The session is designed to enable learners to meet the needs of the unit: Unit 9:
Introduction to Accounting. The qualification is NQF level 3: BTEC National
Overview of the unit
The aim of this unit is to give learners an overview of the accounting function at
professional entry level. It also provides an insight into basic accounting procedures
for those who may not wish to specialise in the accounts field. The content of the unit
is designed to give learners an understanding of the processes involved in compiling
final accounts from the initial documentation of financial transactions, together with
an introduction to the practical use of accounting software in business.
Please note: The availability of, and capacity to use, accounting software is a
resource requirement for the delivery of this unit.
Summary of learning outcomes for the unit a learner must:
1 Explore the use of financial documents.
2 Investigate accounting systems to trial balance.
3 Construct final accounts from trial balance.
4 Use appropriate accounting software.
Content of the unit overall:
1 Use of financial documents
Financial documents: cash receipts, use of cheques, debit/credit cards, purchase
orders, delivery notes, goods received notes, sales invoices, purchase invoice credit
notes, statements of account, remittance advice, trade discount, VAT and terms, use
of accounting software to record financial transactions, efficiency and ease of use in
contrast with manual methods.
2 Accounting systems to trial balance
Accounting systems: day books, general ledgers including purchase accounts,
purchase returns accounts, sales accounts, sales returns accounts, purchase
ledgers including supplier accounts, sales ledgers including customer accounts, cash
books; balancing accounts, trial balance – credit equals debit, extended trial balance
– profit and loss accounts, balance sheets; use of manual and computerised
methods, relative merits of each.
3 Final accounts from trial balance
Final accounts: format and content of trading accounts including sales, cost of sales,
opening stock, closing stock, purchases, gross profit; profit and loss account
including expenses, net profit; balance sheet including fixed assets, current assets
i.e. stock, debtors, bank and cash, current liabilities i.e. creditors, bank overdrafts
and other debts to be paid within one year, working capital, long-term liabilities, net
assets, capital, profit, drawings; preparing final accounts from trial balance; compare
computerised systems with manual processes.
4 Accounting software
Accounting software: the use of accounting software for stock management,
purchases and purchase ledger, sales invoices/statements and sales ledger, credit
control, managing VAT, general/nominal ledger, money transactions, cash book;
reporting trial balance, trading, profit and loss account, balance sheet, requirements
Indicative grading criteria - To achieve a distinction grade the evidence must
show that the learner is able to:
identify the documents involved in financial transactions and use appropriate
documents for given transactions
explain, with examples, how a computerised system would be used to carry out
describe the manual accounting procedures used to record and monitor financial
transactions to trial balance and explain how a computerised system would carry
out these procedures
prepare final accounts for a selected business
explain, using examples, how a computerised system may improve the efficiency
of financial transaction recording, maintaining and monitoring records and
generating final accounts over manual processes
evaluate the benefits to a business of using a computerised accounting system.