Aveen Docs

Aveen Duffield

Irvine

Tel: 07742 554 618 Email: [email protected]

Personal Profile

A reliable and hardworking individual who offers exemplary organisation and time management skills alongside a keen eye for detail and meticulous approach to ensuring the accuracy of all work

One who is quick and keen to learn new skills, adapting well to changing business needs and capable of working efficiently

within pressurised and fast-paced environments

An articulate and confident professional able to liaise with all levels of colleague and external partner, building positive working relationships which add value to any organisation

Education & Qualifications

James Watt College HND: Accounts 2011 - Present

Key Modules:

Financial Reporting Management Accounting Business Taxation Company Law

James Watt College HNC: Accounts (Grade A) 2012

University of the West of Scotland Post Graduate Certificate: Multimedia & Web Authoring 2009

University of the West of Scotland BA: Psychology & Sociology 2005

James Watt College HND: Social Sciences 2002

Kilmarnock College Highers 2001

Kilmarnock College NC: Information Technology 1996

St Michaels Academy Standards Grades 1995

Employment History

2004 - 2005 South Ayrshire Council Adult Education Tutor

Carried out a number of temporary contracts providing adult education computing skills training on behalf of this local

authority

Held responsibility for the design and delivery of classroom based lessons targeted at individuals ranging in level of ability

Created lesson plans and tailored them according to student needs

Delivered training in email, internet, MS Word and MS Excel applications

Produced innovative and effective course literature and evaluated its on-going progress and success

Maintained an up to date and in-depth knowledge of relevant subject matter

1996 - 2002 “The Gate”, Kilmarnock Cook

Worked as part of a team to produce high quality food from an extensive menu in a timely manner

Maintained food hygiene and health & safety standards in all operations

Performed all required preparation work at the start of the day as well as cooking duties during service

Maintained stock levels and ordered supplies as and when required

Developed solid working relationships with all colleagues, suppliers and regular customers

Additional Information

2005 - 2008 Caring for ill parents

Provided care in response to all needs caused by serious illness including preparing meals, cleaning and maintaining the

home environment, and assisting with mobility needs

Languages: Basic French

Driving Licence: Full Clean UK

Key Skills & Competencies

Communication & Presentation - possesses a high level of verbal and written communication with the ability to operate

effectively across all levels of colleague. Confident in close consultation and advisory scenarios

Accuracy & Numeracy - focused, methodical and diligent in the handling of large volumes of confidential information and is

confident processing all forms of numerical work within a corporate environment

Organisation - able to apply a thorough attention to detail ensuring successful completion of tasks on time and to budget.

Able to see projects through from inception to completion

Troubleshooting - able to anticipate any issues which may arise and respond swiftly to those that do showing a calm and

diplomatic approach. Ensures problems are dealt with in a prompt manner and with a satisfactory outcome for all parties

Relationship Management - quickly builds trust and credibility with all partners to facilitate the smooth running of business

operations

IT Skills - proficient with Sage Line 50, Sage Payroll, and all MS Office applications including Word, Excel, Access & PowerPoint

References: available on request

HN Unit (F7JP 34): Using Financial Accounting Software 1

Higher National Unit specification

General information for centres

Unit title: Using Financial Accounting Software

Unit code: F7JP 34

Unit purpose: This Unit is designed to enable candidates to use a commercial accounting software

package to process financial transactions and to prepare accounting reports for a small business.

This Unit is primarily intended for candidates who expect to take up a career or further study in

accounting and/or financial administration. It is also relevant for candidates who wish to extend their

manual book-keeping skills to those of a computerised accounting system and to those with appropriate

work experience who wish to formalise their skills.

On completion of the Unit the candidate should be able to:

1 Use an accounting software package to set up and amend accounting records

2 Use an accounting software package to process financial transactions

3 Use an accounting software package to incorporate year-end adjustments and produce final accounts

for a small business

4 Use an accounting software package to produce a range of accounting reports

Credit points and level: 1 HN credit at SCQF level 7: (8 SCQF credit points at SCQF level 7*)

*SCQF credit points are used to allocate credit to qualifications in the Scottish Credit and Qualifications

Framework (SCQF). Each qualification in the Framework is allocated a number of SCQF credit points at an SCQF

level. There are 12 SCQF levels, ranging from Access 1 to Doctorates.

Recommended prior knowledge and skills: Access to this Unit is at the discretion of the

centre. However, candidates would normally be expected to have some prior knowledge of manual book-

keeping. This could be demonstrated by achievement of the HN Unit F7JV 34: Recording Financial

Information or similar qualification at SCQF level 6/7 prior to undertaking this Unit.

Core Skills: Achievement of this Unit gives automatic certification of the following:

Providing/Creating Information at SCQF level 5


General information for centres (cont)

Context for delivery: If this Unit is delivered as part of a Group Award, it is recommended that it

should be taught and assessed within the subject area of the Group Award to which it contributes.

Assessment: This Unit could be assessed by a practical assignment that covers all Outcomes.

Alternatively, it could be assessed by four separate practical assignments.

An exemplar instrument of assessment and marking guidelines have been produced to show the national

standard of achievement required at SQCF level 7.

Since the Providing/Creating component of the Information Communication Technology Core Skill at

SCQF level 5 is embedded in this Unit, it is strongly recommended that you follow the assessment

guidelines given. If you wish to use a different assessment model, you should seek prior verification of

the assessment instrument(s) you intend to use to ensure that the Core Skill is still covered.


Higher National Unit specification: statement of standards


Unit code: F7JP 34

The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements are

mandatory.

Outcome 1 Use an accounting software package to set up and amend accounting records

Knowledge and/or Skills

Customer and supplier records

Nominal ledger accounts

Back up procedures

Evidence Requirements

Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing that

they can:

Set up two new customer accounts and two new supplier accounts.

Set up two new nominal ledger accounts and incorporate these into the appropriate section of the

final account structure. The two new nominal accounts should come from: new asset, new liability,

new source of income or new expense account.

Amend two existing customer, two existing supplier and two existing nominal ledger accounts.

Back up data files securely.

The evidence should be generated under open book supervised conditions.

Evidence must be accurate within a tolerance of one error.

Assessment Guidelines

It is recommended that the assessment of this Outcome be completed within half an hour.

This Outcome may be assessed separately or combined with the assessment of other Outcomes.

Assessment Guidelines for a single assessment covering all Outcomes is given after Outcome 4.


Higher National Unit specification: statement of standards (cont)


Outcome 2

Use an accounting software package to process financial transactions


VAT categories

Customer invoices and credit notes

Supplier invoices and credit notes

Purchase of fixed assets

Cheques issued and received

Discount allowed and received

Cash receipts and cash payments

Recurring entries

Error correction

Bad debt write-off

Back up procedures



they can:

Process four sales invoices, four purchase invoices, two sales credit notes, two purchase credit

notes. Transactions to include VAT standard rated, zero rated and exempt supplies.

Process cheques issued to include two cheques to creditors, four cheques for payment of expenses

and two cheques for purchase of fixed assets. The cheques to creditors should be for payment of

amount due after returns and discounts have been deducted. Transactions to include standard rated,

zero rated and exempt supplies and transactions outwith the scope of VAT.

Process cheques received to include two cheques from debtors, two cheques for other income and

one loan cheque. Cheques from debtors should be for receipt of amount due after returns and

discount have been deducted.

Process two transactions incorporating discount allowed and two transactions incorporating

discount received.

Process three cash receipts and three cash payments. Transactions to include standard rated, zero

rated and exempt supplies and transactions outwith the scope of VAT.

Set up and process two recurring entries for direct debits or standing orders.

Write off a debtor‟s account as a bad debt.

Record details of two new fixed assets in the fixed asset register — including one straight line

depreciation and one reducing balance depreciation.

Correct two errors using the error correction facilities of the software package.

Back up data files securely.

The evidence should be generated under open-book supervised conditions.

Evidence must be accurate within a tolerance of four errors.





It is recommended that the assessment of this Outcome be completed within one and a half hours.



Outcome 3

Use an accounting software package to incorporate year-end adjustments and produce final accounts for

a small business


Accruals

Prepayments

Depreciation

Stock journals

Profit and loss account

Balance sheet

Back-up procedures



they can:

Set up and process year-end adjustments for two accrued expenses and two prepaid expenses

Set up and process two charges for depreciation of fixed assets (one straight line, one reducing

balance)

Process the appropriate journal entries for opening and closing stock values

Produce and print final accounts for a small business — profit and loss account and balance sheet

Back up data files securely


Evidence must be accurate within a tolerance of one error.








Outcome 4

Use an accounting software package to produce a range of accounting reports


Trial Balance

Audit Trail

VAT Return

Other reports



they can:

Produce and print a Trial Balance, an Audit Trail, a VAT Return, plus two additional reports from

the following:

— Aged Debtor Analysis

— Debtor Reminder Letter

— Customer Address List

— Supplier Address List

— Nominal Ledger Code List

— Fixed Asset List

The evidence should be generated under open book supervised conditions. The reports should be printed

without error.



This Outcome may be assessed separately or combined with the assessment of other Outcomes. Further

guidance is given below.




Assessment Guidelines for the Unit

These guidelines relate to a single assessment that covers all Outcomes

A holistic approach to assessment may be adopted with all Outcomes being assessed in a single open

book supervised assessment. Candidates could have access to software manuals, help menus and any

other course materials during the assessment.

It is recommended that the combined assessment of the four Outcomes be completed within three hours.

Candidates could be provided with a set of data files relating to a business. This data might consist of a

number of customer accounts and a number of supplier accounts as well as a number of nominal ledger

accounts already set up. Opening balances from a previous month could be included in debtor and

creditor accounts. In addition the final account structure could already be set up within the nominal

ledger of the software package.

Candidates could then be given financial transactions, covering the Knowledge and/or Skills items and

Evidence Requirements, for one month to process. The transactions would require candidates to open up

some new customer accounts, some new supplier accounts and some new nominal ledger accounts.

Where new nominal ledger accounts are opened up, these would have to be entered into the final account

structure within the nominal ledger so that these account balances are included in the final accounts

produced at the end of the month. The candidates would also have to amend some existing customer and

supplier accounts — for example change of address, phone number, contact name, credit limit, etc. Some

nominal ledger accounts would also have to be amended — for example, change of account name.

Later in the assessment the candidate would be required to print a range of reports. To test the

candidate‟s understanding they could be asked, for example, to produce a report showing customer

names and addresses but the report should only include those new customers that the candidate had set

up or those existing customers whose details the candidate had amended (as opposed to including every

customer — this also has the advantage of cutting down on the amount of paper used).

The financial transactions could be batched — eg invoices sent out last month; invoices received last

month; credit notes sent out; credit notes received; cheques issued; cheques received; cash receipts

issued; cash receipts received and other transactions. Invoices and credit notes should cover the range of

VAT categories outlined in Knowledge and/or Skills and Evidence Requirements. The amount of

cheques issued to creditors and received from debtors should be the appropriate amount after the

application of a credit note and of a cash discount so that the candidate has to process discounts allowed

and received.

Two of the cheques issued could be for the purchase of new fixed assets. Candidates should differentiate

between the gross and net amount of the asset when entering it in the fixed asset register. Thereafter, one

asset could be depreciated by the straight line method and one by the reducing balance method.

