Level 2 Certificate in Bookkeeping (QCF) 601/0730/3

Overview

This qualification gives candidates the necessary underpinning knowledge in carrying out a range of day-to-day bookkeeping routines and activities using a manual double-entry bookkeeping system up to the Trial Balance.

The IAB Level 2 Certificate in Bookkeeping is made up of:
4 – Online Knowledge Tests
3 – Assignments
1 – Examination

Click Here to download the Purpose Statement

Who is this qualification for?

The IAB Level 2 Certificate in Bookkeeping is suitable for:

  • individuals who wish to further their studies of bookkeeping
  • individuals who have some practical knowledge and skills and wish to gain an accredited competence qualification in this subject.

What you’ll study

The IAB Level 2 Certificate in Bookkeeping contains the following units:

Principles of recording and processing financial transactions – M/505/1092 (level 2 – 2 credits)

  • Understand the role of the books of prime entry
  • Understand the principles of coding
  • Understand the double entry bookkeeping system
  • Understand the various types of discount
  • Understand the use of the journal
  • Understand control accounts
  • Understand the Purpose of the Trial Balance

 Professional values and basic business legislation – F/600/8757 (level 2 – 1 credit)

  • Understand the importance of Integrity and professionalism
  • Understand that legislation exists relating to the workplace
  • Know the fundamental principles of money laundering legislation

 Principles of VAT – A/505/1094 (level 3 – 2 credits)

  • Understand current VAT regulations

Banking procedures – R/505/1098 (level 1 – 1 credit) *

  • Understand the banking process
  • Understand document retention and storage requirements

Preparing and recording financial documentation – H/505/1106 (level 2 – 2 credits)

  • Prepare the financial documents to be sent to credit customers
  • Enter sales invoices and credit notes into the appropriate books of prime entry
  • Process payments from customers
  • Process suppliers’ invoices and credit notes
  • Enter supplier invoices and credit notes into the appropriate books of prime entry
  • Prepare payments to suppliers

 Maintaining petty cash records – R/505/1120 (level 1 – 1 credit)*

  • Complete a petty cash voucher
  • Maintain an analysed petty cash book
  • Maintain the petty cash balance

 Maintaining and reconciling the cash book – D/505/1122 (level 2 – 2 credits)

  • Maintain a columnar cash book
  • Reconcile a bank statement with the cashbook

Maintaining the journal – H/505/1123 (level 2 – 2 credits)

  • Open a new set of  double entry bookkeeping records using the journal
  • Use the journal to correct bookkeeping errors
  • Use the journal to record bad debts
  • Use the Journal to account for wages, salaries and employer on-costs

Processing ledger transactions and extracting a trial balance – M/505/1125 (level 2 – 2 credits)

  • Process ledger transactions from the books of prime entry
  • Prepare ledger balances and an initial trial balance

Maintaining control accounts – K/505/1124 (level 2 – 1 credit)

  • Prepare sales ledger, purchase Ledger and VAT control accounts
  • Reconcile sales ledger, purchase ledger and VAT control accounts

* If already covered in level 1 then no need to take the assessment

Learning Resources Available

The Level 2 Bookkeeping QCF book covers the entirety of this qualification, and can be bought here

Next Steps After Passing

Upon successful completion of this qualification you could move onto one of the following qualifications:

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