What you will study
Proper accounting is crucial for the prosperity and survival of any organisation. Our complex economic system depends on accurate, trustworthy and relevant financial records and reports. While this module focuses on the accounting required for a sole trader, the skills and knowledge you'll learn are of central importance for accounting, and managing in any organisation, whether for-profit, not-for-profit or governmental.
Unit 1: Introduction to accounting
You'll begin by being introduced to the scope and structure of the module and the purpose of bookkeeping and accounting, as well as the skills, knowledge and ethics required for accounting.
Unit 2: Essentials of double-entry bookkeeping
You'll be introduced to the key principles of the double-entry bookkeeping system, which is based on the accounting equation.
Unit 3: Accruals accounting explored
You'll develop an understanding of recording a wide range of transactions through ledger accounts.
Unit 4: Control over the ledgers
This introduces the books of original entry that underpin ledger accounts as well as the different ways that ledger accounts are monitored, controlled and corrected.
Unit 5: Preparing financial statements
You'll revisit end-of-period adjustments and how they are used to prepare financial statements. You'll learn how to derive useful information from incomplete records and how to prepare manufacturing accounts.
Unit 6: Essentials of cost and management accounting
You'll be introduced to the basic concepts and principles of management accounting, including cost analysis, accounting control systems and cost bookkeeping. You'll also cover the differences between manual and computerised accounting systems.
Unit 7: Management accounting applications
You'll consider some important management accounting applications, applying the concepts and principles of management accounting introduced in Unit 6.
Unit 8: Preparing for the exam
The final unit is designed to help you revise the module teaching materials and prepare for the end-of-module examination.
There will also be a tutorial on incomplete records, and you’ll have access to video tutorials on suspense accounts, bank reconciliations and control account reconciliations.
You will learn
You will learn the fundamental concepts and techniques of financial and management accounting as well as a range of relevant skills. These include double-entry bookkeeping, advanced numeracy, reading and analysing relevant case studies, using information and communication technologies, preparing appropriate reports and using and manipulating spreadsheets.
Vocational relevance
This module has vital vocational relevance if you wish to work as a bookkeeper or aspire to any managerial role where you are accountable for your performance. It is of particular relevance if you wish to qualify as a professional accountant, as this module is designed to be an ideal springboard for such an ambition.
Professional recognition
On successful completion of Fundamentals of accounting (B124), you will be able to apply to become a Member of the Institute of Accountants and Bookkeepers (IAB) with the designation MIAB. The conditions of membership with the IAB, including any annual fees and the requirement for referees, will need to be confirmed directly with the IAB.