RECORDING FINANCIAL TRANSACTIONS Unit Reference Number Unit Title Unit Level Number of Credits Total Qualification Time
R/617/3339 Recording Financial Transactions 3 20 200 hours
Mandatory / Optional SSAs Unit Grading Structure
Mandatory 15.1 Accounting and finance Pass
Unit Aims The aim of this unit is to give learners a basic understanding of how to record financial transactions. The unit covers what is needed to record financial transactions accurately and completely, for example source documents. Finally, the unit explores how income and expenditure is classified and managed. Learning Outcomes and Assessment Criteria Learning OutcomesThe learner will: 1. Understand the need to record financial transactions.
2. Be able to prepare source documents and Books of Prime (Original) Entry to record financial transactions. 3. Understand the classification and management of income and expenditure.
Assessment CriteriaThe learner can: Explain why business organisations need to record financial transactions. Describe how the recording of financial transactions meets the needs of the organisation’s internal and external stakeholders. Describe principal source documents and Books of Prime (Original) Entry used to record financial transactions. Prepare principal source documents and Books of Prime (Original) Entry for business transactions. Differentiate between capital and revenue expenditure and income. Describe the accounting approaches utilised for items of capital and revenue expenditure and income. Evaluate the impact on profit and asset valuations of incorrect management of capital and revenue expenditure and income.
Indicative contents Learning Outcome – The learner will: Understand the need to record 1 financial transactions.
Indicative Content Purposes including: Monitoring Control Management Measurement of performance Motivation
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