IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING
(Qualification Accreditation No. 100/2870/5 – Accreditation end date 31
August 2008)
QUALIFICATION SPECIFICATION
CONTENTS
No Section Pages
1 Introduction 2
2 Aims 2
3 Target Group 2
4 Statement of Level 2
5 Entry Requirements 2
6 Progression 3
7 The Structure of the Qualification 3
8 Assessment and Grading 3
9 Certification 4
10 NVQ in Accounting Level 2 Sign-posting 4
11 Key Skills Links 4
12 Spiritual, Moral, Ethical, Social and Cultural Values 4
13 Health and Safety Issues, Environmental Issues and 4
European Developments
14 Reasonable adjustments for candidates with particular requirements 4
15 Enquiries and Appeals 4
16 Learning Outcomes and Assessment Criteria 5 - 15
Appendix 1 - Key Skills Mapping 16 - 18
Appendix 2 - Key Skills Summary Statements 19 - 26
Appendix 3 - Mapping to National Occupational Standards Levels 2, 3, and 4
27 - 43
Appendix 4 - IAB Framework for Regulation and Code of Best Practice 44
IAB (International Association of Book-keepers)
Burford House
44 London Road
SEVENOAKS
Kent TN13 1AS
Telephone: 01732 458080
Web: www.iab.org.uk
1. INTRODUCTION
The overall aim of this qualification is to accredit candidates’ knowledge
and understanding of the fundamental principles concerned in the use of a
manual accounting system.
Within the qualification, candidates have the opportunity to gain
knowledge of basic manual book-keeping routines concerning the
documentation and processes related to making and receiving payments. They
will gain an initial insight into both cash and credit business
transactions, VAT and other manual routines.
The qualification requires candidates to understand those transactions,
which are necessary for the day-to-day function of an accounting system
and for processing of simple documents. Accuracy, integrity and security
of data should always be uppermost in the candidates mind.
Candidates may use this qualification as the basis of further study of
manual systems and use it as underpinning knowledge for the study of the
IAB Level 3 Certificate in Book-keeping and also progress to the IAB Level
2 Certificate in Computerised Book-keeping.
To be awarded the full qualification, candidates are required to
successfully demonstrate their competence by means of two external
examinations (one examination per unit). It will also provide progression
to the NVQs in Accounting at Levels 2, 3 and 4. Candidates will receive
acknowledgement of successful completion of each Unit individually.
2. AIMS
In summary, the qualification aims to enable candidates to:
a) Assess their competence and understanding in carrying out a range of
day-to-day book-keeping routines and activities using a manual
book-keeping system. The activities will include entry of business
transactions, and routine book-keeping tasks.
b) To assess their understanding of the importance of maintaining
accuracy, security and integrity in performing any book-keeping tasks
using a manual accounting system.
c) Upon completion, progress in their learning to further develop their
knowledge, understanding and skills by:
Further studies of accounting routines and procedure at this Level
(Level 2)
Progression to the IAB Level 2 Certificate in Computerised Book-keeping.
3. TARGET GROUP
The IAB Level 2 Certificate in Book-keeping is aimed at individuals who
wish to begin their studies of double entry book-keeping and gain a
qualification at Level 2 of the National Framework from a point of no
previous knowledge. It could also be used by those candidates who have
some practical knowledge and skills and wish to gain an accredited
qualification in the subject.
4. STATEMENT OF LEVEL
This qualification has been designed to assess the knowledge and skills of
manual Book-keeping at Level 2 of the National Qualifications Framework.
5. ENTRY REQUIREMENTS
As the examination tests the application of knowledge and understanding
and not the recall of facts and figures, a high standard of performance is
required.
Information regarding equivalent qualifications can be found via the IAB
web-site (www.iab.org.uk) or by contacting the IAB directly.
It is recommended that before commencing a course leading to either or
both of the Units of the IAB Level 2 Certificate in Book-keeping the
prospective student will already have basic skills in numeracy and
literacy.
6. PROGRESSION
The qualification has been designed to provide the essential knowledge,
understanding and skills required to complement and enable candidates to
progress to other related qualifications at Level 2 of the National
Qualifications Framework.
The qualification will provide a basis for progression to the study of the
IAB Level 2 Certificate in Computerised Book-keeping. It will also provide
progression to the NVQ in Accounting at Level 3 with some aspects of Unit
7 of the National Occupational Standards also being covered.
It will also provide progression to A/AS levels in Accounting and related
units in the Advanced Vocational Certificate of Education (AVCE)
qualifications.
7. THE STRUCTURE OF THE QUALIFICATION
The Level 2 qualification is divided into two separately examined Units
Unit 1 contains the manual aspects of the syllabus and comprises eight
mandatory Learning Outcomes with associated Assessment Criteria. It should
be noted that this Unit also contains work in a manual environment only.
Unit 2 contains further work on manual aspects of the syllabus comprising
seven mandatory Learning Outcomes with associated Assessment Criteria
Teachers/trainers may find it necessary to address the Learning Outcomes
in a different order initially. Teachers and trainers should ensure that
learning programmes are designed to meet the needs of individual
candidates. They should also ensure that learning programmes take account
of the need for candidates’ to continue to be fully competent in the
knowledge and skills gained during this initial study of manual
book-keeping.
It is considered that each Unit of this qualification has a ‘notional’
estimate of 30 Guided Learning Hours (GLH) or 60 hours of Notional
Learning Time (NLT). It is ‘notional’ because the actual GLH, or NLT, of
course must take into account the specific needs of the individual
candidates for the qualification. For example, candidates who are
relatively new to working with numbers may need significantly more GLH/NLT
as opposed to those with substantial experience who may need less.
Teachers/trainers should use their professional judgement in assessing the
needs of candidates and deciding the GLH/NLT to be provided.
8. ASSESSMENT AND GRADING
All Learning Outcomes will be assessed through two, externally set and
marked, two hour examinations, each consisting of a series of four
hand-written tasks. The examination will build on the candidates’
book-keeping knowledge and will assess the candidate’s ability in relation
to the Learning Outcomes. Candidates will be required to carry out the
tasks accurately and in keeping with current accounting concepts and
practice.
Faults will be incurred where candidates make errors in numeracy or
failing to follow required procedures and formats.
In order to achieve a Pass, candidates will be required to complete the
assessment tasks without exceeding the permitted error tolerance. Results
will be graded Pass or Fail only. Pass grades are further categorised into
Distinction with Commendation, Distinction, Credit and Pass. Fail grades
are categorised into Marginal Fail and Fail.
PASS AND FAIL MARKS/PERCENTAGES
A* DISTINCTION WITH COMMENDATION 95% and above
A DISTINCTION 85 – 94.99%
B CREDIT 70 – 84.99%
C PASS 55 – 69.99%
M MARGINAL FAIL 50 – 54.99%
F FAIL Below 50%
Candidates may sit the Examination of each Unit on either the specific
dates set and published by the IAB or on dates set by Centres on an
‘On-demand’ basis. Centres are advised to consult the IAB Centre Handbook
on the IAB website (www.iab.org.uk) or contact the IAB for details of how
to arrange an 'On-demand' examination. All necessary security of candidate
data and information will be undertaken by the IAB.
