Pearson LCCI Level 2 Award In Computerised Bookkeeping (VRQ)

L2PearsonLCCI Level 2 Award inComputerisedBookkeeping (VRQ)(ASE20095)SPECIFICATIONFirst teaching from May 2015First examination from September 2015

PearsonLCCI Level 2 Award inComputerisedBookkeeping (VRQ)(ASE20095)SpecificationFirst teaching from May 2015

Edexcel, BTEC and LCCI qualificationsEdexcel, BTEC and LCCI qualifications are awarded by Pearson, the UK’s largestawarding body offering academic and vocational qualifications that are globallyrecognised and benchmarked. For further information, please visit our qualificationwebsites at www.edexcel.com, www.btec.co.uk or www.lcci.org.uk. Alternatively,you can get in touch with us using the details on our contact us page atqualifications.pearson.com/contactusAbout PearsonPearson is the world's leading learning company, with 40,000 employees in morethan 70 countries working to help people of all ages to make measurable progressin their lives through learning. We put the learner at the centre of everything wedo, because wherever learning flourishes, so do people. Find out more about howwe can help you and your learners at qualifications.pearson.comAcknowledgementsThis specification has been produced by Pearson on the basis of consultation withteachers, examiners, consultants and other interested parties. Pearson would liketo thank all those who contributed their time and expertise to the specification’sdevelopment.References to third party material made in this specification are made in good faith.Pearson does not endorse, approve or accept responsibility for the content ofmaterials, which may be subject to change, or any opinions expressed therein.(Material may include textbooks, journals, magazines and other publications andwebsites.)All information in this specification is correct at time of publication.ISBN 978 1 446 93019 9All the material in this publication is copyright Pearson Education Limited 2015

IntroductionLCCI qualificationsLCCI qualifications are widely regarded by employers as preparing students to carryout the key functions of modern international business. The qualifications arerecognised worldwide by employers, universities and professional bodies such asthe Association of Chartered Certified Accountants (ACCA).This new and engaging range of qualifications has been developed in collaborationwith professional bodies, employers and customers. We have conducted in-depth,independent consultation to ensure that the qualifications develop the breadth anddepth of knowledge, skills and understanding that students need to be effectiveemployees, and that the qualifications support progression pathways.LCCI offers a wider range of qualifications; they are available at levels1 to 4 across the following subject areas: English Language Marketing and Customer Service Business, Administration and IT Finance and Quantitative.This specification is part of the Finance and Quantitative suite of LCCI qualifications.Please refer to the website for details of other qualifications in the suite.This qualification replaces the LCCI Level 2 Award in Computerised Book-keepingSkills and contains elements from the LCCI Level 3 Award in ComputerisedAccounting Skills.

Purpose of the specificationThis specification sets out: the objectives of the qualification any other qualification that a student must have completed before taking thequalification any prior knowledge and skills that the student is required to have before takingthe qualification any other requirements that a student must have satisfied before they will beassessed or before the qualification will be awarded the knowledge, understanding and skills that will be assessed as part of thequalification the method of assessment and any associated requirements relating to it the criteria against which a student’s level of attainment will be measured (suchas assessment criteria).

RationaleThe Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ) meets thefollowing purpose:The purpose of the qualification is to develop students’ skills and competence inusing computerised accounting software. Students will produce accurate,professional and well-presented accounting information, employing an appropriaterange of accounting procedures while adhering to accounting conventions. Thequalification aims in particular to develop skills in: setting up company data and making journal and ledger entries processing routine payments and receipts producing appropriate accounting reports for management purposes.

Qualification aimThe Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ) is trusted andvalued by employers worldwide and recognised by professional bodies. Allbusinesses require accurate accounting records that are maintained on a regularbasis. Consequently, there is a demand for employees who possess these skills.The qualification gives students the opportunity to gain the knowledge,understanding and skills needed to ensure that routine transactions made by thebusiness are accurately recorded using computerised accounting software.This qualification is designed to increase students’ employability skills in a variety ofroles involving accurate data recording, such as bookkeeping in a company’sfinance department. The qualification also supports students who run their ownbusinesses and carry out their own bookkeeping, and those who are alreadyworking in accounting and who would like to enhance their skills by obtaining aformal qualification.

