22.00. Control Accounts, Journals and the Banking Systems (AAT)

The content of this particular qualification includes the following:

• 22.01. Banks, building societies & payment systems: BANKS & BUILDING SOCIETIES IN THE UK, What are banks & building societies?, Building societies - the services, Banks - the services, Banks & building societies - the difference, BANK SERVICES FOR THE BUSINESS CUSTOMER, Business current account, Deposit account, Overdraft, Loan accounts, Other bank services for businesses, CASH, CHEQUES, What is a cheque?, Issuing of cheques, Computer cheque printing, CHEQUE CLEARING, The 2-4-6 clearing cycle, PAYMENT BY PLASTIC CARD, DEBIT cards, Tap & go' cards, CREDIT cards, Prepayment cards, BANK GIRO CREDITS, ELECTRONIC PAYMENTS BY COMPUTER, BACS system, BACS direct CREDITs, Faster Payments, Standing orders, BACS direct DEBITs, Mobile electronic payments - future developments, ONE-OFF' LARGE PAYMENTS, CHAPS, Bank drafts, PAYMENT CYCLES & THE BANK BALANCE, RETENTION OF BANKING DOCUMENTS, Filing retention policy, Destruction of filing records.
• 22.02. Making payments: OUTGOING PAYMENTS, Issue of cheques, Paying by electronic transfer, PAYING TRADE SUPPLIERS. Internal procedures, Timescales - when to pay?, REMITTANCE ADVICES, Paying by cheque, Preparing a cheque, Payment by BACS or Faster Payments, PAYMENT BY BANK GIRO CREDIT, CONTROL & AUTHORISATION OF PAYMENTS, Spending limits, Cheque signatures, STANDING ORDERS, BACS DIRECT CREDITS, Setting up a direct CREDIT system, Operating a direct CREDIT system, BACS DIRECT DEBITS, Paper-based direct DEBIT instructions, AUDDIS & the paperless direct DEBIT, ELECTRONIC & PAPER-BASED LARGER PAYMENTS, COMPANY CREDIT CARDS, ONLINE BANKING.
• 22.03. Receiving & recording payments: INCOMING PAYMENTS, CASH, Receiving payment in cash, Tills & cash floats, Guidelines for cash handling, Topping up' the petty cash, ACCEPTING CASH, DISHONOURED CHEQUES, Returned cheques, ACCEPTING CARD PAYMENTS, Terminal 'chip & Pin' sales - customer present, Main order/telephone sales - customer not present, Internet sales - customer not present, CARD PAYMENTS - OLD-FASHIONED METHODS, Customer present' sales requiring a signature, Mechanical 'push-pull' imprinter machine, CHECKING PAYMENTS AGAINST DOCUMENTATION, Cheque payments - remittance advice, Inter-bank transfers - BACS remittance advice, RECORDING MONEY RECEIVED, Cash tills, Remittance lists (postal items), Cash book - a book of prime entry.
• 22.04. Paying into the bank: PAYING-IN SLIPS, PROCEDURES FOR PAYING IN, The accounting process, Preparing the cash,Preparing the cheques, Reconciliation with the financial records, Paying in at the bank,Security measures for cash handling - night safes, CARD VOUCHER CLEARING - CARD MERCHANT SERVICES, Preparing card sales vouchers for paying in, THE IMPORTANCE OF PAYING IN PROMPTLY, Theft, Timescale - security & cashflow, Procedures, Confidentiality, AUTOMATED PAYMENTS INTO THE BANK, PAYMENTS THROUGH THE INTERNET, The process, BANK STATEMENTS, A note on DEBITs, CREDITs & bank accounts, Checking the bank statement for payments received.
• 22.05. Bank reconciliation statements: RECEIVING THE BANK STATEMENT, Timing differences, Updating items for the cash book, THE BANK RECONCILIATION STATEMENT, PREPARING A BANK RECONCILIATION STATEMENT, DEALING WITH UNUSUAL ITEMS ON BANK STATEMENTS, Out-of-date cheques, Returned (dishonoured) cheques, Bank errors, Bank interest received, Bank charges & interest paid, RECONCILIATION OF OPENING CASH BOOK & BANK STATEMENT BALANCES, IMPORTANCE OF BANK RECONCILIATION STATEMENTS.
• 22.06. Using control acounts: THE GENERAL PURPOSE OF CONTROL ACCOUNTS, SALES LEDGER CONTROL ACCOUNT, How sales ledger control account works, Importance of reconciling sales ledger control account, Sales ledger control account explained, Balance b/d, CREDIT sales, Dishonoured cheques, Irrecoverable (bad) debts written off, Set-off/contra entries, Sales ledger control account in the accounting system, Information sources for sales ledger controal account, Using an aged trade receivables analysis, Dealing with discrepancies, PURCHASES LEDGER CONTROL ACCOUNT, How purchases ledger control account works, Importance of reconciling purchases ledger control account, Purchases ledger control account explained, Balance b/d, CREDIT purchases, Set-off/contra entries, Purchases ledger control account in the accounting system, Information sources for purchases ledger control account, Using an aged trade payables analysis, Dealing with discrepancies, SET-OFF/CONTRA ENTRIES, VALUE ADDED TAX (VAT) CONTROL ACCOUNT, How VAT control account works, Verifying VAT control account, VAT control account explained, Purchases, Sales returns, Cash purchases & other cash expenses, Sales, Purchases returns, Cash sales & other cash incomes, The journal, Balance, VAT control account in the accounting system, CONTROL ACCOUNTS AS AN AID TO MANAGEMENT, Instant information, Prevention of fraud, Location of errors, Limitation of control accounts.
• 22.07. The journal: MAINTAINING THE JOURNAL, THE JOURNAL - A BOOK OF PRIME ENTRY, OPENING ENTRIES, Opening entries are the transactions to open the accounts of a new business, IRRECOVERABLE DEBTS WRITTEN OFF, An irrecoverable debt is a debt owing to a business which it considers will never be paid, PAYROLL TRANSACTIONS, What is meant by payroll transactions?, What payroll transactions are entered in the accounts?, Accounts used in payroll transactions, Wage control account, Journal & ledger entries, MAKING JOURNAL ENTRIES.
• 22.08. The trials balance & correction of errors: EXTRACTING A TRIAL BALANCE, ERRORS IN THE ACCOUNTING SYSTEM, ERRORS NOT DISCLOSED BY THE TRIAL BALANCE, Error of omission, Error of commission, Error of principle, Error of original entry, Reversal of entries, Compensating error, ERRORS NOT DISCLOSED BY THE TRIAL BALANCE: JOURNAL ENTRIES, Error of omission, Error of commission, Error of principle, Error of original entry, Reversal of entries, Compensating error, TRIAL BALANCE ERRORS: USE OF SUSPENSE ACCOUNT, ERRORS DISCLOSED BY THE TRIAL BALANCE: JOURNAL ENTRIES, Calculation errors in ledger accounts, Single entry transactions, Recording two DEBITs or two CREDITs for a transaction, Recording different amounts for DEBIT & CREDIT entries, Errors in transferring balances to the trial balance, Omission of a general ledger account in the trial balance, Suspense account, REDRAFT THE TRIAL BALANCE FOLLOWING ADJUSTMENTS.

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