Candidates could also set up, for example, recurring entries for the payment of direct debits and standing

orders. One of the expenses being paid by direct debit could be for the new expense account that was set

up in the nominal ledger — this ensures that the candidate has to set up the appropriate expense account

and then set up the recurring entry against that account. Candidates could also write off a debtor account

and could process the journal entry to record the closing stock valuation at the month end.




Assessment Guidelines for the Unit (where a single assessment covers all Outcomes)

Candidates could be informed at the end of the assessment instrument that two of the transactions

entered earlier in the assessment have errors and the candidate could be instructed to correct the errors

using the facilities available in the software package.

Candidates could be given a valuation for the closing stock at the end of the month and could input the

necessary journal entries to include this in the month-end accounts. Candidates could also adjust

expenses for prepayments and accruals and they could post the necessary entries to depreciate fixed

assets.

Where a candidate produces evidence where all the month‟s transactions have been processed correctly

but the month-end procedures have been done incorrectly then the candidate would not be expected to re-

sit the entire assessment. The candidate would only be required to re-sit Outcome 3. In this case, the

candidate could be given a set of data that included all the month‟s transactions and the candidate would

only have to carry out the month-end procedures and produce the final accounts.


Administrative Information

Unit code: F7JP 34


Superclass category: CD

Original date of publication: August 2010

Version: 01

History of changes:

Version Description of change Date

Source: SQA

© Scottish Qualifications Authority 2010

This publication may be reproduced in whole or in part for educational purposes provided that no profit

is derived from reproduction and that, if reproduced in part, the source is acknowledged.

SQA acknowledges the valuable contribution that Scotland‟s colleges have made to the development of

Higher National qualifications.

Additional copies of this Unit specification can be purchased from the Scottish Qualifications Authority.

Please contact the Customer Contact Centre for further details, telephone 0845 279 1000.


Higher National Unit specification: support notes


This part of the Unit specification is offered as guidance. The support notes are not mandatory.

While the exact time allocated to this Unit is at the discretion of the centre, the notional design length is

40 hours.

Guidance on the content and context for this Unit


accounting and/or financial administration. It is also relevant to those with appropriate work experience

and who wish to formalise their book-keeping skills.

For those candidates who successfully achieve this Unit as part of the HNC/HND Accounting Group

Award, there may be opportunities to gain exemptions from a number of professional accounting bodies.

Centres should contact the relevant professional bodies to ascertain their current exemption policies.

This Unit is designed to enable candidates to use a commercial accounting software package to process

financial transactions and to prepare accounting reports for a small business.

Outcome 1

Candidates should be able to maintain the sales ledger, purchase ledger and nominal ledger of a business

using an accounting software package. This would include amending details of existing accounts and

setting up new accounts in each of the ledgers. Candidates should be familiar with the Chart of Accounts

(the framework for the Final Accounts) within the package. Candidates should also be aware of the

allocation of code number to accounts and the significance of the different ranges of account numbers —

eg account numbers allocated to fixed assets, account numbers allocated to current assets, etc.

Candidates should understand the need to amend the Chart of Accounts when setting up new nominal

ledger accounts so that the new accounts would be incorporated into the Final Accounts framework in

the package. Candidates should be familiar with the range of reports associated with each of the ledgers

and should be encouraged to investigate all available reports and the use to which they could be put.

Outcome 2

Candidates should be able to process all the standard financial transactions that occur regularly in a

business. It would be normal to batch transactions for processing. Candidates should be familiar with the

use of batches and batch totals to help ensure accuracy in posting transactions. Candidates should be

encouraged to produce day books and a Trial Balance after each batch that is processed. Candidates

should be able to explain which balances in the Trial Balances will change as a result of the batch of

documents processed and to check these changes against their batch totals. Candidates should be

encouraged to back up data files after each batch that is processed. Candidates should print off the Audit

Trail or refer to it on-screen and be able to recognise the way in which the package details each

transaction that has been processed. Again, candidates should be encouraged to investigate all available

reports and the use to which they could be put.


Higher National Unit specification: support notes (cont)


Centres could provide candidates with sets of data which can be used to practise each of the batches that

have to be processed — eg sales invoices, purchases invoices, sales credits, etc. For example, centres

could provide candidates with data relating to receipts from debtors. This could include both cash

receipts and cheques received. The batch could include part payments of amounts due; full payment of

accounts; full payment where there has also been a credit note issued to the customer and full payment

where there is both a credit note issued to the customer and the customer is to be allowed a discount for

prompt payment. On completion of the batch the candidate should produce the relevant day books and

check the totals in the day books against their batch totals. The candidate should also produce a Trial

Balance and explain which balances have changed as a result of processing this batch of cheques.

Similarly, centres could provide candidates with sets of data relating to debtors for, say, six months.

Some debts would be current, some one month overdue, some two months overdue, etc. Candidates

could be asked to identify those debtors who should be considered as possible bad debts; those who

should receive a “mild” reminder letter; those who should be sent a “stronger” reminder letter, etc.

Candidates should also be familiar with the way in which an entire account can be written off as a bad

debt or, alternatively, an individual invoice can be written off.

When processing payments for expenses and for fixed asset purchases, candidates should use the

package to differentiate between data which contains gross amounts and data which contain net amounts

and the facilities within the package for converting gross amounts to net amounts when appropriate.

Candidates should be aware that the net amount should be entered in the Fixed Asset Register and not

the gross amount.

Candidates should be familiar with the VAT codes used within the package and their significance in

compilation of the VAT return.

After every batch that is processed, candidates should back-up data files securely.

Outcome 3

Candidates should be familiar with the distinction between setting up accruals and prepayments and

actually processing them at the month-end. Similarly, candidates should be familiar with the distinction

between setting an asset up in the Fixed Asset Register and then processing the depreciation at the end of

the month. When setting up assets in the Fixed Asset Register candidates would again be expected to

understand the coding system adopted by the software package — eg the code for depreciation of an

asset as shown in the Profit and Loss Account and the code for the depreciation as shown on the Balance

Sheet. Candidates should be able to prepare journal entries to charge the opening stock to the cost of

sales in the Trading Account and to reduce the cost of sales by the value of the closing stock at the end of

the month. Candidates should back-up data files securely.

Outcome 4

Throughout the Unit candidates should be encouraged to investigate the range of reports available and

the uses to which these reports can be put within the business.




Guidance on the delivery and assessment of this Unit

This Unit is likely to form part of a Group Award designed to provide candidates with the knowledge

and skills for further study or employment within an accounting environment.

Where this Unit is being delivered as part of the HNC/HND Accounting Group Award it is

recommended that the Unit be delivered towards the beginning of the Group Award following the HN

Unit F7JV 34: Recording Financial Information. This means that candidates will be able to understand

what the accounting package does when processing the batches of data and to appreciate some of the

advantages of using a software package rather than manual processing of financial transactions.

It is recommended that the assessment is carried out in one single assessment which covers all four

Outcomes. However, the Outcomes could be assessed separately or alternatively, Outcomes 1 and 2

could be combined into a single assessment, and Outcomes 3 and 4 could be combined into another

single assessment.

All evidence should be produced under open-book supervised conditions.

During the delivery of this Unit it is recommended that candidates be made aware of the existence of

both UK Generally Accepted Accounting Principles (UK GAAP) and International Accounting

Standards (IAS) and the main differences in presentation of financial statements and terminology be

brought to their attention.

Opportunities for developing Core Skills

The delivery and assessment of this Unit may contribute towards the Core Skill Information and

Communication Technology at SCQF level 5. The Core Skill component Providing/Creating Information

at SCQF level 5 is embedded in this Unit. Throughout all four Outcomes of the Unit, candidates apply a

wide range of IT skills related to performing IT operations, processing information, accessing

information and keeping information safe.

Open learning

This Unit could be delivered by distance learning. However, it would require planning by the centre to

ensure the authenticity of candidate evidence. Arrangements would have to be made to ensure that

evidence is generated under the assessment conditions specified for each Outcome.

To keep the administrative burden to a minimum, it is recommended that the assessments of Outcomes

are combined for distance learning candidates.

Further advice can be found on SQA‟s website www.sqa.org.uk.

Disabled candidates and/or those with additional support needs

The additional support needs of individual candidates should be taken into account when planning

learning experiences, selecting assessment instruments, or considering whether any reasonable

adjustments may be required. Further advice can be found on our website

www.sqa.org.uk/assessmentarrangements.


General information for candidates


This Unit is designed to enable you to process financial transactions using a commercial accounting

software package. You may already be familiar with the double entry book-keeping system and be able

to post business transactions manually. This Unit enables you to process these same transactions but

using a software package rather than posting manually.

The Unit has four main areas, each the subject of a separate Outcome.

In Outcome 1 you will look at the three main ledgers in a book-keeping system — the Sales Ledger

(Customer records); the Purchase Ledger (Supplier records) and the Nominal Ledger (all other assets,

liabilities, expenses and income). You will learn how to set up new records as well as how to amend

existing records. You will learn the coding system used within the accounting software package and you

will learn how to amend the Final Accounts Structure when you introduce new accounts into the nominal

ledger. You will become familiar with a range of reports relating to each of these ledgers. You will learn

how to back up data files in order to securely store the data.

In Outcome 2 you will learn how to process the major financial transactions that occur on a daily basis in

most small to medium sized businesses. These will include the processing of sales and purchase

invoices; sales and purchase credit notes; cheques issued and received and cash receipts issued and

received. You will learn how data is batched and batch totals are used for checking purposes. You will

also learn how enter fixed assets in a Fixed Asset Register; how to set up and process recurring entries

through the bank account — for standing orders and direct debits and you will learn how to write off a

debt as a bad debt. You will also learn how to analyse debts by age and how to „chase‟ debts by sending

out appropriate letters to overdue debtors. You will become familiar with a range of reports relating to

each of batches that you have processed — including day books; the trial balance and the audit trail. You

will learn how to back up data files in order to securely store the data.

In Outcome 3 you will learn how to set up and process the month-end adjustments and then produce the

final accounts for the business — the Profit and Loss Account and the Balance Sheet. By processing

month-end adjustments for accruals, prepayments and depreciation and by preparing stock journals, you

will then be able to produce final accounts that give a true and fair view of the profit earned by or the

loss incurred by the business. You will normally do this for one month but you will also produce figures

for the year to date.

In Outcome 4 you will learn how to produce a variety of reports for a business including Customer

Reports and Supplier Reports as well as other reports such as VAT Return; Trial Balance; Audit Trail;

Day Books and Letters.

This Unit may be assessed by one practical assignment which covers all the Outcomes or each Outcome

may be assessed separately. The assessments will be carried out under open book supervised conditions.

This means that you will be able to bring with you to the assessment any software manual or other notes

or teaching materials. You may also access help menus during the assessment.

You will have opportunities to develop the Core Skill of Information Technology in this Unit.

Achievement of this Unit gives automatic certification of Providing/Creating Information at SCQF level

5.

HN Unit (F7JT 34): Preparing Final Accounts 1



Unit title: Preparing Final Accounts

Unit code: F7JT 34

Unit purpose: This Unit is designed to enable candidates to prepare final accounts for a range of

business organisations — sole traders, partnerships and companies. These organisations can be either

traders or manufacturing concerns. Candidates will also prepare cash flow statements and analyse

accounting statements using appropriate accounting ratios for a limited company.


accounting and/or financial administration. It is also relevant to those with appropriate work

experience who wish to formalise their financial accounting skills.

