Examiners’ Report
Principal Examiner Feedback
October 2022
Pearson Edexcel International Advanced Level
In Accounting (WAC11) Paper 01
Unit 1: The Accounting System and Costing
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October 2022
Publications Code WAC11_01_ER_2210
All the material in this publication is copyright
© Pearson Education Ltd 2022
General comments
The Examiners accept that this has been a difficult period for centres and candidates.
In general, the overall standard of responses to the October 2022 examination were
not as robust as the examiners had seen in June 2022 and other examinations during
the pandemic. The candidates’ knowledge, understanding and application to the
scenarios examined was again not quite as thorough as previously seen. Within this
examination candidates generally answered Section A questions well, but in the more
specialist questions in Section B candidates did demonstrate some limited and
incomplete knowledge on these topics. We appreciate the difficulties for centres and
candidates through a pandemic period and we look forward positively to the future.
Centres are, however, congratulated for the preparation of their candidates under what
are the most extreme of circumstances.
Specific Comments
Question 1
Candidates generally prepared very good answers to the financial statements. The
calculations for the capital, purchases and sales were substantially correct. The income
statement and financial position statement were usually presented in good format, and
these were substantially accurate.
There were many excellent answers to the evaluation, but a minority of candidates just
concentrated on the arguments for and against taking a partner. The loan option was
completely omitted from the evaluation.
Common errors
• Most candidates failed to identify that there had been a profit on the sale of the
motor vehicle to record in the income statement
• The evaluation often failed to consider the possibility of taking a loan as an
alternative to admitting a new partner
Question 2
The trial balance was prepared and the effect of revised year-end adjustments on profit
were answered well by candidates.
The preparation of the two ledger accounts was again substantially accurate in structure
and numerical calculations but candidates need to ensure that the narratives are
appropriate. Particularly, the narrative used within the account cannot be the name of
the account in which it is recorded.
The explanations of the terms used in financial statements were generally limited and
displayed gaps in the candidates’ knowledge of concepts and terms. The examples given
were therefore generally very limited.
Common errors
• Narratives used in the two ledger accounts e.g., the narrative rent payable should
not be a narrative recorded within the rent payable account
• Knowledge of accounting concepts and terms and their application to financial
accounts
Question 3
Generally, candidates’ knowledge of job costing was weak. Most candidates failed to
explain characteristics of job costing or the industries in which it might be used.
Candidates’ application of the continuous allotment method was very good and almost
all candidates were able to calculate an accurate hourly rate for the two productive
departments.
In part (d), candidates were generally aware of the meaning of the term under-absorbed
but generally could not suggest possible reasons why this has come about.
The evaluation of using Last In First Out (L.I.F.O) as an issuing value for raw materials
was not as good as we had seen in previous examinations. Most candidates failed to
consider both positive and negative points but provided only isolated comments.
Common errors
• An understanding of the term job costing and the industries where it might be
used
• Failure to identify possible reasons for under-absorbed overhead
• Evaluation of the effects of using Last In First Out (L.I.F.O) when issuing raw
materials
Question 4
Candidates generally were very accurate in calculating the ratios in parts (a) and (c).
They were also substantially accurate in the projections for the year if the business was
purchased and the proposed changes made.
The potential breaches of the social accounting principles were generally identified and
developed by candidates. An appropriate evaluation and conclusion was then generally
reached after consideration of the ratio percentages, the effect on profit and the social
accounting implications.
Common error
• Calculation of the cost of sales after purchase
Question 5
Few candidates accurately calculated the capital of Ciara in part (a) although they were
able to prepare accurate capital accounts and a bank account in parts (b) and (c). Again,
candidates could have improved the accuracy of their answers by greater attention to
the appropriateness of narratives.
The financial statement in part (d) was generally accurate but few candidates accurately
calculated the value of the non-current assets following the adjustments for acquisitions
and disposals and the depreciation adjustment.
In part (e), most candidates calculated the profit at £11 000 but failed to adjust for the
effect of the salary paid to Dennis.
The evaluation was not answered well. Candidates had limited knowledge and
understanding of floating capital accounts although this is a specific heading on the
Specification.
Common errors
• Failure to calculate capital from opening assets and liabilities
• Evaluation of the use of floating capital accounts for partners
Question 6
Candidates generally prepared accurate journal entries to correct the errors. Narratives
were appropriate and values generally accurate.
In part (b), candidates were very accurate in identification of the type of errors from
part (a).
In part (c), the question did ask for adjustment of the closing balance, but many
candidates adjusted the opening balance. This did cause some candidates some
difficulties.
Candidates were generally aware of differences between errors of reversal and errors
of compensation, and these were articulated by candidates.
The evaluation was variably answered and is a topic that we have covered before. Some
candidates answered a question based on an option between cash and credit sales and
others purely on types of errors. This was another evaluation where candidates need to
ensure that they are answering the question set.
Common errors
• The calculation of the corrected closing balance of the account
• Evaluation not addressing the question set
Summary
Centres may wish to consider the following key points to ensure that their candidates
are best equipped to succeed in future examinations.
Key points for centres to consider
1. Candidates should ensure that they have read the question and are answering
what has been asked. Candidates needed to consider a loan versus a partnership
in Question 1 not just a partnership. Also, in Question 6 many candidates failed
to address the question.
2. More emphasis on candidates’ knowledge and understanding of accounting
concepts and principles.
3. Costing is an area where candidates seem to have difficulty displaying their
knowledge and understanding. In this examination most candidates were
unaware of the meaning of the term job costing and the industries where it might
be used. They were also unclear about under-absorbed overheads or the effects
of Last In First Out (L.I.F.O) when issuing raw materials.
4. An understanding of the working and possible consequences of using floating
capital accounts in a partnership.
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