Bookkeeping Level 2 Module 2 - Manual bookkeeping - Pitman Training/IAB/OCR Qualifications - AAT Level 2

Lesson One: Posting the opening balances at the start of a new trading year, using a Trial Balance to illustrate the accounting equation, posting brought forward balances, making postings from a 3 column Cash Book to the ledger accounts.

Lesson Two: Understanding the various methods of making and receiving payments, preparing a daily takings and cash for banking form, reconciling daily takings to a till roll report, completing a paying in slip in order to bank money received, checking eligibility for cash discount.

Lesson Three: Updating and balancing the ledger accounts, reconciling the Debtors and Creditors Control accounts, using the Journal in order to process the book-keeping entries for contra transactions and bad debt, processing a returned cheque.

Lesson Four: Preparing a cash reconciliation statement, the reasons why a bank reconciliation is performed, preparing a bank reconciliation statement, updating the Cash Book.

Lesson Five: Knowing how to maintain a self-managed credit control system, the purpose of a monthly statement, preparing monthly statements to send to customers, the purpose of an aged debtor analysis.

Lesson Six: Comparing a supplier statement to the related Purchase Ledger account, preparing a reconciliation statement, the action to take in respect of any discrepancies, identifying invoices falling due for payment, preparing a remittance advice and related payments.

Lesson Seven: The purpose of payroll, the elements which make up gross pay, identifying typical statutory and voluntary deductions and employer on costs, preparing the Journal entries to account for payroll, keeping a Wages/Salaries Control account and Wages/Salaries Expenses account, keeping PAYE/NIC and Pension Creditor accounts.

Lesson Eight: Different VAT schemes, knowing how the double entry system is used in order to account for VAT, Form VAT 100 and preparing a pro forma VAT return, balancing the VAT account, demonstrating the ability to process ledger transactions and prepare control accounts.