On completion of the Unit candidates should be able to:

1 Prepare final accounts for business organisations

2 Prepare final accounts, for a sole trader, from incomplete records

3 Prepare a cash flow statement for a limited company

4 Analyse the final accounts of a limited company using accounting ratios

Credit points and level: 2 HN Credits at SCQF level 7: (16 SCQF credit points at SCQF

level 7*)


Framework (SCQF). Each qualification in the Framework is allocated a number of SCQF credit points at an

SCQF level. There are 12 SCQF levels, ranging from Access 1 to Doctorates.

.

Recommended prior knowledge and skills: Access to this Unit is at the discretion of

the centre. However, candidates would normally be expected to have some prior knowledge of book-

keeping. This could be demonstrated by achievement of the HN Unit F7JV 34: Recording Financial

Information or similar qualification at SCQF level 6/7 prior to undertaking this Unit.

Core Skills: Achievement of this Unit gives automatic certification of the following:

Using Number at SCQF level 5

Context for delivery: If this Unit is delivered as part of a Group Award, it is recommended

that it should be taught and assessed within the subject area of the Group Award to which it

contributes.



Assessment: This Unit could be assessed by four separate assessments. However, it is

recommended that Outcomes 3 and 4 be assessed together.

An exemplar instrument of assessment and marking guidelines have been produced to show the

national standard of achievement required at SCQF level 7.

Since the Using Number component of the Numeracy Core Skill at SCQF level 5 is embedded in this

Unit, it is strongly recommended that you follow the assessment guidelines given. If you wish to use

a different assessment model, you should seek prior moderation of the assessment instrument(s) you

intend to use to ensure that the Core Skill is still covered.




Unit code: F7JT 34

The sections of the Unit stating the Outcomes, Knowledge and/or Skills, and Evidence Requirements

are mandatory.

Outcome 1

Prepare final accounts for business organisations


Business organisations

Profit and loss accounts

Balance sheets

Adjustments to the final accounts


Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by showing

that they can:

Prepare a profit and loss account and balance sheet, from a year end trial balance, for either a

partnership or limited company operating as a trader or manufacturer.

Incorporate a minimum of eight different year end adjustments (appropriate to the type of

business) into the accounts, from the following: straight line depreciation, reducing balance

depreciation, bad debts, allowance for bad debts, accruals, prepayments, closing stock,

dividends, debenture interest, corporation tax, transfer to reserve, drawings, interest on capital,

interest on drawings, partnership salaries.

The evidence should be generated under supervised conditions with access restricted to a pro forma

layout for the relevant set of final accounts only.

The figures must be accurate within a tolerance of three arithmetic or computational errors with a

maximum of three errors of principle.


It is recommended that the assessment of this Outcome be completed within one and a half hours.

The assessment should be presented as a trial balance, with a minimum of eight year end adjustments,

for either a partnership or limited company (for internal use) operating as either a trader or

manufacturer. From this information candidates should prepare a profit and loss account and balance

sheet.

It is strongly recommended that a different type of business organisation be used each time the

Outcome is assessed.




Outcome 2 Prepare final accounts, for a sole trader, from incomplete records

Knowledge and/or skills

Opening balance sheet/statement of affairs

Receipts and payments

Revenues and expenses

Profit and loss account and balance sheet

Evidence requirements


that they can:

Prepare an opening balance sheet/statement of affairs for a sole trader

Prepare working notes which demonstrate the conversion of receipts and payments into revenue

and expenses for a minimum of six items

Deduce a minimum of one missing figure

Prepare a profit and loss account and balance sheet for a sole trader

The evidence should be generated under supervised conditions with access restricted to a pro forma

layout for final accounts only.

The figures must be accurate within a tolerance of two arithmetic or computational errors with a

maximum of two errors of principle.

Assessment guidelines

It is recommended that the assessment of this Outcome be completed within one hour. The

assessment could be presented as a case study, detailing incomplete accounting information, as well

as a range of notes. From this information candidates should prepare a profit and loss account and

balance sheet for a sole trader.




Outcome 3

Prepare a cash flow statement for a limited company


Cash flow statements

Depreciation and disposal of fixed assets



that they can:

Prepare a cash flow statement, from the final accounts for two consecutive years, of a limited

company

Show the correct treatment of depreciation and fixed asset disposal


The figures must be accurate within a tolerance of two arithmetic or computational errors with a

maximum of one error of principle.


It is recommended that the assessment of this Outcome be combined with Outcome 4 and be

completed within three hours. Alternatively, if Outcome 3 is assessed separately, it is recommended

that the assessment be completed within one hour. The assessment could be presented as a case study

where the final accounts of two consecutive years of a limited company are presented along with two

notes to the accounts (disposals of assets). From this information candidates should produce a cash

flow statement.




Outcome 4 Analyse the final accounts of a limited company using accounting ratios.


Accounting ratios

Analysis of final accounts



that they can:

Prepare working notes which demonstrate the calculation of the following accounting ratios:

gross margin; expenses to turnover; net margin; return on capital employed; earnings per share;

dividend cover; current ratio; acid test ratio; stock turnover; debtor turnover; creditor turnover;

fixed asset turnover and gearing ratio, for a limited company.

Analyse the results and explain the significance of each ratio calculated on the company’s

financial position.


The ratio calculations must be accurate within a tolerance of two arithmetic or computational errors

with a maximum of one error of principle. The candidate should analyse the ratios and comment on

the change in the ratio giving at least one reason for the change.


It is recommended that the assessment of this Outcome be combined with Outcome 3 and be

completed within three hours. Alternatively, if Outcome 4 is assessed separately, it is recommended

that the assessment be completed within two hours. The assessment could take the form of a case

study where the final accounts, of a limited company, for two consecutive years, are presented. From

this information the candidates could calculate the accounting ratios and, from the results, analyse the

financial position of the organisation.



Unit code: F7JT 34


Superclass category: AK


Version: 01

History of changes:


Source: SQA


This publication may be reproduced in whole or in part for educational purposes provided that no

profit is derived from reproduction and that, if reproduced in part, the source is acknowledged.

SQA acknowledges the valuable contribution that Scotland’s colleges have made to the development

of Higher National qualifications.

Additional copies of this Unit specification can be purchased from the Scottish Qualifications

Authority. Please contact the Customer Contact Centre for further details, telephone 0845 279 1000.





While the exact time allocated to this Unit is at the discretion of the centre, the notional design length

is 80 hours.



accounting and/or financial administration. It is designed to enable candidates to prepare final

accounts for a range of business organisations as well as analyse the financial position of a limited

company.


Award, there may to opportunities to gain exemptions from a number of professional accounting

bodies. Centres should contact the relevant professional bodies to ascertain their current exemptions

policies.

Outcome 1 introduces candidates to the preparation of final accounts for a range of business

organisations.

Business organisations: sole traders, partnerships, private limited companies, public limited

companies

Final accounts: profit and loss accounts, balance sheets

Adjustments: accruals, prepayments, depreciation, (straight line, reducing balance), bad debts,

allowance for bad/doubtful debts, closing stock, dividends, debenture interest, corporation tax,

transfer to reserve, drawings, interest on capital, interest on drawings, partnership salaries

Presentation and terminology used within final accounts in line with current practice/legislation

Outcome 2 introduces candidates to the preparation of incomplete records for a sole trader.

Opening balance sheet/statement of affairs

Receipts and payments; revenues and expenses

Profit and loss account and balance sheet for a sole trader

Outcome 3 covers the preparation of cash flow statements for limited companies.

Cash flow statement

Disposal of fixed assets; depreciation of fixed assets

Presentation and terminology used should be in line with current practice/legislation

Outcome 4 looks at the analysis of the final accounts of a limited company including the calculation

of accounting ratios.

Accounting ratios: profitability, liquidity, efficiency

Analysis of ratios and significance on company’s financial position





This Unit is likely to form part of a Group Award designed to provide candidates with knowledge and

skills for further study or employment within an accounting environment.

Where this Unit is being delivered as part of the HNC/D Accounting Group Award, it is

recommended that the Unit be delivered towards the beginning of the Group Award either in tandem

with, or following, the HN Unit F7JV 34: Recording Financial Information.

The assessment for Outcomes 1, 3 and 4 could be based around one case study, not necessarily given

as a single assessment event. The assessment could take the format of a trial balance of a limited

company, where the candidate would produce a profit and loss account and balance sheet, a cash flow

statement and then undertake ratio analysis.

The assessment of Outcomes 1 and 2 could be undertaken separately although it is recommended that

Outcomes 3 and 4 be assessed together.

Outcome 1 should be assessed under open book supervised conditions with access to a pro forma

layout for the relevant set of accounts only. It is recommended a different type of business

organisation should be used each time the Outcome is assessed. Outcome 2 should be assessed under

open book supervised conditions with a pro forma issued for the profit and loss account only.

Outcomes 3 and 4 should be assessed under open book supervised conditions.




brought to their attention.


The achievement of this Unit gives automatic certification of the Using Number component of the

Core Skill Numeracy at SCQF level 5. Throughout the Unit the candidates apply a wide range of

numerical skills to solve work related problems.

Open learning

This Unit could be delivered by distance learning. However, it would require planning by the centre

to ensure the authenticity of candidate evidence. Arrangements would have to be made to ensure that


Further advice can be found on SQA’s website www.sqa.org.uk.








Unit title: Preparing Final Accounts This Unit is designed to introduce you to the final accounts of sole traders (from incomplete records),

partnerships and limited companies that operate as either traders or manufacturers. The final accounts

comprise of profit and loss accounts and balance sheets and you will learn how to prepare and present

these statements in accordance with current accounting standards.

As cash flow is important to businesses you will learn how to produce cash flow statements for

limited companies.

Business organisations need to analyse their financial position in terms of profitability, liquidity and

efficiency and you will learn how to calculate and analyse accounting ratios to provide this

information.

This Unit may be assessed by four tasks covering the final accounts of a range of business

organisations requiring you to:

Prepare final accounts for business organisations

Prepare final accounts, for a sole trader, from incomplete records

Prepare a cash flow statement for a limited company

Analyse the final accounts of a limited company using accounting ratios

The assessments will be carried out under supervised conditions.

You will have opportunities to develop the Using Number component within the Core Skill of

Numeracy in this Unit. Achievement of this Unit gives automatic certification of Using Number at

SCQF level 5.

HN Unit (F7JS 34): Management Accounting Using Information Technology 1



Unit title: Management Accounting Using Information Technology

Unit code: F7JS 34

Unit purpose: This Unit is designed to enable candidates to develop their management information

decision making and information technology skills. The Unit will enable candidates to provide timeous,

meaningful and well-presented financial information. It uses information technology as an assessment

tool to enable candidates to prepare management information for control and decision making in an

organisation.

This Unit is primarily intended for candidates who expect to take up a career or further study in cost or

management accounting but would also be appropriate to those who wish to gain experience in budget

preparation. It is also relevant to those with appropriate work experience who wish to formalise their

management accounting qualifications.


1 Prepare budget statements

2 Prepare a basic budgetary control report and a variance analysis

3 Use break-even analysis for decision making

4 Prepare profit statements using marginal and absorption costing methods

Credit points and level: 2 HN credits at SCQF level 7: (16 SCQF credit points at SCQF level 7*)





centre. However, candidates would normally be expected to be competent in numeracy and

communication at SCQF level 5 or have similar qualifications or experience. Candidates should have

spreadsheet skills prior to commencement of this Unit.

