Maintaining Financial Records

Course Description

The aim of this unit is to provide learners with an understanding of why financial records need to be kept. The learner will develop the ability to use the double-entry system of bookkeeping and to prepare a three-column cash book and a bank reconciliation statement.

Course Objectives

The aim of this unit is to provide learners with an understanding of why financial records need to be kept. The learner will develop the ability to use the double-entry system of bookkeeping and to prepare a three-column cash book and a bank reconciliation statement.

Key Topics

1. LO1: Understand the role and application of accounting concepts.
2. LO2: Be able to use the double-entry system of bookkeeping.
3. LO3: Be able to prepare a three-column cash book.
4. LO4: Be able to prepare a bank reconciliation statement.

Course Outline

Learning Outcomes

1. LO1 Understand the role and application of accounting concepts.
2. 1.1 Explain the principle that Capital = Assets – Liabilities.
3. 1.2 Demonstrate the use of the accounting equation.
4. 1.3 Outline the accounting concepts used when recording financial transactions.
5. LO2 Be able to use the double-entry system of bookkeeping.
6. 2.1 Outline the double-entry system of bookkeeping.
7. 2.2 Use the double-entry system of bookkeeping to process accounting data.
8. 2.3 Analyse the usefulness of the double-entry system of bookkeeping to process accounting data.
9. 2.4 Prepare a trial balance from given double-entry accounting data.
10. LO3 Be able to prepare a three-column cash book.
11. 3.1 Outline the purpose of the three-column cash book.
12. 3.2 Differentiate between cash and trade discounts.
13. 3.3 Explain the accounting treatment for cash and trade discounts.
14. 3.4 Prepare a three-column cash book from given data.
15. LO4 Be able to prepare a bank reconciliation statement.
16. 4.1 Explain the purpose of a bank reconciliation statement.
17. 4.2 Prepare a bank reconciliation statement from given data.