Introducing the RQF L1-L3 Bookkeeping Qualifications - PowerPoint Presentation

Introducing the RQF L1-L3 Bookkeeping Qualifications Graham Ward

Knowledge Tests Open book, non controlled conditions but time constrainedLearners must attempt all questions Learners must successfully complete a pilot before attempting live test Learners awarded Pass or Fail - 70% minimum level of achievement (all levels)Results notified immediatelyAssignmentOpen book, non controlled conditions but time constrainedLearners must successfully complete pilot before attempting live assignmentLearners awarded a Pass or Fail - 70% minimum level of achievement (all levels)Provisional result notified immediately, subject to IAB moderationExaminationApplies to level 2 and 3 qualifications onlyTime constrained and controlled conditions60% minimum level of achievement Learners must successfully complete pilot before attempting live examinationResults are not immediate and subject to IAB moderation and review Overview of assessment

GLH 25 hoursTQT 50 hours New Units:Introduction to double entry bookkeeping (Knowledge) – Knowledge TestKeep double entry records and prepare a trial balance (Skills) - AssignmentPrepare reconciliations (Skills) - AssignmentN.B. Banking Procedures – no longer assessed at L1L1 Award in Bookkeeping (RQF)

Introduction to double entry bookkeeping – Knowledge Test This unit now includes some learning outcomes and assessment criteria previously within QCF Units of Introduction to Bookkeeping and Working within Bookkeeping. It does NOT include the following:Explain single entry bookkeepingOutline the job role of a bookkeeperOutline how the role of the bookkeeper fits within the business organisationOutline how bookkeeping can become a career pathwayIdentify the difference between a bookkeeper and an accountantOutline the use of batch controlState where to find financial information for entry into the bookkeeping systemOutline the need to cross check totals for accuracy (day books and cash book)Identify where to gain authorisation for expenditure and when dealing with queries related to various financial transactionsSome of the knowledge covered in this unit will be gained as learners progress through the course – may be best for learners to complete the knowledge test at the end of the course

Keep double entry records and prepare a trial balance – Assignment Emphasis at L1 is now on double entry bookkeeping – brings manual bookkeeping into line with the L1 Computerised Bookkeeping qualificationLearners required to demonstrate competence by completing tasks related to processing a range of bookkeeping transactions – All tasks within the assessment will be independent tasks.Learners must be able to prepare a journal entry to open accounts within a double entry bookkeeping system – will not be asked to use the journal for any other purposeMust have knowledge of accounting equation – but will not be required to calculate a missing valueThe bookkeeping system will consist of a main ledger and petty cash bookLearners will be given source documents/extracts from which they will be asked to process capital and revenue income and expenditure transactions.Learners will NOT be required to prepare or check business documents

Keep double entry records and prepare a trial balance – Assignment (Cont.) Learners must be able to calculate VAT given an amount net of VAT or VAT inclusive Learners must be able to process receipts and payments through a bank current account and main cash account kept in ledger – corresponding entries made in accounts within the double entry systemLearners are NOT required to maintain a cash book or use day booksCash sales will be processed through a main cash account and sales account in the ledgerSales and purchases on credit will be processed through sales/purchases account in the ledger and the customer/supplier accounts in the main ledgerThere will be no sales or purchase ledgers and learners will not be required to keep control accounts Learners must be able to balance off ledger accounts and clearly show account balances carried down and brought down

Keep double entry records and prepare a trial balance – Assignment (Cont.) Learners must be able to keep a petty cash book Learners will be expected to record petty cash expenditure from vouchers, total and balance the petty cash book, make transfers from the petty cash book into the ledger and account for the top-up of the petty cash floatLearners must be able to prepare a trial balance directly from ledger accounts and from a list of balances extracted from the bookkeeping system

Prepare reconciliations– Assignment Learners must be able to reconcile petty cash with a physical count of cash Learners must be able to identify time-lag differences between the bank current account and the statement and prepare a bank reconciliation statement Learners must be able to update the bank current account following reconciliation

