Introduction to Bookkeeping
Learn how to record everyday business transactions accurately. You'll process source documents, keep day books, and post to the ledgers using the double entry system.
Read, practise, and prove it in the workplace.
- 1Why bookkeeping matters2 min · The purpose of the books, who uses them, and the accounting equation that underpins every entry you'll ever make.
- 2Source documents and day books3 min · Every entry in the books starts with paper (or a PDF).
- 3VAT for bookkeepers3 min · How to spot the right VAT rate, calculate VAT from net or gross figures, and post VAT to the control account.
- 4Double entry and the ledgers3 min · The debit-and-credit rules, T-accounts, and the difference between the general ledger and the memorandum ledgers.
- 5The cash book and the trial balance3 min · How the cash book doubles up as a ledger, how to balance an account, and how to extract a first trial balance.
Exam-style multiple-choice questions with worked explanations after every answer. Aim for 80% to earn the Knowledge Master trophy.
A real scenario built from the unit's syllabus. Pass with 70% to earn the Workplace Ready trophy.
What you'll be able to do at the end of the unit.
Understand how to set up bookkeeping systems
Types of business, the role of the books of prime entry, and the difference between the general and subsidiary ledgers.
Process customer and supplier transactions
Check and process sales invoices, credit notes, purchase invoices and remittance advices, including VAT.
Process receipts and payments
Record cash, cheque, BACS and card transactions in the cash book and analyse them across the correct columns.
Process transactions through the ledgers to the trial balance
Post day book totals to the general ledger, balance ledger accounts and extract an initial trial balance.
6 chapters, each paired with a simulation task.
01The business environment for bookkeepers▾
- Sole traders, partnerships and limited companies
- The accounting equation
- Duality and the dual effect of transactions
02Source documents and books of prime entry▾
- Sales and purchase invoices
- Credit notes and remittance advices
- Day books: sales, purchases, returns
03VAT on sales and purchases▾
- Standard, reduced, zero-rated and exempt supplies
- Calculating VAT from net or gross
- The VAT control account
04The cash book and petty cash▾
- Analysed cash book columns
- Imprest system for petty cash
- Discounts allowed and received
05Double entry and the ledgers▾
- Debits, credits and the ledger T-account
- Posting day books to the general ledger
- Sales and purchase ledgers as memorandum records
06Balancing accounts and the trial balance▾
- Balancing a ledger account
- Extracting an initial trial balance
- What a trial balance does, and doesn't, prove
How you'll be examined.
Computer-based, on-demand end of unit assessment.
Assessment tasks
- 1
Business documents
12 marksCheck invoices and credit notes for accuracy and complete missing figures.
- 2
Sales and purchases day books
14 marksEnter invoices and credit notes in the correct day books with VAT.
- 3
Receipts and payments
16 marksComplete the analysed cash book and petty cash book.
- 4
Sales and purchase ledgers
14 marksPost to the memorandum ledgers and identify balances.
- 5
General ledger postings
18 marksPost day book totals and cash book totals to the general ledger.
- 6
Trial balance
14 marksExtract balances from the ledgers and produce an initial trial balance.
- 7
Ethical and professional bookkeeping
12 marksApply the AAT code of conduct to short bookkeeping scenarios.
- Total100 marks
What you can use
- On-screen calculator
- Rough paper (collected at the end)
- No notes or textbooks