9. CERTIFICATION
All candidates who achieve a Pass grade will receive a formal Results
Letter and may apply for a Unit Certificate. On successful completion of
both Units at this Level the candidate may apply for the IAB Level 2
Certificate in Book-keeping
10. NVQ IN ACCOUNTING LEVEL 2 SIGN-POSTING
A sign-posting map is provided at the end of the Unit Specification
demonstrating the links between this qualification and the knowledge and
understanding requirements of the NVQ in Accounting at Level 2.
11. KEY SKILLS LINKS
During their study towards the qualification, candidates may have
opportunities to develop the knowledge and skills necessary to produce
some of the evidence required for the Level 2 for the following Key
Skills:
Communication
Working with Others
Application of Number
Information Communication Technology
Improving Own Learning and Performance
Problem Solving
Appendices 1 and 2 provide details of the links between this qualification
and potential opportunities to develop the Key Skills.
12. SPIRITUAL, MORAL, ETHICAL, SOCIAL AND CULTURAL VALUES
Tutors preparing candidates would have opportunities to introduce relevant
ethical, social and moral values throughout a course leading to this
qualification. Of specific relevance would be matters of honesty and
integrity, probity and confidentiality of information. In addition, the
IAB Framework for Regulation and Code of Best Practice (provided at
Appendix 4) also underpin all Learning Outcomes of the qualification.
13. HEALTH AND SAFETY ISSUES, ENVIRONMENTAL ISSUES AND EUROPEAN
DEVELOPMENTS
There is no specific coverage of these issues within the qualification.
14. REASONABLE ADJUSTMENTS FOR CANDIDATES WITH PARTICULAR REQUIREMENTS
The IAB and IAB Accredited Centres are required to ensure that candidates
with particular assessment needs are not disadvantaged and that
appropriate arrangements are made to meet their assessment needs. The
procedure to make an application for arrangements to meet a candidate’s
specific needs is detailed in the IAB Centre Handbook.
15. ENQUIRIES AND APPEALS
The IAB and IAB Accredited Centres are required to process all enquiries
and appeals in accordance with the IAB established procedures.
16. UNIT SPECIFICATIONS INCLUDING NVQ LEVEL 2, 3 AND 4 IN ACCOUNTING
SIGN-POSTING
IAB Level 2 – Certificate in Book-Keeping
Unit 1 (IAB Unit Code B2.1) – Entering Transactions into Books of Prime
Entry
(Unit accreditation Number D103/1539)
Aim of the Unit
Upon the completion of study for this unit, it is intended that the
candidate will be able to:
• Understand and apply basic Accounting Concepts and Book-keeping Ethics
• Understand fundamental double entry Book-keeping terms and processes
• Calculate Value Added Tax
• Prepare and Validate Business Documents
• Use sub divided Books and record credit based transactions
• Make and Receive Payments
• Record Receipts and Payments
• Process Petty Cash
Prior Knowledge and Skills Requirements
There are no requirements for this Unit.
Learning Outcome Assessment Criteria
2.1.1 Understand and apply basic accounting concepts and Book-keeping
ethics
Be able to recognise and apply the basic accounting concepts of:
• Business Entity
• Money Measurement
• Duality
• Historic Cost
Be aware of the need for confidentiality in the keeping of financial
records.
2.1.2 Understand fundamental double entry Book-keeping terms and processes
Understand the terms assets, capital and liabilities. Have knowledge of
the purpose of the Balance Sheet.
Be able to:
• Identify assets, capital and liabilities and open double entry Books
(single ledger system)
• Process a range of basic business transactions through a single ledger
system.
• Balance off ledger accounts.
2.1.3 Calculate Value Added Tax
Have knowledge of the current VAT registration rules and know who must
register for VAT.
Be aware of the need to quote a VAT registration number on business
documents.
Be able to:
• Identify the government department responsible for administration of the
VAT scheme
• Explain the following terms
• VAT standard rate
• VAT zero rate
• Exempt from VAT
• VAT output tax
• VAT input tax
• Outside the scope of
2.1.3 Calculate Value Added Tax
(continued)
Be able to:
• Calculate VAT output tax in accordance with current VAT rules
• Calculate VAT output tax given a VAT inclusive amount
• Calculate VAT input tax in accordance with current VAT rules
• Calculate VAT input tax given a VAT inclusive amount
• Check VAT input tax on incoming business documents
• Identify and report errors in calculation of VAT
Be able to:
• Keep a VAT account and record VAT output and input tax
• Balance a VAT account and explain the closing balance
2.1.4 Prepare and validate business documents
Be aware of the rules regarding documentation retention.
Understand the function of the following business documents, that flow
between buyer and seller, in support of trade credit transactions:
• Letter of Enquiry
• A Quotation
• A Purchase Order
• An Acknowledgement of Order
• An Advice Note
• A Delivery Note
• An Invoice
• A Debit/Credit Note
• A Statement of Account
• A Remittance Advice.
Be able to calculate the following discounts:
• Trade Discount
• Cash/Settlement discount
Be able to check or prepare the following documents relating to credit
based customers, ensuring accuracy of calculations and completeness of
information:
• Purchase Order
• Sales Invoice
• Debit/Credit Note
Be able to check or prepare the following documents relating to credit
based suppliers against supporting documentation, ensuring accuracy of
calculations and completeness of information:
• Purchase Order
• Delivery Note
• Invoice
• Debit/Credit Note
Be able to use internal material and documentation:
• In Customer and/or Supplier files
• Catalogues and Price lists
• Goods Received Notes
• Goods Returned Notes.
2.1.5 Use sub divided Books and record credit based transactions
Understand the need for a suitable accounting administration system and
appreciate the advantages of using a sub divided Book-keeping system,
which includes the use of Books of Prime Entry.
Be able to use double entry Book-keeping principles to process a diverse
range of business transactions through a sub divided Book-keeping system
as follows:
• The General or Nominal Ledger
• Personal Accounts of the Sales Ledger
• Personal Accounts of the Purchase Ledger
Understand the different methods of processing and appreciate the
advantages and disadvantages of:
• ‘Real time’ processing
• ‘Batch’ processing
Be able to list information from invoices received from creditors in the
purchase Day Book and;
• Operate the Purchase Day Book in columnar format to facilitate the
analysis of goods and services by product, department or expense
• Total and code the Day Book
• Make transfers from the Day Book to appropriate accounts in the main
Books.
Be able to list information from credit notes received from creditors in
the Purchase Returns Day Book and:
• Operate the Purchase Returns Day Book in columnar format to facilitate
the analysis of goods and services by product, department or expense
• Total and code the Day Book
• Make transfers from the Day Book to appropriate accounts in the main
Books.
Be able to list information from invoices issued to Debtors in the Sales
Day Book and;
• Operate the Sales Day Book in columnar format to facilitate the analysis
of goods and services by product or department
• Total and code the Day Book
• Make transfers from the Day Book to appropriate accounts in the main
Books.
Be able to list information from credit notes issued to Debtors in the
Sales Returns Book and;
• Operate the Sales Return Day Book in columnar format to facilitate the
analysis of goods and services by product or department
• Total and code the Day Book
• Make transfers from the Day Book to appropriate accounts in the main
Books
Understand the purpose of the Journal as a Book or voucher.
Be able to use the Journal to:
• Open double entry Books
• Account for the purchase of fixed assets on credit
• Make transfers between accounts.
