1. IAB QCF Bookkeeping qualifications
Barry Curran IAB Chief Examiner for Bookkeeping

2. IAB QCF Manual Bookkeeping Qualifications
IAB QCF Bookkeeping Qualifications
IAB QCF Manual Bookkeeping Qualifications
Review of Level 1 Examination Results (June 2012 and
January 2013)
Units examined:
Preparing and Processing Bookkeeping Documents
Recording Credit Transactions
Making and Receiving Payments
Maintaining Petty Cash Records

3. Level 1 Examination Pass Rates June January 2012 2013
IAB QCF Bookkeeping Qualifications
Level 1 Examination Pass Rates
June January
Number of learners sitting
Unit pass rates
Preparing and Processing Bookkeeping Documents % %
Recording Credit Transactions % %
Making and Receiving Payments % %
Maintaining Petty Cash Records % %

4. Unit - Preparing and Processing Bookkeeping Documents Typical tasks:
IAB QCF Bookkeeping Qualifications
Unit - Preparing and Processing Bookkeeping Documents
Typical tasks:
Prepare sales invoices and credit notes from supporting documentation.
Check invoices and credit notes received against supporting documentation for arithmetic and other errors. Note and report errors.
Main errors:
Careless errors – failing to number the invoices or credit notes. Use of incorrect date, customer order numbers and account numbers.
Failing to follow the task instructions regarding the reporting of errors.

5. Unit – Recording Credit Transactions Typical tasks:
IAB QCF Bookkeeping Qualifications
Unit – Recording Credit Transactions
Typical tasks:
Enter information extracted from invoices and credit notes issued and received into Day Books
Totalling day books and cross checking the Day Books for arithmetic accuracy
Main errors:
Not adding-in the figures already entered in the partly completed Day Books when totalling the books.
Careless errors when totalling the Day Books – such errors can be detected by cross checking the column totals i.e. Net Goods + VAT = Total Invoice/Credit Note.

6. Unit – Making and Receiving Payments
Typical tasks:
Prepare remittance advices and cheques to be sent to suppliers.
Prepare a cash for banking form and a paying-in slip
Identify errors on a cheque received from a customer
Main errors:
Errors in completing documents/forms.
Failure to identify and/or explain errors on cheques received.

7. Unit – Maintaining Petty Cash Records
Typical tasks:
Write up a Petty Cash Book from petty cash vouchers, balance off the book and restore the imprest balance.
Reconcile the contents of the petty cash box with the balance per the Petty Cash Book.
Compete a Cheque Requisition to request the cash required to restore the petty cash imprest balance.
Prepare a Petty Cash Voucher in respect of an authorised petty cash claim.
Main errors:
Errors in calculating the VAT content of a VAT inclusive figure.
Payments extended to incorrect analysis column(s).
Incorrectly balancing off the Petty Cash Book.
Incorrectly completing the cheque requisition, particularly the ‘payable to’
and ‘details’ lines.

8. Review of Level 2 Examination Results (June 2012 and January 2013)
IAB QCF Bookkeeping Qualifications
Review of Level 2 Examination Results (June 2012 and January 2013)
Units examined:
Maintaining the Journal
Maintaining Control Accounts
Processing Ledger Transactions and Extracting a Trial Balance

9. Level 2 Examination Pass Rates June January 2012 2013
IAB QCF Bookkeeping Qualifications
Level 2 Examination Pass Rates
June January
Number of learners sitting
Unit pass rates
Maintaining the Journal % %
Maintaining Control Accounts % %
Processing Ledger Transactions and Extracting a % %
Trial Balance

10. Unit – Maintaining the Journal
IAB QCF Bookkeeping Qualifications
Unit – Maintaining the Journal
Use the Journal to Open Double Entry Records
Typical tasks:
Prepare the Journal entry to open double entry books. given assets and liabilities, calculate and insert the missing term (capital).
Open ledger accounts from the Journal.
Main errors:
Incorrectly identifying balances given as debits (assets) or credits (liabilities) and, therefore, incorrectly calculating the proprietors capital contribution.
Incorrectly posting account balances from the Journal to the ledger accounts

11. Use the Journal to Correct Bookkeeping Errors
Typical tasks:
Post a difference in books balance to a Suspense Account.
Prepare the Journal entries to correct bookkeeping errors and
post from the Journal to eliminate the Suspense Account balance
and correct ledger account balances.
Redraft a Trial Balance following the correction of errors.
Main errors:
Posting the difference in books balance to the incorrect side of the Suspense Account
Inability to recognise the effect of an error on a ledger account balance.
Incorrect Journal entries to correct errors, and/or reversing the Journal entries when posting to the Suspense Account.

