Level 3 Certificate in Bookkeeping (QCF) 601/0731/5

Overview

This qualification involves routine bookkeeping and accounting tasks, leading to the production of complex financial statements for a Sole Trader or Partnership from both complete and incomplete records.

The IAB Level 3 Certificate in Bookkeeping is made up of:

6 – Paper Knowledge Tests
4 – Paper Assignments
1 – Examination

Click Here to download the Purpose Statement

Who is this qualification for?

The IAB Level 3 Certificate in Bookkeeping is suitable for

  • Individuals who are aspiring to become, or who are already, professional bookkeepers or accounts administrators.
  • Individuals who already have some bookkeeping experience and who wish to acquire further skills and knowledge required of Bookkeepers, Accounts Clerks and Financial Administrators.
  • Individuals who already hold the IAB Level 1 Award and Level 2 Certificate in Bookkeeping or the IAB Level 2 Certificate in Computerised Bookkeeping.
  • Individuals who are already employed in bookkeeping or allied roles and who wish to enhance their firm foundation and the knowledge and skills to perform some advanced routine and non-routine tasks.

What you’ll study

The IAB Level 3 Certificate in Bookkeeping contains the following units:

Principles of double entry bookkeeping – A/601/0698 (level 3 – 2 credits)

  • Understand the use of generally accepted accounting concepts and the qualitative characteristics of financial statements
  • Understand the principles of double entry bookkeeping
  • Understand the purpose and use of stock valuation
  • Understand the process of accounting for fixed assets
  • Understand the process of accounting for prepayments and accruals
  • Understand the process of accounting for bad and doubtful debts

Principles of accounting for not for profit organisations – Y/601/0725 (level 3 – 1 credit)

  • Understand terminology relating to not for profit organisations
  • Understand the purpose of a receipts and payments account
  • Understand the function of financial statements prepared for a not for profit organisation

Fundamentals of incomplete records – A/601/0717 (level 3 – 1 credit)

  • Understand single entry bookkeeping
  • Understand the process of constructing ledger accounts from incomplete records

Fundamentals of bookkeeping and accounting for partnerships – L/601/0723 (level 3 – 1 credit)

  • Understand the partnership structure as a form of business entity
  • Understand the legislation relating to partnerships
  • Understand specific accounts used in partnership accounting
  • Understand the procedures necessary to account for the changes in the structure of a partnership

Principles of preparing financial statements for sole traders – R/601/0707 (level 3 – 1 credit)

  • Understand the form and function of the trial balance
  • Understand the purpose of the suspense account
  • Understand the form and function of the financial statements
  • Understand the form and function of the extended trial balance

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

  • Understand VAT regulations

Record transactions and make accounting adjustments – M/601/0732 (level 3 – 5 credits)

  • Apply accounting concepts
  • Reconcile trade debtors and trade creditors
  • Account for fixed assets
  • Account for the value of stock
  • Account for prepayments and accruals
  • Account for bad and doubtful debts
  • Prepare ledger accounts for use in drafting financial statements

Prepare financial statements for a sole trader – A/601/0734 (level 3 – 3 credits)

  • Prepare a trial balance
  • Make and apply accounting adjustments
  • Prepare financial statements for a sole trader
  • Prepare an extended trial balance
  • Draft financial statements (for a sole trader) from an extended trial balance

Prepare financial statements for a partnership – Y/601/0742 (level 3 – 3 credits)

  • Prepare accounts for a partnership
  • Account for a change in the structure of a partnership

Prepare financial statements from incomplete records – A/601/0751 (level 3 – 3 credits)

  • Calculate the capital contribution of the owner to a business
  • Prepare accounts from incomplete records
  • Prepare a trial balance
  • Prepare financial statements (for a sole trader) from incomplete records

Prepare financial statements for a not for profit organisation – D/601/0757 (level 3 – 2 credits)

  • Calculate the accumulated fund of members of a not for profit organisation
  • Prepare ledger accounts for a not for profit organisation
  • Prepare financial statements for a not for profit organisation

Preparing and completing VAT returns – J/600/4953 (level 3 – 2 credits)

  • Complete VAT returns accurately and in a timely manner
  • Communicate VAT information

* If already covered in level 2 then no need to take the assessment

Learning Resources Available

The Level 3 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 apply for professional membership

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