AAT Bookkeeping Courses - Oman

AAT Level 2 Certificate in Bookkeeping Course Outline

Unit 1: Introduction to Bookkeeping

GLH: 65

Module 1: Understand How to Set Up Bookkeeping Systems

• Purpose of Business Documents
  • Purpose of Business Documents
• Process of Recording Bookkeeping Transactions
  • Role of the Books of Prime Entry
  • Role of the Cash Book and Petty Cash Book
  • Ledgers
  • Purpose of the Trial Balance
  • Purpose of Financial Statements
  • Importance of Ensuring That Bookkeeping Transactions Are Entered Accurately
  • Digital Systems Can Import Transactions from a Number of Sources
  • Benefits and Drawbacks of Using Digital Bookkeeping Systems
• Create and Use Coding Systems
  • Different Types of Code
  • Where to Use Codes
  • Create Codes
• Set Bookkeeping Systems
  • Dual Effect of Transaction, i.e. Debits and Credits
  • The Accounting Equation (Calculation of Assets, Liabilities and Capital)
  • Classify the Following Items

Module 2: Process Customer Transactions

• Calculate Invoice and Credit Note Amounts
  • Documents to be Used
  • Difference Between Discounts Offered
  • How Discounts are Shown on Invoices
  • How to Use Credit Notes to Adjust for PPD and How PPD is Recorded Once Taken
  • Calculate Invoice Amounts
  • Calculate Credit Note Amounts
• Enter Customer Invoices and Credit Notes into Books of Prime Entry
  • Books of Prime Entry
  • Columns Within Books of Prime Entry
  • Calculate Amounts From
  • Make Entries in Books of Prime Entry
  • Total Columns in Books of Prime Entry
• Process Receipts from Customers
  • Records and Documents to Use
  • Identify Discrepancies
  • Calculate Amounts Due from Customers Including PPD
  • Allocate Amounts Correctly

Module 3: Process Supplier Transactions

• Check the Accuracy of Supplier Invoices and Credit Notes
  • The Documents to Use
  • Difference Between Discounts Offered
  • How Discounts Are Shown on Invoices
  • How to Use Credit Notes to Adjust for PPD And How PPD is Recorded Once Taken?
  • Identify Discrepancies that May be Found
• Enter Purchase Supplier Invoices and Credit Notes into Books of Prime Entry
  • Books of Prime Entry
  • Columns Within Books of Prime Entry
  • Calculate Amounts from Net and Total Figures
  • Make Entries in Books of Prime Entry
  • Total Columns in Books of Prime Entry
• Process Payments to Suppliers
  • Records and Documents to Use
  • Information to Take into Account
  • Identify Discrepancies Between the Supplier’s Statement of Account and The Supplier Account in the Payables Ledger
  • Calculate Payments Due to Suppliers, Including PPD
  • Allocate Amounts Correctly

Module 4: Process Receipts and Payments

• Enter Receipts and Payments into an Analysed Cash Book
  • Format of the Cash Book
  • Documents to Use
  • Calculate Amounts from Net and Total Figures
  • Make Entries in the Cash Book
• Enter Receipts and Payments into an Analysed Petty Cash Book
  • Format of the Petty Cash Book
  • Documents to Use
  • Calculate Amounts from Net and Total Figures
  • Make Entries in the Petty Cash Book Including Reimbursement Using the Imprest and Nonimprest Systems
• Total and Balance the Cash Book and Petty Cash Book
• Process recurring receipts and payments
  • Information Required to Set Up a Recurring Entry
  • Effect of Recurring Entries in the Digital Bookkeeping System
  • Set up a Recurring Entry
  • Process a Recurring Entry

Module 5: Process Transactions into The Ledger Accounts

• Transfer Data from the Books of Prime Entry to the Ledgers
  • Ledgers
  • Receivables and Payables Ledger Control Accounts are Part of the Double-Entry System
  • Transfer Data from Books of Prime Entry to the Relevant Accounts in the Ledgers
• Total and Balance Ledger Accounts
  • Total and Balance Ledger Accounts

