level 2 certificate in book-keeping qualification guidance · 1 qualification summary abc awards...

C7031-02 Issue 2 50110251 April 15

LEVEL 2 CERTIFICATE IN

BOOK-KEEPING

QUALIFICATION GUIDANCE

[50110251]

About ABC Awards

ABC Awards is a leading national awarding organisation which has a long-

established reputation for developing and awarding high quality vocational

qualifications. We are committed to developing qualifications, which help learners

and organisations, by cultivating the relevant skills for learning, skills for employment

and skills for life.

We work with hundreds of centres nationally and thousands of learners achieve an

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Contents Qualification Summary 1 Introduction 3 Aims 3 Target Group 3 Progression Opportunities 4 Unit Details 5 Recognition of Prior Learning (RPL), Exemption and Credit Transfer 40 Certification 40

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Qualification Summary ABC Awards Level 2 Certificate in Book-Keeping

Qualifications

Level 2 Certificate in Book-Keeping

Assessment Internal assessment, internal and external moderation

Grading Pass

Accreditation Start Date 01/08/2010

Operational End Date 31/12/15

ABC Sector Business and Enterprise

QCDA Tier 2 Sector 15.1 Accounting and Finance

Support from sector bodies

This qualification is supported by FSSC, the Sector Skills Council for finance, accountancy and financial services

ABC Administering Office See ABC web site

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Level 2 Certificate in Book-Keeping To gain the Level 2 Certificate in Book-Keeping learners must achieve 16 credits from the ten mandatory units.

Unit Level Credit Value

GLH Page No.

Mandatory Units

Banking procedures [A/600/8739] 1 1 3 5

Maintaining petty cash records [R/600/8746] 1 1 5 8

Principles of recording and processing financial transactions [A/600/8756]

2 2 9 11

Professional values and basic business legislation [F/600/8757]

2 1 4 15

Processing ledger transactions and extracting a trial balance [F/600/8760]

2 2 8 19

Preparing and recording financial documentation [J/600/8758]

2 2 11 22

Maintaining control accounts [K/600/8770] 2 1 4 26

Maintaining and reconciling the cashbook [L/600/8759] 2 2 6 29

Maintaining the journal [T/600/8772] 2 2 9 32

Principles of VAT [F/600/4952] 3 2 15 36

Numbers in box brackets indicate QCF unit Number If learners achieve credits from units of the same title (or linked titles) at more than one level, they cannot count credits achieved from both units towards the credit target of a qualification

Entry Requirements There are no specific entry requirements

Section 96/97 Pre 16 16 – 18 19 +

LSC Qualification Code 50110251

Recommended GLH 74GLH

Points Score See ABC web site / Qualifications Directory

Contribution to Threshold

See ABC Qualifications Directory

ASL Option Yes

Foundation Learning N/A

Type of Funding Available

See LAD (Learning Aims Database)

Minimum Qualification Fee

See ABC web site for current fees and charges

Unit Fee Unit fees are based upon a unit’s individual credit value. Please see the ABC web site for the current fee charged per credit.

Additional Information Please see ABC web site for qualifications that are eligible for Credit Transfer/RPL/Exemption

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Introduction Book-keeping qualifications have a long history stretching back over many years within ABC Awards - deriving from a Union of Lancashire and Cheshire Institutes (ULCI) general commerce qualification in 1964, a result of the need identified for a specific book-keeping qualification. The Level 2 Certificate in Book-Keeping has been developed in collaboration with FSSC and other Awarding Organisations. It is designed for learners seeking increased employment opportunities where a specialised qualification is considered advantageous, or for individuals who have identified it as necessary for enhancement of their existing contribution in the work place. This occupationally relevant qualification reflects the current role of the book-keeper in commerce and industry. This qualification will be put forward for inclusion on the ASL catalogue. Please check the ABC Awards website for the current status of this qualification within the ASL catalogue.

Aims This qualification aims to

provide learners with the knowledge and skills required to process financial transactions associated with a business in a book-keeping environment

gain competence in their job role

progress into further education / training or employment

Target Group This qualification is designed for

14-19 year olds in educational or training establishments (schools, colleges, private training providers), particularly those with limited previous achievement, who wish to pursue a vocational course as a foundation to employment.

