Unit 3 Preparing ledger balances and an initial trial balance

This unit is about the internal checks relating to accounting processes. It involves comparing items, recording details, identifying discrepancies and calculating totals of balances of receipts and payments.

You are required to obtain 2 of the 3 elements

Element objective	Example activities to demonstrate competence
3.1 Balance bank transactions This is about calculating the totals of cash received from ledgers and other sources and reconciling them against bank statements.	Checking and calculating cashbook and ledger entries Identifying any discrepancies against bank statements Preparing a bank reconciliation Re-performing and verifying bank reconciliation (audit) Reviewing bank reconciliations and vouching reconciling items (audit).
3.2 Prepare ledger balances and control accounts This is about balancing ledger accounts and reconciling them to control accounts.	Totalling main and subsidiary ledger accounts Providing reconciliation of totals against control accounts and identifying discrepancies Preparing adjusting journals and obtaining authorisation Re-computing ledger totals (audit) Reviewing or re-performing control account reconciliations (audit).
3.3 Draft an initial trial balance This is about identifying and correcting errors in the ledger accounts and producing a trial balance.	Producing an initial trial balance Identifying errors in the initial trial balance and correcting them Reviewing trial balances (audit) Re-computing trial balances (audit).

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Unit 3 Preparing ledger balances and an initial trial balance