LEVEL 2 CERTIFICATE IN BOOK-KEEPING QUALIFICATION GUIDANCE [50110251] C7031-02 Issue 2 50110251 April 15
About ABC Awards ABC Awards is a leading national awarding organisation which has a longestablished reputation for developing and awarding high quality vocational qualifications. We are committed to developing qualifications, which help learners and organisations, by cultivating the relevant skills for learning, skills for employment and skills for life. We work with hundreds of centres nationally and thousands of learners achieve an ABC Awards qualification each year. Established in 1998, ABC Awards combines more than 180 years of examination and assessment expertise but at the same time integrates a responsive, flexible approach to the needs of our customers. ABC has an on-line registration system to help customers register learners on ABC s qualifications, units and exams. In addition it provides features to view exam results, invoices, mark sheets and other information about learners already registered. The system is accessed via a web browser by connecting to our secure website using a username and password. https://secure.abcawards.co.uk/ors/secure_login.asp Sources of Additional Information The ABC website www.abcawards.co.uk provides access to a wide variety of information. Copyright All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publishers. This document may be copied by approved centres for the purpose of assessing learners. It may also be copied by learners for their own use.
Contents Qualification Summary 1 Introduction 3 Aims 3 Target Group 3 Progression Opportunities 4 Unit Details 5 Recognition of Prior Learning (RPL), Exemption and Credit Transfer 40 Certification 40
Qualification Summary ABC Awards Level 2 Certificate in Book-Keeping Qualifications Level 2 Certificate in Book-Keeping Assessment Internal assessment, internal and external moderation Grading Pass Accreditation Start Date 01/08/2010 Operational End Date 31/12/15 ABC Sector Business and Enterprise QCDA Tier 2 Sector 15.1 Accounting and Finance Support from sector bodies This qualification is supported by FSSC, the Sector Skills Council for finance, accountancy and financial services ABC Administering Office See ABC web site 1
Level 2 Certificate in Book-Keeping To gain the Level 2 Certificate in Book-Keeping learners must achieve 16 credits from the ten mandatory units. Unit Level Credit Value GLH Page No. Mandatory Units Banking procedures [A/600/8739] 1 1 3 5 Maintaining petty cash records [R/600/8746] 1 1 5 8 Principles of recording and processing financial transactions [A/600/8756] 2 2 9 11 Professional values and basic business legislation [F/600/8757] 2 1 4 15 Processing ledger transactions and extracting a trial balance [F/600/8760] 2 2 8 19 Preparing and recording financial documentation [J/600/8758] 2 2 11 22 Maintaining control accounts [K/600/8770] 2 1 4 26 Maintaining and reconciling the cashbook [L/600/8759] 2 2 6 29 Maintaining the journal [T/600/8772] 2 2 9 32 Principles of VAT [F/600/4952] 3 2 15 36 Numbers in box brackets indicate QCF unit Number If learners achieve credits from units of the same title (or linked titles) at more than one level, they cannot count credits achieved from both units towards the credit target of a qualification Entry Requirements There are no specific entry requirements Section 96/97 Pre 16 16 18 19 + LSC Qualification Code 50110251 Recommended GLH 74GLH Points Score See ABC web site / Qualifications Directory Contribution to Threshold See ABC Qualifications Directory ASL Option Yes Foundation Learning N/A Type of Funding Available See LAD (Learning Aims Database) Minimum Qualification Fee See ABC web site for current fees and charges Unit Fee Unit fees are based upon a unit s individual credit value. Please see the ABC web site for the current fee charged per credit. Additional Information Please see ABC web site for qualifications that are eligible for Credit Transfer/RPL/Exemption 2
Introduction Book-keeping qualifications have a long history stretching back over many years within ABC Awards - deriving from a Union of Lancashire and Cheshire Institutes (ULCI) general commerce qualification in 1964, a result of the need identified for a specific book-keeping qualification. The Level 2 Certificate in Book-Keeping has been developed in collaboration with FSSC and other Awarding Organisations. It is designed for learners seeking increased employment opportunities where a specialised qualification is considered advantageous, or for individuals who have identified it as necessary for enhancement of their existing contribution in the work place. This occupationally relevant qualification reflects the current role of the book-keeper in commerce and industry. This qualification will be put forward for inclusion on the ASL catalogue. Please check the ABC Awards website for the current status of this qualification within the ASL catalogue. Aims This qualification aims to provide learners with the knowledge and skills required to process financial transactions associated with a business in a book-keeping environment