Award in Fundamentals of Book-keeping

Award in Book-keeping – Fundamentals

Module 1 of Accounting Bundle Part 1

Commencement date: 10/04/2023

Generic Unit description 

This unit is designed for learners to understand what the main purpose of accounting is and learn the basic principles of the double-entry bookkeeping systems. 

Learners will learn how to create fiscal invoices and credit notes that are in compliance with the local legislation, using the applicable VAT rate. In addition, learners will develop an understanding of how these various business documents, used by companies, are entered in their respective daybooks. In this unit learners will gain knowledge of how to transfer the totals from the books of prime entry to the general ledger, sales ledger, and purchases ledger. 

Through this unit learners will also acquire skills to prepare the first draft of the trial balance following which is the balancing off process of the accounts.

Learning Outcomes

LO1 Analyse the use of accounting in business organisations. 

LO2 Explain the purpose of business documentation for accounting purposes. 

LO3 Compile the books of prime entry and memorandum ledgers. 

LO4 Apply the basic principles of the double-entry bookkeeping system. 

LO5 Process business transactions into a double-entry system and balance off the general ledger accounts at period end. 

LO6 Extract a preliminary trial balance at period end. 

COMPETENCES KNOWLEDGE AND SKILLS 

Competences – At the end of the unit the learner will have acquired the responsibility and autonomy to:

1. Present the correct information to users of the accounting information according to their specific needs. 
2. Apply the principles of the double-entry process to various business transactions using the relevant source documents. 
3. Balance off period end ledger accounts to extract a trial balance using the correct financial accounting terminology and format. 

Knowledge – At the end of the unit the learner will: 

1. Know the importance of accounting information for business entities. 
2. Be familiar with the main users of accounting information and which information is relevant to them.
3. Be familiar with the content and use of business documents used by business entities. 
4. Know the different discounts an organisation may receive or allow. 
5. Comprehend the effect of discounts on the VAT calculation. 
6. Comprehend the double-entry bookkeeping system. 
7. Be familiar with the coding systems used in an accounting environment. 
8. Comprehend the sales ledger and purchases ledger accounts. 
9. Be familiar with the process followed at period end in transferring balances from the books of prime entry into the double-entry system. 
10. Know how ledger accounts are balanced off. 
11. Comprehend how a trial balance is extracted at the end of the accounting period.

Skills – At the end of the unit the learner will have mastered the following skills: 

Applying Knowledge and Understanding 

1. Apply the basic bookkeeping principles of the double-entry bookkeeping system. 
2. Compose a taxable customer invoice/credit note that is in conformity to local requirements. 
3. Practise simple transactions into the books of prime entry and memorandum ledgers from source documents using an appropriate coding system. 
4. Show how VAT is calculated and accounted for in accordance to Maltese Law. 
5. Use an analysed cash book to process related receipts and payments and balance it off at the end of the accounting period. 
6. Use an analysed petty cash book to process related receipts and payments and balance it off at the end of the accounting period. 
7. Show how balances are transferred from the books of prime entry to the general ledger accounts at the end of the accounting period. 
8. Prepare the sales ledger and purchases ledger control accounts. 
9. Practise the balance off of the ledger accounts.
10. Show how a trial balance is extracted at the end of an accounting period. 

Communication Skills 

1. Explain the principles of the double-entry system.
2. Present the accounting information using the correct accounting terminology and principles. 
3. Present the results in the appropriate format. 

Judgmental Skills and Critical Abilities 

1. Identify the information needed by the different types of stakeholders. 
2. Analyse the principles of the double-entry system. 
3. Select the most appropriate coding systems for processing and filing of business documents. 

Learning Skills

1. Evaluate own learning with regards to how business transactions are recorded in a double-entry accounting system and a trial balance is extracted. 
2. Proceed with study and time management plans to aid coherent progression through the learning outcomes. 
3. Evaluate own learning in order to achieve higher-end learning criteria.