Introductory Accounting
Unit summary
This unit relates to the role of processing accounting documents and leads to the production of an initial trial balance. The first learning outcome involves producing sales invoices and credit notes, recording receipts, producing statements of account and making the relevant accounting entries. The second learning outcome requires the learner to check purchases invoices and credit notes, record payments, including to employees, and make relevant accounting entries. The third learning outcome involves the control of the petty cash process, making adjustments and reconciling control accounts, reconciling the bank statement and producing an initial trial balance.
Unit details
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15 Business, Administration and Law
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15.1
Accounting and Finance
Assessment methodology
Centrally set examination of a minimum of 3 hours taken under high control condition
You must have knowledge and understanding of:
1. Business transactions and documents involved; 2. Basic law relating to contract law and Sales of Goods Act; 3. General principles of VAT; 4. Types of discounts; 5. Cheques including crossings and endorsements;
6. The function, form and use of banking documentation; 7. Automated receipts and payments; 8. Credit limits; 9. Double entry bookkeeping, including balancing accounts; 10. Operation of manual accounting systems; 11. Methods of coding; 12. Relationship between the accounting system and the ledger; 13. Accounting for receipts from credit customers and customers without credit accounts; 14. Credit card procedure; 15. Documentation for payments; 16. Accounting for payments to credit suppliers and to suppliers where a credit account is not available; 17. Different ordering systems: internet, verbal, written;
18. Discrepancies arising from supplier invoices; 19. Capital and revenue expenditure; 20. Batch control; 21. The processes and systems required to make and record internal and external payroll payments, excluding the use of NI tables; 22. Methods of handling and storing money including the security aspects; 23. Organisational procedures for filing source documents; 24. Understanding that the accounting system and administration systems and procedures will be affected by the nature of the organisation's business transactions; 25. Petty cash procedures; 26. The use of the petty cash book and cash book as part of the accounting double entry book keeping system or as books of prime entry; 27. General bank services and operation of the bank clearing system; 28. Importance of reconciling bank statements, control accounts and petty cash records; 29. Use of the journal; 30. Function and form of the trial balance
Based on AOSG Level 2 in Accounting Units 1, 2 and 3
FSSC have formally supported this qualification (please see letter of support attached in the qualification need / support section).
| Learning Outcome |
Assessment Criteria |
| 1. Process sales and receipts |
30.1.A Accurately prepare sales invoices from quotations
30.1.B Acurately prepare sales invoices from price lists
30.1.C Accurately prepare sales invoices from customer orders
30.1.D Accurately prepare sales invoices from delivery notes
30.1.E Accurately prepare sales invoices in line with any discount policy within the organisation
30.1.F Accurately prepare sales credit notes from correspondence or other relevant source documents and ensure authorisation
30.1.G Correctly code sales invoices and credit notes using customer account codes
30.1.H Correctly code sales invoices and credit notes using product codes
30.1.I Correctly code sales invoices and credit notes usung main (general) ledger codes
30.1.J Correctly enter sales invoices and credit notes into sales day book and sales returns day book
30.1.K Correctly post sales invoices and credit notes into the subsidiary (sales) ledger and main (general) ledger
30.1.L Check automated receipts against records
30.1.M Check receipts by cheques against records
30.1.N Check receipts by credit cards against records
30.1.O Check receipts by debit casrds against records
30.1.P Deal with the discrepancy of wrongly completed cheques
30.1.Q Deal with the discrepancy of out-of-date cheques
30.1.R Deal with the discrepancy of incorrect amounts received
30.1.S Correctly enter receipts into the cash book, subsidiary ledger and main ledger
30.1.T Accurately prepare paying in documents
30.1.U Accurately produce statements of account for debtors
30.1.V Write to customers in an appropriate style to request payment of an overdue account |
| 2. Process purchases and payments |
30.2.A Check suppliers' invoices for accuracy against purchase orders
30.2.B Check suppliers' invoices for accuracy against delivery notes
30.2.C Check suppliers' invoices for accuracy against goods received notes
30.2.D Check calculations, including bulk discounts, on suppliers' invoices and credit notes
30.2.E Check calculations, including trade discounts, on suppliers' invoices and credit notes
30.2.F Check calculations, including settlement discounts, on suppliers' invoices and credit notes
30.2.G Check suppliers' credit notes against correspondence or other relevant source documents
30.2.H Correctly code purchase invoices and credit notes using supplier account codes
30.2.I Correctly code purchase invoices and credit notes using main (general ) ledger codes
30.2.J Correctly enter purchase invoices and credit notes into the purchases day book and the purchases returns day book
30.2.K Correctly post invoices and credit notes into the subsidiary (purchases) ledger and main (general) ledger
30.2.L Correctly calculate supplier payments from ledgers
30.2.M Correctly calculate supplier payments from supplier statements
30.2.N Correctly calculate supplier payments from payslips
30.2.O Correctly calculate supplier payments from cheque requisitions
30.2.P Schedule cheque payments as per organisation's policy
30.2.Q Schedule automated payments as per organisation's policy
30.2.R Correctly enter payments in cash book and ledgers
30.2.S Write to suppliers to resolve discrepancies in invoices where there is no evidence of delivery of goods
30.2.T Write to suppliers to resolve discrepancies in invoices where incorrect goods have been received
30.2.U Write to suppliers to resolve discrepancies in incorrect invoice calculation
30.2.V Write to suppliers to resolve discrepancies in invoices where there has been incorrect discount calculation
30.2.W Make correct payments to employees and record those payments in the cash book
30.2.X Make correct payments to employees and record those payments in the main ledger |
| 3. Process petty cash, reconcile accounts and prepare an initial trial balance |
30.3.A Operate a petty cash system, including imprest system
30.2.B Reconcile petty cash control account with cash in hand and petty cash book
30.2.C Make adjustments through the journal to correct errors
30.2.D Make adjustments through the journal to write off bad debts
30.2.E Reconcile sales and purchases ledger control accounts with subsidiary ledgers
30.2.F Accurately update cash book from the bank statement
30.2.G Accurately update cash book from standing order and direct debit schedules
30 2.H Accurately update cash book from credit transfers
30.3.I Balance cash book and compare with bank statement
30.3.J Reconcile the bank statement
30.3.K Prepare an initial trial balance
30.3.L Create a suspense account when necessary and subsequently clear it |