This unit is about maintaining accounts including record keeping, collecting
and collating relevant information and producing a final set of accounts.
You are required to obtain 1 of the 3 elements
| Element objective |
Example activities to demonstrate competence |
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5.1 Maintaining records relating to capital acquisition and disposal
This is about keeping capital expenditure records, dealing with acquisitions,
depreciation and disposal of assets.
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- Recording of acquisitions and disposals of assets
- Calculating depreciation and entering it in the accounts
- Calculating profit and/or loss on disposals
- Maintaining asset registers
- Reconciling fixed asset register to main ledger accounts
- Inspecting fixed asset records for completeness and accuracy (audit)
- Vouching fixed asset records to supporting documentation (audit)
- Checking depreciation calculations (audit).
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5.2 Collecting and collating information for the preparation of final
accounts
This is about compiling all the information needed to produce a trial
balance. Information will relate to purchase ledger, sales ledger and
closing stock.
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- Producing reconciliations and identifying discrepancies
- Preparing a trial balance from ledger accounts or incomplete records
- Opening a suspense account to record any imbalance
- Establishing the reasons for any imbalance
- Identifying, correcting and calculating any adjustments via journal
entries
- Reviewing prepayments and accruals for reasonableness (audit)
- Reviewing journal adjustments and investigating unusual entries (audit).
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| 5.3 Preparing the final accounts of sole traders and partnerships
This is about preparing the profit and loss account and balance sheet
for sole traders or partnerships.
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- Producing the profit and loss account and balance sheets for sole
traders and/or partnerships in the correct format, using information
from the trial balance
- Following the organisation’s policies, regulations, procedures
and timescales in preparing final accounts
- Identifying and resolving any discrepancies
- Inspecting final accounts (audit).
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