GLH – 50 hoursTQT – 120 hours New Units: Principles of bookkeeping and VAT (Knowledge) – Knowledge testFinancial services and payment methods (Knowledge) – Knowledge testPrepare and check business documents (Skills) - AssignmentRecord transactions in a sub-divided bookkeeping system (Skills) - ExaminationPrepare a trial balance and reconciliations (Skills) - AssignmentL2 Certificate in Bookkeeping (RQF)

Principles of bookkeeping and VAT – Knowledge Test This unit includes some of the learning outcomes and assessment criteria previously contained within the QCF Units of Principles of recording and processing bookkeeping transactions, Professional values and basic business legislation and Principles of VAT. However, the following assessment criteria will no longer be assessed: Identify systems for filing and sorting financial informationIdentify the types of error in a bookkeeping system that are disclosed by preparing a Trial BalanceExplain how a suspense account is used as a temporary measure when the trial balance reveals bookkeeping errorsIdentify and describe principles of data protectionExplain the main duties of employers and employees under health and safety regulationsAssessment criteria relating to money launderingThe VAT rules relating to import, exports, and VAT on supplies between EC member states

Principles of bookkeeping and VAT – Knowledge Test (Cont.) Additional/Expanded assessment criteria includes:An understanding of the characteristics of sole trader, partnership, limited company and not for profit organisations in terms of ownership, control and the owners personal financial liabilityRecognise the advantages of coding, know how codes are created (alpha, numerical and alpha-numerical) and understand how codes are used to identify products, supplier, customer and other accounts within the systemThe current rules and options relating to accounting for VAT where prompt payment discounts are offered and taken upSome of the knowledge covered in this unit may be gained as learners progress through the course – may be best for learners to complete the knowledge test at the end of the course

Financial services and payment methods – Knowledge Test The learning outcomes and assessment criteria of this unit is almost identical to QCF unit Banking Procedures However, learners will not need knowledge of the following:Safety deposit boxesPayment by telegraphic transferThey will require knowledge of:Faster Payments ServiceContactless Payment Systems (Tap and Go)PayPalSystems for processing card transactions (face to face and customer not present)

Prepare and check business documents - Assignment Learners must be able to prepare: Invoices & credit notesStatement of accountRemittance adviceCash receiptChequePetty cash voucherLearners must be able to check the accuracy of invoices and credit notes received, identify errors, check payments received against supporting documentation and identify any under or over payment. They must also advise on course of action where a document contains errors.

Record transactions in a sub-divided bookkeeping system – examination Learners must be able to: Record invoices and credit notes issued and received in day books Total and code day booksMake transfers from the day books into the general ledger Includes use of control accounts and individual accounts of credit customers and suppliers in subsidiary ledgersMaintain an analysed cash book with separate pages for receipts and paymentsTotal the cash book and transfer totals to appropriate accounts in the general ledger, including control accounts and subsidiary ledgers. Analysis columns will include VATReceipts and payments can include automated receipts and paymentsThe cash book will not include columns for discounts allowed or discounts received-these will be processed through the sales return day book and purchase return day book from credit notes

Record Transactions in a Subdivided Bookkeeping System – Examination (Cont.) Learners must be able to: Maintain a petty cash book and record petty cash expenditure Balance and total the petty cash book and make transfers to ledger accounts (will include VAT)Restore the petty cash balance based on an imprest or non-imprest systemUse the journal to record opening account balances in a double entry bookkeeping system – learners will be required to Use the journal to write off a bad debt and claim VAT bad debt reliefUse the journal to account for wages, salaries and employer on-costsUse the journal to correct bookkeeping errors (omission, commission, principle, original entry and reversal of entries)Learners must be able to record journal entries in appropriate ledger accountsLearners are NOT required to process errors which have an impact on arithmetic accuracy or keep a suspense accountExamination will comprise a series of independent questions and tasks – 2.5 hours

