Level II Certificate in Bookkeeping
From April 2014
Course Code L2C
Level 2 Certificate in Bookkeeping syllabus
Introduction
The Level II Certificate in Bookkeeping covers the basic principles of single and double entry bookkeeping and its application to business in both a manual and a computerized system.
Occupational Role: Assistant Bookkeeper
Upon completion of this qualification, candidates will be able to carry out the role of an employed assistant bookkeeper under supervision. They should be able to apply postings from the books of original entry and from source documents to the ledger accounts and produce an initial trial balance. They will also be able to set up a computerized bookkeeping system, enter details of all transactions and produce reports.
Pre requisites
No prior bookkeeping knowledge is assumed at this level but candidates must have basic numerical skills.
Qualification aims
On completion of this level of study a candidate will be able to:
- Understand the following areas of underpinning knowledge:
- The importance of adhering to a code of professional ethics
- The differences between the structure of different types of businesses
- The importance of legislation that applies to bookkeepers
- The basic elements of a contract
- The accounting equation
- The concept of reporting on a cash basis for income tax purposes
- The concept of business entity, duality and historical cost
- Understand banking procedures, including the need for security
- Understand the purpose and range of business documents, and accurately prepare them
- Understand the purpose of, and make entries into, the ledgers and books of original entry including the use of control accounts
- Understand the process of dealing with and accounting for sales tax, use tax in the ledgers
- Understand the purpose and use of the two and three-column cash book, the analyzed cash book and the petty cash book
- Understand the purpose and use of the trial balance
- Understand when to open a suspense account
- Set up a business in a computerized system
- Process entries into nominal and subsidiary ledger accounts
- Print out reports as follows:
- Trial balance
- Audit trail
- Nominal account transactions
- Sales and purchase ledger transactions
Assessment and Grading
The testing of knowledge and skills for the qualification will comprise three online assessments, all of which are taken in the candidate’s home or place of work. The first two will test manual knowledge of double entry bookkeeping to trial balance for a variety of types of businesses; the third will test the set up and data entry to trial balance using a computerized system. The content of each assessment is listed below, together with the relevant weighting of each section within each examination.
Paper B1 – Basic double-entry bookkeeping to trial balance
An assessment completed at home or work which measures competency in the following areas:
- General knowledge of the basics concepts of bookkeeping (10% weighting)
- Bookkeeping terms (assets, liabilities, etc.)
- Banking terms, documents, and procedures
- Understanding the major types of taxes which are paid by companies (sales taxes, federal/state income taxes, payroll taxes, excise taxes and other fees/duties)
- Calculation of business documents including calculation of sales tax (20% weighting)
- Paying vendors and employees, as well as receiving payments from customers and owners/partners (20% weighting)
- Producing and explaining a trial balance (10% weighting)
Paper B2 – Further double entry bookkeeping to trial balance
An assessment completed at home or work which measures competency in the following areas:
- Underpinning knowledge (10% weighting)
- ethics
- legislation
- types of businesses including simple cash based businesses
- identifying sections of the ledger
- accounting concepts
- Further double entry including the following (60% weighting)
- Topics from paper 1
- Day books and control accounts in a double-entry system
- Writing off a bad debt
- Entries to record transactions with owners (dividends, contributions/investments, distributions to partners etc.)
- Making and receiving payments (20% weighting)
- Three column cash book
- The analysed cash book
- Production and explanation of a trial balance (10% weighting)
Paper B3 – Data entry to trial balance using a computerized accounts package
Home/place of work based test to include the use of a computerized accounting package to include:
- Recording of opening balances
- Entering cash and credit transactions with customers, vendors, and employees
- Producing a trial balance
- Producing reports for customers, vendors, bank, and the audit trail
The three assessments should be taken in the order listed above.
Each assessment will generate an accreditation notification. Successful candidates will need to pass all three assessments to gain the full qualification.
The full qualification will be graded at Distinction with Honors, Distinction, Merit or Pass
Because all assessments are taken at home or at the place of work, each test will be graded as follows:
Distinction 95 -100%
Merit 90 - 94%
Pass 85 - 89%
Fail 0 - 84%
Once all assessments have been successfully completed, a final certificate can be applied for which will be graded at Distinction with Honors, Distinction, Merit or Pass. Unit results will be aggregated. To achieve the relevant grade in the full qualification, the following aggregate marks must be achieved:
Distinction with Honors 295 points and above
Distinction 285 – 294 points
Merit 270 – 284 points
Pass 255 – 269 points
Level of Membership
Successful achievement at the full qualification will lead to the offer to upgrade to Associate Member of ICB and the award of the designatory letters AICB.