NB: Whilst students will be required to make postings from the Day Books
to Sales Ledger and Purchase Ledger Control Accounts in this Unit, they
will not be required to reconcile Personal account balances to Control
account balances
2.1.6 Make and receive payments
Understand and identify the appropriate methods of making and receiving
payments
Be able to:
• Make and receive payment in cash (notes and coins)
• Prepare a cheque for signature
• Check a cheque received for completeness.
Know how to:
• Process plastic cash receipts and payments using manual and EFTPOS
transfer systems
• Set up standing orders and direct debit mandates
• Process standing orders and direct debit receipts and payments
• Process giro credit, BACSTEL-IP and CHAPS receipt and payments
Be able to:
• Prepare a BACSTEL-IP payment listing
• Process settlement by offset / contra transactions
Be able to:
• Prepare a till contents sheet for cash based transactions
• Prepare monies for banking
• Prepare a paying in slip.
2.1.7 Record receipts and payments
Understand that the Cash Book can be both a Book if Prime entry and a main
Book.
Be able to process receipts and payments transactions through a
columnar/analysed cash Book:
• Accurately enter cash discounts allowed and received
• Extend receipts/payments to appropriate analysis columns.
• Balance off and code the Cash Book
• Bring down cash and bank balances
• Make transfers from the Cash Book to appropriate accounts in the main
Books.
NB: Whilst students will be required to make postings from the Analysed
Cask Book to Sales Ledger and Purchase Ledger Control Account in this
unit, they will not be required to reconcile personal account balances to
control account balances.
2.1.8 Process Petty Cash
Understand the advantages of keeping a Petty Cash Book as a subsidiary of
the main Cash Book.
Understand the advantage of appointing a Petty Cashier to be responsible
for the petty cash float and the petty cash records.
Be able to:
• Explain the Imprest System of petty cash
• Draw up a Petty Cash Voucher
• Enter petty cash transactions into a Petty Cash Book
• Balance and code the Petty Cash Book
• Bring down the petty cash balance
• Complete a cheque requisition and restore the petty cash imprest balance
• Make transfers from the Petty Cash Book to appropriate accounts in the
main Books.
UNIT ASSESSMENT
Candidates may sit the Examination of this Unit on either the specific
dates set and published by the IAB or on dates set by Centres on an
‘On-demand’ basis. Centres are advised to consult the IAB Centre Handbook
on the IAB website (www.iab.org.uk) or contact the IAB for details of how
to arrange an 'On-demand' examination. All necessary security of data and
information will be undertaken.
NVQ IN ACCOUNTING LEVEL 2 SIGN-POSTING
IAB Level 2 Certificate in Book-keeping
Unit 1 (IAB Unit Code B2.1) – Entering Transactions into Books of Prime
Entry
Learning Outcomes of the Related to the following
IAB Level 2 Unit 1 Certificate Elements of the NVQ in
in Book-keeping Accounting Level 2
2.1.1 Understand and apply basic Accounting Concepts and Book-keeping
ethics
1.1; 1.2
2.1; 2.2; 2.3
3.1; 3.2
2.1.2 Understand fundamental double-entry book-keeping terms and processes
1.1, 1.2
2.1, 2.2
3.1, 3.2, 3.3
2.1.3 Calculate Value Added Tax 1.1, 1.2
2.1, 2.2
2.1.4 Prepare and validate business documents 1.1; 1.2
2.1; 2.2
4.1
2.1.5 Use sub-divided Books and record credit based transactions 1.1; 1.2
2.1; 2.2
3.1;
2.1.6 Make and Receive Payments
1.2
2.2
3.1
4.1
2.1.7 Record Receipts and Payments 1.2
2.2
3.1
4.1
2.1.8 Process Petty Cash 1.1; 1.2
2.1; 2.2
4.1
NVQ IN ACCOUNTING LEVEL 3 SIGN-POSTING
IAB Level 2 Certificate in Book-keeping
Unit 1 (IAB Unit Code B2.1) – Entering Transactions into Books of Prime
Entry
Learning Outcomes of the Related to the following
IAB Level 2 Unit 1 Certificate Elements of the NVQ in
in Book-keeping Accounting Level 3
2.1.1 Understand and apply basic Accounting Concepts and Book-keeping
ethics
2.1.2. Understand fundamental double-entry book-keeping terms and
processes
2.1.3 Calculate Value Added Tax 7.3
2.1.4 Prepare and validate business documents 7.3
2.1.5 Use sub-divided Books and record credit based transactions
2.1.6 Make and Receive Payments
7.3
2.1.7 Record Receipts and Payments
7.3
2.1.6 Process Petty Cash 7.3
IAB Level 2 – Certificate in Book-Keeping
Unit 2 (IAB Unit Code B2.2) – Using the Double Entry Book-keeping System
(Unit Accreditation Number R103/1540)
Aim of the Unit
Upon the completion of study for this unit, it is intended that the
candidate will be able to:
• Account for Value Added Tax
• Prepare a Statement of Account
• Prepare a reconciliation to a Supplier Statement of Account
• Account for Bad Debts
• Use Checking Devices – Prepare Control Accounts
• Use Checking Devices – Reconcile Cash Book Balances (Cash and Bank)
• Use Checking Devices – Prepare a Trial Balance
Prior Knowledge and Skills Requirements
Before starting a course of study or training to the assessment for this
unit, it is assumed and is advisable that the candidate has already
acquired the knowledge and skills as specified in Unit 1 of the IAB Level
2 Certificate in Book-keeping.
Learning Outcome Assessment Criteria
2.2.1 Account for Value Added
Tax
Be able to:
• Use the information from within the double entry book-keeping system to
prepare a VAT Return (VAT 100)
• Complete a VAT Return (VAT 100)
2.2.2 Prepare a Statement of
Account
Be able to:
• Use information from within the double entry book-keeping system to
prepare a Statement of Account
• Extract information from the personal account of a Trade Debtor in the
Sales Ledger and prepare a Statement of Account
2.2.3 Prepare a reconciliation to a Supplier Statement of Account
Be able to use information from within the double entry book-keeping
system to reconcile a Supplier Statement of Account and prepare a
Remittance Advice.
Be able to:
• Compare the transactions posted to the personal account of the Trade
creditor in the Purchase Ledger to the postings per their Statement of
Account and account for differences between the two sets of records
• Prepare a Reconciliation Statement bringing the personal account balance
into agreement with the Statement of Account balance
• Identify invoices falling due for payment
• Pay invoices falling due for payment taking credit for goods returned,
and taking advantages of cash / settlement discounts on offer
• Prepare a Remittance Advice to be issued with payment.
2.2.4 Account for Bad Debts
Be able to use information from within the double entry book-keeping
system to identify bad debts, and account for a bad debt write off.
Be able to:
• Define the term ‘bad debt’
• Review Debtor account balances within the Sales Ledger and identify bad
debts
• Prepare a Journal entry to support a bad debt write off
• Process a bad debt write off
2.2.5 Use checking devices -
Prepare Control Accounts Understand the function of Sales and Purchase
Ledger Control Accounts
Be able to collect data from relevant sources to prepare the Sales and
Purchase Ledger Control Accounts by:
• Transferring totals from the purchase Day Book to the Purchase Ledger
Control Account
• Transferring totals from the Purchase Returns Day Book to the Purchase
Ledger Control Account
• Transferring totals from the Sales Day Book to the Sales Ledger Control
Account
• Transferring relevant information from the Cash Book including
• Receipts from Credit Customers
• Payments to Credit Suppliers
• Discounts Allowed and Received
Be able to reconcile Control Account balances to Schedules of Debtors and
Creditors extracted from the Sales and Purchase Ledgers.
