Learning Objectives

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

You will develop the necessary knowledge and skills to use the journal to record a variety of transactions. You will need to know how to process transactions through the ledgers, cashbook and petty cashbook, and carry out reconciliation procedures.

You will be able to re-draft the initial trial balance, following adjustments.

Learning Outcomes

• Complete a petty cash voucher.
• Maintain an analysed petty cashbook.
• Maintain the petty cash balance.
• Maintain a three column analysed cashbook.
• Reconcile a bank statement with the cashbook.
• Understand the use of the journal.
• Open a new set of double-entry bookkeeping records using the journal.
• Use the journal to correct errors disclosed and not disclosed by the trial balance.
• Create and clear a suspense account using the journal.
• Use the journal to record other transactions.
• Understand control accounts.
• Prepare sales and purchase ledger and tax control accounts.
• Reconcile sales and purchase ledger and tax control accounts.
• Understand the banking process.
• Understand document retention and storage requirements.