Mark Scheme

June 2021

Pearson LCCI Certificate in Accounting

Level 3
(ASE20104)

Final
Edexcel and BTEC Qualifications

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Publications Code 57551_MS

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© Pearson Education Ltd 2021

ASE20104
2 June 2021
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 candidates 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.

ASE20104
3 June 2021
Abbreviation

of Own Figure rule

Accuracy marks can be awarded where the candidate’s 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 candidate’s answer is correct,
and in line with the mark scheme.

ASE20104
4 June 2021
Question Answer (AO1) 3 Mark
1(a)(i) Award marks as indicated.

Manufacturing Statement Statement

Account of profit or of changes
loss in equity

Raw materials  (1)

Work in progress  (1)

Finished goods  (1)

(3)

ASE20104
5 June 2021
Question Answer (AO2) 19 Mark
Number
1(a)(ii) Award marks for correct figures with label as indicated.

Zenicca plc
Statement of Financial Position at 31 March 2021

$
Assets
Non-current assets
Property, plant and equipment 836 100 (1)
Current assets
Inventory 69 573 (1)
Trade receivables 55 272 (1)
Cash and cash equivalents 9 964 (1)
134 809 (1of)
Total assets 970 909 (1of)

Equity and liabilities

Equity
Share capital
(Ordinary shares of $1 each) 413 000 (1)
Share premium 60 400 (1)
Revaluation reserve 150 000 (1)
Retained earnings (98 908(1) +40 485(1)) 139 393 (2)
Total equity 762 793 (1of)
Non-current liabilities
6% debentures (2030) 75 000 (1)
Current liabilities
7% bank loan (2021) 30 000 (1)
Trade and other payables 87 836 (1)
Tax payable 15 280 (1)
133 116 (1of)
Total liabilities 208 116 (1of)
Total equity and liabilities 970 909 (1of)

(19)

(Total for Question 1 = 22 marks)

ASE20104
6 June 2021
Question Answer AO2 (15) Mark
2(a) Award marks as indicated.
Savina Balance Adjustments Statement of profit or Statement of financial
Extended trial balance at 31 March 2021 loss position
Debit Credit Debit Credit Debit Credit
$ $ $ $ $ $ $

2 055
Bank 2 555 500(1)

12 850 (1)
Capital 12 850

16 000
Closing inventory — statement of financial position 16 000 (1)

Closing inventory — statement of profit or loss 16 000 (1)

16 000

18 500
Drawings 18 000 500(1)

31 925
General expenses 31 245 680(1)

14 000 (1)
Opening inventory 14 000

62 000 (1)
Purchases 62 000

16 200
Rent 17 550 1 350(1)

151 500 (1)

Revenue 151 500
bn19 000
(1)
Trade receivables 19 000

680
Other payables 680(1)

1 350
Other receivables 1 350(1)

43 375 (1of) 43 375 (1of)

Profit/loss for the year
(15)

TOTAL 2 530 2 530 167 500 167 500 56 905 56 905

Question Answer (AO1) 2 (AO2) 2 Mark
2(b) Award marks as indicated.

Ratio Formula Answer

Inventory turnover Cost of sales ÷ average inventory 4 (1)

(Times)
(1)

Accounts receivable Trade receivables ÷ sales x 365 (1) 46 (1)

collection period (Days)

(4)

(Total for Question 2 = 19 marks)

Question Answer (AO1) 1 Mark
number
3(a) Award mark as indicated.

Business entity (1)

(1)

Question Answer (AO3) 2 Mark

number
3(b) Award 1 mark for identification and 1 mark for linked
justification.

To show the distribution of profits between the partners, (1) which

ensures that the partners know the amount they have available for
drawings (1).

Accept any other appropriate responses. (2)

Question Answer AO2 (7) Mark

Number
3(c) Award 1 mark for each correct figure with label as indicated.

Kyi and Lwin

Appropriation account for the year ended 31 December 2020

$ $
Profit for the year 118 146 (1)
Interest on drawings
Kyi 2 904 (1)
Lwin 2 720 (1) 5 624

Interest on capital
Kyi 7 200 (1)
Lwin 6 000 (1) (13 200)

Salary - Kyi (15 000) (1)

Profit available for 95 570
distribution
Share of profit
Kyi 57 342
Lwin 38 228
(1of for
(7)
both)
95 570

ASE20104
9 June 2021
Question Answer AO2 (7) Mark
Number
3(d) Award 1 mark for each correct figure as indicated.
Award 1 mark for all correct dates and details.

Current Account – Kyi

Date Details $ Date Details $

31 Dec Appropriation/ 2 904 1 Jan Balance b/d 3 965
Interest on (1of)
drawings
Drawings 36 300 31 Dec Appropriation/ 7 200
(1) Interest on (1of)
capital
Balance c/d 44 303 Appropriation/ 15 000
Salary (1of)
Appropriation/ 57 342
Share of (1of)
profit
83 507 83 507
1 Jan Balance b/d 44 303
(1of) (7)

Question Answer (AO3) 2 Mark

number
3(e) Award 1 mark for identification and 1 mark for linked justification.

All partners have unlimited liability at present, (1) whereas in a limited

liability partnership, the partners’ personal assets cannot be used to pay
the partnership debts (1).

Accept any other appropriate responses. (2)

(Total for Question 3 = 19 marks)

ASE20104
10 June 2021
 Question Answer (AO1) 2 Mark
4(a) Award marks as indicated.

Financial accounting is primarily for external use / management

accounting is primarily for internal use (1)

Financial accounting has a set layout for presentation / management

accounting has no set layout for presentation (1)

Accept any other appropriate responses.

