1. FETAC LEVEL 5 MANUAL BOOKKEEPING 5N1354
Bookkeeping Manual & Computerised Fetac Level 5
FETAC LEVEL 5 MANUAL BOOKKEEPING 5N1354
An Introduction

2. Aim of the course
The aims of the course is to provide you the learner with both an introduction to manual bookkeeping terms and principles, and the knowledge and skills necessary to keep an record of accounts up to and including the trial balance.
Also the skills necessary to operate a computerised accounts system using an integrated accounts package.

3. Bookkeeping Manual & Computerised Fetac Level 5
Bookkeeping involves recording and presentation of the day- to-day transactions of a business.
What is a Business?
A business is an organisation that conducts commercial, industrial, or professional conduct. The most familiar we are with is a business whom we buy goods or services from.

4. Bookkeeping Manual & Computerised Fetac Level 5
What is the difference between bookkeeping and accounts?
Bookkeeping steps are mechanical in nature. It is a regimented process which usually occurs in monthly cycles. It consists of transactions being entered, making adjustments and getting out reports at the end of each month.
Accounting is whereby someone interprets the reports and results. It is less mechanical and more subjective.

5. Bookkeeping Manual & Computerised Fetac Level 5
Business
What are the main transactions in a business?
Purchasing products and services
What is the difference between a product and a service?
Selling products and services

6. Stages of a business transaction
Bookkeeping Manual & Computerised Fetac Level 5
Stages of a business transaction
Enquiry which leads to a Quotation
A Quotation can lead to an Order
A business puts the goods on order for the customer and delivers them with a delivery note
4. Customer receives the goods 5. An invoice is then sent to the customer 6. The customer then pays for the goods.

7. Bookkeeping Manual & Computerised Fetac Level 5
Customer and Supplier
A customer is someone who buys goods or services from you.
A supplier is someone who supplies goods or services to you

8. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
Source documents are the starting point of recording transactions into the company’s accounts.
Important for a bookkeeper to identify each source document
Each source document has to be entered into a particular Daybook.

9. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
There are different types of source documents
Sales Invoices/credit notes
Purchase Invoices/credit notes
Customer receipts
Remittance advices
Petty cash vouchers

10. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
Sales invoice records the sales we have made to a customer
Purchase invoice records the purchases we have made from a supplier
Sales credit note is where a customer returns goods that were faulty or is not satisfied
Purchase credit note is where we would find a fault with goods we received from a supplier

11. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
Customer receipts are records of monies received from our customers. Monies are subsequently lodged into the business bank account. Monies can be in the form of cash or cheques. The receipt can take the form of a bank lodgement stub.

12. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
Remittance advice
When we make a payment to a supplier we attach details of the payment. This is usually has the invoice number and amount shown on it. A copy of the remittance is also kept for our records.

13. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
Petty cash
Petty cash refers to a set amount of cash (eg €100) that is kept in a petty cash box. It is used for small expenses such as cleaning materials, tea, coffee sugar, postage, extra stationery.
All monies used for petty cash are recorded on a petty cash voucher.

14. Bookkeeping Manual & Computerised Fetac Level 5
Source documents
Other payments
A business also keeps records of other payments such as salaries tax etc. These payments are not supplier payments.

15. Bookkeeping Manual & Computerised Fetac Level 5
Daybooks
What are Daybooks?
Daybook is a book that has many columns and is used to record the source documents.
Daybook for each type of transaction
There are 5 main daybooks
Daybooks record:
Date, details, total amount, vat, net amount, and has many analysis columns also.

16. Bookkeeping Manual & Computerised Fetac Level 5
Daybooks
Daybooks are totalled each month
Accuracy is of utmost importance when entering source documents into the daybooks.
Information from the daybooks is carried on through to the ledgers.
If there is a mistake in the daybooks it will carry through to the ledgers

17. Bookkeeping Manual & Computerised Fetac Level 5
Daybooks
Sales invoices/credit notes
Purchase invoices/credits
Bank lodgement stubs
Remittance advice
Petty cash vouchers
No source documents
Sales/sales return daybook
Purchase/return daybook
Cash receipts
Cash/cheque payments
Petty cash
General journal
Source document
Daybook

18. Bookkeeping Manual & Computerised Fetac Level 5
LEDGERS

19. Bookkeeping Manual & Computerised Fetac Level 5
What are Ledgers
There are 3 ledgers we will be dealing with
Sales Ledger
Purchase Ledger
Nominal Ledger/General Ledger

20. Bookkeeping Manual & Computerised Fetac Level 5
LEDGERS
SALES LEDGER
THE SALES LEDGER IS WHERE ALL OUR CUSTOMER INFORMATION IS HELD. EACH CUSTOMER HAS THEIR OWN ACCOUNT WITHIN THE SALES LEDGER. THE SALES LEDGER TELLS US HOW MUCH MONEY OUR CUSTOMERS OWE US !
CHEQUES AND CASH FROM CRD
Invoices and credit notes from SDB

21. Bookkeeping Manual & Computerised Fetac Level 5
LEDGERS
Invoices and credit notes from Sales Daybook
SALES
LEDGER
Cheques and cash from cash receipts daybook

22. Bookkeeping Manual & Computerised Fetac Level 5
LEDGERS
PURCHASE LEDGER
The purchase ledger is where all our supplier information is kept. Each supplier has an account. The purchase ledger will tell us how much money we owe !
Invoices and credit notes from PDB
Cheques paid from CPD

23. Bookkeeping Manual & Computerised Fetac Level 5
LEDGERS
Invoices and credit notes from Purchase Daybook
PURCHASE
LEDGER
Cheques From cheque payments daybook

24. Bookkeeping Manual & Computerised Fetac Level 5
Double Entry
The method of bookkeeping we will be using is called: DOUBLE ENTRY
Double entry is where each entry is entered twice. 1 Debit and 1 Credit. You need not know anymore at this stage.

25. Bookkeeping Manual & Computerised Fetac Level 5
DEBITS AND CREDITS
DR stands for Debit
CR stands for Credit
In the Sales Ledger:
Debits (Dr) are Positive
Credits (Cr) are Negative
Balance on the account is Dr-Cr = Balance
Debit Sales in the Sales Ledger
Credit Cash Received and Credit Notes in the Sales Ledger

26. Bookkeeping Manual & Computerised Fetac Level 5
DEBITS AND CREDITS
DR stands for Debit
CR stands for Credit
In the Purchase Ledger:
Debits (Dr) are Negative
Credits (Cr) are Positive
Balance on the account is Dr-Cr = Balance
Credit Purchases in the Purchase Ledger
Debit Cash Payments and Credit Notes in the PurchaseLedger