Those wishing to study book-keeping to enhance job prospects

Those who may not have undertaken any form of study for many years but who wish to update or improve their knowledge base.

Those who are not book-keepers but who need to understand the financial transactions of the business in which they work

Book-keepers who do not have any relevant, formal qualifications for their existing job role and are looking to gain an accredited competence qualification

ABC expects approved centres to recruit with integrity on the basis of a learner’s ability to contribute to and successfully complete all the requirements of a unit/s or the full qualification.

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Progression Opportunities Progression could be to self-employment, full or part-time employed status, or to appropriate Level 3 qualifications. Centres should be aware that reasonable Adjustments which may be permitted for assessment may in some instances limit a learner’s progression into the sector. Centres must, therefore, inform learners of any limits their learning difficulty may impose on future progression

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Unit Details

Unit Title

A/600/8739 Banking procedures

Level

1

Credit Value

1

Guided Learning Hours

3

Unit Summary The purpose of this unit is to develop the learners’ knowledge and understanding of the UK banking system and organisational activities and procedures related to banking

Learning Outcomes (1 to 2) The learner will

Assessment Criteria 2.2 to 2.2) The learner can

1. Understand the banking process

1.1 Identify the main services offered by banks and building societies 1.2 Describe how the banking clearing system works 1.3 Identify different forms of payment which include

cash

cheques

credit cards

debit cards

direct payments 1.4 Identify the information required to ensure the following payments are valid

cash

cheque

credit card

debit card 1.5 Describe the processing and security procedures relating to the different forms of payments

2. Understand document retention and storage requirements

2.1 Explain why it is important for an organisation to have a formal document retention policy 2.2 Identify the different types of documents that may be stored

Mapping to National Occupational Standards Direct relationship based on the NOS for Accountancy and Finance FA-3

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SUPPORTING UNIT INFORMATION

A/600/8739 Banking procedures – Level 1

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand the banking process

Bank accounts

Personal / secured loans

Mortgages

Investments

CHAPS and BACS payments

Different types of financial transactions

Components of valid financial transactions Learning Outcome 2. Understand document retention and storage requirements

Importance of complying with legislation

Data Protection Act 1998

Current and historic records

Retention periods TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

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Observation reports

Oral/written questions and answers

Reports/notes

Worksheets/job sheets/workbooks

Witness statements

Taped evidence (video or audio)

Photographic evidence

Case studies/assignments/projects

Interview/professional discussion

Pictorial identifications

Letters / emails seeking clarification / confirmation of understanding

Internet research / copies of items with relevant knowledge highlighted

All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information

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Unit Title

R/600/8746 Maintaining petty cash records

Level

1

Credit Value

1


5

Unit Summary

For the learner to have a clear understanding of the principles and procedures related to the processing of petty cash transactions and the maintenance of the petty cash float known as the imprest


Assessment Criteria (1.1 to 3.4) The learner can

1. Complete a petty cash voucher

1.1 Prepare petty cash vouchers 1.2 Calculate the purchase tax (eg VAT) where the expense includes it

2. Maintain an analysed petty cash book

2.1 List the petty cash vouchers into an analysed petty cash book ensuring that the expenses are entered and analysed 2.2 Account for any tax paid e.g. VAT 2.3 Total and cross cast the petty cash book

3. Maintain the petty cash balance

3.1 Balance off the petty cash book using the imprest system 3.2 Reconcile the petty cash book with cash in hand 3.3 Prepare a petty cash reimbursement request or equivalent 3.4 Show the reimbursement of the petty cash expenditure in the petty cash book

Mapping to National Occupational Standards Direct relationship based on NOS for Accountancy and Finance FA-2 and FA-3

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R/600/8746 Maintaining petty cash records – Level 1

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Complete a petty cash voucher

Nature and purpose of petty cash vouchers

VAT fraction and decimal fraction

Importance of obtaining authorised petty cash voucher Learning Outcome 2. Maintain an analysed petty cash book