Core Skills: The achievement of this Unit gives automatic certification of the following:


Using Graphical Information at SCQF level 5

There are also opportunities to develop the Writing element of the Written Communication component

of the Core Skill Communication at SCQF level 5 and the Core Skill Problem Solving at SCQF level 5 in

this Unit, and these are highlighted in the Support Notes of this Unit specification.





Assessment: This Unit could be assessed by four separate assessments.


standard of achievement required at SCQF level 7.

Since the Numeracy Core Skill components of Using Number at SCQF level 6 and Using Graphical

Information at SCQF level 5 are embedded in this Unit, it is strongly recommended that you follow the

assessment guidelines given. If you wish to use a different assessment model, you should seek prior

verification of the assessment instrument(s) you intend to use to ensure that the Core Skill is still

covered.




Unit code: F7JS 34


mandatory.

Outcome 1

Prepare budget statements


Functional budgets

Master budget

Financial modelling using spreadsheets



they can:

Prepare individual functional budgets and a master budget using a spreadsheet package. Functional

budgets to include:

— Sales

— Production

— Material purchases and usage

— Labour

— Fixed and variable overheads

— Cash

— The budgets for a six month period should be prepared using a recognised spreadsheet package

containing linked worksheets. The master budget should be prepared in a format suitable for

presentation to management.

— The evidence should be presented as printouts of all prepared budgets with evidence that correct

formulae have been used.

Use financial modelling to prepare a revised master budget incorporating a minimum of two

changes in data.

The functional budget templates should be generated under supervised conditions. Candidates should

note that no other materials should be accessed during the assessment event other than the linked

functional budget templates.

The master budget should be generated under supervised conditions with access restricted to the

functional budgets templates only. Candidates should not have access to a pre-prepared Master Budget

Template.

Figures must be accurate within a tolerance of four errors.





It is recommended that the assessment of this Outcome be completed within one and half hours.

Prior to preparation of the master budget the candidates will prepare templates for the functional budgets

with links and formulae. These templates should not include the master budget (ie Profit and Loss

Account and Balance Sheet). Candidates will be able to access and complete these pre-prepared

functional budget templates during the assessment event.

Candidates will be required to enter assessment data and to prepare the master budget during the

assessment, including relevant links and formulae to the functional budgets. Candidates should note that

no other materials should be accessed during the assessment event other than the linked functional

budget templates.




Outcome 2

Prepare a basic budgetary control report and a variance analysis


Cost behaviour

Flexible budgeting

Standard costing

Cost variances

Budgetary control report



they can:

Prepare a budgetary control report comparing flexed budget with actual figures. The variances to be

calculated include:

— Material: price and usage

— Labour: rate and efficiency

— Variable production overheads: expenditure and efficiency

— Fixed production overheads: expenditure and volume

Analyse the variances and prepare a report outlining a minimum of one reason for each sub-variance

calculated.

The budgetary control report and calculation of sub-variances should be prepared using a recognised

spreadsheet package and candidates should demonstrate IT skills by linking worksheets/workbooks

wherever possible.

The evidence should be printouts of all prepared budgets with evidence that correct formulae have been

used.

The evidence should be generated under supervised conditions with access to blank templates only. Prior

to the assessment event candidates will be given a template displaying the layout of the budgetary control

report. Centres should note that no other materials should be accessed during the assessment event other

than the template.

Figures must be accurate within a tolerance of three errors.



Prior to the assessment event candidates should have been given a blank template, suitable for

presentation to management, with no links or formulae. The template for the budgetary control report

and cost variances and analysis of sub-variances should not include any formulae within a cell. Cost

variances can include the formulae for the sub-variance calculations. Candidates will be able to access

the blank spreadsheet template provided and will be required to complete the budgetary report and

calculate the variances and sub-variances during the assessment. They should also provide possible

reasons for the variances.




Outcome 3

Use break-even analysis for decision making


Break-even analysis

Break-even charts

Effect on Profit and Loss

Decision making based on break-even analysis

Use of spreadsheets to demonstrate the graphical and mathematical approach of break-even and the

effects on profits



they can, for three difference scenarios:

Calculate break-even point in revenue and output

Calculate margin of safety in revenue and output

Calculate Profit or Loss at any given output

Calculate effects on Profit or Loss of changes in a minimum of two key variables

Prepare a break-even chart showing break-even and margin of safety for one of the scenarios

Prepare a recommendation for management based on Profit/Loss calculated for each of the three

different scenarios.

The budgets for a six month period should be prepared using a recognised spreadsheet package

containing linked worksheets. Prior to the assessment event candidates will prepare a template displaying

the columnar headings for an operating statement including cells showing the key input data required to

calculate break-even point in a given situation.


Figures must be accurate within a tolerance of two errors.



Prior to the assessment event candidates should prepare a template displaying the columnar headings for

an operating statement including cells showing the key input data required to calculate break-even point

in a given situation. From this information candidates will calculate break-even points and margin of

safety for each of the three different scenarios using a mathematical approach. For one scenario

candidates should demonstrate the changes graphically. Candidates will also calculate the impact on

profits of changes in selling price and costs. Candidates will be required to recommend a suitable course

of action. Candidates should note that no other materials should be accessed during the assessment event

other than the template.




Outcome 4

Prepare profit statements using marginal and absorption costing methods


Profit statements

Marginal and absorption costing

Use of spreadsheets to prepare profit statements



they can:

Prepare profit statements using both marginal and absorption methods, to accurately and clearly

demonstrate different stock valuations under each method.

Compare and contrast the two methods of costing.

The profit statements should be prepared using a recognised spreadsheet package and candidates should

demonstrate IT skills by linking worksheets/workbooks wherever possible.

The evidence should be printouts of data and formulae in relation to marginal and absorption costing.

The evidence should be generated under closed book supervised conditions.

Figures must be accurate within a tolerance of four errors.


It is recommended the assessment of this Outcome be completed within two hours.

Evidence comparing and contrasting the two methods of costing could be generated using a recognised

word processing package.



Unit code: F7JS 34




Version: 01

History of changes:


Source: SQA




SQA acknowledges the valuable contribution that Scotland’s colleges have made to the development of









80 hours.


This Unit is primarily intended to prepare candidates for a career in cost or management accounting but

would also be appropriate to those who wish to gain experience in budget preparation. It is also relevant

to those with appropriate work experience who wish to formalise their management accounting

qualifications.

This Unit is an introduction to management accounting. The use of spreadsheet packages will introduce

candidates to the different presentation possibilities used in management accounting in the workplace.

For those candidates who successfully achieve this Unit, as part of the HNC/HND Accounting Group

Award, there may be opportunities to gain exemptions from a number of professional accounting bodies.

Centres should contact the relevant professional bodies to ascertain their current exemption policies.

Outcome 1 covers the preparation of both functional and master budget statements.

Functional budgets: sales, production, material purchases and usage, labour, fixed and variable

overheads, and cash budget

Master budgets: Profit and Loss Account and Balance Sheet

Outcome 2 covers the preparation of budgetary control reports and cost variances. The variances to

include:

Material: price and usage

Labour: rate and efficiency

Variable production overheads: expenditure and efficiency

Fixed production overheads: expenditure and volume

Outcome 3 involves the use of break-even analysis as an aid to decision making.

Calculation of break-even levels using a mathematical approach

Demonstration of changes using graphs

Effects on profit/loss

Recommendations on courses of action

Outcome 4 covers the preparation of profit statements using marginal and absorption costing. Stock

valuations will be calculated using both methods.







Where this Unit is being delivered as part of the HNC/HND Accounting Group Award it is

recommended that the Unit be delivered towards the beginning of the Group Award to give candidates a

good understanding of, and the application of practical skills in the preparation of budgets, both

functional and master; the operation of standard costing techniques, budgetary control and variance

analysis; the use of break-even and sensitivity analysis and decision making based on break-even

analysis; and the preparation and comparison of marginal and absorption costing statements.

It is recommended each Outcome be assessed separately. The evidence for Outcome 1 is produced under

supervised conditions with access restricted to the functional budgets templates only. The evidence for

Outcome 2 is generated under supervised conditions with access to blank templates only. The evidence

for Outcome 3 is generated under open-book supervised conditions. The evidence for Outcome 4 is

generated under closed-book supervised conditions.




brought to their attendance.


The achievement of this Unit gives automatic certification of the Using Number component of the Core

Skill Numeracy at SCQF level 6. Throughout all four Outcomes of the Unit, the candidates apply a wide

range of numeric skills to solve work related problems.

The achievement of this Unit gives automatic certification of the Using Graphical Information

component of the Core Skill Numeracy at SCQF level 5. In Outcome 3 the candidates are required to

produce and interpret graphs.

The delivery and assessment of this Unit may contribute towards the Writing element of the Written

Communication component of the Core Skill Communication at SCQF level 5 if candidates prepare a

written report for management in Outcome 2.

The delivery and assessment of this Unit may also contribute towards the Core Skill Problem Solving at

SCQF level 5. In Outcome 3 candidates use break-even analysis to aid decision making. This involves

candidates carrying out calculations for three different scenarios and making recommendations to

management based on the calculations.

These Core Skills can be developed through formative activities without being formally assessed for

certification of Core Skills.




Open learning




Further advice can be found on SQA’s website – www.sqa.org.uk.









This Unit will introduce you to management accounting and reporting. You will make use of information

technology to demonstrate the various ways in which management information can be displayed.

In Outcome 1 you will learn how to prepare budget statements using spreadsheets. The budget statements

will include functional budgets and master budgets. The functional budgets covered include: sales;

production; materials purchase and usage; labour; fixed and variable overheads; and cash.

In Outcome 2 you will look at cost variances (material, labour, variable production overheads, and fixed

production overheads) and analyse these and prepare budgetary control reports.

In Outcome 3 you will learn about break-even analysis and how this is used for decision making. You

will calculate break-even levels using a mathematical approach and demonstrate the changes using

graphs.

In Outcome 4 you will prepare profit statements to demonstrate different stock valuations using both

marginal and absorption costing methods.

Throughout the Unit you will demonstrate your skills in using spreadsheets to prepare statements and

link worksheets/workbooks wherever possible.

Each Outcome may be assessed separately. The assessments will be carried out under supervised

conditions.

You will have opportunities to develop components within the Core Skills of Numeracy, Communication

and Problem Solving in this Unit. Achievement of this Unit gives automatic certification of Using

Number at SCQF level 6 and Using Graphical Information at SCQF level 5.

HN Unit (F7JR 34): Cost Accounting 1



Unit title: Cost Accounting

Unit code: F7JR 34

Unit purpose: This Unit is designed to introduce candidates to costing techniques that may be

utilised within a cost accounting environment. The objective of the Unit is to enable candidates to

maintain a working accounting system for classifying and recording cost accounting information for

purposes such as stock valuations, job costing and profit measurement.


management accounting. It is also relevant to those with appropriate work experience who wish either to

formalise their qualifications or progress in their accounting career.


1 Account for material costs

2 Account for labour costs

3 Apportion and allocate overhead costs

4 Account for product costs

5 Record transactions in a cost accounting system

Credit points and level: 2 HN credits at SCQF level 7: (16 SCQF credit points at SCQF level 7*)





centre. However, candidates would normally be expected to be competent in communication and

numeracy at SCQF level 5 or have similar qualifications or experience.



There are also opportunities to develop the Critical Thinking component of the Problem Solving Core

Skill at SCQF level 4 in this Unit, and these are highlighted in the Support Notes of this Unit

specification.