2.2.6 Use checking devices Reconcile Cash Book Balances (Cash and Bank)
Understand the need to check, as a matter of routine, the balances on the
Cash Account and Bank Account within the double entry book-keeping system.
Be able to:
• Prepare a Statement that will reconcile cash held to that shown in the
Cash Book
• Account for time lag differences between the Cash Book Bank Account
Postings and the Bank Statement Postings
• Prepare a Bank Reconciliation Statement and reconcile closing balances
• Update the Cash Book Bank Account following reconciliation.
2.2.7 Use checking devices -Prepare a Trial Balance
Understand the form and function of the Trial Balance.
Be able to:
• Prepare a Trial Balance from the accounts within the main Books of
Account
• Prepare a Trial Balance from a list of ledger account balances
Understand the limitations of the Trial Balance and have a knowledge of
the types of errors not disclosed by the Trial Balance
Be able to:
• Correct book-keeping errors
• Re-draft the Trial Balance after corrections
UNIT ASSESSMENT
Candidates may sit the Examination of this Unit on either the specific
dates set and published by the IAB or on dates set by Centres on an
‘On-demand’ basis. Centres are advised to consult the IAB Centre Handbook
on the IAB website (www.iab.org.uk) or contact the IAB for details of how
to arrange an 'On-demand' examination. All necessary security of data and
information will be undertaken.
NVQ IN ACCOUNTING LEVEL 2 SIGN-POSTING
IAB Level 2 Certificate in Book-keeping
Unit 2 (IAB Unit Code B2.2) – Using the double entry book-keeping system
Learning Outcomes of the Related to the following
IAB Level 2 Unit 2 Certificate Elements of the NVQ in
in Book-keeping Accounting Level 2
2.2.1 Account for Value Added Tax
1.1; 1.2
2.1; 2.2;
3.1;
4.2
2.2.2 Prepare a Statement of Account 1.1
3.2
2.2.3 Prepare a reconciliation to a Supplier Statement of Account 2.2
3.2
2.2.4 Account for Bad Debts 1.1
3.2
2.2.5 Use checking devices – Prepare Control Accounts 1.1; 1.2
2.1; 2.2
3.1; 3.2; 3.3
4.2
2.2.6 Use checking devices – Reconcile Cash Book balances (Cash and Bank)
3.1, 3.2
2.2.7 Use checking devices – Prepare a Trial Balance 3.1; 3.2; 3.3
4.2
NVQ IN ACCOUNTING LEVEL 3 SIGN-POSTING
IAB Level 2 Certificate in Book-keeping
Unit 2 (IAB Unit Code B2.2) – Using the double entry book-keeping system
Learning Outcomes of the Related to the following
IAB Level 2 Unit 2 Certificate Elements of the NVQ in
in Book-keeping Accounting Level 3
2.2.1 Account for Value Added Tax
7.3
2.2.2 Prepare a Statement of Account 5.2
2.2.3 Prepare a reconciliation to a Supplier Statement of Account 5.2
2.2.4 Account for Bad Debts
2.2.5 Use checking devices – Prepare Control Accounts 7.3
2.2.6 Use checking devices – Reconcile Cash Book balances (Cash and Bank)
2.2.7 Use checking devices – Prepare a Trial Balance
NVQ IN ACCOUNTING LEVEL 4 SIGN-POSTING
IAB Level 2 Certificate in Book-keeping
Unit 2 (IAB Unit Code B2.2) – Using the double entry book-keeping system
Learning Outcomes of the Related to the following
IAB Level 2 Unit 2 Certificate Elements of the NVQ in
in Book-keeping Accounting Level 4
2.2.1 Account for Value Added Tax
2.2.2 Prepare a Statement of Account
2.2.3 Prepare a reconciliation to a Supplier Statement of Account
2.2.4 Account for Bad Debts 15.3, 15.4
2.2.5 Use checking devices – Prepare Control Accounts
2.2.6 Use checking devices – Reconcile Cash Book balances (Cash and Bank)
2.2.7 Use checking devices – Prepare a Trial Balance
APPENDIX 1 - KEY SKILLS MAPPING GRIDs
IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING – UNIT 1 (Unit B2.1)
UNIT
OUTCOME COMMUNICATION APPLICATION OF NUMBER
INFORMATION COMMUNICATION
TECHNOLOGY IMPROVING OWN PERFORMANCE
WORKING WITH OTHERS
PROBLEM SOLVING
2.1.1 1 C2.1, C2.2a, C2.2b,C2.3
2
2.1.2 1 C2.1, C2.2a, C2.2b,C2.3
2 N2.1, N2.2 WO2.1, WO2.2, WO2.3 PS2.1
2.1.3 1 C2.1, C2.2a, C2.2b,C2.3
2 C2.1, C2.2a
3 C2.1, C2.2a, C2.2b,C2.3
4 N2.1, N2.2 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2
5 N2.1, N2.2 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.3
2.1.4 1 C2.1, C2.2a, C2.2b,C2.3
2 C2.1, C2.2a, C2.2b,C2.3
3 N2.1, N2.2 PS2.1, PS2.2, PS2.3
4 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1,PS2.3
5 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
6 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3
2.1.5
1 C2.1, C2.2a, C2.2b,C2.3
2 N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
3 C2.1, C2.2a, C2.2b,C2.3 N2.1 PS2.1, PS2.3
4 N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
5 N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
6 N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
7 N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
8 C2.1, C2.2a N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
2.1.6
1 C2.1, C2.2a, C2.2b,C2.3
2 N2.1 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
3 C2.1, C2.2a, C2.2b,C2.3 N2.1 WO2.1, WO2.2, WO2.3
4 N2.1, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
2.1.7 1 C2.2a, C2.2b, C2.3
2 N2.1, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
2.1.8 1 C2.2a, C2.2b, C2.3
2 C2.2a, C2.2b, C2.3
3 C2.2a, C2.2b, N2.1, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.3
IAB LEVEL 2 CERTIFICATE IN BOOK-KEEPING – UNIT 2 (Unit B2.2)
KEY SKILLS MAPPING GRID
UNIT
OUTCOME
COMMUNICATION
APPLICATION OF NUMBER
INFORMATION COMMUNICATION
TECHNOLOGY
IMPROVING OWN PERFORMANCE
WORKING WITH OTHERS
PROBLEM SOLVING
2.2.1 1 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2,
2 N2.1, N2.2 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2,
2.2.2 1 N2.1, N2.2, N2.3 WO2.1, WO2.2 PS2.1, PS2.2, PS2.3
2.2.3 1 N2.1, N2.2, N2.3 WO2.1, WO2.2, PS2.1, PS2.2, PS2.3
2 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2,
2.2.4 1 N2.1, N2.2, N2.3 WO2.1, WO2.2, PS2.1, PS2.2, PS2.3
2 C2.1, C2.2a N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2,
2.2.5
1 C2.1, C2.2a, C2.2b, C2.3
2 N2.1, N2.2, WO2.1, WO2.2, WO2.3 PS2.1, PS2.2,
3 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.3
2.2.6 1 C2.1, C2.2a, C2.2b, C2.3
2 N2.1, N2.2, N2.3 WO2.1, WO2.2, WO2.3 PS2.1, PS2.2, PS2.3
2.2.7 1 C2.1, C2.2a, C2.2b, C2.3
2 C2.1, C2.2a, C2.2b, C2.3 N2.1, N2.2, N2.3 WO2.1, WO2.2, PS2.1, PS2.2,
PS2.3
APPENDIX 2
KEY SKILLS - QUALIFICATION LEVEL MAP for IAB Level 2 Certificate in
Book-keeping – Unit 1
KEY SKILLLS ( LEVEL 2 ) STANDARDS
2.1.1 2.1.2 2.1.3 2.1.4 2.1.5 2.1.6 2.1.7 2.1.8
Understand and apply basic Accounting Concepts and book-keeping ethics
Understand fundamental double entry book-keeping terms and processes
Calculate Value Added Tax Prepare and validate business documents Use
sub-divided books and record credit transactions Make and Receive Payments
Record Receipts and Payments Process Petty Cash
COMMUNICATION
C21a Contribute to a discussion about a straightforward subject.
