IMIS F05 Book-keeping

F05 BOOK-KEEPING

Prerequisites

None
Assessment

By a single 21/2 hour externally set examination paper.

Aims

• Accounting Data.
• Cash Control.
• Stock
• Simple Final Accounts.

Objectives

1.1 Identify the movement of commercial documents between the parties involved in a credit sale or credit purchase and present this in the form of a flow chart.

1.2 Prepare -

• Invoices to include trade discount and cash discount.
• Credit Notes.
• Cheques.

1.3 Post sales invoices and purchase invoices to the appropriate day books, make entries into the sales ledger, purchase ledger and general ledger, total the day books and balance off the ledger accounts.

1.4 Post credit notes to the appropriate returns day books, make entries in the appropriate sales ledger or purchase ledger and general ledger.
2.1 Prepare and balance a two column cash book.
2.2 Prepare and balance a three column cash book having calculated the cash discounts allowed and cash discounts received.
2.3 Enter the cash discounts allowed and cash discounts
received into the general ledger.
2.4 Prepare, understand and comment on simple bank reconciliation statements.
2.5 Make entries into the petty cash book.
2.6 Understand the imprest system and how to restore to imprest.
3.1 Value stock using LIFO, FIFO and AVCO.
3.2 Complete stock ledger cards showing balances existing at the end of each transaction.
3.3 Prepare simple trading accounts illustrating the effect of different stock valuation methods on gross profit.
4.1 Calculate the mark-up.
4.2 Understand and calculate gross profit in the trading account.
4.3 Identify revenue expenses and charge these to the profit and loss account to calculate net profit.
4.4 Distinguish between assets and liabilities and apply the balance sheet equation to calculate capital.
4.5 Prepare very simple balance sheets.