Level 3 Diploma in Bookkeeping (QCF) 601/0484/3 – Apprenticeship version

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 including the use of a commercially available computerised accounting software package for producing financial statements of Sole Traders.

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

6 – Paper knowledge tests
1 – Project
4 – Assignments
2 – Examinations

Click Here to download the Purpose Statement

The IAB Level 3 Diploma in Bookkeeping is suitable for:

• Individuals 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 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.

The IAB Level 3 Diploma 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

Working effectively in accounting and finance – Y/504/3973 (level 2 – 5 credits)

• Understand the accounting or payroll function within an organisation
• Be able to use a range of communication skills
• Work independently or a s part of a team
• Develop skills and knowledge to meet personal and organisational needs
• Understand ethical values and principles
• Understand sustainable values

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

Managing a computerised accounts system to provide management information – R/601/8080 (level 3 – 10 credits)

• Set up initial data
• Enter transactions
• Process Credit Card Transactions
• Record transactions relating to the acquisition and disposal of fixed assets
• Make end of period adjustments
• Amend the Chart of account and print review and analyse period end reports.
• Take printouts and review

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

The Level 3 Bookkeeping QCF book covers the manual elements of this qualification, and can be bought here

Upon successful completion of this qualification you could apply for professional membership