Syllabus Overview for LCCI Bookkeeping First Level (1006) Series 2,3 and 4

The aim of the examination is to test candidate’s understanding of the basic principles underlying the recording of business transactions, including the influence of Information Technology and the ability to prepare accounts for sole traders and non-trading organizations

Syllabus Content

1.0 The recording by double entry book-keeping of simple transactions concerning the purchase and sale of goods and the receipt and payment of cash.

(a) Books of prime entry relating to:cash and bank, purchases, sales, returns inwards, returns outwards, Journal proper.
(b) Methods of payment and receipt:cheques, standing orders, credit transfers, direct debits
(c) Bank reconciliation
(d) Trade and cash discounts-essential difference and how they are recorded
(e) Petty cash book and the imprest system
(f) The ledger and its possible sub-divisions. The distinction between personal, real and nominal accounts.

2.0 The objects and extraction of the trial balance

Types of errors and their effect, if any, upon the trial balance and on the net profit. The correction of errors not involving the use of a Suspense Account.

3.0 The distinction between:
Capital and revenue expenditure
Fixed and current assets

4.0 Treatment of:
Adjustments for accruals and prepayments
Depreciation-straight line and reducing balance methods
Provision for bad and doubtful debts
Opening and closing stock for Trading Account purposes

5.0 The preparation of:
Receipts and Payments Accounts, Income and Expenditure Accounts
Trading and Profit and Loss Accounts
Balance Sheets


Examination Requirements:
A 2 ½ hour examination. All questions are to be answered.