Examiner’s Report

November 2019

Pearson LCCI Certificate in Bookkeeping

(VRQ)
Level 1 (ASE20091)
LCCI Qualifications

LCCI qualifications come from Pearson, the world’s leading learning company. We
provide a wide range of qualifications including academic, vocational, occupational
and specific programmes for employers. For further information, please visit our
website: www.lcci.org.uk

Pearson: helping people progress, everywhere

Pearson aspires to be the world’s leading learning company. Our aim is to help
everyone progress in their lives through education. We believe in every kind of
learning, for all kinds of people, wherever they are in the world. We’ve been
involved in education for over 150 years, and by working across 70 countries, in
100 languages, we have built an international reputation for our commitment to
high standards and raising achievement through innovation in education. Find out
more about how we can help you and your students: www.pearson.com/uk

Publication Code: 64526_ER

All the material in this publication is copyright

© Pearson Education Ltd 2019

2 LCCI ASE20091, November 2019

Introduction
The assessment was out of 100 marks comprising a total of five questions of 19 -
22 marks, with five multiple-choice questions. Candidates were required to
answer all questions.

The assessment for the September 2019 exam covered the following topics.

• Preparation of two invoices.

• Preparation of a credit note.
• Preparation of two trade payables accounts.
• The petty cash imprest system.
• Preparation of a cash book.
• Preparation of a bank reconciliation statement.
• Identification and correction of errors that do not affect the trial balance.
• Book of original entry.
• Classification and treatment of capital expenditure and revenue
expenditure.
• Recording of transactions by double-entry.
• Balance an account and bring down the balance.
• Calculation of depreciation using the reducing balance
(diminishing balance) method.
• Preparation of an extract of a statement of profit or loss for a sole trader.
• Preparation of a trade payables ledger control account.
• Preparation of the statement of financial position for a sole trader.
• Reasons for charging depreciation.

It is also strongly recommended that this report is used in conjunction with the
mark scheme.

3 LCCI ASE20091, November 2019

Question 1
Most candidates were able to complete the invoices and credit note correctly. A
limited number of candidates failed to account for the trade discount on the first
invoice and / or the credit note.

The two supplier accounts were well prepared. The most common error on the
Bud account was the incorrect treatment of discount received and some
candidates used incorrect labels on the Ivy account.

4 LCCI ASE20091, November 2019

 Examiner Comments

Preparation of ledger accounts for both customers and suppliers

are assessed regularly.

Examiner Tips

Ensure that you make the entries in the correct column for the
correct amount and that you enter the date and details for all the
entries.

The example has been awarded all seven available marks. All
the dates and amounts are correct, and the details are written in
full.

5 LCCI ASE20091, November 2019

Question 2
The petty cash calculations were not well answered with many candidates not
identifying that the amount paid from petty cash would be equal to the amount
needed to restore the imprest.

The cash book was well prepared but there were few fully correct answers. Errors
included the incorrect inclusion of petty cash items, entering unacceptable details
to identify the transaction and the omission of the cheque drawn to reimburse the
petty cash.

Despite the layout of the bank reconciliation being given, relatively few candidates
produced a fully correct statement. Many incorrectly entered the bank statement
balance as the cash book balance.

Examiner Comments

Preparation of a cash book and / or petty cash book is assessed

regularly.

6 LCCI ASE20091, November 2019

 Examiner Tips

When writing up the cash book ensure that you enter the date
and details and then itemise the transaction in the correct
column.

The example has omitted the petty cash restore amount of

$152.10 but otherwise all entries are correct and 11 of the 12
available marks have been awarded.

7 LCCI ASE20091, November 2019

Question 3
The identification and correction of the four errors was well answered with many
candidates being awarded all the available 12 marks. A limited number failed to
identify the types of error correctly, but such candidates invariably applied their
double-entry knowledge and consequently obtained the marks for the correction
of the errors.

Although some candidates identified that the error would have no effect on the
trial balance, few were able to develop their answer sufficiently to be awarded the
second mark. Likewise, some identified that the profit would be understated but
very few provided the justification for their answer.

8 LCCI ASE20091, November 2019

 Examiner Comments

Errors not affecting the trial balance are assessed regularly.

Examiner Tips

You should be able to identify the types of error and correct these
errors.

Two examples are shown – the first is fully correct. The second
example has reversed one of the transactions and has entered
another transaction incorrectly, but the two transactions are
correct, and the error types are all identified correctly, so eight
marks have been awarded.

9 LCCI ASE20091, November 2019

Question 4
Although many candidates were aware that the journal was used, a significant
number incorrectly stated that the purchases day book would be used.

There were some correct calculations of capital expenditure but many also
included items that were clearly revenue and were penalised accordingly. Those
who had calculated capital expenditure correctly tended to also calculate revenue
expenditure without errors.

Neither the cost account or the motor expenses account was well prepared.
Depreciation was often incorrectly included in the cost account and very few
gained the mark available for correct dates and details in the motor expenses
account.

The depreciation calculation was performed correctly by many candidates but

some did fail to deduct the accumulated depreciation from their balance on the
cost account.

There were relatively few fully correct extracts of the statement of profit or loss,
but most candidates did gain some of the marks. Errors included the omission of
the irrecoverable debt and / or general expenses and failing to use the value for
the depreciation expense that had been calculated earlier in the question.

10 LCCI ASE20091, November 2019

 Examiner Comments

Preparation of the statement of profit or loss and / or statement

of financial position for a sole trader is assessed regularly.

Examiner Tips

Ensure that you know the layout of the statements.

The example has been awarded four of the five available marks.
Credit has been given for using own figures for both motor
expenses and depreciation charge but the general expenses
entry is incorrect.

11 LCCI ASE20091, November 2019

Question 5
The trade payables ledger control account was well prepared with many
candidates being awarded seven of the eight available marks but very few
receiving the mark for correct labelling.

The statement of financial position was also well prepared with many candidates
being awarded full marks and no common errors although a few candidates were
penalised for incorrect labelling.

Very few candidates were able to identify a reason for the use of the straight-line
method of depreciation.

Examiner Comments

Preparation of the trade receivables ledger control account or the

trade payables ledger control account is assessed regularly.

12 LCCI ASE20091, November 2019

 Examiner Tips

Ensure that you know which items are posted to the account and
enter the date, details and amounts of each entry.
The example shown has made all of the entries correctly and
been awarded seven marks. The final mark is lost as the
‘balance’ has been abbreviated to ‘bal’.

13 LCCI ASE20091, November 2019

Paper Summary
Based on their performance on this paper, candidates are offered the following
advice.

Candidate performance on this paper was good with the following areas being
highly satisfactory:

• Double-entry
• Preparation of the cash book
• Preparation of control accounts
• Preparation of the financial statements of a sole trader.

The area that requires improvement is:

• Technique in answering questions requiring a written response.

Please visit Pearson’s website for various resources to support candidates’

learning:

www.lcci.org.uk

Grade Boundaries
The grade boundaries for this paper can be found on Pearson’s website:

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

14 LCCI ASE20091, November 2019