C21b Give a short talk about a straightforward subject using an image.
C22 Read and summarise information from two extended documents about a
straightforward subject.
C23 Write two different types of documents about straight- forward
subjects. One piece of writing should be an extended document and include
at least one image
Evidence Evidence Evidence Evidence Evidence Evidence Evidence
Class work & homework.
Evidence may vary according to course delivery.
Be able to communicate an understanding of the benefits of Accounting
Concepts and the Accounting Equation to others
Classwork & homework Evidence may vary according to course delivery
Be able to discuss what is meant by fundamental book-keeping terms and
processes and how they relate to the business organisation Class work &
homework
Evidence may vary according to course delivery.
Be able to discuss the information necessary to account for VAT. Class
work &homework
Evidence may vary according to course delivery.
Be able to discuss with others, the information necessary for the use and
compiling of business documents and including the types of documents
necessary and the use of discounts. Class work & homework.
Evidence may vary according to course delivery.
Discuss with others the need for the sub dividing of the main books of the
business
and the posting of the various business transactions. Class work &
homework
Evidence may vary according to course
delivery.
Discuss appropriate methods for recording income received and payments to
be made.
Be able to discuss what is understood by the banking system and the pro’s
and cons’ of different payment methods. Class work & homework
Evidence may vary according to course
delivery.
Give a clear understanding to others what is meant by the Cash Book and
the information it contains, especially the balances. Class work &
homework
Evidence may vary according to course
delivery.
Give a clear understanding of the use and processes related to the
accounting for petty cash.
WORKING WITH OTHERS
WO2.1 Plan straightforward work with others, identifying objectives and
clarifying responsibilities, & confirm working arrangements.
WO2.2 Work cooperatively with others towards achieving identified
objectives, organising tasks to meet your responsibilities.
WO2.3Exchange information on progress and agree ways of improving work
with others to help achieve objectives.
Evidence Evidence Evidence Evidence Evidence Evidence Evidence
Class work &homework.
Evidence may vary according to course delivery.
Use knowledge of the Accounting Concepts and Accounting Equation to
explain various aspects of basic book-keeping to others
Classwork & homework Evidence may vary according to course delivery
Be able to plan the entering of business transactions into the Books of
Prime Entry with others, in accordance with organisational procedures
Class work &homework
Evidence may vary according to course delivery.
To liaise with other members of the organisation in the recording of VAT.
Plan work so that the VAT Return can be completed in a timely manner Class
work &homework.
Evidence may vary according to course delivery.
Work with others in both the same and different departments of the
organisation, to compile business documents according to organisational
requirements. Class work & homework.
Evidence may vary according to course delivery.
Be able to liaise with others and plan the timescale for the entering of
documents into the Day Books and Ledgers of the business Class work
&homework
Evidence may vary according to course delivery.
Be able to organise with others the preparation of cash based transactions
for banking and visits to the Bank. Class work & homework
Evidence may vary according to course
delivery.
Discuss with others the timescales and routines for entry of receipts and
payments into the Books of Prime Entry. Class work & homework
Evidence may vary according to course
delivery.
Deal with those employees claiming Petty Cash expenditure in a polite and
accurate manner according to organisational procedures.
APPLICATION OF NUMBER
N21 Interpret information from two different sources, including material
containing a graph.
N22 Carry out calculations to do with:
A Amounts and sizes
B Scales and proportions
C Handling statistics
D Using formulae
N23 Interpret the results of your calculations and present your findings.
You must use at least one graph, one chart and one diagram.
Evidence Evidence Evidence Evidence Evidence Evidence Evidence
NONE
Classwork & homework Evidence may vary according to course delivery
Be able to process a range of business document into the Books of Prime
Entry and ‘balance off’ the various accounts where necessary Class work
&homework
Evidence may vary according to course delivery.
Be able to calculate VAT from a Gross and Net situation. Class work
&homework.
Evidence may vary according to course delivery.
Prepare business documents from given information, including the
calculation of discounts. Class work & homework.
Evidence may vary according to course delivery.
Be able to prepare batches of invoices and credit notes for entry in the
Day Books and Total the Day Books with accuracy .
Also make entries in the Ledgers from the Day Books ensuring accuracy at
all times. Class work &homework
Evidence may vary according to course delivery.
Calculate and prepare monies for banking.
Make and receive accurate payments in cash.
Class work & homework
Evidence may vary according to course
delivery.
Enter all types of receipts and payments into an analysed cash book and be
able to balance off the cash book bringing down balances to the start of
the next financial period. Class work & homework
Evidence may vary according to course
delivery.
Make cash payments to those claiming petty cash. Enter all petty cash
receipts and payments into the Petty Cash Book. Total the Petty Cash Book
and agree the amount for reimbursement to restore the balance.
INFORMATION COMMUNICATION TECHNOLOGY
IT21 Search for and select information for two different purposes
IT22 Explore and develop information, and derive new information, for two
different purposes.
IT23 Present combined information for two different purposes. Your work
must included at least one example of text, one example of images, and one
example of numbers.
Evidence Evidence Evidence Evidence Evidence Evidence Evidence Evidence
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE
IMPROVING OWN LEARNING AND PERFORMANCE
LP2.1 Help set targets with an appropriate person and plan how these will
be met
LP2.2 Take responsibility for some decisions about your learning, using
your plan to help meet targets and improve your performance
LP2.3 Review progress with an appropriate person and provide evidence of
your achievements
Evidence Evidence Evidence Evidence Evidence Evidence Evidence Evidence
NONE
NONE
NONE
NONE
NONE
NONE
NONE
NONE
PROBLEM SOLVING
PS1 Identify a problem, with help from an appropriate person, and identify
different ways of tackling it.
PS2 Plan and try out at least one way of solving the problem
PS3 Check if the problem has been solved and identify ways to improve
problem solving skills.
Evidence Evidence Evidence Evidence Evidence Evidence Evidence Evidence
Class work &homework.
Evidence may vary according to course delivery.
Understand any errors that arise from the outcome of applying the
Accounting Equation. Understand where the figures are derived from and how
the errors may have arisen.
Class work & homework
Evidence may vary according to course delivery
Be aware of errors that may occur when the constituents of the Accounting
Equation are incorrectly applied
By applying the Accounting Equation check the problem has been overcome
Class work &homework
Evidence may vary according to course delivery.
