institute of chartered bookkeepers crestWe are certified by the Institute of Certified Bookkeepers as follows:

  • Level I Certificate in Basic Bookkeeping
  • Level II Certificate in Computerised Bookkeeping
  • Level II Certificate in Manaul Bookkeeping

The Level I Certificate in Basic Bookkeeping covers the basic principles of double entry bookkeeping and how they are used in business. Students must be able to demonstrate their ability to understand and carry out the following functions:

Business Documents

  1. Design and produce purchase orders, sales invoices, credit notes and statements of account which include VAT and trade discount
  2. Understand the basic law relating to contract, the sale of goods and the retention of documents
  3. Understand the nature of different accounting procedures including a simple system for coding business data
  4. Understand the need to have an authorisation system for ordering goods
  5. Understand the need for a systematic filing system for business documents as part of the general administration of a business
  6. Understand the importance of using recognisable documents in a standard house style
  7. Understand the various methods of ordering eg fax, internet etc

Books of Original Entry

  1. Explain why they are needed and from what source of information they are compiled
  2. Explain the principles of the double-entry system and the functions of the books in this regard
  3. Draw up the books and enter transactions in them
  4. Post from them to the ledger accounts
  5. Make opening journal entries from items provided
  6. Make journal entries for the purchase of fixed assets
  7. Make journal entries for the correction of errors
  8. Correctly set up and make entries in a two column cash book
  9. Understand the importance of credit control within a business

Credit Control

Explain the importance of credit control ensuring that :

  1. Payments are made on time
  2. Overdue debts are reviewed

Ledger Accounts

  1. Explain their purpose
  2. Explain the difference between capital and revenue items, and between real, nominal and personal accounts
  3. Explain the significance of debit and credit entries in each of them
  4. Make opening entries in them
  5. Record the double-entry of transactions for capital and revenue items
  6. Calculate and record their balances
  7. Write off bad debts
  8. Make correct entries for payroll transactions

Trial Balances

  1. Explain why they are needed
  2. Explain the types of error that they will/will not disclose
  3. Explain the action to be taken in the case of non-agreement
  4. Correct any errors made in the posting of any transaction not involving the suspense account.
  5. Prepare such trial balances

Security of data

  1. Understand the basic principles of the Data Protection Act
  2. Understand the functions and services of banks
  3. Describe the treatment of cheques, direct debits, standing orders, credit transfers, giro credits, CHAPS, BACs, credit and debit cards
  4. Use cheque books and paying in slips correctly

Once students have achieved the Level I Certificate in Basic Bookkeeping, they make take the Level II Certificate in Manual Bookkeeping or Level II Certificate in Computerised Bookkeeping.

Level II Certificate in Computerised Bookkeeping.  Students must be able to demonstrate their ability to understand and carry out the following functions:

Business Set Up

  1. Access the software
  2. Set up the details of the new business including: Name, address, start up date, VAT registration where applicable; Product lines for sale; Appropriate VAT rates
  3. Set up customers’ and suppliers’ accounts in the sales and purchases ledger, with details of name, address, credit limit, opening balances where appropriate
  4. Obtain a print out of all details in an appropriate and readable format
  5. Set up appropriate accounts to record income and expenditure items
  6. Set a pro-forma for the production of invoices, credit notes and other required documents

Ledger Accounts
Make correct entries in the appropriate accounts for:

  1. credit sales and purchases (including trade and cash discount where appropriate, individually or in batches)
  2. credit notes sent to customers and received from suppliers
  3. invoices received from suppliers for goods and services other than those for re-sale
  4. cash sales and cash purchases
  5. payments made on invoices received
  6. receipts from invoices sent
  7. payment of expenses and income other than from the sale of goods
  8. transactions via the journal
  9. Writing off of bad debts

Correction of errors
Correct any errors made in the posting of transactions to the accounts

Bank reconciliation
Carry out a bank reconciliation exercise using a computerised accounts package

Health and Safety
Display an awareness of health and safety issues when using a computer system

Trial Balances

  1. Explain why they are needed
  2. Explain the types of error that they will/will not disclose
  3. Prepare such balances
  4. Explain the action to be taken in the case of non-agreement

Print out required and explain the importance of reports including

  1. audit trail
  2. nominal account transactions
  3. sales and purchases ledger transactions
  4. VAT returns

Final Accounts of a Sole Trader
Extract a trading, profit and loss account and a balance sheet making allowances for year end adjustments such as depreciation (straight line and reducing balance methods), 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

Level II The Certificate in Manual Bookkeeping

(1) Accounting for VAT

Understand the process of accounting for VAT and completing a VAT Return.  Be able to:• Explain the need for a business to register for VAT

  • Identify the form and content of a VAT invoice
  • Define the terms

– Input tax
– Output tax
– Standard rate
– Zero Rate
– Exempt Supplies
– Tax Point

  • Account for VAT using a VAT control account
  • Explain the process of bad debt relief
  • Prepare a VAT Return

(2) The Cash Book and Petty Cash Book

2.1 Understand the purpose and need to record petty cash. Be able to:

  • explain the purpose of the imprest system
  • prepare and authorise petty cash vouchers
  • code the expenditure
  • record the transactions in the petty cash book
  • balance off and restore the imprest
  • post to ledger accounts

2.2 Understand the purpose and use of a three column cash book. Be able to:

  • accurately record receipts and payments in a three-column cash book
  • balance off cash and bank columns and bring down balances
  • complete the double entry to main and subsidiary ledgers

(3) Bank Reconciliation Statement

3.1 Understand the need to balance bank transactions and the bank reconciliation statement. Be able to:

  • compare individual items on the bank statement with those in the cash book
  • update the cash book
  • prepare the bank reconciliation statement

(4) Control Accounts and Reconciliation of Sales and Purchase Ledger Accounts

Understand the purpose and use of control accounts. Be able to:

  • prepare sales and purchase ledger control accounts
  • total and balance off accounts in the subsidiary ledgers
  • reconcile control accounts with the total from subsidiary ledger

(5) Correction of Errors and the Suspense Account

Understand the need to correct errors and use a suspense account until errors have been clearly identified

  • open a suspense account
  • correct errors through the journal
  • prepare the suspense account

(6) Depreciation of Fixed Assets

Understand the need to depreciate fixed assets and calculate depreciation using appropriate rates and methods.  Be able to:Be able to:

  • Record Capital Expenditure in appropriate records
  • Calculate and record the charge for depreciation using both straight line and reducing balance method
  • Prepare a schedule of fixed assets showing clearly their net book value
  • Understand the effects of depreciation on the accounts

(7) Accruals and Prepayments

Understand the need for accruals and prepayments.  Be able to:

Apply the accruals or matching concept by:

  • Calculating accruals
  • Calculating pre-payments
  • Accounting for accruals and prepayments
  • Understand the effect of accruals and prepayments on final accounts

(8) Bad Debts

Understand the need to recognise and deal with writing off a bad debt.  Be able to:

  • Recognise when a debt becomes classed as ‘bad’
  • Prepare a journal entry to write off a bad debt
  • Post the transaction to both the bad debts accounts and the debtors account
  • Understand the effect of bad debts on final accounts

(9) Final Accounts of a Sole Trader

Prepare the Trading and Profit & Loss Accounts of a Sole Trader and be able to:

  • explain the role and purpose of final accounts
  • prepare a trading and profit and loss account from a trial balance to include adjustments for:

– accruals and pre-payments
– depreciation (straight line and reducing balance)
– write off of a bad debt
– Prepare a Balance Sheet in good (vertical) form showing clearly the main categories of assets and liabilities

    Source: Institute of Certified Bookkeepers

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