Assessment: This Unit could be assessed using five separate assessments.


standard of achievement required at SCQF level 7.

Since the Using Number component of the Numeracy Core Skill at SCQF level 5 is embedded in this

Unit, it is strongly recommended that you follow the assessment guidelines given. If you wish to use a

different assessment model, you should seek prior moderation of the assessment instrument(s) you intend

to use to ensure that the Core Skill is still covered.




Unit code: F7JR 34


mandatory.

Outcome 1

Account for material costs


Material costs and stock control

Stock control documents

Methods of stock valuation

Stock control indicators



they can:

Complete pro-forma stock control documentation relating to the movement of materials into the

business, within the business and from the business.

Record and calculate stock movements and value stock using two methods of stock valuation from:

LIFO, FIFO or Weighted Average.

Using stock control indicators calculate minimum stock levels, reorder levels, maximum stock

levels, reordering costs, stock holding costs and economic order quantities in a given situation.

Define material costs and outline, with a minimum of six reasons, why stock control is important.

The evidence should be generated under supervised conditions with access restricted to pro-forma

documentation and formulae only. No other textbooks or notes should be available to the candidate.

Figures must be accurate within a tolerance of three arithmetic or computational errors.


It is recommended that the assessment of this Outcome be completed within one and a half hours. The

assessment could be presented as a case study detailing a manufacturing organisation’s stock

movements. From this information candidates could complete the relevant documents and record cards

as well as calculate the stock control levels and values and explain the purpose and importance of stock

control.




Outcome 2

Account for labour costs


Labour costs

Calculation of wages

Idle time

Incentive schemes

Labour turnover



they can:

List the procedures for recording labour costs including documentation required.

Calculate wages in differing situations within the workplace using basic time rate, overtime rate and

differential piece work schemes.

Identify idle time and record it within a cost accounting system.

Use an incentive scheme to show effect on labour costs and profit. The incentive scheme used

should be from: premium bonus schemes, commission or group bonus schemes.

Describe a minimum of two effects on labour turnover for an organisation.


documentation only. No other textbooks or notes should be available to the candidate.

Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum

of two errors of principle.


It is recommended that the assessment of this Outcome be completed within two hours. The assessment

could be presented as a case study detailing labour cost information. From this information candidates

could complete the relevant documentation provided as well as accurately calculate wages in differing

situations and subsequent effect on profits/costs and labour turnover.




Outcome 3

Apportion and allocate overhead costs


Overhead analysis

Overhead absorption rates

Absorbed overheads — departmental overheads

Over and under absorption and effect on profits

Service cost centres

Production departments



they can:

Identify the overheads which can be allocated and those which must be apportioned.

Use four different methods of apportioning overheads from: utilising floor space, number of

employees, value of plant/machinery, sales volume and power of machinery.

Calculate relevant departmental overheads after apportionment and allocation and then reapportion

three service cost centre overheads to two production departments.

Calculate overhead absorption rates using the completed overhead analysis, using two different

bases from: direct labour hours, machine hours, cost units or prime cost.

Calculate over/under absorption of all production department overheads based on a comparison of

actual costs and expected costs.

Describe how the over/under absorption of overheads would be treated in the financial records of

the organisation.


documentation only. No other textbooks or notes should be available to the candidate.

Figures must be accurate within a tolerance of three arithmetic or computational errors, with a maximum

of two errors of principle.


It is recommended that the assessment of this Outcome be completed within one and a half hours. The

assessment could be presented as a case study detailing a manufacturing organisation with two

production departments and three service cost centres. From this information candidates should

reapportion overheads using the pro-forma table provided as well as calculating overhead absorption

rates/actual overheads absorbed and under/over absorption. Candidates should be required to explain the

resulting effects on profits.




Outcome 4

Account for product costs


Costs — direct, indirect, fixed and variable

Coding system

Job cost statement

Service cost statement



they can:

Account for product costs (direct, indirect, fixed and variable) by producing a job cost statement

which details the build up of total costs with sub-totals for prime cost and production cost, selling

price being accurately calculated by correctly applying a profit mark-up or margin.

Account for product costs (direct, indirect, fixed and variable) by producing a service cost statement

which differentiates between running (variable) and standing (fixed) costs, providing a total cost

and identifying Unit operating costs.

For each cost statement costs should be coded using a given coding system.


For the job cost statement figures must be accurate within a tolerance of three arithmetic or

computational errors, with a maximum of two errors of principle.

For the service cost statement figures must be accurate within a tolerance of two arithmetic or

computational errors, with a maximum of one error of principle.



could be presented as a case study of either a manufacturing or service organisation. From this

information candidates should produce a job cost statement and a service cost statement. Each Cost

Statement could be assessed at a separate assessment event. The coding system used could be that used

in the HN Unit F7JP 34: Using Financial Accounting Software.




Outcome 5

Record transactions in a cost accounting system


Cost accounting systems



they can:

Record a minimum of 20 transactions in either an interlocking or integrated cost accounting system.

Candidates should then:

— Prepare and balance the ledger and control accounts

— Extract a trial balance from the ledger accounts.


Figures must be accurate within a tolerance of two arithmetic or computational errors, with a maximum

of one error of principle.



could be presented as a case study detailing a manufacturing organisation. From this information

candidates could record transactions in a cost accounting system and extract the trial balance.



Unit code: F7JR 34




Version: 02

History of changes:


02 Minor changes to Evidence Requirements in Outcomes 2 and 3. 27/07/10

Source: SQA













80 hours.



management accounting. It is also relevant to those with appropriate work experience who wish either to

formalise their qualifications or progress in their accounting career. This Unit is an introduction to cost

accounting and will enable candidates to prepare cost and management accounting information and

reports.

For those candidates who complete this Unit as part of the HNC/D Accounting Group Award there may

be opportunities to gain exemptions from a number of professional bodies. Centres should contact the

relevant professional bodies to ascertain their current exemption policies.

Outcome 1 covers material costs and stock valuation for a manufacturing company.

Definition of direct materials and how their receipt, issue and movement are recorded by

organisations

Stock control importune to cover issues such as holding costs, ordering costs and administrative

costs

Stock valuation methods: LIFO, FIFO and Weighted Average

Outcome 2 covers labour costs.

Timesheets, wages analysis documentation and comparison of payment systems

Direct labour costs

Time and a half and double time overtime, piece rate and/or differential piece rate, group bonus

schemes such as Performance Related Pay

Outcome 3 involves the apportioning and allocation of overhead costs.

Overhead costs — fixed and variable

Methods of apportioning overheads: floor space; number of employees; value of plant/machinery;

sales volume; effective power of machinery

Service cost centres

Production departments

Outcome 4 covers product costs.

Job cost and Service cost statements using a structured layout to identify direct, indirect costs,

variable and fixed costs where appropriate

Cost plus and profit margin to calculate selling price

Use of a given coding system to code costs in each of the cost statements (candidates could use the

coding system used in the Unit F7JP 34: Using Financial Accounting Software)




Outcome 5 covers the recording of transactions in a cost accounting system.

Control accounts — wages, production overhead

Ledgers — Purchases, Sales and General




Where this Unit is being delivered as part of the HNC/D Accounting Group Award, it is recommended

that the Unit be delivered either before, or in tandem with, the HN Unit F7JS 34: Management

Accounting Using Information Technology.

It is recommended that the Unit be delivered in the order of the Outcomes as this will represent a logical

build in knowledge and skills for candidates.

The assessment could be designed around one case study. This could be a manufacturing organisation.

Each Outcome could be assessed separately as there is little scope to combine the assessment of

Outcomes.

All evidence should be produced under supervised conditions. The evidence for Outcomes 1, 2, 3 and 4

should be produced under open book supervised conditions with access restricted to pro-forma

documentation only and the evidence for Outcome 5 should be produced under open book supervised

conditions.



Skill Numeracy at SCQF level 5. Throughout all 5 Outcomes of this Unit candidates apply a wide range

of numerical skills to solve practical problems.

The delivery and assessment of this Unit may also contribute towards the Critical Thinking component

of the Core Skill Problem Solving at SCQF level 4. In Outcome 3 candidates are required to allocate and

apportion overheads across production and service departments using chosen bases as decided by

candidates. In Outcome 3 candidates are required to code invoices to a coding system using their own

judgement as to the most appropriate code for each cost.

Open learning




Further advice can be found on SQA’s website www.sqa.org.uk.









http://www.sqa.org.uk/assessmentarrangements




This Unit is designed to enable you to gain knowledge and develop practical skills in cost accounting.

Outcome 1 covers material costs for a manufacturing business. You will learn about the different

methods of stock valuation and will complete practical tasks using these methods. You will learn about

the importance of stock control and the key stock control indicators. You will use given formulae to

calculate these indicators for an organisation using practical tasks.

Outcome 2 moves on to look at other costs for the business — labour (employee) costs. You will learn

how to calculate gross wages using hourly rates, overtime rates and incentive schemes. You will learn

about the impact of different pay schemes on costs for the business and how these may impact on labour

turnover for the business. You will learn about idle time and will allocate labour costs to jobs worked on

by staff.

Outcome 3 looks at other costs for the business — called overhead costs, these are the indirect costs of

the business which may not be directly attached to a product or job. You will learn how these are spread

across the different cost centres or cost units of the business. You will learn how these costs are shown in

the financial records of the organisation.

Outcome 4 covers all product costs. You will learn how to incorporate these costs into a job cost or

service cost statement. You will learn how to calculate cost plus pricing and a profit mark up for the

organisation. You will also allocate a code, using a given coding system, to the costs involved.

Outcome 5 involves recording transactions in an interlocking and integrated cost accounting system. You

will learn how to prepare ledger and control accounts, balance off ledger accounts and produce a trial

balance.

Each Outcome may be assessed separately and all assessments will be carried out under supervised

conditions.

You will have opportunities to develop components within the Core Skills of Numeracy and Problem

Solving in this Unit. Achievement of this Unit gives automatic certification of Using Number at SCQF

level 5.

HN Graded Unit (F8KE 34): Accounting: Graded Unit 1 1

Higher National Graded Unit specification


This Graded Unit has been validated as part of the HNC Accounting. Centres are required to develop

the assessment instrument in accordance with this validated specification. Centres wishing to use

another type of Graded Unit or assessment instrument are required to submit proposals detailing the

justification for change for validation.

Graded Unit title: Accounting: Graded Unit 1

Graded Unit code: F8KE 34

Type of Graded Unit: Examination

Assessment Instrument: Closed-book Examination

Credit points and level: 1 HN credit at SCQF level 7: (8 SCQF credit points at SCQF level

7*)




Purpose: This Graded Unit is designed to provide evidence that the candidate has achieved the

following principal aims of the HNC Accounting:

To prepare candidates for progression to further study in accounting or a related discipline.

To develop and integrate a range of contemporary vocational skills (ie evaluating and

interpreting financial data).

To enable candidates to integrate financial, costing and management data.

Recommended prior knowledge and skills: It is recommended that the candidate

should have completed or be in the process of completing the following Units relating to these

specific aims prior to undertaking this Graded Unit:

F7JV 34: Recording Financial Information

F7JT 34: Preparing Final Accounts

F7JP 34: Using Financial Accounting Software

F7JS 34: Management Accounting Using Information Technology

F7JR 34: Cost Accounting

Core Skills: There are no Core Skills embedded in this Graded Unit specification.