gain competence in their job role progress into further education / training or employment Target Group This qualification is designed for 14-19 year olds in educational or training establishments (schools, colleges, private training providers), particularly those with limited previous achievement, who wish to pursue a vocational course as a foundation to employment. Those wishing to study book-keeping to enhance job prospects Those who may not have undertaken any form of study for many years but who wish to update or improve their knowledge base. Those who are not book-keepers but who need to understand the financial transactions of the business in which they work Book-keepers who do not have any relevant, formal qualifications for their existing job role and are looking to gain an accredited competence qualification ABC expects approved centres to recruit with integrity on the basis of a learner s ability to contribute to and successfully complete all the requirements of a unit/s or the full qualification. 3
Progression Opportunities Progression could be to self-employment, full or part-time employed status, or to appropriate Level 3 qualifications. Centres should be aware that reasonable Adjustments which may be permitted for assessment may in some instances limit a learner s progression into the sector. Centres must, therefore, inform learners of any limits their learning difficulty may impose on future progression 4
Unit Details Unit Title A/600/8739 Banking procedures Level 1 Credit Value 1 Guided Learning Hours 3 Unit Summary Learning Outcomes (1 to 2) The learner will 1. Understand the banking process The purpose of this unit is to develop the learners knowledge and understanding of the UK banking system and organisational activities and procedures related to banking Assessment Criteria 2.2 to 2.2) The learner can 1.1 Identify the main services offered by banks and building societies 1.2 Describe how the banking clearing system works 1.3 Identify different forms of payment which include cash cheques credit cards debit cards direct payments 1.4 Identify the information required to ensure the following payments are valid cash cheque credit card debit card 1.5 Describe the processing and security procedures relating to the different forms of payments 2. Understand document retention and storage requirements 2.1 Explain why it is important for an organisation to have a formal document retention policy 2.2 Identify the different types of documents that may be stored Mapping to National Occupational Standards Direct relationship based on the NOS for Accountancy and Finance FA-3 5
SUPPORTING UNIT INFORMATION A/600/8739 Banking procedures Level 1 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand the banking process Bank accounts Personal / secured loans Mortgages Investments CHAPS and BACS payments Different types of financial transactions Components of valid financial transactions Learning Outcome 2. Understand document retention and storage requirements Importance of complying with legislation Data Protection Act 1998 Current and historic records Retention periods TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence 6
Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 7
Unit Title R/600/8746 Maintaining petty cash records Level 1 Credit Value 1 Guided Learning Hours 5 Unit Summary Learning Outcomes (1 to 3) The learner will 1. Complete a petty cash voucher For the learner to have a clear understanding of the principles and procedures related to the processing of petty cash transactions and the maintenance of the petty cash float known as the imprest Assessment Criteria (1.1 to 3.4) The learner can 1.1 Prepare petty cash vouchers 1.2 Calculate the purchase tax (eg VAT) where the expense includes it 2. Maintain an analysed petty cash book 2.1 List the petty cash vouchers into an analysed petty cash book ensuring that the expenses are entered and analysed 2.2 Account for any tax paid e.g. VAT 2.3 Total and cross cast the petty cash book 3. Maintain the petty cash balance 3.1 Balance off the petty cash book using the imprest system 3.2 Reconcile the petty cash book with cash in hand 3.3 Prepare a petty cash reimbursement request or equivalent 3.4 Show the reimbursement of the petty cash expenditure in the petty cash book Mapping to National Occupational Standards Direct relationship based on NOS for Accountancy and Finance FA-2 and FA-3 8
SUPPORTING UNIT INFORMATION R/600/8746 Maintaining petty cash records Level 1 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Complete a petty cash voucher Nature and purpose of petty cash vouchers VAT fraction and decimal fraction Importance of obtaining authorised petty cash voucher Learning Outcome 2. Maintain an analysed petty cash book Nature and purpose of analysed cash booked Accounting separately for sales tax Learning Ouctome 3. Maintain the petty cash balance Principles of the imprest system Effective method of control Principles of reconciliation TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. All learners must complete a portfolio of evidence that shows achievement of all the relevant learning outcomes and assessment criteria Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include 9
