Level 3 Diploma In Accounting And Advanced Book-keeping

Introduction

The overall aim of this qualification is to accredit candidates' knowledge and understanding of the fundamental principles concerned in the valuation of the assets of the business, the elimination of errors and the preparing of complex Financial Statements following the calculation of the necessary accounting adjustments. Within the qualification, candidates have the opportunity to gain knowledge of the processes necessary to prepare a Fixed Asset Register and complete the necessary calculations associated with Fixed Assets. Candidates will also be able to develop the skills necessary to prepare for the correction of errors using a Suspense Account, and calculations relating to Stock, prepayments, accruals and bad debts. Finally the candidate will be able to prepare financial statements for a variety of business organisations, including a sole trader and a partnership.

The qualification requires candidates to understand the use of the Journal and the preparation of the Trading Account, Profit and Loss Account and Balance Sheet, which form the Financial Statements. Various scenarios are covered including the preparation of financial statements for non profit making organisations and from a set of incomplete records. Accuracy, integrity and security of data should always be uppermost in the candidates mind.

Candidates may use this qualification as the basis of further study of manual systems at Level 4 of the National Occupational Standards, and use it as underpinning knowledge for the study of the IAB Level 3 Diploma in Computerised Accounting.

To be awarded the qualification, candidates are required to successfully demonstrate their competence by means of two external examinations. It will also provide progression to the NVQs in Accounting at Levels 3 and 4. Candidates will receive acknowledgement of successful completion of the qualification.

Examination Specification:

The Examination of this qualification will take the form of two formal, externally marked, examinations of 2 hours duration. The examinations may take place during set examination periods throughout the year or by an ‘on¬demand' sitting with eight weeks notice being given to the IAB.

An Answer Book will be provided for candidates to prepare hand written answers to all tasks. Some of the transactions within the examination paper will be presented in a narrative and list format giving a various piece of relevant information as well as a ‘diary' of transactions undertaken.

Unit Specification Iab Level 3 Diploma In Accounting And Advanced Book¬keeping

Single Unit Title: (IAB Code B3) Record Adjustments and prepare financial statements

Aim
Upon the completion of study for this qualification, it is intended that the candidate will be able to:

• Use a Suspense Account and eliminate book¬keeping errors
• Understand the form and function of the Trading Account, Profit and Loss Account and Balance Sheet
• Understand and apply accounting concepts and accounting policies
• Categorise items of income and expenditure
• Maintain records and make accounting adjustments relating to stock
• Maintain records and make accounting adjustments for prepayments and accruals
• Maintain records and account for the depreciation and disposal of tangible fixed assets
• Maintain records and account for bad and doubtful debts
• Prepare financial statements for a sole trader
• Prepare and extended Trial Balance for a sole trader
• Prepare financial statements for a sole trader from incomplete records
• Prepare financial statements for a ‘Not for Profit' organisation
• Maintain records and prepare financial statements for a partnership
• Account for changes in the composition of a partnership