Identify errors arising from calculation of VAT both internally and by
suppliers or goods or services. Be able to correct those errors and inform
necessary personnel. Class work &homework.
Evidence may vary according to course delivery.
Deal with errors arising from incorrect compilation of business documents,
or missing documents. Class work & homework.
Evidence may vary according to course delivery.
Identify and deal with errors that arise from incorrect batch totals or
incorrectly totalled Day Books or incorrect postings to the Ledgers Class
work &homework
Evidence may vary according to course delivery.
Deal with errors arising from incorrect completion of banking documents.
Be able to check if the error has been accurately corrected. Class work &
homework
Evidence may vary according to course
delivery.
Identify what errors may have occurred in making entries into the cash
book and be able to correct those errors in an accurate and acceptable
manner. Class work & homework
Evidence may vary according to course
delivery.
Identify errors in the cash balance held for Petty Cash against the
balance in the Petty Cash Book. Be able to correct the Petty Cash Book if
necessary and identify interested personnel internally or externally.
KEY SKILLS - QUALIFICATION LEVEL MAP for IAB Level 2 Certificate in
Book-keeping – Unit 2
KEY SKILLLS ( LEVEL 2 ) STANDARDS
2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 2.2.6 2.2.7
Account for Value Added Tax Prepare a Statement of Account Prepare a
Reconciliation to a Supplier Statement of Account Account for Bad Debts
Use checking devices – Prepare Control Accounts Use checking devices –
Reconcile Cash Book Balances
(Cash and Bank) Use checking devices – Prepare a Trial Balance
COMMUNICATION
C21a Contribute to a discussion about a straightforward subject.
C21b Give a short talk about a straightforward subject using an image.
C22 Read and summarise information from two extended documents about a
straightforward subject.
C23 Write two different types of documents about straight- forward
subjects. One piece of writing should be an extended document and include
at least one image Evidence Evidence Evidence Evidence Evidence Evidence
Evidence
Class work &homework
Evidence may vary according to course delivery.
Be able to discuss the information necessary to account for VAT including
compiling the VAT Return Class work & homework
Evidence may vary according to course
delivery.
Discuss the use and preparation of a Statement of Account Class work &
homework
Evidence may vary according to course
delivery.
Discuss the use and
preparation of a Reconciliation of a Suppliers Statement of Account to the
relevant Ledger entries Class work & homework
Evidence may vary according to course delivery.
Discuss, with others, the need for monitoring unpaid debts and the
transactions need to account for bad debts Class work & homework
Evidence may vary according to course
delivery.
Discuss and communicate the need for Control Accounts as a checking
device, and describe how they are prepared. Class work & homework
Evidence may vary according to course
delivery.
Discuss and explain to others the need for, and outcome of, reconciliation
between the Statement of Account from the Bank, and the balances in the
Cash Book. Class work & homework
Evidence may vary according to course
delivery.
Discuss and communicate the need for a Trial Balance as a checking device,
and describe how it is prepared.
WORKING WITH OTHERS
WO2.1 Plan straightforward work with others, identifying objectives and
clarifying responsibilities, & confirm working arrangements.
WO2.2 Work cooperatively with others towards achieving identified
objectives, organising tasks to meet your responsibilities.
WO2.3Exchange information on progress and agree ways of improving work
with others to help achieve objectives. Evidence Evidence Evidence
Evidence Evidence Evidence Evidence
Class work &homework.
Evidence may vary according to course delivery.
To liaise with other members of the organisation in the recording of VAT.
Plan work so that the VAT Return can be completed in a timely manner Class
work & homework
Evidence may vary according to course
delivery.
Liaise with others, where necessary, in gaining the information necessary
to prepare a Statement of Account Class work & homework
Evidence may vary according to course
delivery.
Liaise with others, where necessary, in gaining the information necessary
to prepare a Supplier Statement Reconciliation Class work & homework.
Evidence may vary according to course delivery.
Deal with information given by others, relating to decision based
transactions, such as the writing off of bad debts. Class work &homework
Evidence may vary according to course delivery.
Work with others to complete postings of entries to the Ledgers. Gain the
information necessary to compile Control Accounts and relay the
conclusions to other personnel Class work & homework
Evidence may vary according to course
delivery.
Identify, and work within the timescale set by others for the completion
of the Cash Book and reconciliation with the Bank Statement. Class work &
homework
Evidence may vary according to course
delivery.
Work with others to gain the information necessary to compile the Trial
Balance and pass on to other internal personnel.
APPLICATION OF NUMBER Evidence Evidence Evidence Evidence Evidence
Evidence Evidence
N21 Interpret information from two different sources, including material
containing a
graph.
N22 Carry out calculations to do with:
A Amounts and sizes
B Scales and proportions
C Handling statistics
D Using formulae
N23 Interpret the results of your calculations and present your findings.
You must use at least one graph, one chart and one diagram
Class work &homework.
Evidence may vary according to course delivery.
Be able to calculate VAT from a Gross and Net situation and complete the
VAT Return showing whether a payment is due to or from Customs and Excise
Class work & homework
Evidence may vary according to course
delivery.
Be able to accurately calculate the outstanding balance on a Statement of
Account from the given information, including the opening balance
Class work & homework
Evidence may vary according to course
delivery.
Be able to accurately reconcile a Supplier Statement of Account to the
relevant ledger Account and prepare a Reconciliation
Statement Class work &homework
Evidence may vary according to course delivery.
Ensure that the double entry principles are adhered to, i.e that each side
of the Journal must agree in total before postings for bad debts takes
place. Class work & homework
Evidence may vary according to course
delivery.
Calculate the balance accurately of the Control Accounts having recorded
all necessary information gleaned from other Ledger Accounts and Books of
Prime Entry. Class work & homework
Evidence may vary according to course
delivery.
Complete a Bank Reconciliation Statement and update the Cash Book. Class
work & homework
Evidence may vary according to course
Deliver
Calculate the Total of the Trial Balance having recorded all necessary
information gleaned from other Ledger Accounts and Books of Prime Entry.
INFORMATION COMMUNICATION TECHNOLOGY
IT21 Search for and select information for two different purposes
IT22 Explore and develop information, and derive new information, for two
different purposes.
IT23 Present combined information for two different purposes. Your work
must included at least one example of text, one example of images, and one
example of numbers.
Evidence Evidence Evidence Evidence Evidence Evidence Evidence
NONE
NONE
NONE
NONE
NONE
NONE
NONE
IMPROVING OWN LEARNING AND PERFORMANCE
LP2.1 Help set targets with an appropriate person and plan how these will
be met
LP2.2 Take responsibility for some decisions about your learning, using
your plan to help meet targets and improve your performance
LP2.3 Review progress with an appropriate person and provide evidence of
your achievements
Evidence Evidence Evidence Evidence Evidence Evidence Evidence
NONE
NONE
NONE
NONE
NONE
NONE
NONE
PROBLEM SOLVING
PS1 Identify a problem, with help from an appropriate person, and identify
different ways of tackling it.
PS2 Plan and try out at least one way of solving the problem
PS3 Check if the problem has been solved and identify ways to improve
problem solving skills.
Evidence Evidence Evidence Evidence Evidence Evidence Evidence
Class work &homework.
Evidence may vary according to course delivery.