12. Use the Journal to Write off a Bad Debt Typical tasks:
IAB QCF Bookkeeping Qualifications
Use the Journal to Write off a Bad Debt
Typical tasks:
Prepare the Journal entry to write off a bad debt in the General Ledger and claim VAT bad debt relief.
Make postings from the Journal to appropriate ledger accounts.
Main errors:
Inability to calculate the VAT element of a bad debt to be written off.
Incorrectly posting the VAT bad debt relief to the wrong side of the Sales Ledger Control account and VAT Account

13. Use the Journal to Account for Employment Costs
Typical tasks:
Prepare the Journal entries to account for net pay, deductions from pay and employer on-costs
Prepare the Journal entry to clear the contents of a Wages/Salaries Control Account to a Wages/Salaries Expense Account
Post from the Journal to ledger accounts (Wages/Salaries Control, PAYE/NIC Creditor Account, Pension Fund Creditor Account and Wages/Salaries Expense Account)
Main errors:
Posting from the Journal to the ledger accounts.
Failing to post the entry to clear the Wages/Salaries Control Account and to close off the account.

14. Unit – Maintaining Control Accounts Typical tasks:
IAB QCF Bookkeeping Qualifications
Unit – Maintaining Control Accounts
Typical tasks:
Prepare Sales Ledger, Purchase Ledger and VAT Control Accounts.
Balance off Sales Ledger and Purchase Ledger Control Accounts and prepare reconciliations.
Main errors:
Posting the opening balances to the incorrect side of the Control Accounts.
Reversing entries when posting to the Control Accounts.

15. Unit – Processing Ledger Balances and Extracting a Trial balance
IAB QCF Bookkeeping Qualifications
Unit – Processing Ledger Balances and Extracting a Trial balance
Typical tasks:
Post balances to accounts in the General Ledger from a list of balances
Make postings into the double entry bookkeeping system from `the books of prime entry.
Balance off the General Ledger Accounts at the period end showing balances carried down and brought down.
Prepare a Trial Balance to confirm arithmetic accuracy of the double entry records.
Main errors:
Incorrectly distinguishing between debit and credit balances given a list of balances to be posted to selected accounts.
Incorrectly transferring totals from the books of prime entry into appropriate ledger accounts. Posting from an analysed Cash Book into ledger accounts is a particular problem.
Incorrectly balancing off ledger accounts and entering balances on the Trial Balance.

16. Review of IAB Level 3 Examination Results (June 2012 and January 2013)
IAB QCF Bookkeeping Qualifications
Review of IAB Level 3 Examination Results (June 2012 and
January 2013)
Units Examined:
Paper 1
Record Transactions and Make Accounting Adjustments
Prepare Financial Statements for a Not for Profit Organisation
Paper 2
Prepare Financial Statements for a Sole Trader
Prepare Financial Statements for a Partnership

17. Level 3 Examination Pass Rates Paper 1 June January 2012 2013
IAB QCF Bookkeeping Qualifications
Level 3 Examination Pass Rates
Paper June January
Number of learners sitting
Unit pass rates
Record Transactions and Make accounting % %
Adjustments
Prepare Financial Statements for a Not for Profit % %
Organisation

18. Unit – Record Transactions and Make Accounting Adjustments
IAB QCF Bookkeeping Qualifications
Paper 1
Unit – Record Transactions and Make Accounting Adjustments
Prepare Reconciliations of Trade debtors or Trade Creditors
Typical tasks:
Prepare Sales Ledger and/or Purchase Ledger Control Account(s).
Amend the Control Account balances and/or the personal account balances for errors and omissions and prepare reconciliations.
Main errors:
Posting the opening balances to the incorrect side of the Control Accounts.
Reversing entries when posting to the Control Accounts, the posting of a dishonoured cheque is a particular problem.
Incorrectly applying the adjustments to correct errors and omissions in bringing the Control Account balance into agreement with personal account balances.

19. Unit – Record Transactions and Make Accounting Adjustments
IAB QCF Bookkeeping Qualifications
Unit – Record Transactions and Make Accounting Adjustments
Account for Fixed Assets
Typical tasks:
Post balances to fixed asset cost and fixed asset provision for depreciation accounts in the General Ledger.
Given details of fixed asset acquisitions and disposals update a Fixed Register.
Calculate depreciation charges using the straight line and/or the diminishing balance methods and update the fixed asset register to account for depreciation charges.
Prepare the Journal entries to account for depreciation charges and post from the Journal to the Provision for Depreciation Accounts and a Depreciation Expense Account.

20. Account for Fixed Assets (continued)
Prepare the Journal entries to account for the disposal of a fixed asset and post from the Journal to appropriate accounts in the ledger
Prepare the Journal entry to account for profit or loss on disposal of fixed assets, post from the Journal to the Disposals Account and close off the account
Reconcile fixed assets per the Fixed Asset Register to a physical count of fixed assets and report discrepancies

21. Main errors:
Application of the incorrect method of depreciation.
Depreciating fixed assets disposed of in the year under review.
Not using the depreciation calculations per the Fixed Asset Register in accounting for the depreciation provision adjustment/depreciation expense transaction.
Not using the Fixed Asset Register for the purpose of establishing the depreciation to date on a fixed asset disposed of in the year under review.

