Basic Bookkeeping Level 2 course provides students with a greater understanding of accounting and the procedures used to produce financial reports. It begins with a review of the bookkeeping procedures learned in the Basic Bookkeeping – Level 1 course and the process of balancing each of the subsidiary ledgers to its respective control account. Next, students learn about the different forms of business ownership (sole proprietorship, partnership and corporation), and then about the different types of organizations (service, merchandising, and manufacturing).
Basic Bookkeeping Level 2 explains the principles of handling a company’s petty cash account, reconciling the company’s bank account, calculating amortization and calculating the gain/loss on disposal of capital assets. During the course, students examine the Income Statement, the Statement of Owner’s Equity and the Balance Sheet, and then practice completing these financial statements. Finally, students learn briefly about the transition from a manual to a computerized bookkeeping system.