Assessment: This examination-based Graded Unit is a closed-book examination. It will consist of

an examination of three hours.





Graded Unit code: F8KE 34



Version: 01

History of changes:


Source: SQA






Additional copies of this Graded Unit specification (if sourced by the Scottish Qualifications

Authority), can be purchased from the Scottish Qualifications Authority. Please contact the Customer

Contact Centre for further details, telephone 0845 279 1000.


Higher National Graded Unit specification: instructions for designing the

assessment task and assessing candidates


Conditions of assessment

The assessment is based on a closed-book examination lasting three hours.

If a candidate does not achieve a pass or if a candidate wishes to upgrade, this must be based on a

significantly different examination from that given originally. A candidate’s grade will be based on

his/her achievement on the new assessment event using a significantly different examination, if this

results in a higher grade.

The examination should be unseen and the assessment should be conducted in controlled and

invigilated conditions.

At all times, the security, integrity and confidentiality of examinations must be ensured.

Instructions for designing the assessment task

The examination should be designed to assess the candidate’s critical knowledge and understanding of

the topics relating to the specific aims which this Graded Unit is designed to cover. The questions and

corresponding marks should be designed in accordance with the ranges indicated in the table that

follows. However, the overall total mark for the examination is 100.

Key topics Level of demand

Percentage weighting for each topic

Part 1 Computational (Note 1)

Purchase of Materials (Note 2)

Wages Analysis (Note 3)

Complete or check the accuracy of Stores

Record Cards

Complete or check documentation relating to

payroll calculations

10%

Ledger Accounts and Trial

Balance

Incorporate material purchase, wages and other

adjustments into ledger accounts

Produce a Trial Balance based on now

completed ledger accounts

25%

Preparation of Final Accounts Produce the required Profit and Loss and

Balance Sheet 25%

Part 2 Narrative

Candidates should select 2

questions from a choice of 3 in

both Sections A and B (Note 4)

Describe, explain, illustrate and evaluate

40%



assessment task and assessing candidates (cont)

Instructions for designing the assessment task (cont)

Part 1: Computational Section

1 This part of the examination relates to a manufacturing company.

2 One materials invoice showing delivery of material on the last day of the financial period along

with a completed goods received note. Candidates should be given

a partially completed Stores Record Card(s) to complete

or a completed Store Record Card to check for accuracy and amend as required

3 Candidates should be given information relating to payroll calculations, eg clock cards, time

sheets, wages analysis, etc. The information may be complete or incomplete. Candidates will be

required to either

compute wage costs and identify direct and indirect costs

or check the documentation and amend as required

Part 2: Narrative Section (divided into two sections)

Section A — Financial Accounting

The three questions given to candidates should cover three of the following topics:

a Users of Financial Information and Interpretation of Final Accounts

b Preparation of Final Accounts and Year End Adjustments

c Financial Accounting Software Packages

d Accounting Control Mechanisms

e Distinction between Financial and Cost Accounting

Section B — Management Accounting

The three questions given to candidates should cover three of the following topics:

a The Theory and Practice of Budgeting

b Cost Behaviour

c Costing Systems

d The use of IT to assist in the provision of Management Information

e Distinction between Cost and Financial Accounting

The examination will be marked out of 100. Assessors will aggregate the marks achieved by the

candidate to arrive at an overall mark for the examination. Assessors will then assign a grade to the

candidate for this Graded Unit based on the following grade boundaries:

A = 70% — 100%

B = 60% — 69%

C = 50% — 59%




Guidance on grading candidates

Candidates who meet the minimum Evidence Requirements will have their achievement graded as a C

(competent), A (highly competent), or B (somewhere between A and C). The grade related criteria to

be used to judge candidate performance for this Graded Unit is specified in the following table:

Grade A Grade C

Is an exam script which consistently: Is an exam script which:

interprets and understands the question in a

way which demonstrates insight and clear

understanding of issues and relationships

interprets and understands the question in a

way which enables the candidate to meet the

basic criteria required

answers demonstrate a comprehensive

analysis and evaluation of relevant

information

answers demonstrate a limited analysis

evaluation and explanation of the question

and other relevant information

responses are logically structured and

coherently expressed demonstrating

consistent use of correct terminology

responses are uneven and convey limited

understanding although some relevant points

are made

is clear and well structured throughout with

language and terminology used of a

consistently high standard in terms of level,

accuracy and technical content

is satisfactorily structured with language and

terminology used adequate, although not

always consistent, in terms of level, accuracy

and technical content

consolidates and integrates required

knowledge and skills linking concepts and

ideas and relating answers explicitly to the

question

consolidates and integrates required

knowledge and skills but may lack continuity

and consistency and fail to show clear links

to concepts and ideas

convincingly argues and shows links

between discussions and conclusions

demonstrating comprehensive knowledge

and understanding as well as analysing and

evaluation skills

argues and justifies conclusions in an

acceptable way but these conclusions may

lack reasoned understanding, may not link

well to discussions and may show limited

knowledge

provides evidence of possible alternative

approaches and arguments as well as

understanding of different interpretations

is likely to show one approach and limited

understanding of different interpretations




Support notes



is 40 hours

This Unit is designed to assess the candidate’s ability to integrate knowledge and understanding

across the mandatory Units F7JV 34: Recording Financial Information, F7JT 34: Preparing Final

Accounts, F7JP 34: Using Financial Accounting Software, F7JS 34: Management Accounting Using

Information Technology, and F7JR 34: Cost Accounting.





www.sqa.org.uk/assessmentarrangements



This Graded Unit is a mandatory element of the HNC Accounting Group Award and is designed to

assess your ability to integrate and apply knowledge across the mandatory Units — F7JV 34:

Recording Financial Information, F7JT 34: Preparing Final Accounts, F7JP 34: Using Financial

Accounting Software, F7JS 34: Management Accounting Using Information Technology, and F7JR

34: Cost Accounting.

This Graded Unit is assessed by a closed-book examination of three hours. The examination consists

of two parts:

Part 1: Computational (60%)

Purchase of materials

Wages analysis

Ledger Accounts and Trial Balance

Preparation of Final Accounts

Part 2: Narrative (40%)

Financial Accounting

Management Accounting

The Graded Unit is a mandatory element of the HNC Accounting Group Award.

Grades will be awarded on the following bases:

A = 70% — 100%

B = 60% — 69%

C = 50% — 59%

HN Unit (F7JV 34): Recording Financial Information 1



Unit title: Recording Financial Information

Unit code: F7JV 34

Unit purpose: This Unit is designed to enable candidates to develop their manual book-keeping

skills. It will give them the knowledge needed to record financial information, using a double entry

book-keeping system, up to trial balance. The Unit will also enable candidates to complete a VAT

Return and incorporate control mechanisms into the book-keeping system.





1 Record financial transactions in books of original entry

2 Record financial transactions in a double entry book-keeping system and extract a trial balance

3 Complete a VAT Return

4 Incorporate control mechanisms into a book-keeping system

Credit points and level: 1 HN credit at SCQF level 7: (8 SCQF credit points at SCQF level 7*)





centre. However, candidates would normally be expected to be competent in numeracy and

communication at SCQF level 5 or have similar qualifications or experience.



There are also opportunities to develop aspects of the Critical Thinking component of the Core Skill

Problem Solving at SCQF level 4 in this Unit, and these are highlighted in the Support Notes of this

Unit specification.

Context for delivery: If this Unit is delivered as part of a Group Award, it is recommended that

it should be taught and assessed within the subject area of the Group Award to which it contributes.



Assessment: This Unit could be assessed by four separate assessments. Alternatively, it could be

assessed by combining the assessment of Outcomes.



Since the Core Skill component of Using Number at SCQF level 5 is embedded in this Unit, it is

strongly recommended that you follow the assessment guidelines given. If you wish to use a different

assessment model, you should seek prior verification of the assessment instruments(s) you intend to use

to ensure that the Core Skill is still covered.




Unit code: F7JV 34


are mandatory.

Outcome 1

Record financial transactions in books of original entry


Financial transactions

VAT on financial transactions

Books of original entry



that they can:

Record a minimum of 20 financial transactions, covering revenue and capital items, in the relevant

books of original entry.

— Details of transactions contained within sales and purchase invoices, sales and purchases credit

notes, bank transactions received and paid, cash received and paid.

— Details of transactions should be recorded in the Sales, Sales Returns, Purchases, and

Purchases Returns day books, and Cash Book.

Account for VAT on these transactions in the books of original entry. Transactions should cover

standard rated, zero rated and exempt items.

Total day books and balance cash book.


Figures must be accurate within a tolerance of three arithmetic or computational errors, with a



This Outcome may be assessed separately or combined with the assessment of Outcome 2.

It is recommended that the assessment of this Outcome be completed within one hour. The assessment

could be presented as a case study with candidates recording the financial transactions of a business,

for one month, in the appropriate books of original entry. Candidates may be provided with appropriate

accounting stationery.




Outcome 2

Record financial transactions in a double entry book-keeping system and extract a trial balance.


Double entry book-keeping

Ledger accounts

Trial balance



that they can:

Post financial transactions from the books of original entry - Sales, Sales Returns, Purchases,

Purchases Returns and Cash Book - to sales, purchase and general ledger accounts applying

double entry book-keeping principles.

Balance the ledger accounts for assets, liabilities, income and expenses.

Extract a trial balance from the ledger accounts.



maximum of four errors of principle.


This Outcome may be assessed separately or combined with the assessment of Outcome 1.


could be presented as a continuation of the case study from Outcome 1. Candidates may use any

acceptable ledger account layout (T accounts or running balance). Candidates may be provided with

appropriate accounting stationery.




Outcome 3

Complete a VAT Return


VAT Inputs and Outputs

VAT Return



that they can:

Calculate the figures required for a VAT Return from the books of original entry for a minimum of

one month.

Complete a VAT Return.






could be presented as a continuation of the case study from Outcomes 1 and 2. Using the corrected

books of original entry, and referring to ledger accounts where appropriate, candidates could extract

and total input VAT, output VAT, total relevant inputs and total relevant outputs. Finally candidates

could use these totals to complete a VAT Return.

Outcome 4

Incorporate control mechanisms into a book-keeping system.


Bank reconciliation

Correction of errors

Suspense account



that they can:

Reconcile a cash book with a bank statement, and prepare a bank reconciliation statement. A

minimum of six different anomalies covering outstanding lodgements, unpresented cheques,

standing orders, direct debits, charges, errors in cash book should be included in the reconciliation.

Prepare journal entries to correct eight different types of errors in ledger accounts, four of which

should affect a suspense account.

Open, post to and clear a suspense account.








It is recommended that the assessment of this Outcome be completed within one hour.



Unit code: F7JV 34




Version: 01

History of changes:


Source: SQA













is 40 hours.

Guidance on the content and context for this Unit This Unit is primarily intended for candidates who expect to take up a career or further study in




Award, there may be opportunities to gain exemptions from a number of professional accounting

bodies. Centres should contact the relevant professional bodies to ascertain their current exemption

policies.

Outcome 1 covers the recording of financial transactions in the books of original entry.

Cash and credit transactions

Capital and revenue items

Documents involved in transactions — sales invoices, purchases invoices, sales credit notes,

purchases credit notes, bank transactions received and paid, cash received and paid

VAT — standard and zero rates; exempt

Day Books — Sales, Sales Returns, Purchases, Purchases Returns, Cash Book

Outcome 2 covers the recording of financial transactions in a double entry book-keeping system and

extracting a trial balance.

