BOOK-KEEPING - FIRST LEVEL
The aims of the course are to test the candidate’s understanding of the basic principles underlying the recording of business transactions, including the influence of Information Technology and the ability to prepare accounts for sole traders and non-trading organizations.

Syllabus

1. The recording by double entry book-keeping of simple transactions concerning the purchase and sale of goods and the receipt and payment of cash.

(a) books of prime entry relating to: cash and bank, purchases, sales, returns inwards, returns outwards, Journal proper.
(b) methods of payment and receipt: cheques, Standing Orders, Credit Transfers, Direct Debits
(c) bank reconciliation
(d) trade and cash discounts – essential difference and how they are recorded
(e) petty cash book and the Imprest system
(f) the ledger and its possible sub-divisions. The distinction between personal, real and nominal accounts

2. The objects and extraction of the trial balance
Types of error and their effect, if any, upon the trial balance, and on the net profit. The correction of errors not involving the use of a Suspense Account.

3. The distinction between:
(a) capital and revenue expenditure
(b) fixed and current assets

4. Treatment of:
(a) adjustments for accruals and pre-payments
(b) depreciation – straight line and reducing balance methods
(c) provision for bad and doubtful debts
(d) opening and closing stock for Trading Account purposes

5. The preparation of:
(a) Income and Expenditure Accounts
(b) Trading and Profit & Loss Accounts
(c) Balance Sheets

Course duration: 36 hours