22. Unit – Record Transactions and Make Accounting Adjustments
IAB QCF Bookkeeping Qualifications
Unit – Record Transactions and Make Accounting Adjustments
Account for Bad and Doubtful Debts, Prepayments and Accruals and the
Valuation of Stock
Typical tasks:
Prepare the Journal entry to account for bad debts and
post from the Journal to appropriate ledger accounts
Calculate a provision for doubtful debts adjustment,
prepare the Journal entry to account for the adjustment
and post from the Journal to the ledger account
Main errors:
Incorrect calculation of the provision for doubtful debts adjustment.
Incorrect posting of the adjustment to increase or decrease the provision for doubtful debts account balance to the ledger account.

23. Calculate period end prepayments and accruals,
IAB QCF Bookkeeping Qualifications
Typical tasks:
Calculate period end prepayments and accruals,
prepare the Journal entries to account for
prepayments and accruals and post from the
Journal to appropriate accounts in the ledger
Main errors:
Incorrect calculation of the period end prepayment and accruals adjustments.
Incorrect calculation of income or expense to be transferred to the Profit and Loss Account
Amend a closing stock valuation and value stock in
accordance with SSAP 9
Inability to reduce stock valuation from retail selling price to cost price given mark-up or margin.

24. Prepare the Journal entries to transfer items of
IAB QCF Bookkeeping Qualifications
Typical tasks:
Prepare the Journal entries to transfer items of
income and expense in the accounting period to
the Profit and Loss Account.
Close off and/or balance off ledger accounts
Main errors:
Incorrect calculation of income or expense to be transferred to the Profit and Loss Account.
Incorrectly balancing off/closing off ledger accounts. Prepayments and accruals carried down and brought down within ledger accounts resulting in closing balances on income expense accounts rather than a clearing of the income or expense amount to the Profit and Loss Account

25. Unit – Prepare Financial Statements for a Not for Profit Organisation
IAB QCF Bookkeeping Qualifications
Unit – Prepare Financial Statements for a Not for Profit Organisation
Typical tasks:
Calculate the opening accumulated fund of the members of a club or society
Prepare ‘ledger workings accounts’ e.g. subscriptions account and expense accounts
Prepare the Income and Expenditure Account of a club or society
Prepare the Balance Sheet of a club or society
Main errors:
Incorrect calculation of opening accumulated fund, usually as a result of the incorrect classification of subscriptions received in advance.
Errors in preparing ledger workings accounts. The Subscriptions account is the main problem area.
The deprecation charges for the year are usually given but errors in calculating accumulated depreciation/closing net book values are common.

26. IAB QCF Bookkeeping Qualifications
Level 3 Examination Pass Rates Paper 2 June January Number of learners sitting Unit pass rates Prepare Financial Statements for a Sole Trader 94% 83% Prepare Financial Statements for a Partnership 83% 85%

27. Unit – Prepare Financial Statements for a Sole Trader
Typical tasks:
Prepare a Trial Balance from a list of ledger account balances, calculate and insert a Suspense Account difference in books balance
Post the difference in books balance to a Suspense Account, prepare the Journal entries to correct errors and show the elimination of the Suspense Account balance
Enter ledger balances (amended where necessary) onto an Extended Trial Balance. Extend the Trial Balance, apply accounting adjustments, calculate profit or loss and balance the Balance Sheet columns
Draft financial statements from the ETB

28. Main errors:
Incorrect classification of ledger account balances in preparing a Trial Balance, resulting in an incorrect Suspense Account balance.
Inability to correct errors and eliminate the Suspense Account balance.
Error corrections incorrectly applied when listing ledger balances on the ETB.
Period end adjustments incorrectly applied.
Incorrect extension of balances – VAT balance often extended to Profit and Loss Account.

29. Unit – Prepare Financial Statements for a Partnership
IAB QCF Bookkeeping Qualifications
Unit – Prepare Financial Statements for a Partnership
Prepare Financial Statements for a Partnership from A Trial Balance
Typical tasks:
Given a Trial Balance, period end adjustments and information extracted from a Partnership Agreement prepare:
- A Trading, Profit and Loss and Appropriation
Account
- Partner Current Accounts
- A Balance Sheet

30. Account for Changes in the Composition of a Partnership
IAB QCF Bookkeeping Qualifications
Account for Changes in the Composition of a Partnership
Account for the Admission of a Partner to a Partnership
Typical tasks:
Account for the creation and deletion of goodwill on admission of a partner
Prepare partner Capital Accounts to show adjustments for goodwill on admission of a partner
Account for the appropriation of profit following the admission of a partner
Prepare partner Current Accounts following the admission of a partner

31. Account for Changes in the Profit Sharing Ratio of a Partnership
IAB QCF Bookkeeping Qualifications
Account for Changes in the Profit Sharing Ratio of a Partnership
Typical tasks:
Account for the creation and deletion of goodwill on the change in the profit sharing ratio of a partnership
Prepare partner Capital Accounts to show adjustments for goodwill following a change in a profit sharing ratio
Account for the appropriation of profit where there is a change in the profit sharing ratio
Prepare partner Current Accounts following a change in the profit sharing ratio

32. Main errors:
Incorrectly accounting for goodwill on admission of a partner or a change in the profit sharing ratio.
Incorrect calculation of interest on capital and appropriation of profits when a change in the profit sharing ratio occurs part-way through a financial year.
Treating drawings as an appropriation of profit.
Failing to post drawings to the Current Accounts.