheque drawings, $240
• A payment for wages, $130, had been correctly entered in the cash account but had
been credited to the wages account as $310
• Bank interest received, $12, had been credited to the bank account and debited to
the bank charges account.
• Carriage inwards, $82, paid by cash had been debited to the carriage outwards
account. No other entries had been made.
Data for part (c).
Luka maintains an allowance for doubtful debts of 2% of trade receivables.
On 1 April 2022 trade receivables were $18 300
On 31 March 2023 trade receivables were $17 500 before writing off irrecoverable
debts of $250

2 P76981A
Resource for Question 2 – Part (a).
Megai, a sole trader, purchases all goods on a cash basis and sells goods only on a
credit basis.

1 April 2022 31 March 2023

$ $

Inventory 2 475 1 790

Motor vehicles
– cost 65 400 65 400
– provision for depreciation 28 612 To be calculated
Office equipment
– cost 16 560 To be calculated
– provision for depreciation 9 936 To be calculated

Other payables – general expenses – 130

Other receivables – motor expenses 187 –

Trade receivables ledger control 10 000 11 500

Carriage inwards 380

Carriage outwards 295

General expenses paid 11 450

Motor expenses paid 7 730

Purchases 23 440

Receipts from credit customers 85 600

Rent paid 5 000

Rental income 4 000

Returns outwards 200

During the year ended 31 March 2023:

• office equipment costing $1 520 with accumulated depreciation of $912 was sold
for $650
• office equipment, $2 000, was purchased
• office equipment is depreciated at 20% per annum using the straight line method
and motor vehicles are depreciated at 25% per annum using the reducing
(diminishing) balance method.
A full year’s depreciation is charged in the year of purchase and none in the year of
disposal.

P76981A 3

Turn over
Resource for Question 3 – Parts (a) and (b).
Paul, a manufacturer, provided the following information for the year ended
28 February 2023.

1 March 2022 28 February 2023

$ $
Factory machinery
– cost 134 000 146 200
– provision for depreciation 80 400 90 180

Loose tools at valuation 16 395 17 140

Inventory
– raw materials 22 700 23 800
– work in progress 23 100 19 450
– finished goods 11 960 13 820

Other payables – power 3 840 4 130

Other receivables – factory supervisor’s wages – 290

Wages paid
– production staff 84 000
– factory supervisor 41 960
– administration staff 21 250

Purchases of raw materials 184 600

General expenses 35 400

Loose tools purchased 2 000

Rent paid 86 000

Power paid 21 960

Rent and power are both apportioned 80% to the factory and 20% to administration.
General expenses are apportioned 75% to the factory and 25% to administration.

4 P76981A
Resource for Question 4 – Parts (a) and (b).
Bob does not maintain a full set of accounting records but he was able to provide the
following information.

1 April 2022 31 March 2023

$ $

Non-current assets (carrying value) 63 200 To be calculated

Inventory 18 500 17 960

Trade and other receivables 21 700 20 165

Trade and other payables 17 350 13 220

Cash at bank 3 010 5 060 Cr

Cash in hand 100 200

Bank loan (2025) – 25 000

Additional information
The bank loan was taken out to purchase non-current assets.
The depreciation charged on non-current assets for the year was $17 440
During the year ended 31 March 2023 Bob took $33 600 cash and goods, $750, for his
own personal use.

P76981A 5

Turn over
There is no resource for Question 5.

6 P76981A
 BLANK PAGE

P76981A 7
 BLANK PAGE

8 P76981A