ContentsSpecification at a glance1Knowledge, skills and understanding3Content3Assessment7Assessment summary7Assessment Objectives9Performance descriptors10Entry and assessment information11Student entry11Combinations of entry11Age11Resitting the qualification11Awarding and reporting11Access arrangements, reasonable adjustments and specialconsideration12Equality Act 2010 and Pearson equality policy13Malpractice14Language of assessment14Other information15Guided Learning Hours15Student recruitment15Prior learning and other requirements15Progression15Exemptions16National Occupational Standards16Codes16Support, training and resources17Appendix 1: Glossary of International AccountingStandards terminology21

Specification at a glanceThe Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ) consists ofone externally examined paper.Title: Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ) Externally assessed100% of thetotalqualificationOverview of content Creating, entering and amending company data Processing routine transactions Processing non-routine transactions Processing journals Bank accounts reconciliation Management reports Data security.Overview of assessment One externally set and marked paper, consisting of 100% of the overall gradeof the qualification The examination will be 2 hours 45 minutes The examination will consist of 180 marks Students will be graded Pass/Merit/Distinction. A result of Fail will be recordedwhere students do not achieve the required marks for a Pass The paper comprises two sections Students answer all tasks from Section A and Section B Students are required to generate and save all tasks in PDF format Section A comprises one extended, open-response question broken down intoa number of parts Section A requires the use of word processing software and PDF conversionsoftware, if not already part of the word processing software package Section B comprises a scenario in which it is assumed that the candidate isworking in an accounting department using a computerised accounting system.The scenario requires candidates to process a variety of business transactionsusing commercially available computerised accounting software Section B requires the use of dedicated computerised accounting software andPDF conversion software, if not already part of the computerised accountingsoftware package. The examination is compatible with the followingcomputerised accounting software: Sage 50, Sage Instant, Sage UBS, MYOB,Pegasus, TASBooks, QuickBooks and Microsoft Accounting. This list is notexhaustive and other computerised accounting software may be used.Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ)Specification – Issue 1 – April 2015 Pearson Education Limited 20151

Centres must ensure the computerised accounting software they are using isequivalent to those listed and will enable candidates to successfully completethe examination without disadvantage. Computerised accounting software must accept currencies to 2 decimal places,for example sterling, dollars, euros, yen.Conduct of the assessment 2The procedures and conduct of the examination are given in the Instructionsfor the Conduct of Examinations (ICE) document found on our website.Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ)Specification – Issue 1 – April 2015 Pearson Education Limited 2015

Knowledge, skills and understandingContentThe following content must be covered to prepare students for the final assessmentof this qualification.1. Creating, entering and amending company dataSubject contentWhat students need to learn:1.1 Create, enterand amendcompanydataa) Company name and addressb) Relevant national purchase taxc) Nominal ledger accountsd) Sales ledger accountse) Purchases ledger accountsf) Bank accounts2. Processing routine transactionsSubject contentWhat students need to learn:2.1 Recordroutinetransactionsa) Input data using the provided house style2.2 Process andrecordcomplexcredittransactionsa) Customer invoices and credit notesb) Supplier invoices and credit notesc) Settlement discountsd) Trade discountse) Customer receipts by cheques, cash and automatedtransferf) Supplier payments by cheques, cash and automatedtransfer2.3 Process andrecord noncredittransactionsa) Non-customer receipts and paymentsb) Non-supplier receipts and paymentsc) Cash transactionsd) Credit card transactionse) Petty cash (imprest and non-imprest)Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ)Specification – Issue 1 – April 2015 Pearson Education Limited 20153

3. Processing non-routine transactionsSubject contentWhat students need to learn:3.1 Process andrecordcustomeraccountadjustmentsa) Write off a customer bad debt3.2 Process andrecordsupplieraccountadjustmentsa) Contra entries between customer and supplier accountsb) Contra entries between customer and supplier accountsc) Process a customer’s returned/cancelled paymentd) Correction of errors (using available facilities fromwithin the accounting software)b) Process a payment to a supplier that has beenreturned/cancelledc) Correction of errors (using available facilities fromwithin the accounting software)4. Processing journalsSubject contentWhat students need to learn:4.1 Use differenttypes ofjournalentriesa) Process corrections of errorsb) Introduction of non-current assetsc) Goods taken for personal used) Wages/salaries5. Bank accounts reconciliationSubject contentWhat students need to learn:5.1 Carry outbank accountreconciliationa) Matching items from bank statement to appropriatenominal ledger bank accountb) Identify transactions that cannot be matched on boththe bank statement and nominal ledger bankc) Update computer bank records with unmatched itemsd) Finalise the reconciliation procedure4Pearson LCCI Level 2 Award in Computerised Bookkeeping (VRQ)Specification – Issue 1 – April 2015 Pearson Education Limited 2015