Premier Training

Understand the purpose and use of control accounts and journals (Press the ticks on the left to mark your understanding)

Describe the general purpose of control accounts
Describe the specific purpose of the following control accounts:
* Sales ledger
* Purchase ledger
* Tax (VAT)
Explain the importance of reconciling the sales and purchase ledger control accounts regularly
Describe the purpose of an aged trade receivables analysis
Explain the need to deal with discrepancies quickly and professionally
Describe the reasons for maintaining the journal
Explain the content and format of the journal
Identify errors that are corrected through the journal

Maintain and use control accounts

Prepare these control accounts:
* Sales ledger
* Purchases ledger
* Tax (VAT)

Reconcile sales and purchase ledger control accounts with the relevant ledgers

Verify the balance on the tax control account

Maintain and use the journal

Create journal entries to record these transactions:
* A new set of double entry bookkeeping records
* An irrecoverable debt written off
* Wages and salaries

Create journal entries to correct errors not disclosed by the trial balance

Create journal entries to open a suspense account to balance the trial balance

Create journal entries to correct errors disclosed by the trial balance and to clear the suspense account

Record journal entries in the ledger accounts

Redraft the trial balance following adjustments

Reconcile a bank statement with the cash book

Identify differences between individual items on the bank statement and in the cashbook

Update the cashbook from the bank statement

Prepare a bank reconciliation statement

Identify the main services offered by banks and building societies

Explain when funds banked are cleared and available for use

Identify other forms of payment:
* Cash
* Cheques
* Credit cards
* Debit cards
* Automated payments

Identify the information required to ensure the following payments are valid:
* Cheque
* Credit card
* Debit card

Describe procedures to ensure the security of receipts and payments

Describe the effect that different forms of payment will have on an organisation’s bank balance

Understand retention and storage requirements relating to banking documents.

Explain the importance of a formal document retention policy for an organisation

Identify the different types of documents that should be stored securely