Introduction to Bookkeeping
Unit summary
This unit will introduce you to basic business transactions and the types of business documents used. You will develop an understanding of the content, purpose and format of a trial balance, a profit and loss account and a balance sheet. The unit aims to equip you with a basic understanding of the concepts of dual aspect and business entity. Additionally you will develop an understanding of the different accounting treatment of capital and revenue expenditure. On completion of this unit you will have the knowledge, understanding and skills to enable you to progress to Unit 2 of the AAT Level 2 Award in Bookkeeping.
Unit details
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15 Business, Administration and Law
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15.1
Accounting and Finance
Assessment Methodology: Centrally set and marked examination
Based on the knowledge and understanding of AOSG Level 2 in Accounting units 1, 2 and 3 and Level 3 in Accounting unit 5
FSSC has formally supported this unit (please see letter of support attached in the qualification need/support section)
| Learning Outcome |
Assessment Criteria |
| 1.1 Develop an awareness of business organisations and business transactions |
1.1.A Correctly identify different types of business organisations 1.1.B Correctly identify business cash transactions
1.1.C Correctly identify business credit transactions
1.1.D Correctly identify the types of information found on invoices
1.1.E Correctly identify the types of information found on credit notes
1.1.F Correctly identify business documentation other than invoices and credit notes.
1.1.G Correctly identify transactions relating to how a business is financed |
| 1.2 Identify the components in a simple balance sheet |
1.2.A Accurately identify business assets
1.2.B Accurately identify business liabilities
1.2.C Accurately identify capital within a business
1.2.D Accurately apply the accounting equation
1.2.E Demonstrate the dual effect of transactions on the balance sheet
1.2.F Accurately record double entry transactions in balance sheet accounts
1.2.G Demonstrate an awareness of the business entity and dual aspect concepts. |
| 1.3 Understand the purpose of a trial balance |
1.3.A Balance off ledger accounts correctly
1.3.B Accurately identify the component parts of a trial balance. |
| 1.4 Understand the components of a simple profit and loss account |
1.4.A Accurately identify items of income that appear in a profit and loss account
1.4.B Accurately identify expense items which appear in a profit and loss account
1.4.C Demonstrate an awareness of the effect of the net profit or loss on capital
1.4.D Correctly record double entry transactions into the nominal ledger
1.4.E Identify relevant ledger accounts which are transferred to the profit and loss account |
| 1.5 Construct a simple profit and loss account and balance sheet |
1.5.A Calculate gross profit accurately
1.5.B Make accurate adjustment for closing stock
1.5.C Accurately prepare a profit and loss account and a simple balance sheet |
| 1.6 Understand the components of the final accounts |
1.6.A Accurately classify assets into fixed and current assets
1.6.B Accurately classify liabilities into current and long term liabilities
1.6.C Correctly prepare a profit and loss account in a recognised format
1.6.D Correctly prepare a balance sheet in a recognised format
1.6.E Accurately calculate the totals and sub totals on a balance sheet
1.6.F Accurately identify the significance of the totals and sub totals on a balance sheet
1.6.G Accurately identify errors which affect the trial balance
1.6.H Explain the types of error which will not occur in a computerised system
1.6. I Accurately classify expenditure as capital or revenue |