Nature and purpose of analysed cash booked

Accounting separately for sales tax Learning Ouctome 3. Maintain the petty cash balance

Principles of the imprest system

Effective method of control

Principles of reconciliation

TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. All learners must complete a portfolio of evidence that shows achievement of all the relevant learning outcomes and assessment criteria Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

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Product evidence

Observation reports


Reports/notes


Witness statements









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Unit Title

A/600/8756 Principles of recording and processing financial transactions

Level

2

Credit Value

2


9

Unit Summary For the learner to have a clear understanding of the principles and procedures related to the processing of business transactions



1. Understand the role of the books of prime entry

1.1 Outline the purpose, content and format of the books of prime entry 1.2 Outline the purpose and content of a range of business documents to include

petty cash voucher

invoice

credit note

remittance advice 1.3 Identify when authorisation is required 1.4 Explain how transactions are entered in the following books of prime entry:

sales and sales returns day books

purchase and purchase return day books

cash book

petty cash book

2. Understand the principles of coding

2.1 Describe the need for a coding system for financial transactions within a double entry book-keeping system 2.2 Describe the use of coding within a filing system.

3. Understand the double entry book-keeping system

3.1 State the accounting equation 3.2 Explain how the accounting equation relates to a double entry book-keeping system 3.3 Outline how the books of prime entry integrate with double entry book-keeping system

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3.4 Explain how to process financial transactions from the books of prime entry into the double entry book-keeping system 3.5 Define, and distinguish between, capital income and capital expenditure 3.6 Define, and distinguish between, revenue income and revenue expenditure

4. Understand the various types of discount

4.1 Explain the difference between settlement, trade and bulk discount 4.2 Describe the effect that settlement discount has on the sales tax (e.g. VAT) charged

5. Understand the use of the Journal

5.1 Describe the reasons for maintaining a Journal 5.2 Describe the content and format of the Journal 5.3 Give examples of the types of transactions that might be entered into the book-keeping system by using the Journal

bad debts

wages/salaries

PAYE/NIC liability

opening balances

6. Understand control accounts

6.1 Describe the purpose of control accounts as a checking device to aid management and help identify book-keeping errors 6.2 Describe the specific purpose of the following control accounts

sales ledger purchase ledger sales tax account (e.g. VAT)

6.3 Explain why it is important to reconcile the Sales and Purchase ledger control accounts regularly 6.4 Describe the usefulness of an aged debtor analysis for monitoring debtors 6.5 Explain the need to deal with discrepancies quickly and professionally

Mapping to National Occupational Standards Direct relationship based on NOS for Accountancy and Finance FA-1,FA-2 and FA-3

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A/600/8756 Principles of recording and processing financial transactions – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand the role of the books of prime entry

To record and summarise details of source documents

Importance of source documents

Nature and purpose of each document Learning Outcome 2. Understand the principles of coding

Efficiency of data capture, entry, analysis

Advantages of establishing good filing system Learning Outcome 3. Understand the double entry book-keeping system

Principles and rules of double entry book keeping

Fundamental concept – total assets of business = total liabilities

Distinguish between capital and revenue income / expenditure Learning Outcome 4. Understand the various types of discount

Nature and purpose of each type of discount Learning Outcome 5. Understand the use of the Journal

Nature and purpose of journal

Permanent record with narrative.

Unusual movements

Correction of errors

Transfers between accounts Learning Outcome 6. Understand control accounts

Nature and purpose of control accounts

Typical examples – debtors / creditors control account

Checks accuracy of entries in individual accounts

Act as internal control

Importance of timely reconciliations

Principles of credit control TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place.

