Self Employed Bookkeeper Package - (MICB) Ltd Companies

Level 2
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 -

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

Limited Company Accounts
Prepare a set of final accounts for a limited company
Define 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