ICB Level 1 Certificate in Basic Bookkeeping

Syllabus Information

Type of Examination: Timed online assessment at home

Prior Knowledge: No prior bookkeeping knowledge is assumed but candidates must have basic numeracy skills.

Prerequisites: Candidates must hold valid student registration

Overview: The Certificate covers the basic principles of double entry bookkeeping and its application to business. Students must demonstrate competence in the areas below.

Syllabus Detail:

(1) Business Documents

(a) Understand the purpose and range of business documents. Be able to:

Explain the purpose and flow of documents between seller and buyer to include:
- quotation
- purchase order
- delivery note
- invoice
- credit note
- returns note
- statement

(b) Understand the need to accurately prepare business documents for goods supplied. Be able to:

accurately prepare invoices and credit notes including the treatment of VAT and cash discount
ensure that these are correctly authorised
ensure that they are correctly coded
prepare statements for despatch to debtors
(c) Understand the need to check business documents received. Be able to:

check suppliers' invoices and credit notes to relevant documents
check calculations on suppliers' invoices and credit notes including treatment of VAT
correctly code invoices and credit notes
identify discrepancies and resolve
(2) Books of Original Entry

(a) Understand the purpose of books of prime entry and ledger accounts. Be able to:

Enter invoices and credit notes into books of prime entry and prepare:
- sales day book
- sales returns day book
- purchase day book
- purchase returns day book

Enter invoices and credit notes into the appropriate ledger accounts including the treatment of VAT:
- sales ledger
- main/general ledger
- purchase ledger
- main/general ledger

(b) Prepare an opening journal entry and post to ledger accounts.

(c) Prepare a journal entry to record purchase of a fixed asset.

(d) Prepare journal entries for the correction of errors.

(3) Ledger Accounts and the Division of the Ledger

(a) Understand the purpose of ledger accounts. Be able to post transactions to:

- sales ledger
- purchase ledger
- main and general ledger

(b) Record both capital and revenue expenditure including the treatment of wages and salaries.

(c) Post opening entries and balance off at the end of an accounting period.

(d) Deal with the write off of a bad debt.

(4) Making and Receiving Payments

The Cash Book

Understand the purpose and use of the cash book:

accurately record receipts and payments in a two column cash book
balance off cash and bank columns and bring down balances
complete the double entry to main and subsidiary ledgers
(5) Trial Balance

Understand the purpose and use of the trial balance.

Be able to:

prepare a trial balance from the ledger accounts
identify discrepancies
identify errors
correct errors
balance the trial balance
(6) Underpinning Knowledge

understand the basic elements of a contract
understand the basic principles of the Data Protection Act
identify the various methods of payment available through the banks:
- direct debits
- standing orders
- BACS
- CHAPS
- credit and debit cards