Certificate in Advanced Bookkeeping

Learn the statement of financial position layout and the accounting equation, assets minus liabilities equals capital, with current and non-current assets, tangible and intangible assets, and key liabilities.

Identify and compute the SPL proforma for a 12-month accounting period by deriving gross profit from sales minus cost of goods sold, then deducting expenses to net profit.

explain the accounting equation, assets equal capital plus liabilities, with examples and true/false checks, and show how drawings reduce capital.

Implement policies and procedures to present income statement and balance sheet accurately and timely for stakeholders, with controls like authorization, reconciliations, physical control, and segregation of duties.

Explore fundamental ethical principles guiding accountants, including integrity, objectivity, professional competence, due care, confidentiality, and professional behavior, and their public-interest responsibilities.

Learners will identify threats to ethical principles in accounting, including self‑interest, self‑review, advocacy, familiarity, and intimidation, and apply accruals concepts to ensure accurate year‑end reporting.

Classify items as assets, liabilities, capital, income or expenses and identify whether they go to the statement of financial position or the statement of profit and loss, including trade payables.

Explore the distinction between capital expenditure and revenue expenditure for non-current assets. Learn cost valuation, funding, and debit and credit treatment for non-current tangible asset purchases.

Learn to distinguish capital expenditure from revenue expenditure, calculate capitalization thresholds, and prepare non-current asset records with costs like delivery, installation, and professional fees.

Vat treatment on non-current assets hinges on registration status; registered businesses reclaim vat and capitalize at net cost, while non-registered firms include vat in asset cost.

Authorize capital expenditure to prevent unauthorized spending and ensure needed assets are purchased after market research, with levels from supervisor to owner and funding options like cash or loans.

Record non-current asset transactions with debit and credit in journals and ledgers, and analyze effects on the statement of financial position and profit and loss, including cash, bank, loan, VAT.

Capitalize the machine cost including delivery, installation, and professional fees; classify maintenance and advertising as revenue expenditure, apply capitalization thresholds over 100, and note funding methods and VAT treatment.

Explore depreciation for non-current assets, covering straight line, reducing balance, and units of production methods, and how to spread cost over useful life with accruals and residual value.

Learn the straight line depreciation method, using either (cost minus residual value) over useful life or (cost minus residual value) times percentage, and track depreciation, accumulated depreciation, and carrying amount.

Learn the diminishing balance method, applying a percentage to the carrying amount as asset value declines, and calculate depreciation charges with 6000 at 40% and 50,000 at 30%.

Learn to calculate depreciation using the units of production method, charging based on actual usage with the formula number of units divided by total units times cost.

learn to depreciate assets acquired partway through the year using either full-year depreciation or pro rata month-by-month under straight-line, and to compute carrying amount and depreciation at year end.

Explore how depreciation affects financial statements, recording the depreciation charge and accumulated depreciation through double-entry bookkeeping, using straight-line method and the carrying value of non-current assets.

Explore depreciation concepts for a non-current asset, applying accruals and matching principles to different methods (straight-line, diminishing balance, units basis), calculate carrying amounts, and consider residual value.

Learn how to dispose of non-current assets, record sales and gains or losses, and maintain the asset register with acquisition cost, depreciation, carrying amount, disposal date, and proceeds.

Explore the disposal of non-current assets, calculate carrying amount, record sale proceeds, and determine gain or loss through disposal entries and a disposal account.

Learn to account for part exchange of non-current assets by removing old asset and depreciation, recording disposal and new asset cost, and determining gain or loss and cash payments.

Learn how to account for assets disposed partway through the year using pro rata basis and full-year depreciation, calculate carrying amounts, gains or losses, and update disposal and bank accounts.

Maintain a non-current asset register with acquisition date, cost, serial number, location, and depreciation details. Use straight-line or reducing-balance methods to calculate carrying amounts and record disposal proceeds.

Master the six steps to record non-current assets for year-end, including acquisition, disposal, depreciation methods (straight line 20% for office equipment, diminishing balance 20% for motor vehicles), and VAT considerations.

Explore advanced bookkeeping concepts by testing knowledge on non-current assets, depreciation, and disposal mechanics, including accruals, cost removal, accumulated depreciation, sale proceeds, and part exchange.

Practice test questions on depreciation methods (diminishing balance 40% and straight-line 25%), calculating carrying amounts, losses and gains on disposal, and purchase cost calculations.

Explore accruals and prepayments, focusing on accruals of expenses as current liabilities and prepayments as current assets, and learn journal entries, SFP and SPL effects, including reversal concepts.

Learn to reverse accrued expenses by debiting the accrued expense and crediting the related expense, transferring the prior year's closing to this year's opening, and updating the SFP and P&L.

Learn how prepaid expenses create a current asset on the statement of financial position and reduce expenses in the next period, illustrated by a £1,000 insurance payment for 2018.

Explore reversing prepaid expenses by offsetting opening prepaid against the SPL and crediting the SFP, with a rent example showing closing prepaid adjustments and journal entries.

Explore accrued income, recording earned but not yet received rent as a current asset and reflecting it in the income statement under accruals.

Learn how to reverse accrued income by debiting income and crediting accrued income, updating the balance sheet and income statement with proper narrative adjustments.

Recognize prepaid income as money for future services and a current liability on the SFP; reduce current income and move prepaid amounts to the income statement when earned.

