Certificate in Manual Bookkeeping

Students must be able to demonstrate their ability to understand and carry out the following functions:

VAT Returns
1) Show an understanding of the requirements for making VAT returns
2) Prepare VAT returns
3) Explain the balancing figure on the VAT return and its implications for the business

Cash Books
1) Explain the imprest system for dealing with petty cash
2) Enter opening balances and transactions into a petty cash book
3) Calculate and bring down balances
4) Restore the imprest
5) Post the analysed totals to the relevant ledger accounts
6) Set up a three column cash book and post relevant items including cash discounts involving VAT

Reconcile Sales and Purchases Ledger Accounts
1) Explain the need for reconciling the sales and purchases ledger accounts
2) Explain how discrepancies in the reconciliation can occur
3) Carry out a reconciliation of the sales and purchases ledger accounts

Correction of Errors
1) Correct errors in the accounts including those involving the suspense account

Bank Reconciliation Statements
1) Explain the discrepancies between bank
statements and the bank columns of cash books
2) Update the cash book
3) Prepare such statements

Trading and Profit and Loss Account for a Sole Trader
1) Explain their purpose
2) Prepare them from
i) Ledger accounts
ii) Trial balances
iii) Lists of balances
3) Derive and explain
i) Gross profit (or loss)
ii) Net profit (or loss)
iii) Cost of goods sold
4) Adjust the trading, profit and loss account for
i) Depreciation (straight line and reducing balance Methods)
ii) Prepayments and Accruals
iii) Bad debts

Balance sheet for a Sole Trader
1) Explain their purpose
2) Compile them from ledger accounts and a trading and profit and loss account
3) Explain the meaning of:
i) Capital
ii) Debtors and creditors
iii) Fixed and current assets

Year End Ledger Entries
1) Close off the ledger accounts at the year end making allowances for depreciation, prepayments and accruals

Non-Profit Making Organisations
1) Prepare a statement of affairs
2) Accurately prepare a receipts and payments account
3) Make adjustments to the accounts with regard to the accruals and prepayments of income and expenditure items including subscriptions
4) Prepare an income and expenditure account
5) Prepare a balance sheet

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