LC Accounting case studies
LC Accounting · Put your knowledge to work in context.
LCCI Accounting is a vocational bookkeeping and accounting qualification awarded by the London Chamber of Commerce and Industry (LCCI). It is aimed at people who need practical, working accounting skills rather than an academic degree: school and college learners building a first qualification, accounts clerks and bookkeepers who want formal recognition, and career-changers moving into finance roles. The LC Accounting case studies are 5 cases and about 2,973 words.
1Suspense Account and Profit Correction After a Trial Balance Difference
The bookkeeper of a sole trader prepared a trial balance at 31 December 2024. Debit balances totalled €184,260 and credit balances €185,710, so the €1,450 difference was posted to a suspense account.
594 words, about 3 min2Bank Reconciliation and Sales Ledger Control Account With a Dishonoured Cheque
At 30 June 2024 the bank column of a sole trader's cash book showed a debit balance of €1,200, while the bank statement showed a credit balance of €700. The following had not been recorded in the cash book: bank charges €80; a standing order for insurance €520; a dishonoured customer cheque €1,400; and a cheque for €310 issued to a supplier that had been entered as €110.
646 words, about 3 min3Year-End Adjustments, Depreciation, Bad Debts and Owner Pressure
A sole trader's draft net profit for the year ended 31 December 2024 is €64,500. The following information has not been adjusted: insurance paid €4,800, of which €1,200 relates to January to March 2025; light and heat paid €3,100, with €450 accrued at 31 December; debtors before write-off €48,000, a bad debt of €1,600 is to be written off, and a provision for bad debts of 5% of remaining debtors is required, with an existing provision of €2,000; machinery at cost €120,000 with accumulated depreciation at 1 January 2024 of €42,000, depreciation is 15% reducing balance, and a new machine costing €36,000 was purchased on 1 October 2024; a 6% loan of €50,000 was taken out on 1 July 2024 and interest paid during the year was €1,000.
579 words, about 3 min4Partnership Admission, Guaranteed Profit and Private Goodwill
A and B shared profits 3:2. On 1 July 2024 C was admitted, with a new profit-sharing ratio of 2:2:1.
636 words, about 3 min5Loan Covenant Test Before a Debt-Funded Special Dividend
A company reports revenue €1,200,000, gross profit €360,000, operating profit €150,000, finance cost €30,000, profit before tax €120,000, tax €15,000 and dividends €45,000. Its statement of financial position shows non-current assets €650,000, inventory €180,000, receivables €220,000, cash €50,000, ordinary share capital €400,000, share premium €100,000, retained earnings €180,000, 8% debentures €300,000, payables €90,000 and tax payable €30,000.
518 words, about 3 min