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METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports


Reports/notes


Witness statements









15

Unit Title

F/600/8757 Professional values and basic business legislation

Level

2

Credit Value

1


4

Unit Summary For the learner to understand the fundamental principles of a range of business legislation and the importance of professionalism to the role of book-keeper


Assessment Criteria (1.1 to 3.5 The learner can

1. Understand the importance of integrity and professionalism

1.1 Explain why each of the following professional values is important to a book-keeper

confidentiality security of data competency duty of care integrity

1.2 Explain why it is important for a book-keeper to comply with the Code of Ethics of a professional body

2. Understand that legislation exists relating to the workplace

2.1 Explain the importance of maintaining security over computerised and manual information held on individuals or businesses 2.2 Identify and describe principles of data protection including

adequate, relevant and not excessive

not kept longer than necessary

not transferred to countries without

adequate data protection laws 2.3 Describe the main duties and responsibilities of employers and employees under heath and safety legislation

3. Know the fundamental principles of money laundering legislation

3.1 Define the term ‘money laundering’ 3.2 Give examples of offences under the money laundering regulations 3.3 Outline the risks for book-keepers associated with the money laundering legislation

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3.4 Identify internal procedures that businesses can introduce to lessen risks 3.5 Outline the requirements to report suspicions of money laundering to the appropriate authorities

Mapping to National Occupational Standards Direct relationship to the NOS for Accountancy and Finance FA-1, FA-2 and FA-3

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F/600/8757 Professional values and basic business legislation – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand the importance of integrity and professionalism

Necessity of maintaining clean and credible image within and outside organisation

Creating culture of trust confidence and respect Learning Outcome 2. Understand that legislation exists relating to the workplace

Importance of complying with legislation

Legal obligations of employer / employee

Data Protection Act 1998

Current and historic records

Retention periods

Health and Safety Act 1974

Duty of care

Risk assessment and management

Reporting requirements Learning Outcome 3. Know the fundamental principles of money laundering legislation

Money Laundering Regulations 2007

EEC and International Law

Establishment of financial policies and procedures

Reporting requirements – Serious Organised Crime Agency

Different ways of reporting suspicious activity TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT

This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching.

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EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports


Reports/notes


Witness statements









19

Unit Title

F/600/8760 Processing ledger transactions and extracting a trial balance

Level

2

Credit Value

2


8

Unit Summary The purpose of this unit is to develop the learners’ skills in balancing off the accounts held within the ledgers and from them preparing an initial trial balance



1. Process ledger transactions from the books of prime entry

1.1 Transfer data correctly from the day books to the ledgers 1.2 Transfer data correctly from the cashbook to the ledgers 1.3 Transfer data correctly from the petty cash book to the ledgers

2. Prepare ledger balances and an initial trial balance

2.1 Balance ledger accounts clearly showing balances carried down and brought down as appropriate 2.2 Extract an initial trial balance


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F/600/8760 Processing ledger transactions and extracting a trial balance – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Able to process ledger transactions from the books of prime entry Learning Outcome 2. Able to prepare ledger balances and an initial trial balance

Explain and illustrate how to balance a ledger account

Explain the concept of double entry bookkeeping system

Balancing off accounts at the end of an accounting period

Ledger accounts: types and differences

Reconciliation of day book, cash book and petty cash book before transferring data to the ledgers

Reconcile and analyse carried and brought down balances in the ledger accounts

From the ledgers, post carried and brought down balances in the trial balance

Extract the ledger balances into a trial balance

TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT

This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports

21


Reports/notes


Witness statements









22

Unit Title

J/600/8758 Preparing and recording financial documentation

Level

2

Credit Value

2


11

Unit Summary

The purpose of this unit is to develop learners’ skills in processing financial documents. This involves preparing and recording the necessary documents to be sent to customers as well as processing payments received. It also involves processing and recording documents received from suppliers and preparing payments for suppliers



1. Prepare the financial documents to be sent to credit customers

1.1 Use difference source documents to prepare sales invoices and credit notes 1.2 Calculate relevant sales tax (eg VAT), trade discount and settlement discount 1.3 Produce statements of account to be sent to credit customers

2. Enter sales invoices and credit notes into the appropriate books of prime entry

2.1 Code sales invoices and credit notes 2.2 Enter invoices and credit notes into the books of prime entry

3. Process payments from customers

3.1 Check the accuracy and validity of receipts against relevant supporting information 3.2 Identify and deal with any discrepancies

4. Process suppliers’ invoices and credit notes

4.1 Check the accuracy of supplier invoices and credit notes against purchase orders, goods received and delivery notes 4.2 Check agreed trade, bulk and settlement discounts where appropriate

