This document provides an introduction and overview of a computerized accounts level 1 course, including its objectives, key business documents used in bookkeeping, and an introduction to Sage bookkeeping software. The objectives are to familiarize students with basic bookkeeping skills, ledgers, double entry bookkeeping, VAT, and computerized bookkeeping. It describes common business documents like invoices and purchase orders and provides details on VAT registration. It concludes with an overview of Sage bookkeeping software, its accounting modules, features, and benefits.

1. Introduction
Computerised Accounts Level 1
For further information
please contact :
satpals@hotmail.com
Satpal Singh
MAAT, MIFL, MInstLM, MBCS

2. Course Objectives/Aims
Be familiar with basic bookkeeping skills
Be able to understand source documents and
ledgers
Be familiar with double entry bookkeeping
Be familiar with VAT
Be familiar with computerised bookkeeping
Introduction to Bookkeeping

3. Business Documents
Buyer Flow of documents Seller
The order is placed Purchase Order The order is received
and processed
The receipt of goods Delivery Note The goods or services
Is recorded are supplied
The invoice is recorded The payment is
INVOICE requested
in the books
A refund is requested A refund may be
Credit Note agreed (if needed)
( if needed)
Information is noted Information to the
Statement of Account buyer of balance due
The payment is made The payment is
Cheque or bank transfer
received and recorded

4. Suppliers Customers
Purchase Invoices Sales Invoices
ABC Sales Credit Note
Supplier or Purchase Business
Credit Note Ltd
Sales Delivery Note
Supplier delivery note
Statement of Account
Supplier Statement
of Account

5. Business Documents
 Administrative tasks
 Purchase Order
 Delivery Note
 Statement of Account
 Source documents
 Invoice
 Credit Note
 Cheque or Bank Transfer
Introduction to Bookkeeping

6. Invoice
Must have these details:
 Invoice number (serially numbered)
 Name and address of the seller
 Name and address of the buyer
 Date of sale
 Date the goods are supplied, including reference numbers,
quantity supplied and unit price
 Details of trade discount allowed (if any)
 VAT number and amount (if VAT registered)
 Total amount of money due
 Terms of trade
Introduction to Bookkeeping

7. VAT ( Value Added Tax)
 VAT was introduced into the UK in April
1973
 It is a tax on consumer expenditure
 Businesses which are VAT registered do
not bear the final cost of VAT.
Introduction to Bookkeeping

8. VAT ( Value Added Tax)
There are currently three typical rates of
VAT:
 Standard Rate 20% - charged on most
goods and services
 Zero Rate 0% - charged on items such
as food, books, children’s clothing etc.
 Reduced Rate - charged for domestic
fuel (gas and electricity)
Introduction to Bookkeeping

9. VAT ( Value Added Tax)
Taxable Supplies:
 The supplies of any goods or services
which are subject to VAT at any rate,
including zero–rated, are called taxable
supplies.
 They are referred to as taxable supplies
whether you are registered for VAT or
not.
Introduction to Bookkeeping

10. VAT ( Value Added Tax)
Registration is compulsory if any of the
following apply:-
 The value of your taxable supplies
exceeds the annual registration threshold
(currently £73000)
 The value of imports from other EC
Countries exceeds the annual registration
threshold (£73000)
Introduction to Bookkeeping

11. VAT ( Value Added Tax)
You may voluntary register for VAT if any
of the following apply:-
 The value of your taxable supplies is
below £73000.
 You intend to make taxable supplies but
are not yet making them.
Introduction to Bookkeeping

12. Day Book / Journal
Date Details Debit Credit
Amount Amount
01/01/07 Bank A/c 1000
01/01/07 Capital A/c 1000

13. On going bookkeeping tasks recorded during the financial year
Journal
Source or Nominal
Documents Day Book Ledgers
Final Accounts are prepared once
a year by an Accountant
Trading
Balance or Trial Balance
Sheet Profit and Loss
Accounts
Prepared to check the
arithmetical accuracy of the
Nominal Ledger (often
Monthly)