Double entry book-keeping principles

Ledger accounts — assets, liabilities, income and expenses

Ledger accounts — T accounts or running balance

Ledgers — Sales, Purchases, General

Preparation and purpose of trial balance

Outcome 3 involves the completion of a VAT Return.

VAT Inputs and Outputs

Total relevant inputs and total relevant outputs

Completion of VAT Return




Outcome 4 covers control mechanisms which may be incorporated into a book-keeping system.

Bank reconciliation — updating of Cash Book; bank reconciliation statement

Correction of errors — use of journal to correct errors; errors not affecting agreement of trial

balance (error of commission, error of omission, error of principle, compensating error, error of

original entry, complete reversal of entry); use of suspense account in correction of errors

affecting agreement of trial balance




Where this Unit is being delivered as part of the HNC/D Accounting Group Award it is recommended

that the Unit be delivered towards the beginning of the Group Award to give candidates a good

understanding of manual book-keeping using double entry principles. Candidates will then apply these

skills in a practical situation. It will also give candidates knowledge and skills in the completion of a

VAT Return and the incorporation of control mechanisms into the book-keeping system.

The assessments could be designed around one case study. This could consist of a sole trader where the

candidates start the process by recording financial transactions in the books of original entry, posting

these transactions to ledger accounts and then preparing a trial balance. Thereafter candidates could use

the same books of original entry to prepare a VAT Return. Finally, candidates gain an appreciation of

control mechanisms by preparing a bank reconciliation statement and correcting errors.

Each Outcome could be assessed separately or the assessment of Outcomes 1 and 2 could be combined.

All evidence should be produced under supervised conditions. The evidence for Outcomes 1 and 2 will

be produced under closed book supervised conditions and for Outcomes 3 and 4 under open book

supervised conditions.



Skill Numeracy at SCQF level 5. Throughout all 4 Outcomes of the Unit, candidates apply a wide range

of numerical skills to practical tasks.

The delivery and assessment of this Unit may also contribute towards the Critical Thinking component

of the Core Skill Problem Solving at SCQF level 4. In particular, in Outcome 4 candidates are

investigating reasons why a straightforward problem with the book-keeping system has arisen.

Thereafter they are carrying out the necessary steps to deal with the problem by preparing bank

reconciliation statements and journal entries to correct errors in the ledger accounts and suspense

account.




Open learning This Unit could be delivered by distance learning. However, it would require planning by the centre to



To keep the administrative burden to a minimum, it is recommended that the assessments of Outcomes

are combined for distance learning candidates.

Further advice can be found on SQA’s website - www.sqa.org.uk.









This Unit is designed to enable you to develop manual book-keeping skills.

In Outcome 1 you will learn how to record financial transactions in the books of original entry of a

business. This will cover sales and sales returns, purchases and purchase returns and cash and bank

receipts and payments. VAT will be recorded and accounted for. You will learn how to distinguish

between cash and credit transactions and capital and revenue expenditure. You will write up the day

books and cash book of the organisation to record these transactions.

Outcome 2 covers the double entry book-keeping system which is fundamental to book-keeping and

accounts. You will learn how every transaction affects two items and how to record these in ledger

accounts. You will also learn how to compile a Trial Balance to check the accuracy of the double

entries.

In Outcome 3 you will look at VAT. You will learn about the rates of VAT and how to complete a

VAT Return from the books of original entry.

Outcome 4 looks at control mechanisms within a book-keeping system. You will learn how to reconcile

the cash book balance with the bank statement and correct errors in the book-keeping records.

Each Outcome may be assessed separately or the assessments may be combined. The assessments will

be carried out under supervised conditions.

You will have opportunities to develop components within the Core Skills of Numeracy and Problem

Solving in this Unit. Achievement of this Unit gives automatic certification of Using Number at SCQF

level 5.

HN Unit (F84V 34): IT in Business: Spreadsheets 1



Unit title: IT in Business: Spreadsheets

Unit code: F84V 34

Unit purpose: This Unit is designed to allow candidates to develop an understanding of

spreadsheet design and how to use spreadsheet features and functions for practical and effective use.

It is relevant to candidates wishing to develop their knowledge of spreadsheets as a tool to help

provide solutions to common business problems.


1 Create a spreadsheet design to provide solutions for a business scenario.

2 Present spreadsheet data in graphical form and interpret the results.

3 Provide solutions to a business scenario using spreadsheet statistical functions.

Credit points and level: 1 HN credit at SCQF level 7: (8 SCQF credit points at SCQF level

7*)




Recommended prior knowledge and skills: Access to this Unit is at the discretion of

the centre, however, it would be beneficial if candidates have achieved the Unit IT in Business – Word

Processing, Spreadsheets and Databases: An Introduction (DE24 33) or the NQ Unit Information

Technology for Administrators (DM3R 11) or equivalent or relevant work experience.

It would be beneficial if candidates have some competence in Numeracy at SCQF level 4 and

Information and Communication Technology at SCQF level 5. This may be demonstrated by

possession of a relevant Unit or relevant work experience.


Numeracy at SCQF level 5

Critical Thinking at SCQF level 5

There are also further opportunities to develop the Core Skill of Information and Communication

Technology and the Core Skill components Planning and Organising and Reviewing and Evaluating at

SCQF level 5.



Context for delivery: If this Unit is delivered as part of a Group Award, it is recommended that

it should be taught and assessed within the Group Award to which it contributes.

Assessment: Evidence for this Unit should be generated through assessment undertaken in open-

book conditions.

Evidence can be generated through assessment of a given case study or a real work place situation.

It is recommended that a thematic approach to assessment be adopted. Although each Outcome can be

assessed independently, it is recommended that Outcome 1 is assessed by means of a case study the

remaining Outcome 2 and Outcome 3 can be assessed together. A portfolio of evidence will be

compiled and this may be presented electronically or in hard copy format.

Interpretation of results should demonstrate the candidate understands the basic concepts and has the

ability to apply these in a practical situation.

An Assessment Exemplar has been produced to indicate the national standard of achievement required

at SCQF level 7.




Unit code: F84V 34


are mandatory.


are mandatory.

Outcome 1

Create a spreadsheet design to provide solutions for a business scenario


Spreadsheet design

Functions

Formulas

Cell references

Cell formats

Comments

Macro

Security features for data protection



that they can:

create a spreadsheet using three interconnected worksheets to solve a business problem

create four simple formulas and two complex formulas to include one occurrence of each of the

following: add, subtract, multiply, divide

in formulas and/or functions apply one occurrence of the following forms of cell referencing:

relative, absolute, named cell, named range, 3-D

apply two functions: =SUM and =IF

apply appropriate cell formatting to assist the analysis/reading of the worksheets using one

occurrence of the following: number, font enhancement, conditional formatting

apply two spreadsheet features to control the worksheet view

record and run one macro to assist with repetitive tasks

protect data using two different built in security features





Assessment may be undertaken in open-book conditions.

This Outcome could be assessed by way of a scenario where a business problem has to be analysed

and a possible solution provided. There may be opportunities to assess the Outcome using VLE,

hardcopy or electronic copies.

The Unit may be assessed holistically by a case study of an organisation, or a real work place

situation. Single or multiple spreadsheet files may be used to incorporate the Evidence Requirements

for Outcomes 1, 2 and 3. The features used in Outcome 1 may provide the data required to support

evidence generation for Outcomes 2 and 3.

If integrating assessment across Outcomes 1, 2 and 3, candidates should be given the opportunity to

correct any errors within their spreadsheet after summative assessment of Outcome 1 has taken place

before commencing Outcomes 2 and 3.

Outcome 2

Present spreadsheet data in graphical form and interpret the results


Graphical representation of a single data series

Graphical representation of multiple data series

Chart enhancements

Analyse data



that they can:

create an appropriate chart to represent a single data series

create an appropriate chart to represent a multiple data series

apply two chart enhancements (the two enhancements can be in the same chart)

analyse each chart providing a description of the chart, an explanation of the relevance of the

evidence and draw conclusions supported by the information to resolve a business problem


Assessment may be undertaken in open-book conditions. Screen capture could be used to demonstrate

evidence if appropriate.

If Outcomes 1 and 2 are assessed holistically, candidates may use worksheet(s) created in Outcome 1

as the basis for evidence in Outcome 2, once errors in Outcome 1 have been corrected and Outcome 1

deemed fit for purpose. If Outcome 2 is assessed separately the candidate should be provided with

information of a similar size and format to that of Outcome 1.




Candidates may produce a print ready portfolio of spreadsheet analysis to provide solutions to the

business problem(s). This evidence may be produced in a short report, attaching spreadsheet results,

which may be presented in any suitable way for example printed, submitted electronically, written,

oral or signed.

Outcome 3

Provide solutions to a business scenario using spreadsheet statistical functions


Measures of central tendency

Summarised data

Frequency distribution

Standard deviation


Candidates will need to provide evidence to demonstrate their Knowledge and/or Skills by using

built-in statistical functions within a spreadsheet application to provide solutions to a business

scenario showing that they can:

perform calculations using three methods of averaging — mean, median, mode within the same

data set

summarise data using three functions to calculate: Largest number in a range; Smallest number in

a range; Number of entries in a range

prepare a frequency distribution table and represent the results graphically

calculate one standard deviation

analyse all data results providing a description, an explanation of the relevance of the evidence

and draw conclusions supported by the information to resolve a business problem


Assessment may be undertaken in open-book conditions.

If Outcomes 2 and 3 are assessed holistically, candidates may use the spreadsheet created in Outcome

1 as the basis for the evidence required in Outcome 3. If Outcome 3 is assessed separately, prepared

files should be given to the candidate to complete the calculations.

Candidates can analyse the results of spreadsheet calculations and by means of short response

recommend a course of action. Short response for the resultant findings should include the purpose,

relevance and importance of the statistical information used in response to a business problem or

problems presented in the case study. Candidates may produce a print ready portfolio of evidence to

provide solutions to the business problem(s). This evidence may be produced in a short report,

attaching spreadsheet results, which may be presented in any suitable way for example printed,

submitted electronically, written, oral or signed.



Unit code: F84V 34


Superclass category: CD


Version: 01

History of changes:


Source: SQA













is 40 hours.


This Unit is designed to provide candidates with the knowledge and skills for further study or

employment in an administrative or IT environment. This is a mandatory Unit within the HNC/HND

Administration and Information Technology (G9M7 15 and G9M8 16) but is also included within

other HN Group Awards and can be taken as a stand-alone Unit.

This Unit embeds part of the underpinning knowledge required for Administration and Information

Technology Graded Unit 1 (F84W 34). As Candidates work through this Unit they should be made

aware that topic areas covered may be assessable in Graded Unit 1. Candidates could then consider

when and why they would use spreadsheet functions and features and identify relevant business

examples to support revision for Graded Unit 1.

Candidates should be aware of the principles and purpose of good spreadsheet design and be able to

apply spreadsheet functions, formulas, format and charting features to recommend numerical

solutions for situations commonly found within today’s business environment. Topics could include

the design of Budget templates (wedding, household, retirement, marketing), Financial templates

(mortgage affordability, early retirement scenario, property portfolios) and Business templates

(restaurant menu and recipe costing, monthly profit and loss statements, inventory management).

Candidates should be able to prepare financial and statistical reports to generate information in

support of managerial decision-making.

