BOOK-KEEPING AND ACCOUNTS, LEVEL 2

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 and interpret accounts for sole traders, partnerships, non-trading organizations and limited companies.

Syllabus
1. Advanced aspects of the First Level syllabus for Book-keeping

2. The ledger accounts for:
(a) sole traders
(b) partnerships
(i) formation
(ii) admission and retirement of partner(s); treatment of goodwill
(iii) appropriation of net profit
(iv) dissolution
(c) limited liability companies
(i) the appropriation of profits
(d) non-trading organizations
(e) special areas:
(i) Control Accounts
(ii) Consignment Accounts
(iii) Branch Accounts, excluding foreign branches
(iv) Manufacturing Accounts
(v) incomplete records
(vi) Suspense Accounts
(vii) Bills of Exchange - receivable and payable
(viii) treatment of provisions and reserves
(ix) stock valuation
3. The preparation of final accounts (vertical format preferred) for:
(a) sole traders
(b) partnerships
(c) non-trading organizations
(d) limited companies
4. Calculation and interpretation of the following accounting ratios:
(a) ROCE (Return on Capital Employed)
(b) Profit to Sales
(c) Sales to Capital Employed
(d) current ratio
(e) liquidity ratio
(f) rate of stock turnover

Course Duration: 45 hours