Principles of Bookkeeping Controls
Take the trial balance further. Reconcile control accounts, use the journal to correct errors, prepare bank reconciliations and produce a redrafted trial balance.
Read, practise, and prove it in the workplace.
- 1Control accounts and reconciliations3 min · Why we keep control accounts, how to reconcile them to the list of balances, and what the differences usually mean.
- 2Bank reconciliations3 min · How to prove the cash book against the bank statement and identify timing differences and bank-only items.
- 3Using the journal3 min · The journal is not just for corrections.
- 4Errors and the suspense account3 min · The six error types AAT tests, when a suspense account is needed, and how to clear it with journals.
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.
Use control accounts
Reconcile the sales ledger and purchases ledger control accounts to the list of balances.
Reconcile the bank statement to the cash book
Identify unpresented and outstanding lodgements and update the cash book for bank-only items.
Use the journal
Record opening entries, payroll, irrecoverable debts and correct errors using narrative journals.
Redraft the trial balance
Use a suspense account, clear it with journals and produce a redrafted trial balance.
6 chapters, each paired with a simulation task.
01Payment methods and controls▾
- BACS, Faster Payments, CHAPS, cheques and cards
- Authorisation and segregation of duties
- Fraud prevention basics
02Bank reconciliations▾
- Updating the cash book for bank-only items
- Identifying timing differences
- Preparing the reconciliation statement
03Control account reconciliations▾
- Sales ledger control account
- Purchases ledger control account
- VAT control account
04The journal in practice▾
- Opening entries for a new business
- Payroll journals: gross pay, PAYE, NIC and pension
- Irrecoverable debts and their recovery
05Errors and the suspense account▾
- Errors disclosed vs not disclosed by the trial balance
- Correcting errors through the journal
- Clearing the suspense account
06Redrafting the trial balance▾
- Extended trial balance principles
- Producing a redrafted trial balance
- Reviewing for reasonableness
How you'll be examined.
Computer-based, on-demand end of unit assessment.
Assessment tasks
- 1
Payment methods and receipts
10 marksIdentify appropriate payment methods and process receipts.
- 2
Bank reconciliation
18 marksUpdate the cash book and prepare a bank reconciliation statement.
- 3
Sales and purchases ledger control accounts
18 marksPrepare and reconcile control accounts to the ledger list of balances.
- 4
The journal: routine entries
14 marksPayroll and opening entries with narratives.
- 5
The journal: error correction
16 marksCorrect errors and clear the suspense account.
- 6
Redrafted trial balance
14 marksApply journals and produce a redrafted trial balance.
- 7
Written response
10 marksShort written explanation of a control procedure or error.
- Total100 marks
What you can use
- On-screen calculator
- Rough paper (collected at the end)
- No notes or textbooks