This Unit should help develop critical thinking skills important in today’s business environment.

Candidates should analyse data using spreadsheet application software and use critical thinking and

analysis to find efficient and effective solutions to solve business problems. Candidates should

therefore be competent in methods of problem solving and be able to select appropriate spreadsheet

formulas and functions that will produce meaningful results. Candidates should be able to

demonstrate that they can explain the results of their calculations, therefore it is important that

candidates can explain what the graph/chart/table is representing and so be familiar with common

terminology to describe patterns, direction of tendency and exceptions.

Outcome 1

Candidates will be expected to create an electronic spreadsheet that simulates a given paper-based

example and interpret the results of formulas for the purpose of decision-making.

Spreadsheets are frequently used for financial information because of their ability to re-calculate

formulas automatically. Candidates should be encouraged to make use of the Function feature of

spreadsheet software, demonstrate that they have applied the rules for entering arithmetic formulas

(BODMAS) and can explain the results of calculations such as totals, percentage of totals and

conditional statements. Simple formula would involve the use of one operator. Complex formula

would involve the use of two or more operators that apply BODMAS rules. As formulas become more

complicated, the harder they are to check, therefore candidates should be introduced to displaying

formulas in the formula bar and displaying formulas inside cells.




Candidates should be familiar with the rules of conditional logic and the application of conditional

formats to visually explore and analyse data, detect critical issues and identify patterns and trends

important to a business. Some examples could include comparison of worker productivity, sales

figures or product performance.

Before sending a workbook that contains large amounts of data or charts to print candidates should be

able to fine-tune the display of data to achieve professional-looking results. Candidates will be

expected to adjust window options to display spreadsheet data as formulas or resultant data values

when required.

Outcome 1 may be assessed via an electronic format. This would allow the assessor to ensure use of

conditional formatting and insertion of comments. Assessing documents electronically provides

centres with the option of assessment via e-portfolios. Screen capture could also be used to

demonstrate Evidence Requirements where appropriate.

Outcome 2

The resulting spreadsheet data created in Outcome 3 can be represented graphically to provide

evidence for Outcome 2.

Candidates should be familiar with various chart types, what chart type/subtype is appropriate to any

given situation for the comparison and/or distribution of data and that a pie chart should only be used

to show the breakdown of a recognisable whole.

Recommended areas for learning include, charting single and multiple data series where the data

source is in adjacent and non adjacent columns. Extensive use of the chart toolbar features should be

made in order to format the data series and add meaning to chart elements to enhance the presentation

of each chart.

Outcome 3

Candidates should have an appreciation of statistical terminology used to describe and compare data

sets such as mean, median, mode collectively known as measures of central tendency.

Candidates will be required to use various functions to manage and analyse data within a tabular data

set. A suggestion to introduce the merit of CountIF and DcountA functions may be relevant at this

point. Centres should choose the most suitable functions in relation to the Case Study or workplace

situation.

If introducing candidates to the DcountA function, there may be opportunity for discussion on the

typical layout of a database and how field names can be synonymous with column headers and

records with contents of rows as the DcountA function counts the non-blank cells in a selected range

that match the conditions in a specified criteria.

Candidates will be expected to use three methods of averaging data (mean, median, mode) alongside

chosen Count function for the preparation of a grouped frequency table.




It is important for candidates to understand the links between these elements of statistics and how they

can be brought together for a final analysis. Candidates should appreciate the link between using the

mean and standard deviation together to provide more meaningful comparative statistical information

for decision making in business. Examples of tasks commonly found within the workplace could

include the collection and analysis of questionnaire data, of statistics to monitor website activity or

performance indicators for government organisations such as health boards and employment agencies.

Guidance on the delivery and assessment of this Unit Opportunities exists for integration of delivery and assessment with the Unit Recording Financial

Transactions (F847 33) when delivered as part of the HNC Administration and Information

Technology (G9M7 15) Group Award. Source business documents could be produced using a

spreadsheet application.

Delivery can be enhanced through the use of prepared and half-completed spreadsheets which

candidates can recall from file and amend according to instructions. A wide variety of examples are

available from books and websites. The adaptation of existing materials could include problems

involving insurance, calculation of hire purchase, payslips, profit and loss returns and where possible

the solutions to these problems should be further analysed using diagrammatic and statistical means.

Outcome 1

Candidates could produce a worksheet from a given set of tabular data and examine the factors that

constitute good spreadsheet design practice. These could be compared with some examples of poor

practice to help candidates avoid similar pitfalls as they work through the design process.

Candidates could use a wide range of formatting and display features to enhance the presentation of

spreadsheet data, as with a worksheet with row after row of numbers, it is not always easy to see

patterns and trends. Suitable fonts, borders, backgrounds and colours for contrast could be chosen for

ease of data entry. User-friendly features to help navigation between multiple worksheets and

customisation of window elements should be incorporated into the spreadsheet design and ought to be

considered prior to performing simple consolidation exercises. In addition the generation of macros

could provide a shortcut to repetitive tasks such as the formatting cell ranges or standardising print

options.

Outcome 2

It is important that candidates can explain what the graph/chart/table is representing and therefore be

familiar with common adjectives to describe patterns, direction of tendency and exceptions.

Candidates could be encouraged to use titles and the axes to illustrate what the graph/chart/table

represents. Consideration should be given to the axes titles and units and although not always

necessary to include in the description, could help avoid errors when interpreting the data. If there is

an obvious trend, it is important to mention this and any other significant factors such as the largest

and the smallest number. Most graphs will fluctuate in some way or another so once a trend has been

identified it is also necessary to point out obvious exceptions. Finally, candidates will be expected to

draw conclusions supported by the information presented in the graphs/charts/tables.




Outcome 3

Candidates will be required to organise data to determine the arithmetic Mean, Mode, Median of a

data set comprising of an even or odd number of values. By doing so candidates will appreciate how

data is centred around specific values and progress to examine how the data spreads out from these

measures of central tendency.

It may be advantageous for candidates to follow a manual worked example for mean and standard

deviation, prior to using an electronic spreadsheet. The same data could be entered or imported into a

spreadsheet application and existing statistical functions could be selected to perform calculations on

the data.


Numeracy at SCQF level 5

The genera l skill for the Using Number Core Skill component is Carry out calculations. The

requirements of the assessment for Outcome 1 specify tha t the candidate will create a

spreadsheet document and demonstrate that they have applied the rules for entering arithmetic

formulas (BODMAS) and can explain the results of calculations such as totals, percentage of totals

and be familiar with the rules of conditional logic. The other general skill for the ‘Using Number’

component is Work with statistical data. The requirements of the assessment for Outcome 3 specify

that the candidate should make use of each of the statistical functions (Mean, Median, Mode, Standard

deviation, and Frequency distribution) and then summarise findings based on the results.

The genera l skills for the ‘Using Graphical Information’ component a re Read graphs and

Present informat ion in graphica l form. The requirements of the assessment for Outcome

2 specify that the candida te can prepare appropr ia te char t s from given spreadsheet

da ta , extract relevant information from each chart type and provide meaningful comment.

Additionally a requirement of Outcome 3 specifies that the candidate should prepare a graphical

representation of a frequency distribution table.

Problem Solving at SCQF level 5

The requirements of the assessment for Outcome 1 specify that the candida te will

design , crea te and prepare a spreadsheet documen t for dist r ibut ion. The genera l skill for

the ‘Crit ica l Think ing’ component is Analyse a situation or issue. The candida te should be

encouraged to ana lyse da ta in a scenar io to assess what da ta is relevant , ident ify the

component factors to include in the in it ia l spreadsheet design, consider the benefits and

limitat ions of the proposed design , result ing in single or mult iple spreadsheet files

which contain single or mult iple worksheets to provide summary informat ion for

management .




The genera l skill for the ‘Planning and Organising’ component is Plan, organise and

complete a task. The candida te should be encouraged to develop a plan evidenced by a

model specificat ion document to inform the design of the spreadsheet . Addit iona lly the

crea t ion of a macro would require a set procedure list which could be evidenced by draft

notes of macro inst ruct ions or visua l basic code. Candidates should prepare a document

for dist r ibut ion in which they will ident ify and obta in resources as they prepare one

complete worksheet of data for printing with fully formatted numerical values displayed as values and

prepare one selected print area of worksheet data for printing with formulas displayed. Conditional

formatting will be used to identify specific areas that might be of interest to management. The result

of the Outcome will be a ‘fit for purpose’ spreadsheet to provide management with summary

information.

The general skill for the ‘Reviewing and Evaluating’ component is Review and Evaluate a problem

solving activity. Outcomes 2 and 3 the candidate will review the results of charts and statistical data,

providing a description of the chart/data, an explanation of the relevance of the evidence in terms of

patterns, trends, exceptions and draw conclusions supported by the summary information to

resolve a business problem.

Information and Communication Technology at SCQF level 5

The delivery and assessment of th is Unit may cont r ibute towards the components

‘Accessing Information’ and ‘Processing Information‘ of the Core Skill ICT a t SCQF level 5.

The genera l skills for the ‘Accessing Information’ components a re ‘Use ICT to locate

information’ and ‘Keep data secure’. The requirements of the assessment for Outcome 1

specify tha t the candida te will use spreadsheet applicat ion software to enter and edit

da ta in the crea t ion of single or mult iple spreadsheet files. In addit ion the candida te will

demonst rate the protect ion of data using a minimum of 2 security features (unlock specific

areas of a protected worksheet, add a password to control access to protected elements or worksheet,

set read-only recommendation for a workbook, protect the structure and windows of a workbook, use

digital signatures with a macro in a workbook).

The genera l skill for the ‘Processing Information ‘component is ‘Carry out ICT activities’. ICT

act ivit ies are car r ied out throughout assessment for Outcomes 1 to 3. The candida te will

be responsible for effect ive use of hardware devices and spreadsheet applica t ion

software as they prepare a spreadsheet document for distribution.

Open learning

If this Unit is delivered by open or distance learning methods, additional resources will be required for

candidate support, assessment and quality assurance. It would require planning by the centre to ensure

the sufficiency and authenticity of candidate’s evidence.





www.sqa.org.uk/assessmentarrangements




Along with word processing packages, the most widely used software application is the spreadsheet.

This Unit will introduce you to the different uses of spreadsheets, ranging from creating financial

reports to handlings lists of data and preparing charts to provide solutions to common business

problems.

Outcome 1 concentrates on spreadsheet design and creation. You will create relevant single or

multiple spreadsheet files and consolidate the data within related worksheets to provide summary

information for a business problem.

Outcome 2 develops skills for the graphical representation of data. You will use charting and

enhancement features to identify and describe patterns, direction of tendency and exceptions as you

draw conclusions based on a common business problem.

Outcome 3 develops the use of spreadsheet statistical functions for the numerical summary of data to

aid decision-making. You should use frequency distribution tables and statistical functions to

summarise information and then draw conclusions based on a common business problem.

This Unit should develop critical thinking skills as you should be able to judge the appropriate

spreadsheet formulas and functions for the presentation and summary of data to provide solutions to a

given situation and communicate their findings to aid problem solving.

The achievement of this Unit will give automatic certification of the following:

The Core Skill of Numeracy and the Core Skill component of Critical Thinking at SCQF level 5

You may also have opportunities to develop the Core Skill of Information and Communication

Technology and the Core Skill components Planning and Organising and Reviewing and Evaluating at

SCQF level 5.