Learn how to reverse prepaid income as a prior-period adjustment: identify opening prepaid balances, credit the income, and remove the liability to reflect the correct period.

Apply the papa ala mnemonic to open and close prepaid and accrued items, and compute expense and income impacts for the SPL and SFP using rent prepaid and commission income.

Prepare an extract from the trial balance to check arithmetical accuracy. Apply accruals and prepayments, including accrued income and accrued expenses and prepaid items in proper debit or credit columns.

Explore how accruals, prepaid income and expenses, and double-entry journal entries affect the year-end financial position at 31 December 2018, including rent prepayments and income due.

Practice end-of-year adjustments for prepaid expenses, prepaid income, accrued expenses, and accrued income, and analyze impacts on the statement of financial position and the profit and loss.

Explore how inventories as current assets influence cost of sales and profit, apply the lower of cost and net realizable value under prudence, and record year-end closing inventory journal entry.

Learn to calculate inventory quantity and valuation using the lower of cost and net realizable value. Understand cost components, exclusions, and the prudence concept for closing inventory.

Learn to derive inventory cost from selling price by subtracting profit, with and without VAT, using practical illustrations for non-VAT and VAT-registered businesses.

Learn FIFO, AVCO, and LIFO inventory methods, including first in, first out; last in, first out; and the weighted average cost approach, with notes on perishable items and LIFO prohibition.

Explore closing inventory reconciliation by comparing physical counts with computerized records, identify discrepancies from damaged, stolen, or unrecorded items, and understand common causes and adjustments.

Apply the lower of cost and net realizable value rule to inventories, compute net realizable value using selling and completion costs, and prepare closing inventory journals.

Explore irrecoverable and doubtful debts in advanced bookkeeping, learn to write off irrecoverable amounts, and adjust the sales ledger control account with specific and general allowances in the sofp.

Apply double-entry to write off irrecoverable debts, reducing trade receivables in the sales ledger control account and recording the irrecoverable debt as an expense in the profit and loss.

Recovering irrecoverable debt that was previously written off becomes income, increases the bank balance, and reduces expenses, shown by debiting bank and crediting irrecoverable debt.

Examine doubtful debt concepts by applying specific and general allowances per policy, writing off irrecoverable debts, and adjusting the sales ledger control account to transfer to the profit and loss.

Adjust the doubtful debt allowance from opening to closing, then apply the three steps to determine whether increases are expenses in the SPL or decreases are income.

Take a knowledge test on advanced bookkeeping seven, identify that a doubtful debt adjustment affects the statement of profit and loss and the statement of financial position.

Practice calculating irrecoverable debt journal entries, recoveries, and adjustments in the sales ledger control account, updating trial balances and allowances for doubtful debt, including specific and general allowances.

Explore bank reconciliation by comparing cash book balance with the bank statement, addressing timing differences, unrecorded lodgement, unpresented cheques, standing orders, direct debits, and bank errors.

Learn to update the cash book and perform bank reconciliation by comparing debit and credit sides, handling unticked items, and reconciling outstanding lodgements and unpresented cheques to the adjusted balance.

Learn to perform a bank reconciliation by matching cash book entries with the bank statement, identify unrecorded lodgements and unpresented checks, and calculate the balance per bank statement.

Learn to adjust the cash book and prepare a bank reconciliation, identifying which items affect the cash book or the bank statement, using unrecorded lodgements and unpresented checks.

Reconcile cash book and bank statement by applying adjustments for unrecorded lodgement, unpresented checks, errors, and bank charges to produce a corrected balance.

Practice knowledge test on bank reconciliation, identifying items affecting the bank statement balance such as bank errors and unpresented checks, plus guidance on lodgements.

Apply bank reconciliation concepts to determine debit and credit entries in the cash book and bank statement, including unpresented checks, unrecorded lodgement, and faster payments.

Explore control account reconciliations, including sales ledger control account and purchase ledger control account, and learn how to reconcile individual balances with the respective totals.

Reconcile the sales ledger with the sales ledger control account by tracing credit sales, discounts allowed, credit notes, and sales returns recorded in the sales day book.

Explore how to reconcile the purchase ledger with its control account, using supplier J and K transactions, purchase daybooks, credit notes, discounts, and returns.

Reconcile the supplier statement with the purchase ledger by matching invoices, credit notes, discounts, and payments to verify the balance due on the supplier's monthly statement.

Explore the prompt payment discount, an early payment incentive, and how it affects ledgers for credit sales and purchases, including discount allowed, VAT treatment, and the sales ledger control account.

Show how contra entries offset receivables and payables between customer and supplier, reducing the sales ledger and purchase ledger by the lower amount and settling the rest in cash.

Practice T-accounts and sales and purchase ledger control account reconciliation, including balance, debit and credit, discounts, returns, contra entries, and discrepancy checks.

Practice controller account reconciliation for the sales ledger, identify errors affecting the control and subsidiary ledgers, and make necessary adjustments to achieve balance.

Explore how to reconcile the purchase ledger control account with the purchase ledger and its subsidiary ledgers, applying adjustments for errors, credit notes, and omissions.

Review payroll concepts from level two and the detailed advanced bookkeeping content, providing a concise reminder and recap.

Learn to record and balance sales and purchase ledger control accounts, applying discounts, returns, and contra entries, with payroll basics including HMRC liabilities.