(2)

Question Answer (AO1) 3 Mark

4(b) Award 1 mark for each correctly identified point up to a
maximum of 3 marks.

Assumes all units produced are sold / there is no inventory (1)

Assumes fixed costs are fixed throughout the period (1)
Assumes that variable costs are linear (1)
Assumes the selling price remains fixed throughout the period (1)
Assumes that all costs are categorised as either fixed or variable/
ignores semi-variable costs (1)
Does not allow for a mix of products (1)
Does not take account of external factors (1) (3)

Accept any other appropriate responses.

Question Answer (AO2) 2 Mark

4(c)(i) Award marks as indicated.

11 250 units (2)

$180 000 ÷ $16 (1) = 11 250 units (1of)

(2)

Additional guidance
Correct answer only scores 2 marks.
No specific format required.

Question Answer (AO2) 1 Mark

4(c)(ii) Award mark as indicated.

$630 000 (1of) (1)

Additional guidance
Correct answer only scores 1 mark.
No specific format required.

ASE20104
11 June 2021
Question Answer (AO2) 1 Mark
4(c)(iii) Award mark as indicated.

2 750 units (1of) (1)

Additional guidance
Correct answer only scores 1 mark.
No specific format required.

Question Answer (AO2) 1 Mark

4(c)(iv) Award mark as indicated.

$154 000 (1of) (1)

Additional guidance
Correct answer only scores 1 mark.
No specific format required.

Question Answer (AO2) 2 Mark

4(c)(v) Award marks as indicated.

16 250 units (2)

$260 000 (1) ÷ $16 = 16 250 units (1of) (2)

Additional guidance
Correct answer only scores 2 marks.
No specific format required.

Question Answer (AO2) 1 Mark

4(c)(vi) Award mark as indicated.

$910 000 (1of) (1)

Additional guidance
Correct answer only scores 1 mark.
No specific format required.

ASE20104
12 June 2021
Question Answer (AO4) 4 (AO5) 1 Mark
number
4(d) Award 1 mark for each correctly identified point up to a maximum
of 4 marks.
Award 1 mark for supported evaluation.

Sample answer

Assuming that customers are prepared to pay the increased selling price
(1) then there will be an increase in the contribution per unit sold (1)
resulting in less units required to be sold to break even (1) which will
increase the margin of safety (1).

Overall profit for the year will increase assuming no increase in

expenditure. (1)

Accept any other appropriate responses.

(5)

(Total for Question 4 = 18 marks)

ASE20104
13 June 2021
 Question Answer (AO1) 1 Mark
5(a) Award mark as indicated.

A cash budget is used to plan for cash shortages or surpluses / a statement

of cashflows is used to show how cash was generated/used. (1)
Or
A cash budget is a forecast / a statement of cashflows is based on historical
information. (1)
Or
A cash budget is for internal users / a statement of cashflows in primarily for
external users. (1)
(1)
Accept any other appropriate responses.

Question Answer (AO2) 6 Mark

5(b) Award marks as indicated.

July 2021 August 2021 September 2021

$ $ $

48 996 (2) W1 46 368 (2) W2 48 060 (2) W3

W1 $24 300 (1) + $24 696 (1) = $48 996

W2 $25 200 (1) + $21 168 (1) = $46 368

W3 $21 600 (1) + $26 460 (1) = $48 060 (6)

ASE20104
14 June 2021
Question Answer (AO2) 4 Mark

5(c) Award marks as indicated.

Sparky
Trade receivables budget for the three-month period ending
30 September 2021

July August September

2021 2021 2021
$ $ $

Opening balance 74 700 (1) 68 400 75 600

Credit Sales 43 200 54 000 59 400

(1 row)

Receipts (48 996) (46 368) (48 060)

Discount allowed (504) (432) (540)

(1 row)

Closing balance 68 400 75 600 86 400 (1of (4)

row)

ASE20104
15 June 2021
Question Answer (AO2) 6 Mark
number
5(d) Award marks as indicated.

Sparky
Cash budget for the three-month period ending 30 September 2021

July August September

2021 2021 2021
$ $ $
Receipts

Cash sales 4 800 6 000 6 600

(1 row)

Trade receivables (credit 48 996 46 368 48 060

sales) (1of row)

Additional capital 71 500 - -

Total receipts 125 296 52 368 54 660

(1of row)

Payments

Cash purchases 12 964 13 105 14 387

Trade payables (credit 13 660 11 155 12 200

purchases)

Machine purchase 71 500 - -

Operating expenses 19 310 22 740 33 455

Overdraft interest 140 38

Total payments 117 574 47 038 60 042

Net inflow / (outflow) 7 722 5 330 (5 382)

(1of row)

Opening balance (9 650) (1 928) 3 402

(1of row)

Closing balance (1 928) 3 402 (1 980)

(1of)
(6)

ASE20104
16 June 2021
Question Answer (AO3) 4 (AO5) 1 Mark
number
5(e) Award 1 mark for each correctly identified point up to a maximum
of 4 marks.
Award 1 mark for supported decision.

Sample answer

If Sparky were to take out a bank loan, then this will increase the
liabilities of the business which will need to be repaid (1).

If he introduced additional capital, then this will not require repayment as

it will increase his equity in the business. (1)

The bank loan would require the payment of interest whereas no interest
is paid on the additional capital. (1)

The bank loan interest is an expense on the statement of profit or loss

which will reduce the profit for the year. (1)

Sparky should take out a bank loan to finance the machine and introduce
additional capital to clear the bank overdraft. (1)

Accept any other appropriate responses.

(5)

(Total for Question 5 = 22 marks)

TOTAL FOR PAPER = 100 MARKS

ASE20104
17 June 2021