LCCI Bookkeeping Second Level (2006) Series 2,3&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 Advanced aspects of the First Level syllabus for Bookkeeping

2.0 The ledger accounts for:

(a) Sole Proprietorship

(b) Partnerships –Formation, Admission and retirement of partner(s); Treatment of goodwill, Appropriation of net profit and Dissolution

(c) Limited liability companies –Issue of shares and debentures, Redemption of debentures, Appropriation of profits and Acquisition of sole trader or partnership business

(d) Non-trading organizations

(e) Special areas – Controls accounts, Consignment accounts, Branch accounts excluding foreign branches, Manufacturing accounts, Incomplete records, Suspense accounts, Bills of Exchange-receivable and payable, Treatment of provisions and reserves and Stock Valuation

3.0 The preparation of final accounts in vertical or horizontal form for:

  • Sole proprietors, partnerships, non-trading organization and limited companies

4.0 Calculation and interpretation of the following accounting ratios:

  • ROCE (Return on Capital Employed,
  • Profit to Sales
  • Sales to Capital Employed
  • Current ratio
  • Liquidity ratio
  • Rate of stock turnover