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5. Enter supplier invoices and credit notes into the appropriate books of prime entry

5.1 Code supplier invoices and credit notes 5.2 Enter supplier invoices and credit notes into the books of prime entry

6. Prepare payments to suppliers

6.1 Reconcile supplier statements 6.2 Calculate the payments due to suppliers from relevant documentation 6.3 Prepare remittance advices to accompany payments to suppliers


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J/600/8758 Preparing and recording financial documentation – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Prepare the financial documents to be sent to credit customers

Letters / e-mails / sales order forms / sales return forms

Accounting for discounts allowed and VAT

Importance of producing customer statements

Learning Outcome 2. Enter sales invoices and credit notes into the appropriate books of prime entry Learning Outcome 3. Process payments from customers

Importance of accurate recording and cross checking

Importance and relevance of timely reconciliations Learning Outcome 4. Process suppliers’ invoices and credit notes

Importance of reconciling invoices with delivery notes/ internal records Learning Outcome 5. Enter supplier invoices and credit notes into the appropriate books of prime entry

Importance of accurate recording and cross checking

Importance and relevance of timely reconciliations Learning Outcome 6. Prepare payments to suppliers

Reconcile statement to individual account in creditor’s ledger

Verify completeness and accuracy of records

TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria.

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Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports


Reports/notes


Witness statements









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Unit Title

K/600/8770 Maintaining control accounts

Level

2

Credit Value

1


4

Unit Summary For the learner to understand the importance of maintaining control over debtors and creditors aided by preparation and use of debtor and creditor control accounts



1. Prepare sales and purchase ledger and tax control accounts

1.1 Prepare a sales ledger control account from information extracted from the books of prime entry 1.2 Balance the sales ledger control account 1.3 Prepare a purchase ledger control account from information extracted from the books of prime entry 1.4 Balance the purchase ledger control account 1.5 Prepare a tax control account from information extracted from the books of prime entry

2. Reconcile sales and purchase ledger and tax control accounts

2.1 Reconcile the balance on the sales ledger control account with a list of debtors 2.2 Reconcile the balance on the purchase ledger control account with a list of creditors 2.3 Reconcile the balances on the tax control account


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K/600/8770 Maintaining control accounts – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Prepare sales and purchase ledger and tax control accounts

Purpose and need for control accounts

Debtors’, Creditors’ and Tax control account.

Extraction from book of prime entry

Adjustments from books of original entry

Journals and journal entries concepts and principles

Learning Outcome 2. Reconcile sales and purchase ledger and tax control accounts

The need for and purpose of reconciliation

Balance sales ledger to debtors list and purchase ledger to creditors list

Dealing with bad debts and procedures for writing off bad debt

Dealing with sales and purchase credit note

Need for a tax control account to deal with any tax liabilities

Adjustments and corrections through the journal

TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

28

Product evidence

Observation reports


Reports/notes


Witness statements









29

Unit Title

L/600/8759 Maintaining and reconciling the cashbook

Level

2

Credit Value

2


6

Unit Summary

The purpose of this unit is to develop learners’ skills in maintaining the cash book by entering receipts and payments accurately, balancing off the cash book and reconciling with a bank statement



1. Maintain a three column analysed cash book

1.1 Enter receipts and payments details from relevant primary records into the three column analysed cashbook 1.2 Enter settlement discounts to relevant customer and supplier accounts 1.3 Enter sales tax (eg VAT) where applicable 1.4 Total, balance and cross cast the cashbook 1.5 Identify and deal with discrepancies

2. Reconcile a bank statement with the cashbook

2.1 Check individual items on the bank statement accurately against the cashbook to identify differences 2.2 Update the cashbook from the bank statement, direct debit and standing order schedules 2.3 Prepare a bank reconciliation statement


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L/600/8759 Maintaining and reconciling the cashbook – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Maintain a three column analysed cash book

