Bookkeeping part 1
Part 1 is suitable for anyone studying the Bookkeeping Transactions Unit of the AAT Foundation courses, or anyone who wants to learn the basics of the double-entry bookkeeping system.
The following topics are covered:
- The purpose of double-entry bookkeeping
- The basics of VAT
- Financial documents including:
- Purchase Orders, Delivery Notes and Goods Received Notes, Invoices, Credit Notes, Statements of Account, Remittance Advice slips and Petty Cash slips
- Recording financial transactions in Books of Prime Entry including:
- The Sales Day Book and the Sales Returns Day Book
- The Purchases Day Book and the Purchases Returns Day Book
- The Discounts Allowed Day Book and the Discounts Received Day Book
- The Cash Book and Petty Cash Book
- Posting the above Books of Prime Entry to the General Ledger, the Sales Ledger and the Purchases Ledger
- Calculating ledger account balances at the end of an accounting period and in doing so, valuing the organisation’s assets, liabilities, capital, income and expenses
- Checking receipts from credit customers and identifying any outstanding debts
- Calculating the amounts payable to credit suppliers and the dates they are due for payment
- Preparing an initial trial balance from the General Ledger
- Professional ethics and how they can affect the work of a bookkeeper
Each section of Part 1 includes explanations and examples of the various terms and processes used in double-entry bookkeeping, as well as step-by-step videos and questions (with answers) for students to attempt
Bookkeeping part 2
Part 2 is suitable for anyone studying the Bookkeeping Controls Unit of the AAT Foundation courses, or anyone who has studied the topics covered in Bookkeeping part 1 and wants to continue their studies.
The following topics are covered in Part 2
- The Journal and how it is used to record:
- The opening balances of a business, debts that are owed to a business by its customers but which are believed to be irrecoverable and payroll transactions
- Control accounts and how they are reconciled to help ensure that a business’ books are accurate and complete; specifically how:-
- The Sales Ledger Control Account is reconciled to the Sales Ledger
- The Purchases Ledger Control Account is reconciled to the Purchases Ledger
- The VAT Control Account is reconciled to the business’ VAT records and VAT returns; and
- The Bank Control Account is reconciled to the bank statements issued by the business’ bank
- Bookkeeping errors and how the different types can be corrected in the ledgers by using journals
Each section of Part 2 includes explanations and examples of the topics as well as step-by-step videos and questions (with answers) for students to attempt.