Recording Financial Transactions

Course Description

The aim of this unit is to give learners a basic understanding of how to record financial transactions. The unit covers what is needed to record financial transactions accurately and completely, for example source documents. Finally, the unit explores how income and expenditure is classified and managed.

Course Objectives

The aim of this unit is to give learners a basic understanding of how to record financial transactions. The unit covers what is needed to record financial transactions accurately and completely, for example source documents. Finally, the unit explores how income and expenditure is classified and managed.

Key Topics

1. LO1: Understand the need to record financial transactions.
2. LO2: Be able to prepare source documents and Books of Prime (Original) Entry to record financial transactions.
3. LO3: Understand the classification and management of income and expenditure.

Course Outline

Learning Outcomes

1. LO1 Understand the need to record financial transactions.
2. 1.1 Explain why business organisations need to record financial transactions.
3. 1.2 Describe how the recording of financial transactions meets the needs of the organisation’s internal and external stakeholders.
4. LO2 Be able to prepare source documents and Books of Prime (Original) Entry to record financial transactions.
5. 2.1 Describe principal source documents and Books of Prime (Original) Entry used to record financial transactions.
6. 2.2 Prepare principal source documents and Books of Prime (Original) Entry for business transactions.
7. LO3 Understand the classification and management of income and expenditure.
8. 3.1 Differentiate between capital and revenue expenditure and income.
9. 3.2 Describe the accounting approaches utilised for items of capital and revenue expenditure and income.
10. 3.3 Evaluate the impact on profit and asset valuations of incorrect management of capital and revenue expenditure and income.