Nature and purpose of three column cash book

Principles and advantages of discounts allowed and received

Importance and relevance of cross casting

Learning Outcome 2. Reconcile a bank statement with the cashbook

Nature and purpose of bank reconciliations

Initiated bank transactions

Timing differences

Omissions

Posting errors TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports


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Reports/notes


Witness statements









32

Unit Title

T/600/8772 Maintaining the journal

Level

2

Credit Value

2


9

Unit Summary

For the learner to understand that the Journal is a primary accounting record that lists non-standard book-keeping transactions and that it is then used to enter those transactions into the double entry book-keeping records



1. Open a new set of double entry book keeping records using the Journal

1.1 Prepare the journal entries to open a double entry set of book-keeping records for a new and existing business 1.2 Record the journal entries in the ledger accounts

2. Use the Journal to correct errors disclosed and not disclosed by the trial balance.

2.1 Identify and record journal entries in the general ledger to correct errors not disclosed by the trial balance. 2.2 Identify the types of errors in a book-keeping system that are not disclosed by extracting a trial balance

2.3 Identify the types of errors in a book-keeping system that are disclosed by extracting a trial balance

addition errors in individual ledger accounts single entry transactions recording two debits or two credits for a transaction errors transferring balances from the general ledger to the trial balance omission of a general ledger account

2.4 Re-draft a trial balance following the correction of errors

3. Create and clear a suspense account using the Journal

3.1 Balance a trial balance by recording the difference in a suspense account 3.2 Prepare journal entries to correct book-keeping errors and clear the balance on a suspense account 3.3 Record the journal entries in the general ledger to clear the suspense account

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3.4 Re-draft a trial balance following the correction of errors and the elimination of a suspense account

4. Use the journal to record other transactions

4.1 Prepare journal entries to write off a bad debt 4.2 Enter the journal entries in the general ledger to write off a bad debt including the sales tax (eg VAT) where appropriate 4.3 Prepare and enter the journal entries in the general ledger to process payroll transactions

Mapping to National Occupational Standards Close relationship to the National Occupational Standards for Accounting

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T/600/8772 Maintaining the journal – Level 2

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Be able to open a new set of double entry book keeping records using the journal Explain the uses of the journal Explain, describe and accurately reflect bookkeeping entries and records using journal

Principles of double entry bookkeeping

Ledger accounts: types and differences

The accounting equation

Balancing off accounts at period end Learning Outcome 2. Be able to use the journal to correct errors disclosed and not disclosed by the trial balance Explain the types of error which may occur in bookkeeping systems, identifying those which can and those which can not be detected by preparing a trial balance Illustrate the use of journal in correcting errors Explain how to accurately prepare a trial balance that reflects any necessary adjustments and corrections

The need for and the purpose of a trial balance

Types of errors in the trial balance

Correction of errors through the journal

Produce and prepare an amended trial balance

Learning Outcome 3. Be able to create and clear a suspense account using the journal Illustrate the use of a suspense account Explain how to accurately prepare suspense accounts including any necessary adjustments and clearance

Purpose of suspense accounts

Reconciling and clearing suspense accounts using the journal Learning Outcome 4. Be able to use the journal to record other transactions Explain how journal can be used to record other transactions Explain the general principles of the operation of a sales tax and the consequent accounting entries

Posting opening balances using the journal

Closing at year end using the journal

Using journal entries in managing and processing VAT, Debtors, Creditors, Payroll transactions

Dealing with writing off of bad debts including sales Tax (VAT)

35

TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports


Reports/notes


Witness statements









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Unit Title

F/600/4952 Principles of VAT

Level

3

Credit Value

2


15

Unit Summary

This unit is about understanding the current VAT regulations. Learners will understand the VAT registration requirements, the different VAT schemes available, the penalties for non-compliance and the different types of classification of supplies



1. Understand VAT regulations

1.1 Identify sources of information on VAT 1.2 Explain the relationship between the organisation and the relevant government agency 1.3 Explain the VAT registrations requirements 1.4 Identify the information that must be included on business documentation of VAT registered businesses 1.5 Recognise different types of inputs and outputs 1.6 Identify how different types of supply are classified for VAT purposes

standard supplies

exempt supplies

zero rated supplies

imports

exports 1.7 Explain the requirements and the frequency of reporting for the following VAT schemes

annual accounting

cash accounting

flat rate scheme

standard scheme 1.8 Recognise the implications and penalties for the organisation resulting from failure to abide by VAT registrations including the late submission of VAT returns