Unit 2: Principles of Bookkeeping Controls

GLH: 50

Module 1: Use Control Accounts

• Produce Control Accounts
  • Purpose of the Receivables and Payables Ledger Control Accounts
  • Purpose of the Vat Control Account
  • Prepare Control Accounts
  • Total and Balance Control Accounts
• Reconcile Control Accounts
  • Reasons for Reconciling the Receivables and Payables Ledger
  • Total the Balances of the Individual Receivables and Payables Ledger Accounts
  • Identify Discrepancies Between the Receivables and Payables Ledger
  • Reconcile Control Accounts
  • Identify Reasons for Discrepancies Between the Receivables and Payables Ledger

Module 2: Reconcile a Bank Statement with the Cash Book

• Payment Methods
  • Different Payment Methods
  • Different Payment Methods Affect the Bank Balance in Different Ways
• Use the Bank Statement to Update the Cash Book
  • Reasons for Reconciling the Bank Statement with the Cash Book
  • Items That can Cause Differences Between Bank Statements and the Cash Book
  • Update the Cash Book Using the Bank Statement
  • Total and Balance the Cash Book
• Complete Bank Reconciliation Statements

Module 3: Use the Journal

• Produce Journal Entries to Record Bookkeeping Transactions
  • Purpose of The Journal as a Book of Prime Entry
  • How the Journal is Used to Record
  • Process Journal Entries to the General Ledger Accounts
  • Record Opening Entries
  • Record Entries to Write Off Irrecoverable Debts
  • Record Entries for Payroll Transactions
• Produce Journal Entries to Correct Errors Not Disclosed by the Trial Balance
  • Difference Between Errors Disclosed and Not Disclosed by the Trial Balance
  • Types of Errors Not Disclosed by the Trial Balance
  • Correct Errors Using the Journal
• Produce Journal Entries to Correct Errors Disclosed by the Trial Balance
  • Purpose of a Suspense Account
  • Open a Suspense Account
  • Correct Errors and Clear the Suspense Account Using the Journal

Module 4: Produce Trial Balances

• Extract an Initial Trial Balance
  • How to Use the General Ledger to Extract Balances
  • Column to Use in The Trial Balance
  • Transfer Balances to the Initial Trial Balance
  • Total and Balance the Initial Trial Balance
• Redraft the Trial Balance Following Adjustments
  • Recalculate the Balance of a General Ledger Account Following Journal Entries
  • Complete a Trial Balance from Adjusted and Unadjusted Balances
  • Balance the Adjusted Trial Balance: Total Debit and Credit Columns.

AAT Level 3 Certificate in Bookkeeping Course Outline

Unit 1: Financial Accounting: Preparing Financial Statements

GLH: 150

Module 1: Understand the Accounting Principles Underlying Final Accounts Preparation

• The Primary Users of Final Accounts
• Framework of Accounting Underlying the Preparation of Final Accounts
  • The Accounting Principles
• Qualities of Useful Financial Information
  • Fundamental Qualitative Characteristics
  • Enhancing Qualitative Characteristics
  • Importance of Ensuring Financial Statements are Free from Material Misstatement
  • Importance of the Accountant’s Fundamental Ethical Principles and Professional Scepticism

Module 2: Understand the Principles of Advanced Double-Entry Bookkeeping

• Use of The Accounting Equation
  • Importance of the Accounting Equation for Keeping Accounting Records
  • Effect of Accounting Transactions on Elements of the Accounting Equation
  • Calculate the Different Elements of the Accounting Equation
• Classification of Ledger Accounts
• Purpose and Use of Books of Prime Entry and Ledger Accounting
  • The Daybooks
  • The Information Recorded in Each Type of Daybook
  • How Daybooks are Used to Update Ledger Account Records
  • Different Ledgers and How They Interact
  • Control Accounts
  • That Accounting Software Automates the Transfer of Data into the Control Accounts
  • Prepare Ledger Accounts Using Double- Entry Principles
• Carry Out Financial Period End Routines

Module 3: Implement Procedures for the Acquisition and Disposal of Non-Current Assets

