ICB Bookkeeping Complete

ICB Level 2 Certificate in Bookkeeping

Unit 1: Underpinning knowledge

• Understand the importance of adhering to a code of Professional Ethics
• Understand the basic differences between the structures of different types of businesses
• Understand the importance of legislation that applies to bookkeepers
• Understand the basic elements of a contract
• Understand the Accounting Equation
• Understand the concept of reporting on a cash basis for income tax purposes
• Identify the various methods of payments and receipts to and from a bank account
• Understand the need for bank security
• Understand the basic accounting concepts

Unit 2: Business Documents

• Understand the purpose and range of business documents.
• Understand the need to accurately prepare business documents for goods supplied
• Understand the need to check business documents received

Unit 3: Ledger accounts and the division of the ledger

• Understand the purpose of, and make entries into, the ledger accounts
• Use a set of control accounts in the ledgers
• Enter transactions into control accounts from the relevant books of prime entry

Unit 4: Books of prime entry

• Understand the purpose of, and make entries into, the books of prime entry
• Explain how the books of prime entry integrate with the ledgers
• Entering invoices and credit notes into books of prime entry
• Preparing sales day book, sales returns day book, purchase day book and purchase returns day book
• Prepare an opening journal entry for a business
• Prepare a journal entry to record purchase of a fixed asset

Unit 5: Accounting for VAT

• Understand the process of dealing with and accounting for VAT in the ledgers.
• Learning the difference between the following levels of VAT:
• Standard rate
• Reduced rate
• Zero rate
• Exempt of VAT
• Outside the scope of VAT
• Extract the VAT from a VAT inclusive amount
• Correctly account for input and output tax in the ledgers including amounts that are VAT inclusive
• Explain the significance of debit and credit balances in the VAT accounts
• Understand how VAT is calculated and entered into the books of account for the following types of invoices:
• Invoices to customers and from suppliers outside the EU that are zero rated
• Invoices to customers and from suppliers outside the UK but within the EU that are:
  • not registered for VAT in their own country
  • registered for VAT in their own country

Unit 6: Making and receiving payments

• Understand the use of an analysed cash book
• Record income and expenditure into an analysed cash book
• Understand the purpose and need to record petty cash
• Understand the purpose and use of the two and three column cash books

Unit 7: Trial Balance

• Understand the purpose and use of the trial balance.
• Prepare a trial balance from the ledger accounts
• Understand what to do if the trial balance does not balance
• Open a suspense account where applicable to account for any imbalance

Unit 8: Use a computerised accounts package

• Health and safety of using computerised systems
• Set up new business accounts
• Processing Nominal Ledger and Subsidiary Ledger Accounts
• Generate reports for trial balance, audit trail, nominal account transactions
• Generate reports for bank account transactions and sales and ledger transactions

ICB Level 3 Certificate in Bookkeeping and Accounts

Unit 1: 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 structures of various types of businesses
• Understand the main accounting concepts that apply
• Understand the different rules that apply when processing VAT transactions

Unit 2: 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
• Understand what to do if the trial balance does not
• Produce a corrected trial balance

Unit 3: VAT Returns

• Reconcile the VAT account
• Complete a VAT return

Unit 4: 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

Unit 5: 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 ‘not-for-profit’ organisations
• Prepare a set of final accounts for a partnership

ICB Level 4 Certificate in Advanced Bookkeeping and Accounts

Unit 1: 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.

Unit 2: 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)

Unit 3: 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)

Unit 4: 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

Unit 5: 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.