Key topics
- The Functions of Book-keeping and Accounting
Examine the functions of book-keeping and accounting. Consider the meaning of the terms ‘assets’, ‘capital and liabilities’, and ‘income and expenditure’. Understand the need for confidentiality in the keeping of financial records.
- Simple Value Added Tax (VAT) Calculations
Understand the purpose of the VAT Scheme and learn how to make simple VAT calculations. Examine the current VAT registration rules and learn who must register for VAT.
Examine the function of various business documents that flow between the buyer and seller and are used as the basis of supporting business transactions. Learn how to prepare or check a variety of documents.
Understand the concept of Trading on Credit. Learn how to use Purchase Day Books and Sales Day Books, as well as Purchase Returns Day Books and Sales Returns Day Books.
- Making and Receiving Payments
Examine common methods of making and receiving payment used in business. Understand the importance, in the interests of security, of the need to bank ‘monies’ regularly. Consider the function of a business Bank Current Account.
Learn how to process receipts and payments through a columnar/analysed Cash Book. Discover how to balance off the Cash Book and bring down balances.
- Bank Reconciliation Statements
Examine the purpose of the Bank Reconciliation Statement and discover how to prepare one.
Understand the form and function of the Petty Cash Book using an Imprest system. Learn how to enter petty cash transactions in a Petty Cash Book, and how to balance off the Petty Cash Book.