Certificate in Book-keeping (Level 1)
This qualification is suitable for students who work or wish to work in areas of business that will involve the recording of financial transactions. It builds on and extends the knowledge and skills developed at the introductory level and is a good progression route to the Level 2 Certificate in Book-keeping and Accounts.
Aims
The aims of this qualification are to enable students to develop:
- an understanding of the basic principles underlying the recording of business transactions
- the ability to maintain the books of, and prepare final accounts for, sole traders
Syllabus topics
- The Accounting Equation and the basis of double entry book-keeping
- recording transactions through double entry
- balancing accounts
- purchases/sales/returns
- the ledger: its subdivision
- day books
- bank facilities/methods of payment or receipt of money
- cash book and cash discount
- bank reconciliation
- petty cash book and the imprest system
- trial balance
- adjusting for accruals and prepayments in the final accounts
- depreciation of fixed assets
- the entries relating to bad debts
- the journal
- capital and revenue expenditure
- errors in the accounts and their correction
- effect of profit (or loss) and drawings upon capital
- trading and profit and loss accounts
- the balance sheet
- control accounts – an introduction
Assessment
Students are assessed by a 2.5 hour paper-based examination. The exam paper consists of four questions, with at least two questions on key topics as detailed in the syllabus. Students must do all four questions. The answers required will be predominantly of a quantitative nature but students will be expected to demonstrate their understanding of the subject at an appropriate level. Specimen and past papers are available on the LCCI website.
Certificate in Book-keeping and Accounts/ Certificate in Book-keeping and Accounts IAS* (Level 2)
As a progression route from Level 1 Book-keeping, this qualification builds on the knowledge and skills developed at that Level. The qualification is targeted at students who are working, or preparing to work, in an accounting environment where they will be expected to maintain financial records and prepare accounts with some Level of autonomy. Successful students at this Level can progress to the LCCI Level 3 Accounting/ Accounting (IAS) qualifications.
Aims
The aims of this qualification are to enable students to develop:
- an understanding of the basic principles underlying the recording of business transactions
- the ability to prepare and interpret accounts for sole traders, partnerships, non-trading organisations and limited companies
Syllabus topics
- advanced aspects of the syllabus for Level 1
- book-keeping
- partnerships
- limited liability companies
- incomplete records
- manufacturing accounts
- stock valuation
- non-trading organisations
- control accounts
- suspense accounts
- calculation and interpretation of ratios
- preparation, by the use of ratios, of simple financial statements
Assessment
Students are assessed by a 3 hour paper-based examination, consisting of five questions from which the candidate will need to answer any four; there are no compulsory questions. At least two questions will come from key topics as detailed in the syllabus. The answers required will be predominantly of a quantitative nature, but students will be expected to demonstrate their knowledge and understanding of the syllabus topics at the appropriate level as well as their ability to analyse and interpret data. Specimen and past papers are available on the LCCI website.
Certificate in Accounting / Certificate in Accounting IAS (Level 3)
This qualification is suitable for students who are working, or preparing to work, in an advanced accountancy role with a high degree of autonomy where they will be required to produce and interpret financial statements in compliance with Statements of Standard Accounting Practice (SSAPs) and Financial Reporting Standards (FRS). Students should have the knowledge and skills equivalent to the LCCI Levels 1 and 2 qualifications. Successful students can progress to study LCCI Level 4 Financial Accounting/Accounting IAS.
Aims
- The aims of this qualification are to enable students to develop:
- an understanding of the basic principles underlying the recording of business transactions
- the ability to prepare and interpret accounts for sole traders, partnerships, non-trading organisations, limited companies and groups of companies in accordance with basic accounting conventions and current accounting practice
- the ability to apply the principles of decision making
Syllabus topics
- Levels 1 and 2 revisited
- valuation of stocks
- valuation of fixed assets
- partnerships
- companies
- accounting for groups of companies
- cash flow statements
- accounting ratios
- budgetary control
- introduction to decision making
- concepts and accounting framework
Note: taxation, in all its forms, is excluded from this syllabus
Assessment
Students are assessed by a 3 hour paper-based examination, consisting of five questions from which the candidate will need to answer any four; there are no compulsory questions. At least two questions will come from key topics as detailed in the syllabus. The answers required will be predominantly of a quantitative nature, but students will be expected to demonstrate their knowledge and understanding of the syllabus topics at the appropriate level as well as their ability to analyse and interpret data. Specimen and past papers are available on the LCCI website.