ICB Level 3 Bookkeeping and Accounts

Throughout the first part of this course, you’ll learn the importance of adhering to a code of ethical principles as a bookkeeper, and when to take appropriate action if you suspect unethical behaviour has taken place. Moving on, we’ll teach you the legal differences between business structures, and the main accounting concepts that apply to each. You’ll also study the various accounting standards that are applied when producing year end accounts, and the different VAT schemes that are available. Lastly, we’ll run through the details of submitting VAT returns under HMRC’s Making Tax Digital regime, and we’ll also cover the importance of being able to clearly communicate information.

We’ll guide you through the process of reconciling debtors’ and creditors’ control accounts, and writing off a bad debt. We’ll also cover correcting errors in accounts when they occur, identifying different types of errors, and using suspense accounts.

Moving on, we’ll teach you how to reconcile the VAT account, and complete a VAT return.

In the fourth topic, you’ll discover how to account for the disposal of fixed assets. You’ll also examine the need for adjustments to the accounts, such as accruals and pre-payments, and how to post them. Additionally, we’ll teach you how to provide the bookkeeping entries for revaluation of assets.

Next, we’ll show you how to prepare a set of final accounts suitable for internal management purposes, and how to calculate and post relevant amounts to appropriate profits as required. You’ll also discover how to adjust the capital share of partners, and examine complete partnership profit allocations.

Throughout the final topic, you’ll discover the importance of interpreting financial statements for internal management purposes, including ratios and benchmarking. You’ll also learn how to analyse and interpret financial statements, and prepare a cash budget.

• Underpinning knowledge
• Reconciliation and correction of errors (customer and supplier reconciliations, bank reconciliation, correction of errors including the clearance of a suspense account balance)
• The calculation of summary figures for control accounts
• VAT Returns (cash and standard VAT returns only but including EU transactions)
• Posting adjustments including disposal and acquisition of fixed assets
• Revaluation of assets
• Final accounts of a sole trader (profit and loss account and balance sheet)

• All of the requirements for paper M4 but set in a partnership scenario plus:
• Underpinning knowledge
• Ethical considerations
• Underpinning knowledge of the legal requirements for a partnership
• Final accounts of a partnership including the appropriation account and production of partners’ current accounts
• Calculations and bookkeeping entries to record a change of partnership (partnership ratios, goodwill, the effect on capital and current accounts etc.)

• All of the requirements of paper M4 but set in a not-for profit scenario plus:
• Underpinning knowledge regarding not-for-profit organisations
• Understanding the different requirements of a chart of accounts for such an organisation
• Understand the concepts of the different forms of income for not-for-profit organisations including a subscriptions account
• Posting adjustments including the subscriptions account and disposal and acquisition of fixed assets
• Final accounts of a not-for-profit organisation

• Final accounts including adjustments for a limited company (internal management accounts format only)
• Limited liability partnerships
• Calculation and interpretation of ratios