Product evidence Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 10
Unit Title A/600/8756 Principles of recording and processing financial transactions Level 2 Credit Value 2 Guided Learning Hours 9 Unit Summary Learning Outcomes (1 to 6) The learner will 1. Understand the role of the books of prime entry For the learner to have a clear understanding of the principles and procedures related to the processing of business transactions Assessment Criteria (1.1 to 6.5) The learner can 1.1 Outline the purpose, content and format of the books of prime entry 1.2 Outline the purpose and content of a range of business documents to include petty cash voucher invoice credit note remittance advice 1.3 Identify when authorisation is required 1.4 Explain how transactions are entered in the following books of prime entry: sales and sales returns day books purchase and purchase return day books cash book petty cash book 2. Understand the principles of coding 2.1 Describe the need for a coding system for financial transactions within a double entry book-keeping system 2.2 Describe the use of coding within a filing system. 3. Understand the double entry book-keeping system 3.1 State the accounting equation 3.2 Explain how the accounting equation relates to a double entry book-keeping system 3.3 Outline how the books of prime entry integrate with double entry book-keeping system 11
3.4 Explain how to process financial transactions from the books of prime entry into the double entry book-keeping system 3.5 Define, and distinguish between, capital income and capital expenditure 3.6 Define, and distinguish between, revenue income and revenue expenditure 4. Understand the various types of discount 4.1 Explain the difference between settlement, trade and bulk discount 4.2 Describe the effect that settlement discount has on the sales tax (e.g. VAT) charged 5. Understand the use of the Journal 5.1 Describe the reasons for maintaining a Journal 5.2 Describe the content and format of the Journal 5.3 Give examples of the types of transactions that might be entered into the book-keeping system by using the Journal bad debts wages/salaries PAYE/NIC liability opening balances 6. Understand control accounts 6.1 Describe the purpose of control accounts as a checking device to aid management and help identify book-keeping errors 6.2 Describe the specific purpose of the following control accounts sales ledger purchase ledger sales tax account (e.g. VAT) 6.3 Explain why it is important to reconcile the Sales and Purchase ledger control accounts regularly 6.4 Describe the usefulness of an aged debtor analysis for monitoring debtors 6.5 Explain the need to deal with discrepancies quickly and professionally Mapping to National Occupational Standards Direct relationship based on NOS for Accountancy and Finance FA-1,FA-2 and FA-3 12
SUPPORTING UNIT INFORMATION A/600/8756 Principles of recording and processing financial transactions Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand the role of the books of prime entry To record and summarise details of source documents Importance of source documents Nature and purpose of each document Learning Outcome 2. Understand the principles of coding Efficiency of data capture, entry, analysis Advantages of establishing good filing system Learning Outcome 3. Understand the double entry book-keeping system Principles and rules of double entry book keeping Fundamental concept total assets of business = total liabilities Distinguish between capital and revenue income / expenditure Learning Outcome 4. Understand the various types of discount Nature and purpose of each type of discount Learning Outcome 5. Understand the use of the Journal Nature and purpose of journal Permanent record with narrative. Unusual movements Correction of errors Transfers between accounts Learning Outcome 6. Understand control accounts Nature and purpose of control accounts Typical examples debtors / creditors control account Checks accuracy of entries in individual accounts Act as internal control Importance of timely reconciliations Principles of credit control TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. 13
METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 14
Unit Title F/600/8757 Professional values and basic business legislation Level 2 Credit Value 1 Guided Learning Hours 4 Unit Summary Learning Outcomes (1 to 3) The learner will 1. Understand the importance of integrity and professionalism For the learner to understand the fundamental principles of a range of business legislation and the importance of professionalism to the role of book-keeper Assessment Criteria (1.1 to 3.5 The learner can 1.1 Explain why each of the following professional values is important to a book-keeper confidentiality security of data competency duty of care integrity 1.2 Explain why it is important for a book-keeper to comply with the Code of Ethics of a professional body 2. Understand that legislation exists relating to the workplace 2.1 Explain the importance of maintaining security over computerised and manual information held on individuals or businesses 2.2 Identify and describe principles of data protection including adequate, relevant and not excessive not kept longer than necessary not transferred to countries without adequate data protection laws 2.3 Describe the main duties and responsibilities of employers and employees under heath and safety legislation 3. Know the fundamental principles of money laundering legislation 3.1 Define the term money laundering 3.2 Give examples of offences under the money laundering regulations 3.3 Outline the risks for book-keepers associated with the money laundering legislation 15
