ICB Self Employed Bookkeeper Package - (MICB) Ltd Companies

Level 2 Syllabus

Underpinning Knowledge

Importance of adhering to a code of Professional Ethics
Basic differences between the structures of different types of businesses
Importance of legislation that applies to bookkeepers
Basic elements of a contract
Accounting Equation
Concept of reporting on a cash basis for income tax purposes
Various of methods of payments and receipts to and from a bank account
Need for bank security
Basic accounting concepts

Business Documents

Purpose and range of business documents
Need to accurately prepare business documents for goods supplied
Need to check business documents received

Ledger Accounts

The purpose of, and make entries into, the ledger accounts
A set of control accounts in the ledgers

Books of Prime Entry

Understand the purpose of, and make entries into, the books of prime entry

Accounting for VAT

Understand the process of dealing with and accounting for VAT in the ledgers

Making and receiving payments

Use of an analysed cash book
Purpose and need to record petty cash
Purpose and use of the two and three column cash books

The Trial Balance

Understand the purpose and use of the trial balance

Use a computerised package

Health and safety
Business set up
Processing nominal ledger and subsidiary ledger accounts
Generate reports

Level 3 Syllabus

Underpinning Knowledge

Understand the importance of adhering to a code of ethical principles

Understand when and how to take appropriate action to cope with unethical behaviour

Understand the legal differences between the various structures of various types of businesses

Understand the main accounting concepts that apply

Understand the different rules that apply when processing VAT transactions

Reconciliation of Accounts and Correction of Errors

Reconcile supplier statements

Prepare a bank reconciliation statement

Use control accounts to reconcile sales and purchase ledgers

Understand the need to correct errors

VAT Returns

Reconcile the VAT account

Complete a VAT return

Calculate and Post Adjustments to the Ledgers

Calculate depreciation

Account for the disposal of fixed assets

Understand the need to allow for adjustments to the accounts

Final Accounts of Non-Incorporated Businesses

Prepare a set of final accounts for a sole trader from a given trial balance

Prepare a set of final accounts for a not-for-profit organisation

Prepare a set of final accounts for a partnership

Computerised Bookkeeping

Partnership Set-up

Intangible Assets

Goodwill Division of profits

Chart of Accounts & Year-End Procedure.

Not for Profit Organisations

Set-up Prepaid/Accrued

Subscriptions Donations

Level 4 Syllabus

Limited Company Accounts

Prepare a set of final accounts for a limited company
Ddefine the term Limited Liability
Understand its legal status
Identify sources of capital – shares and debentures
Distinguish between capital and revenue reserves
Define shareholders’ equity
Account for the issue of shares and debentures
Account for dividends paid
Prepare a set of final accounts to include adjustments and provisions, debenture interest paid and accrued, treatment of dividends and provision for corporation tax.

Limited Liability Partnerships

Understand the nature of a limited liability partnership
Understand the reasons for setting up a limited liability partnership
Explain the limit of the liability
Prepare a set of final accounts for a limited liability partnership (internal management accounts only)

Incomplete Records

Prepare a set of final accounts for incomplete records
Determine the opening value of capital through the accounting equation
Determine bank and cash balances
Prepare ledger accounts to determine missing values for sales and purchases using mark up and margin, expenses and drawings
Identify capital expenditure
Identify stock loss
Prepare adjustments for accruals and prepayments
Prepare profit and loss account and balance sheet (manual system only)

Advanced Partnership Accounts

Account for changes in a partnership
Prepare accounting entries for a change of profit sharing ratio including the admission and retirement of a partner
Account for the treatment of goodwill on such a change in partners
Account for a revaluation of assets in a partnership

Interpretation of Financial Statements

Understand the importance of interpreting financial statements for internal management purposes.
Understand the link between profitability and liquidity.
Have an awareness of the problems that might arise if long term borrowing is significantly high in relation to capital invested in the business.
Analyse and interpret financial statements.
Calculate profitability ratios, liquidity/working capital ratios