Identify and correct errors arising when preparing a Statement of Account
from business transactions and then comparing it to the relevant
Customers’ Ledger Account Class work &homework.
Evidence may vary according to course delivery.
Identify and correct errors arising when preparing a Reconciliation
Statement and comparing the Supplier Statement of Account with the
relevant Ledger Account. Class work &homework.
Evidence may vary according to course delivery.
Identify errors arising from entry of VAT into the Ledger Account and
subsequent production of the VAT Return . Be able to correct those errors
and inform necessary personnel internally and externally. Class work &
homework.
Evidence may vary according to course delivery.
Correct errors made when entering transactions related to bad debts and
are identified within the book-keeping system, by using the Journal. Class
work &homework
Evidence may vary according to course delivery.
Identify where an error has occurred if the Control Account balances do
not agree with the totals of the Sales and Purchase Ledger Account
balances. Correct such errors and inform any interested personnel. Class
work & homework
Evidence may vary according to course
delivery.
Be able to identify internal errors within the Cash Book resulting from a
Bank Reconciliation Statement, and those caused by the Bank.
Be able correct such errors and notifiy the necessary personnel internally
and externally. Class work & homework
Evidence may vary according to course
delivery.
Identify where an error has occurred if the Trial Balance does. Inform any
interested personnel of the differences and apply any information given.
APPENDIX 3 National Occupational Standards in Accounting Level 2
Mapping of IAB Level 2 Certificate in Book-keeping
Unit 1
Unit 1: Recording Income and Receipts
Element: 1.1 Process documents relating to goods and services supplied
Element: 1.2 Process receipts
Learning Outcomes
2.1.1 - 2.1.8
THE STATUTORY FRAMEWORK - Know and Understand:
The Business Environment
1 Types of business transactions and documents involved (Element 1.1)
2 Basic law relating to contract law and Sale of Goods Act (Elements 1.1 &
1.2) implied
3 Document retention policies (Elements 1.1 & 1.2)
4 General principles of VAT (Element 1.1)
5 Types of discounts (Element 1.1)
6 Cheques, including crossings and endorsements (Element 1.2)
7 The use of banking documentation (Element 1.2)
8 Automated payments (Element 1.2)
9 Credit limits(Elements 1.1 & 1.2) implied
10 Basic law relating to data protection (Element 1.2
Accounting Methods
11 Double entry book-keeping including balancing of accounts (Elements 1.1
and 1.2)
12 Accounting for receipts from credit customers and customers without
credit accounts (Elements 1.1 and 1.2)
13 Methods of coding data (Element 1.1) implied
14 Operation of manual accounting systems (Elements 1.1 and 1.2)
15 Operation of computerised accounting systems including output (Elements
1.1 and 1.2)
16 The use of the cash book and petty cash book as part of the double
entry system or as books of prime entry
(Elements 1.1 & 1.2)
17 Batch control (Elements 1.1 & 1.2)
18 Relationships between accounting systems and the ledger (Elements 1.1
and 1.2)
19 Credit card procedures (Element 1.2)
20 Methods of handling and storing money, including the security aspects
(Element 1.2)
21 Petty Cash procedures; imprest and non-imprest methods; analysis
(Elements 1.1 and 1.2)
Unit 2: Making and Recording Payments
Element: 2.1 Process documents relating to goods and services received
Element: 2.2 Process payments Learning Outcomes
2.1.1- 2.1.8
THE STATUTORY FRAMEWORK – Know and Understand:
The Business Environment
1 Types of business transactions and documents involved (Element 2.1)
2 Basic law relating to Contract Law and Sale of Goods Act (Elements 2.1
and 2.2) implied
3 Document retention policies
4 General principles of VAT (Element 2.1)
5 Types of discount (Element 2.1)
6 Cheques, including crossing and endorsements (Elements 2.2)
7 Automated payments (elements 2.1 and 2.2)
8 Different ordering systems; Internet, verbal and written (Element 2.1)
9 Documentation for payments (Element 2.2)
10 Basic law relating to Data Protection (Element 2.2)
Accounting Methods
11 Double Entry book-keeping, including balances accounts (Elements 2.1
and 2.2)
12 Accounting for payments to credit suppliers, and to suppliers where a
credit account is not available (Elements 2.1 & 2.2)
13 Capital and Revenue expenditure (Elements 2.1 and 2.2) implied
14 Methods of coding data (Element 2.1) Implied
15 Operation of manual accounting systems (Elements 2.1 and 2.2)
16 Operation of computerised accounting systems, including output
(Elements 2.1 and 2.2)
17 The use of the Cash Book and Petty Cash Book as part of the double
entry system or as Books of Prime Entry (Elements 2.1 and 2.2)
18 Batch Control (Elements 2.1 and 2.2)
19 Relationship between accounting system and ledger (Elements 2.1 and
2.2)
20 Credit Card procedures (Elements 2.1 and 2.2)
22 Payroll accounting procedures; accounting for Gross Pay and statutory
and non-statutory deductions through the Wages and Salaries Control
Account; payments to external agencies, security and control; simple gross
pay to net calculations but excluding the use of tax and NI tables
(Element 2.1)
23 Methods of handling and storing money from a security aspect (Element
2.2)
The Organisation
24 Relevant understanding of the organisation’s accounting systems and
administrative systems and procedures
(Elements 2.1and 2.2)
25 The nature of the organisation’s business transactions (Elements 2.1
and 2.2)
26 Organisational procedures for authorisation and coding of purchase
invoices and payments (Elements 2.1 and 2.2)
27 House style for correspondence (Element 2.1)
28 Organisational procedures for filing source information (Elements 2.1
and 2.2)
Unit 3: Preparing Ledger Balances and an initial Trial Balance
Element: 3.1 Balance bank transactions
Element: 3.2 Prepare ledger balances and control accounts
Element: 3.3 Draft an initial trial balance
Learning Outcomes
2.1.1 – 2.1.8
THE STATUTORY FRAMEWORK - Know and Understand:
The Business Environment
1 Types of business transactions and the documents involved (elements 3.1
and 3.2)
2 General principles of VAT (Element 3.1)
3 General bank services and operation of bank clearing system (Element
3.1)
4 Function and form of banking documents (Element 3.1)
Accounting Methods
5 Double entry book-keeping, including balancing accounts (Elements 3.1,
3.2 and 3.3)
6 Methods of coding (Elements 3.1, 3.2 and 3.3) Implied
7 Capital and Revenue expenditure ((Element 3.1)
8 Operation of manual accounting systems (Elements 3.1, 3.2 and 3.3)
9 Operation of computerised accounting systems, including output (Elements
3.1, 3.2 and 3.3)
10 The use of the Cash Book and Petty Cash Book as part of the double
entry system, or as Books of Prime Entry (Elements 3.1, 3.2 and 3.3)
11 Identification of different types of errors (Element 3.1)
12 Relationship between the accounting system and the ledgers (Elements
3.1 and 3.2)
13 Petty Cash procedures; Imprest and non imprest methods; analysis
(Element 3.2)
14 Methods of posting from primary records to ledger accounts (Element
3.2)
15 Inter-relationship of accounts – double entry system (Elements 3.2 and
3.3)
16 Use of Journals (Elements 3.2 and 3.3)
17 Reconciling Control Accounts with Memorandum Accounts (Element 3.2)
18 Function and form of the Trial Balance (Element 3.3)
The Organisation
19 Relevant understanding of the organisation’s accounting systems and
administrative systems and procedures (Elements 3.1, 3.2 and 3.3.)