14. Trial Balance
A Trial Balance is list of the balances of
every account forming the ledger,
distinguishing between those accounts
which have debit balances and those which
have credit balances.
Introduction to Bookkeeping

15. The purpose of Trial Balance
A Trial Balance is produced mainly for the
two following purposes.
 To check the arithmetical accuracy of manual
bookkeeping.
 To form a basis for preparing Final Accounts
of the business.
Introduction to Bookkeeping

16. Accounting Areas (Modules)
The program is broadly split into these
categories
 Customers (Sales Ledger)
 Suppliers ( Purchase Ledger)
 Nominal Ledger ( General Ledger)
 Bank (Cash Book)
 Products ( Stock Control)
 Invoicing
Introduction to Bookkeeping

17. Accounting Areas (Modules)
 Sales Order Processing
 Purchase Order Processing
 Financials
 Fixed Assets
 Report Generator
Introduction to Bookkeeping

18. Introduction to Sage Bookkeeping
 Sage Line 50 Accounts
 Integrated account package for small
businesses
 Sage Line 50 is an industry standard
software solution for finance and
accounting management, leading to
increased business efficiency.
Introduction to Bookkeeping

19. Introduction to Sage Bookkeeping
 Sage Line 50 is designed to streamline
accounting routines, reduce data entry
and save time.
 There are three models in the range
Accountant
Accountant Plus
Financial Controller
Introduction to Bookkeeping

20. Key Features and Benefits
 Sales ledger
Makes it easy to maintain accurate
customer records.
 Purchase ledger
Line 50 provides you with everything you
need to keep track of your supplier
records.
Introduction to Bookkeeping

21. Key Features and Benefits
 Nominal ledger
The nominal or general ledger combines data
from all of your ledgers to give you an
accurate balance of your accounts.
 Bank ledger/cashbook
Manage all of your bank receipts and
payments, including direct debits and
standing orders.
Introduction to Bookkeeping

22. Key Features and Benefits
 Stock management
Keep track of what you sell, whether it is a
product or a service.
 Sales order processing
Know exactly which items your customers are
ordering.
 Purchase order processing
Stay aware of all the orders that you
generate.
Introduction to Bookkeeping

23. Key Features and Benefits
 Invoicing - Automate the invoicing
process to save time and improve the
accuracy of your records.
 Financials - Automatically create your
management accounts and VAT Return
and carry out budget analysis.
Introduction to Bookkeeping

24. Key Features and Benefits
 Fixed assets Register- Keep track of
the value and depreciation of all your
fixed assets.
 Task manager - Reminds you of actions
you need to take and bills that you need
to pay.
Introduction to Bookkeeping

25. Key Features and Benefits
 e-Business options - Expand your
business into e-trading and take full
advantage of the Internet.
 Passwords and security access -
Set passwords and restrict which areas
of the program individual users have
access to.
Introduction to Bookkeeping

26. Key Features and Benefits
 Multi-company capability - Run
subsidiary company records
independently and merge them into a
parent company report.
Introduction to Bookkeeping

27. Key Features and Benefits
 Multi-user capability - Allow a number
of people to work on your accounts at
the same time.
 Multiple delivery addresses - Store
multiple addresses for the same
organisation.
Introduction to Bookkeeping

28. Key Features and Benefits
 Reporting - A wide range of
automatically produced and
customisable reports are available,
including profit and loss, balance sheet
and budget reports.
 Euro support - Built-in currency
converters and full euro compatibility.
Introduction to Bookkeeping

29. Key Features and Benefits
 Cheque printing - Save time and
prevent mistakes by automatically
producing your cheques.
 Microsoft Office integration - Sage
Line 50 links with Microsoft Word,
Microsoft Excel and Microsoft Outlook.
Introduction to Bookkeeping