3.4 Identify internal procedures that businesses can introduce to lessen risks 3.5 Outline the requirements to report suspicions of money laundering to the appropriate authorities Mapping to National Occupational Standards Direct relationship to the NOS for Accountancy and Finance FA-1, FA-2 and FA-3 16
SUPPORTING UNIT INFORMATION F/600/8757 Professional values and basic business legislation Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand the importance of integrity and professionalism Necessity of maintaining clean and credible image within and outside organisation Creating culture of trust confidence and respect Learning Outcome 2. Understand that legislation exists relating to the workplace Importance of complying with legislation Legal obligations of employer / employee Data Protection Act 1998 Current and historic records Retention periods Health and Safety Act 1974 Duty of care Risk assessment and management Reporting requirements Learning Outcome 3. Know the fundamental principles of money laundering legislation Money Laundering Regulations 2007 EEC and International Law Establishment of financial policies and procedures Reporting requirements Serious Organised Crime Agency Different ways of reporting suspicious activity TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. 17
EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 18
Unit Title F/600/8760 Processing ledger transactions and extracting a trial balance Level 2 Credit Value 2 Guided Learning Hours 8 Unit Summary Learning Outcomes (1 to 2) The learner will 1. Process ledger transactions from the books of prime entry The purpose of this unit is to develop the learners skills in balancing off the accounts held within the ledgers and from them preparing an initial trial balance Assessment Criteria (1.1 to 2.2) The learner can 1.1 Transfer data correctly from the day books to the ledgers 1.2 Transfer data correctly from the cashbook to the ledgers 1.3 Transfer data correctly from the petty cash book to the ledgers 2. Prepare ledger balances and an initial trial balance 2.1 Balance ledger accounts clearly showing balances carried down and brought down as appropriate 2.2 Extract an initial trial balance Mapping to National Occupational Standards Direct relationship to the NOS for Accountancy and Finance FA-1, FA-2 and FA-3 19
SUPPORTING UNIT INFORMATION F/600/8760 Processing ledger transactions and extracting a trial balance Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Able to process ledger transactions from the books of prime entry Learning Outcome 2. Able to prepare ledger balances and an initial trial balance Explain and illustrate how to balance a ledger account Explain the concept of double entry bookkeeping system Balancing off accounts at the end of an accounting period Ledger accounts: types and differences Reconciliation of day book, cash book and petty cash book before transferring data to the ledgers Reconcile and analyse carried and brought down balances in the ledger accounts From the ledgers, post carried and brought down balances in the trial balance Extract the ledger balances into a trial balance TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence Observation reports 20
Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 21
Unit Title J/600/8758 Preparing and recording financial documentation Level 2 Credit Value 2 Guided Learning Hours 11 Unit Summary Learning Outcomes (1 to 6) The learner will 1. Prepare the financial documents to be sent to credit customers The purpose of this unit is to develop learners skills in processing financial documents. This involves preparing and recording the necessary documents to be sent to customers as well as processing payments received. It also involves processing and recording documents received from suppliers and preparing payments for suppliers Assessment Criteria (1.1 to 6.3) The learner can 1.1 Use difference source documents to prepare sales invoices and credit notes 1.2 Calculate relevant sales tax (eg VAT), trade discount and settlement discount 1.3 Produce statements of account to be sent to credit customers 2. Enter sales invoices and credit notes into the appropriate books of prime entry 2.1 Code sales invoices and credit notes 2.2 Enter invoices and credit notes into the books of prime entry 3. Process payments from customers 3.1 Check the accuracy and validity of receipts against relevant supporting information 3.2 Identify and deal with any discrepancies 4. Process suppliers invoices and credit notes 4.1 Check the accuracy of supplier invoices and credit notes against purchase orders, goods received and delivery notes 4.2 Check agreed trade, bulk and settlement discounts where appropriate 22
