This unit applies to individuals employed in a range of work environments with responsibility for simple accounting functions within an organisation. They may work as individuals providing administrative support within an enterprise, or may be other members of staff with delegated responsibilities relating to general ledger maintenance.

ELEMENT

PERFORMANCE CRITERIA

1. Process journal entries

1.1. Prepare general journal entries from source journals in accordance with accounting requirements, organisational policy, procedures and accounting standards

1.2. Post journal entries into general ledger system in accordance with organisational policy, procedures and accounting standards

1.3. Reconcile accounts payable and accounts receivable subsidiary ledger systems with general ledger

1.4. Ensure processing maintains the accounting equation and is completed within designated time lines

2. Prepare a trial balance

2.1. Prepare trial balance of general ledger system in accordance with organisational requirements and accounting standards, and ensure it is checked for accuracy

2.2. Identify and rectify irregularities or refer them for resolution when trial balance does not balance, in accordance with organisational policy and procedures

Required skills

literacy skills to read and understand financial procedures

numeracy skills to:

use knowledge of mathematical concepts

interpret, compare and calculate with whole numbers and money

use decimal fractions and percentages

problem-solving skills to use approximation to check for discrepancies and ensure calculations are correct.

Required knowledge

key provisions of relevant legislation and regulations from all forms of government, standards and codes that may affect aspects of business operations such as:

Australian Taxation Office regulations

Goods and Services Tax (GST) regulations

anti-discrimination legislation

ethical principles

codes of practice

finance legislation

privacy laws

occupational health and safety

limit of scope of own responsibility

organisational accounting systems and procedures.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

accurately entering data

applying understanding of general journal entries and knowledge of the relationship between journals and general ledger

implementation of double-entry principles

systematic tracing of errors.

Context of and specific resources for assessment

Assessment must ensure:

access to an actual workplace or simulated environment

access to office equipment and resources, such as:

calculator

computer equipment and relevant software

examples of source journals.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

analysis of responses to case studies and scenarios

demonstration of techniques

direct questioning combined with review of portfolios of evidence and third party workplace reports of on-the-job performance by the candidate

review of authenticated documents from the workplace or training environment

oral or written questioning to assess knowledge ofaccounting procedures and techniques.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

other financial administration units.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

General journal entries may include:

bad debts written off

correction of posting errors

interest expense

interest receivable

opening entries

purchase of a non-current asset on credit

sale of a non-current asset on credit

transfer of funds between bank accounts

withdrawal of stock and assets by owner

Source journals for general ledger may include:

cash payments journal

cash receipts journal

general journal

purchases journal

purchases returns journal

sales journal

sales return journal

General ledger system may include:

computerised

manual

Reconciling accounts payable and accounts receivable may include:

checking accuracy of accounts payable balances with general ledger control account

checking accuracy of accounts receivable balances with general ledger control account

Preparing trial balance may include:

checking total debits equal total credits

listing ledger account balances from general ledger

tracing of errors

Unit sector

Finance - Financial Administration

This unit contains employability skills.