• Importance of Prior Authority for Capital Expenditure
  • Why Authorisation Is Necessary
  • The Appropriate Person in an Organisation to Give Authority
• Importance of Classifying Expenditure into Capital or Revenue Expenditure
  • International Financial Reporting Standards (IFRS) Exist That are Relevant to Noncurrent Assets (NCA): IAS 16
  • Cost, Useful Life, Residual Value, Depreciable Amount, Carrying Amount
  • Which Items Can Be Included in the Cost of NCA Under the Current IFRS?
  • Revenue Expenditure Should Be Excluded from the Value of NCA
  • Importance of Only Capitalising Expenditure in Excess of the Level Specified in the Organisation’s Policy
  • Effect of Capitalisation
  • Categorise Items into Revenue and Capital Expenditure
• Record Acquisitions and Disposals of Non-Current Assets

Module 4: Prepare and Record Depreciation Calculations

• Calculate Depreciation
  • Accounting for Depreciation is an Application of the Accrual’s Principle of Accounting
  • Depreciable Amount of the NCA
  • Depreciation Can Be Calculated Automatically
  • Calculate the Depreciation Charge for an Asset
• Record Depreciation
  • Record Depreciation
  • Reconcile the NCA Register to the Appropriate General Ledger Balances

Module 5: Record Period End Adjustments

• Record Accruals and Prepayments of Income and Expenditure
• Record Irrecoverable Debts and Allowances for Doubtful Receivables
• Record Inventory
• Considerations for Recording Period End Adjustments

Module 6: Produce and Extend The Trial Balance

• Prepare an Initial Trial Balance
  • Certain Accounts Can Carry Either a Debit or a Credit Balance
  • Importance of Producing The Trial Balance To Check for Errors
  • Limitations Of The Trial Balance As A Check For Errors
  • Accounting Software Completes the Transfer of Data Into the Trial Balance
  • Transfer Balances from Ledger Accounts
  • Correct Errors That are Not Shown by the Initial Trial Balance
  • Correct Errors That Are Shown by the Initial Trial Balance
• Prepare an Adjusted Trial Balance
• Complete the Extended Trial Balance (ETB)
  • Importance of the Fully Extended Trial Balance for the Preparation of Financial Statements
  • Difference Between Entries in the ETB For Sole Traders and Partnerships
  • Complete the SPL And SFP Columns Of The ETB
  • Balance Off The ETB, For Sole Traders

Module 7: Produce Financial Statements for Sole Traders And Partnerships

• Prepare Financial Statements for Sole Traders
• Opening and Closing Capital For Sole Traders
• Produce the SPL For Partnerships
• Produce the SFP For Partnerships

Module 8: Interpret Financial Statements Using Profitability Ratios

• Calculate Profitability Ratios
  • Relationship Between the SPL And SFP Regarding Net Profit
  • Link Between Gross Profit Margin and Mark-Up
  • Meaning of Profitability Ratios
  • Calculate the Profitability Ratios to Assist
• The Interpretation of Profitability Ratios
  • Why Calculating Ratios Can Aid Planning, Decision Making and Control for Businesses?
  • Factors That May Cause Changes in a Business’s Ratios And Differences Between Businesses’ Ratios
  • Whether a Ratio is Better or Worse Than a Comparative Ratio
  • Importance of Professional Scepticism

Module 9: Prepare Accounting Records from Incomplete Information

• Identify Missing Figures
  • Calculate Missing Figures Relating
• Mark-Up and Margin
  • Difference Between Margin and Mark-Up
  • Calculate Margin and Mark-Up To Determine Missing Figures
  • Use Cost of Sales Calculations To Determine Missing Figures
• Reasonableness of Figures When Information Is Incomplete
  • Whether a Given Figure Is Reasonable
  • Why an Actual Balance and a Calculated Balance can be Different
  • Importance of Checking Information Produced by Accounting Software
  • When and How to Apply Professional Scepticism