5. Enter supplier invoices and credit notes into the appropriate books of prime entry 5.1 Code supplier invoices and credit notes 5.2 Enter supplier invoices and credit notes into the books of prime entry 6. Prepare payments to suppliers 6.1 Reconcile supplier statements 6.2 Calculate the payments due to suppliers from relevant documentation 6.3 Prepare remittance advices to accompany payments to suppliers Mapping to National Occupational Standards Direct relationship to the NOS for Accountancy and Finance FA-1, FA-2 and FA-3 23
SUPPORTING UNIT INFORMATION J/600/8758 Preparing and recording financial documentation Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Prepare the financial documents to be sent to credit customers Letters / e-mails / sales order forms / sales return forms Accounting for discounts allowed and VAT Importance of producing customer statements Learning Outcome 2. Enter sales invoices and credit notes into the appropriate books of prime entry Learning Outcome 3. Process payments from customers Importance of accurate recording and cross checking Importance and relevance of timely reconciliations Learning Outcome 4. Process suppliers invoices and credit notes Importance of reconciling invoices with delivery notes/ internal records Learning Outcome 5. Enter supplier invoices and credit notes into the appropriate books of prime entry Importance of accurate recording and cross checking Importance and relevance of timely reconciliations Learning Outcome 6. Prepare payments to suppliers Reconcile statement to individual account in creditor s ledger Verify completeness and accuracy of records TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. 24
Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 25
Unit Title K/600/8770 Maintaining control accounts Level 2 Credit Value 1 Guided Learning Hours 4 Unit Summary Learning Outcomes (1 to 2) The learner will 1. Prepare sales and purchase ledger and tax control accounts For the learner to understand the importance of maintaining control over debtors and creditors aided by preparation and use of debtor and creditor control accounts Assessment Criteria (1.1 to 2.3) The learner can 1.1 Prepare a sales ledger control account from information extracted from the books of prime entry 1.2 Balance the sales ledger control account 1.3 Prepare a purchase ledger control account from information extracted from the books of prime entry 1.4 Balance the purchase ledger control account 1.5 Prepare a tax control account from information extracted from the books of prime entry 2. Reconcile sales and purchase ledger and tax control accounts 2.1 Reconcile the balance on the sales ledger control account with a list of debtors 2.2 Reconcile the balance on the purchase ledger control account with a list of creditors 2.3 Reconcile the balances on the tax control account Mapping to National Occupational Standards Direct relationship to the NOS for Accountancy and Finance FA-1, FA-2 and FA-3 26
SUPPORTING UNIT INFORMATION K/600/8770 Maintaining control accounts Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Prepare sales and purchase ledger and tax control accounts Purpose and need for control accounts Debtors, Creditors and Tax control account. Extraction from book of prime entry Adjustments from books of original entry Journals and journal entries concepts and principles Learning Outcome 2. Reconcile sales and purchase ledger and tax control accounts The need for and purpose of reconciliation Balance sales ledger to debtors list and purchase ledger to creditors list Dealing with bad debts and procedures for writing off bad debt Dealing with sales and purchase credit note Need for a tax control account to deal with any tax liabilities Adjustments and corrections through the journal TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include 27
Product evidence Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 28
Unit Title L/600/8759 Maintaining and reconciling the cashbook Level 2 Credit Value 2 Guided Learning Hours 6 Unit Summary Learning Outcomes (1 to 2) The learner will 1. Maintain a three column analysed cash book The purpose of this unit is to develop learners skills in maintaining the cash book by entering receipts and payments accurately, balancing off the cash book and reconciling with a bank statement Assessment Criteria (1.1 to 2.3) The learner can 1.1 Enter receipts and payments details from relevant primary records into the three column analysed cashbook 1.2 Enter settlement discounts to relevant customer and supplier accounts 1.3 Enter sales tax (eg VAT) where applicable 1.4 Total, balance and cross cast the cashbook 1.5 Identify and deal with discrepancies 2. Reconcile a bank statement with the cashbook 2.1 Check individual items on the bank statement accurately against the cashbook to identify differences 2.2 Update the cashbook from the bank statement, direct debit and standing order schedules 2.3 Prepare a bank reconciliation statement Mapping to National Occupational Standards Direct relationship to the NOS for Accountancy and Finance FA-1, FA-2 and FA-3 29