Prepare a trial balance and reconciliations – Assignment This unit is a combination of the QCF units Processing Ledger Transactions and Extracting a Trial Balance and Maintaining Control Accounts. Learners must be able to:Prepare a trial balance from a list of balances. Redraft a trial balance following correction of errors Draw up sales ledger, purchase ledger and VAT control accounts and prepare reconciliationsPrepare a bank reconciliation statement

Level 2 Certificate in Bookkeeping (RQF) – General comments Examination is on-demand – consider completing the examination before the unit Prepare a Trial Balance and Reconciliations Financial Services and Payment Methods unit is ‘stand alone’ and learners can complete the knowledge test for this unit having studied the unit learning outcomes and assessment criteriaPrinciples of Bookkeeping and VAT contains some learning outcomes and assessment criteria which are ‘stand alone’, but most of the learning outcomes and assessment criteria underpin the three skills units – tutors may wish to schedule the Knowledge Test for this unit towards the end of the course

GLH – 8 0 hoursTQT – 220 hours New Units:Principles of accounting (Knowledge) – Knowledge testMake accounting adjustments (Skills) - AssignmentPrepare financial statements from double entry records (for sole traders and partnerships) (Skills) - ExaminationPrepare financial statements from incomplete records (for sole traders and not for profit organisations) (Skills) - AssignmentL3 Certificate in Bookkeeping and Accounting (RQF)

Principles of accounting – Knowledge Test This unit learning criteria replaces the five QCF knowledge based units Learners must have knowledge and understanding of:General principles of accountingPrinciples of accounting for partnerships, not for profit and the use of incomplete records The knowledge and understanding required for this unit underpins the skills learners need to demonstrate in the other 3 RQF units at this level – as such this knowledge test would be best completed by learners at the end of their studies

Make accounting adjustments – Assignment Learners must be able to: Account for a stock valuation. At cost or NRV, adjust a stock valuation given mark-up or margin, prepare Journal entries to account for opening and closing stock and keep a stock account Account for the acquisition, depreciation and disposal of fixed assets. Prepare journal entries to support acquisition, depreciation and disposal transactions and keep ledger accounts to record the cost of fixed assets, their accumulated depreciation, depreciation charges and disposals Account for prepayments and accruals. Make calculations to account for prepayments and accruals, prepare journal entries to support period end prepayment and accrual adjustments. Transfer income earned and expenses incurred to the profit and loss account, record prepayment and accruals adjustments in prepaid and accrual ledger accounts specifically used for the purpose of accounting for prepayments and accrualsAccount for bad and doubtful debts. Prepare journal entries to account for a bad debt, VAT bad debt relief. Calculate an increase or decrease in a provision for doubtful debts and prepare a journal entry to support the adjustment transaction. Record the adjustment in a provision for doubtful debts account in the ledger. No recovery of bad debts previously written off

Prepare financial statements from double entry records (for sole traders and partnership) – Examination Learners must be able to: Prepare a trial balance from a list of balances and correct errors. Introduce a suspense account as a temporary measure, prepare journal entries to correct errors and eliminate a suspense account balance. Redraft a trial balance following the correction of errors Use a trial balance taken from the bookkeeping system of a sole trader, apply period end adjustments, and prepare a trading and profit and loss account and balance sheet Prepare an extended trial balance. Extend balances from a trial balance column, apply period end adjustments, extend balances into profit or loss or balance sheet column.Use a trial balance, or information taken from the double entry bookkeeping system of a partnership to prepare trading and profit and loss account, appropriation account, balance sheet, partner capital accounts and partner current accounts. Apply accounting adjustments and the provisions of a Partnership Agreement or the Partnership Act 1890

Prepare financial statements from double entry records (for sole traders and partnership) – Examination (Cont.) Learners may be presented with a trial balance which includes the balance on a fixed asset disposal account Learners will not be required to account for changes in a profit sharing ratio or for partners joining or leaving a partnership part-way through a financial year

Prepare financial statements from incomplete records (for sole traders and not for profit organisations) – Assignment No change to the learning outcomes and assessment criteria from the current QCF unit Learners will be required to prepare financial statements for a sole trader OR a club or society from incomplete records