37

Mapping to National Occupational Standards Based on FSSC NOS for Accountancy and Finance Unit T-3 Equivalences: AAT Level 3 Diploma for Accounting Technicians (QCF) Unit 34, Exemptions: AAT Level 3 Advanced Certificate in Accounting Unit 31.1, Level 3 NVQ in Accounting Unit 7

38


F/600/4952 Principles of VAT – Level 3

INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand VAT regulations

General nature of the VAT

Politics around VAT such as EU and UK regulations and government power to increase or reduce VAT rate

Different tax rates for goods and services such as standard rate of 17.5% and reduced rate of 5%

Zero rated and Exempt supplies

Compulsory registration for VAT with the HM Revenue and Customs based on turnover threshold

Timeframe for compulsory registration

Voluntary registration

Advantages and disadvantages for registering for VAT

General administration for VAT

Waiver of VAT registration

When and where to send forms

VAT registration number in invoicing, Electronic invoicing and invoice format as required by EU and UK legislation

Details to be included in a VAT invoice

Tax point when the liability to the tax arises

Calculation of VAT

VAT on purchases and sales translating into input and output VAT

Keeping of records, i.e. invoices and VAT returns in case of any investigation from HMRC

Quarterly VAT returns and Payments

Penalties, interests and surcharges for failure to comply with VAT legislation

Cash accounting schemes, annual accounting schemes and flat rate schemes for businesses with respect to their turnover threshold

Flat rate percentages by trade sectors for different category of business

VAT on imports into the UK

VAT on exports from the UK

Deregistration process when annual turnover fall below the threshold limit

Dealing with bad debts i.e. repayment of input tax by customers

TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place.

39

METHODS OF ASSESSMENT

This unit will be internally assessed, internally and externally moderated via a learner’s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include

Product evidence

Observation reports


Reports/notes


Witness statements









40

Recognition of Prior Learning (RPL), Exemptions, Credit Transfers and Equivalencies

The QCF enables learners to avoid duplication of learning and assessment in a

number of ways:

Recognition of Prior Learning (RPL) – a method of assessment that considers

whether a learner can demonstrate that they can meet the assessment

requirements for a unit through knowledge, understanding or skills they

already possess and do not need to develop through a course of learning.

Exemption - individuals with certificated achievements outside the QCF can

claim exemption from some of the achievement requirements of a QCF

qualification, using evidence of certificated, non-QCF achievement deemed to

be of equivalent value’.

Credit Transfer - for achievements within the QCF it is possible to transfer

credits awarded in the context of one QCF qualification or awarded by a

different awarding organisation towards the achievement requirements of

another QCF qualification. This would apply when a unit in one level is also

listed within another level/qualification and the unit has the same QCF

number.

Equivalencies – opportunities to count credits from the unit(s) from other

qualifications or from unit(s) submitted by other recognised organisations

towards the place of mandatory or optional unit(s) specified in the rule of

combination. The unit must have the same credit value or greater than the

unit(s) in question and be at the same level of higher.

ABC encourages its centres to recognise the previous achievements of learners

through Recognition of Prior Learning (RPL), Exemption, Credit Transfer and

Equivalencies. Prior achievements may have resulted from past or present

employment, previous study or voluntary activities. Centres should provide advice

and guidance to the learner on what is appropriate evidence and present that evidence

to the external moderator in the usual way.

Further guidance can be found in ‘Delivering and Assessing ABC Awards Qualifications’ which can be downloaded from http://www.abcawards.co.uk/centres-grid-page-move/policies-procedures/

Certification

Learners will be certificated for all units and qualifications that are achieved and claimed. ABC’s policies and procedures are available on the ABC website.

http://www.abcawards.co.uk/centres-grid-page-move/policies-procedures/

http://www.abcawards.co.uk/centres-grid-page-move/policies-procedures/

level 2 certificate in book-keeping qualification guidance · 1 qualification summary abc awards...

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