SUPPORTING UNIT INFORMATION L/600/8759 Maintaining and reconciling the cashbook Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Maintain a three column analysed cash book Nature and purpose of three column cash book Principles and advantages of discounts allowed and received Importance and relevance of cross casting Learning Outcome 2. Reconcile a bank statement with the cashbook Nature and purpose of bank reconciliations Initiated bank transactions Timing differences Omissions Posting errors TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence Observation reports Oral/written questions and answers 30
Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 31
Unit Title T/600/8772 Maintaining the journal Level 2 Credit Value 2 Guided Learning Hours 9 Unit Summary Learning Outcomes (1 to 4) The learner will 1. Open a new set of double entry book keeping records using the Journal For the learner to understand that the Journal is a primary accounting record that lists non-standard book-keeping transactions and that it is then used to enter those transactions into the double entry book-keeping records Assessment Criteria (1.1 to 4.3) The learner can 1.1 Prepare the journal entries to open a double entry set of book-keeping records for a new and existing business 1.2 Record the journal entries in the ledger accounts 2. Use the Journal to correct errors disclosed and not disclosed by the trial balance. 2.1 Identify and record journal entries in the general ledger to correct errors not disclosed by the trial balance. 2.2 Identify the types of errors in a book-keeping system that are not disclosed by extracting a trial balance 2.3 Identify the types of errors in a book-keeping system that are disclosed by extracting a trial balance addition errors in individual ledger accounts single entry transactions recording two debits or two credits for a transaction errors transferring balances from the general ledger to the trial balance omission of a general ledger account 2.4 Re-draft a trial balance following the correction of errors 3. Create and clear a suspense account using the Journal 3.1 Balance a trial balance by recording the difference in a suspense account 3.2 Prepare journal entries to correct book-keeping errors and clear the balance on a suspense account 3.3 Record the journal entries in the general ledger to clear the suspense account 32
3.4 Re-draft a trial balance following the correction of errors and the elimination of a suspense account 4. Use the journal to record other transactions 4.1 Prepare journal entries to write off a bad debt 4.2 Enter the journal entries in the general ledger to write off a bad debt including the sales tax (eg VAT) where appropriate 4.3 Prepare and enter the journal entries in the general ledger to process payroll transactions Mapping to National Occupational Standards Close relationship to the National Occupational Standards for Accounting 33
SUPPORTING UNIT INFORMATION T/600/8772 Maintaining the journal Level 2 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Be able to open a new set of double entry book keeping records using the journal Explain the uses of the journal Explain, describe and accurately reflect bookkeeping entries and records using journal Principles of double entry bookkeeping Ledger accounts: types and differences The accounting equation Balancing off accounts at period end Learning Outcome 2. Be able to use the journal to correct errors disclosed and not disclosed by the trial balance Explain the types of error which may occur in bookkeeping systems, identifying those which can and those which can not be detected by preparing a trial balance Illustrate the use of journal in correcting errors Explain how to accurately prepare a trial balance that reflects any necessary adjustments and corrections The need for and the purpose of a trial balance Types of errors in the trial balance Correction of errors through the journal Produce and prepare an amended trial balance Learning Outcome 3. Be able to create and clear a suspense account using the journal Illustrate the use of a suspense account Explain how to accurately prepare suspense accounts including any necessary adjustments and clearance Purpose of suspense accounts Reconciling and clearing suspense accounts using the journal Learning Outcome 4. Be able to use the journal to record other transactions Explain how journal can be used to record other transactions Explain the general principles of the operation of a sales tax and the consequent accounting entries Posting opening balances using the journal Closing at year end using the journal Using journal entries in managing and processing VAT, Debtors, Creditors, Payroll transactions Dealing with writing off of bad debts including sales Tax (VAT) 34
TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. METHODS OF ASSESSMENT This unit will be internally assessed, internally and externally moderated via a learner s portfolio and other related evidence, against the unit outcomes and assessment criteria. Minimum requirements when assessing this unit ABC expects that staff will be appropriately qualified to assess learners against the outcomes and criteria within the units. Generally teaching staff should be qualified and/or vocationally experienced to at least a level above that which they are teaching. EVIDENCE OF ACHIEVEMENT Evidence presented to support achievement is not prescribed for each learning outcome. It could typically include Product evidence Observation reports Oral/written questions and answers Reports/notes Worksheets/job sheets/workbooks Witness statements Taped evidence (video or audio) Photographic evidence Case studies/assignments/projects Interview/professional discussion Pictorial identifications Letters / emails seeking clarification / confirmation of understanding Internet research / copies of items with relevant knowledge highlighted All evidence must be clearly signposted and made available for the external moderator upon request. All internal assessments must be accompanied by a signed Declaration of Authenticity (this document is available on the ABC web site). ADDITIONAL INFORMATION See ABC website for further information 35
Unit Title F/600/4952 Principles of VAT Level 3 Credit Value 2 Guided Learning Hours 15 Unit Summary Learning Outcomes (1 to 1) The learner will 1. Understand VAT regulations This unit is about understanding the current VAT regulations. Learners will understand the VAT registration requirements, the different VAT schemes available, the penalties for noncompliance and the different types of classification of supplies Assessment Criteria (1.1 to 1.8) The learner can 1.1 Identify sources of information on VAT 1.2 Explain the relationship between the organisation and the relevant government agency 1.3 Explain the VAT registrations requirements 1.4 Identify the information that must be included on business documentation of VAT registered businesses 1.5 Recognise different types of inputs and outputs 1.6 Identify how different types of supply are classified for VAT purposes standard supplies exempt supplies zero rated supplies imports exports 1.7 Explain the requirements and the frequency of reporting for the following VAT schemes annual accounting cash accounting flat rate scheme standard scheme 1.8 Recognise the implications and penalties for the organisation resulting from failure to abide by VAT registrations including the late submission of VAT returns 36
Mapping to National Occupational Standards Based on FSSC NOS for Accountancy and Finance Unit T-3 Equivalences: AAT Level 3 Diploma for Accounting Technicians (QCF) Unit 34, Exemptions: AAT Level 3 Advanced Certificate in Accounting Unit 31.1, Level 3 NVQ in Accounting Unit 7 37
SUPPORTING UNIT INFORMATION F/600/4952 Principles of VAT Level 3 INDICATIVE CONTENT To successfully achieve this unit, learners need to provide evidence that they have met the learning outcomes and assessment criteria for the unit. Indicative content is offered as guidance to aid delivery of the unit and to set the learning outcomes and assessment criteria in context. Learning Outcome 1. Understand VAT regulations General nature of the VAT Politics around VAT such as EU and UK regulations and government power to increase or reduce VAT rate Different tax rates for goods and services such as standard rate of 17.5% and reduced rate of 5% Zero rated and Exempt supplies Compulsory registration for VAT with the HM Revenue and Customs based on turnover threshold Timeframe for compulsory registration Voluntary registration Advantages and disadvantages for registering for VAT General administration for VAT Waiver of VAT registration When and where to send forms VAT registration number in invoicing, Electronic invoicing and invoice format as required by EU and UK legislation Details to be included in a VAT invoice Tax point when the liability to the tax arises Calculation of VAT VAT on purchases and sales translating into input and output VAT Keeping of records, i.e. invoices and VAT returns in case of any investigation from HMRC Quarterly VAT returns and Payments Penalties, interests and surcharges for failure to comply with VAT legislation Cash accounting schemes, annual accounting schemes and flat rate schemes for businesses with respect to their turnover threshold Flat rate percentages by trade sectors for different category of business VAT on imports into the UK VAT on exports from the UK Deregistration process when annual turnover fall below the threshold limit Dealing with bad debts i.e. repayment of input tax by customers TEACHING STRATEGIES AND LEARNING ACTIVITIES Centres should adopt a delivery approach which supports the development of their particular learners. The aims and aspirations of all learners, including those with identified special needs, including learning difficulties/disabilities, should be considered and appropriate support mechanisms put in place. 38