Learning Objectives

This paper will enable you to develop an understanding of a manual double-entry bookkeeping system.

You will develop the necessary knowledge and skills to deal with documents that are sent to and from organisations, and to code and file those documents appropriately. You will need to know how to make entries in sales, purchases and returns day books, and to transfer those totals, cashbook and petty cashbook totals, to the sales, purchases and general ledgers.

You will be able to produce an initial trial balance.

Learning Outcomes

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