20 The nature of then organisation’s business transactions (Elements
3.1,3.2 and 3.3)
21 Organisations procedures for filing source information (Elements 3.1,
3.2 and 3.3)
Unit 4: Supplying information for Management Control
4.1 Code and extract information
4.2 Provide comparisons on costs and income Learning Ourcomes
2.1.1 – 2.1.8
THE STATUTORY FRAMEWORK - Know and Understand:
The Business Environment
1 Types of cost centres, including profit centres, and investments centres
(Element 4.1)
implied
2 Costs, including wages, salaries, services and consumables (Element 4.1)
Accounting Methods
3 Identifying cost centres (Element 4.1)
4 The purpose of management information: decision making, planning and
control (Element 4.1)
5 The make up of Gross Pay (Element 4.1)
6 The relationship between financial and management accounting (Element
4.1)
7 Methods of analysing information in spreadsheets (Element 4.2)
8 Methods of presenting information, including word-processed documents
(Element 4.2)
9 Handling confidential information (Element 4.2)
10 The role of management information in the organization (Element 4.3)
11 Awareness of the relationship between financial and management
accounting (Element 4.2)
The Organisation
12 Relevant understanding of the organisation’s accounting systems and
administrative systems and procedures
(Elements 4.1, 4.2)
13 The nature of the orgnaisation’s business transactions (Element 4.1,
4.2)
14 The goods and services produced, bought and delivered by the
organization (Element 4.1, 4.2)
15 The cost centres within the organization (Element 4.1)
16 Organisational coding structures (Element 4.1)
17 The orgnaisation’s confidentiality requirements (Element 4.1) Implied
throughout
18 House style for presentation of different types of documents, including
word-processed documents(Element 4.2)
National Occupational Standards in Accounting Level 3
Mapping of IAB Level 2 Certificate in Book-keeping
Unit 1
Unit 7: Preparing Reports and Returns
Element 7.1 Prepare and present periodic performance reports
Element 7.2 Prepare reports and returns for outside agencies
Element 7.3 Prepare VAT Returns
Learning Outcomes
2.1.1 - 2.1.8
THE STATUTORY FRAMEWORK - Know and Understand:
The Business Environment
1 Main sources of relevant government statistics (Element 7.1, 7.2)
2 Relevant performance and quality measures (Element 7.1)
3 Main types of outside organisations requiring reports and returns:
regulatory, grant awarding, information
collecting, trade associations (Element 7.2)
4 Basic law and practice relating to all issues covered in the range
statement and referred to in the performance
criteria. Specific issues include, the classification of types of supply,
registration requirements, the form of
VAT invoices, tax points (Element 7.3)
5 Sources of information on VAT: Customs and Excise Guide (Element 7.3)
6 Administration of VAT: enforcement (Element 7.3)
7 Special schemes: annual accounting, cash accounting; bad debt relief
(Element 7.3) Implied
Accounting Techniques
8 Use of standard units of inputs and outputs (Element 7.1, 7.3)
9 Time series analysis (Element 7.1)
10 Use of index numbers (Ement 7.1)
11 Main types of performance indicators; productivity, cost per unit,
resource uitilisation, profitability
(Element 7.1, 7.2)
12 Ratios: Gross Profit Margin, Net Profit Margin; Return on Capital
Employed (Elements 7.1, 7.2)
13 Tabulation of accounting and other quantitative information using
spreadsheets (Elements 7.1, 7.2)
14 Methods of presenting information: written reports; diagrammatic;
tabular (Elements 7.1, 7.2)
The Organisation
15 How the accounting systems of an organisation are affected by its
organisational structure , its administrative
systems and procedures and the nature of its business transactions
(Elements 7.1, 7.2, 7.3)
implied
16 The purpose and structure of the reporting systems within the
organisation (Elements 7.1, 7.2, 7.3) implied
17 Background understanding that a variety of outside agencies may require
reports and returns from
organisations and that these requirements must be built into
administrative and accounting systems and
procedures (Element 7.2, 7.3)
18 Background understanding that recording and accounting practices may
vary between organisations and
different parts of organisations (Elements 7.1, 7.2, 7.3)
implied
19 The basis of the relationships between the organisation and the VAT
Office (Element 7.3)
National Occupational Standards in Accounting Level 2
Mapping of IAB Level 2 Certificate in Book-keeping
Unit 2
Unit 1: Recording Income and Receipts
Element: 1.1 Process documents relating to goods and services supplied
Element: 1.2 Process receipts Learning
Outcomes
2.2.1 – 2.2.7
THE STATUTORY FRAMEWORK - Know and Understand:
The Business Environment
1 Types of business transactions and documents involved (Element 1.1)
2 Basic law relating to contract law and Sale of Goods Act (Elements 1.1 &
1.2) implied
3 Document retention policies (Elements 1.1 & 1.2)
4 General principles of VAT (Element 1.1)
5 Types of discounts (Element 1.1)
6 Cheques, including crossings and endorsements (Element 1.2)
7 The use of banking documentation (Element 1.2)
8 Automated payments (Element 1.2)
9 Credit limits(Elements 1.1 & 1.2) implied
10 Basic law relating to data protection (Element 1.2
Accounting Methods
11 Double entry book-keeping including balancing of accounts (Elements 1.1
and 1.2)
12 Accounting for receipts from credit customers and customers without
credit accounts (Elements 1.1 and 1.2)
13 Methods of coding data (Element 1.1) implied
14 Operation of manual accounting systems (Elements 1.1 and 1.2)
15 Operation of computerised accounting systems including output (Elements
1.1 and 1.2)
16 The use of the cash book and petty cash book as part of the double
entry system or as books of prime entry
(Elements 1.1 & 1.2)
17 Batch control (Elements 1.1 & 1.2)
18 Relationships between accounting systems and the ledger (Elements 1.1
and 1.2)
19 Credit card procedures (Element 1.2)
20 Methods of handling and storing money, including the security aspects
(Element 1.2)
21 Petty Cash procedures; imprest and non-imprest methods; analysis
(Elements 1.1 and 1.2)
Unit 2: Making and Recording Payments
Element: 2.1 Process documents relating to goods and services received
Element: 2.2 Process payments
Learning
Outcomes
2.2.1 – 2.2.7
THE STATUTORY FRAMEWORK - Know and Understand:
The Business Environment
1 Types of business transactions and documents involved (Element 2.1)
2 Basic law relating to Contract Law and Sale of Goods Act (Elements 2.1
and 2.2) implied
3 Document retention policies
4 General principles of VAT (Element 2.1)
5 Types of discount (Element 2.1)
6 Cheques, including crossing and endorsements (Elements 2.2)
7 Automated payments (elements 2.1 and 2.2)
8 Different ordering systems; Internet, verbal and written (Element 2.1)
9 Documentation for payments (Element 2.2)
10 Basic law relating to Data Protection (Element 2.2)
Accounting Methods
11 Double Entry book-keeping, including balances accounts (Elements 2.1
and 2.2)
12 Accounting for payments to credit suppliers, and to suppliers where a
credit account is not available (Elements 2.1 and 2.2)
13 Capital and Revenue expenditure (Elements 2.1 and 2.2) implied
14 Methods of coding data (Element 2.1
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