Unit 2: Tax Processes For Businesses

GLH: 60

Module 1: Understand Legislation Requirements Relating To VAT

• UK Tax Law Principles Relating To VAT
  • HMRC is the Relevant Tax Authority For VAT in the UK
  • VAT is a Tax on Consumer Spending
  • Definitions
  • HMRC’s Rules
  • HMRC’s Rights in Respect of Inspection of Records and Visits to Registered Businesses
• VAT Registration and Deregistration Requirements
  • Registration and Deregistration Thresholds for the Normal VAT Scheme
  • What Is Meant by The Historic Turnover Method?
  • Circumstances
• Filing and Payment of VAT Returns
  • Timing and Frequency
  • Circumstances in Which Monthly Accounting
  • How Statutory Time Limits for Making Payment Differ Depending on the Payment Method Used
  • Compatible Software Must Be Used and Authorised
• Special Schemes
  • Thresholds, Qualification Criteria and Operation of the Special VAT Schemes
  • Timing and Frequency
  • Circumstances for Voluntary And Compulsory Withdrawal From Special Schemes
• Implications for Non-Compliance With VAT Regulations
  • Powers of HMRC to Penalise a Business That Has Failed to Register for VAT
  • Penalty Regime Applicable to Non-Registration or Late Registration
  • Penalty Regime Applies to Late Submission or Non-Submission of VAT Returns
  • Powers of Assessment That HMRC Has in Respect of Failure to Submit VAT Returns
  • Penalty and Interest Regime Applicable to Late or Non-Payment of VAT Due
  • Consequences of Failing
  • Operational and Legal Consequences of Incorrect Recovery of VAT

Module 2: Calculate VAT

• Extracting Relevant Data from Accounting Records
  • Relevant Sources of VAT Information Needed By A Business
  • How to Identify Relevant Accounting Records
  • How to Identify And Extract Relevant Revenue, Expenditure and VAT Figures
  • How to Validate Data And Determine That the Figures Extracted
  • The Benefits of Accounting Software in Identifying Errors
• VAT Invoices
  • Contents and Form of a VAT Invoice
  • Determine the Tax Point of an Invoice, Both Basic and Actual
  • Significance of The Correct Tax Point
  • Time Limits for Issuing VAT Invoices
  • Rules Relating to Electronic Invoicing
• VAT Calculations
  • Difference Between Inputs and Outputs, and Between Input Tax and Output Tax
  • Automation of Calculations Through Use of Accounting Software
  • Rounding Rules on VAT Calculations
  • Rules for VAT When Prompt Payment Discounts (PPD) are Offered to Customers
  • Different Implications of Exempt Supplies and of Zerorated Supplies, and The Effect on Recovery of Input Tax
  • Partial Exemption Works, The De-Minimis Limit and How This Affects the Recovery of Input Tax
  • Identification of What Cannot Be Claimed as Input Tax
  • VAT Rules on Fuel Scale Charges
  • How to Apply Bad Debt Relief, When This is Available and What Time Limits Apply
  • How to Account for Postponed Import VAT
  • Calculate VAT
  • Calculate VAT When Given the Net or the Gross Amount of the Supply
  • Calculate the VAT Payable/Repayable
  • Calculate the Impact on VAT
  • Calculate VAT for International Trade

Module 3: Review and Verify VAT Returns

• Make Adjustments for Errors or Omissions in VAT Returns
• Verify Information Contained Within VAT Returns

Module 4: Understand Principles of Payroll

• Employer Responsibilities of Payroll
  • Payroll Is Operated by Businesses or Individuals Who Employ Staff
  • That HMRC is the Relevant Tax Authority for Payroll
  • HMRC’s Powers to Require Businesses to Comply
  • HMRC’s Rights in Respect of Inspection of Records and Visits
  • HMRC’s Rules
  • Difference Between Gross Pay, Taxable Pay, Taxable Gross Pay and Net Pay
  • Businesses Are Required to Make Statutory Deductions from Gross Pay
  • Businesses May Be Required to Make Non-Statutory Deductions from Gross Pay
  • Businesses or Individuals are Required to Register as an Employer
  • Employers are Entitled to Deduct Statutory and Other Deductions from Employees’ Pay
  • Data Protection Principles Specifically Related to the Personal Data of Employees
  • Reconcile Gross Pay to Net Pay and / or Taxable Gross Pay
• Operating Payroll

Module 5: Report Information Within the Organisation

• Communicating Information on VAT and Payroll Related Matters
• Legislation, Regulation, Guidance and Codes of Practice