Level 3 ‘M4’ Practical Bookkeeping

Brand New 2019 Syllabus!

M4 Practical Bookkeeping is the first part of the Level 3 qualification, followed by M4 Computerised Bookkeeping.

Our unique materials are completely up-to-date and mirror the Level 3 syllabus as set by the Institute of Certified Bookkeepers (ICB).

Tried and tested, and written by our very own course specialists.


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There are no prerequisites for this unit, although if you intend on sitting the exam at the end of this unit, then you will need to be a member of the Institute of Certified Bookkeepers (ICB) and hold a current, valid ICB Level 2 qualification.

Basic numerical skills and a good understanding of the English language would also be advantageous.

The course fee Includes:

  • New Style Printed Workbook containing lessons, examples, activities and assessments
  • FREE Postage and packaging within the UK


The following Units can be taken on completion of the ‘M4’ Practical Bookkeeping Assessments.

  • Level 3 ‘M4’ Computerised Bookkeeping (if not already taken)
  • Level 3 ‘M5, M6 and M7’ Practical Bookkeeping

‘M4’ Course content in detail

  • Legislation and ethics
  • The Data Protection Act
  • Money Laundering
  • The Proceeds of Crime Act 2002 (POCA)
  • The Money Laundering Offences
  • The Bribery Act
  • Codes of ethics and practice
  • Reporting suspicious behaviour
  • Accounting Concepts
  • Going Concern
  • Consistency
  • Prudence
  • Accruals (or Matching Concept)
  • Supplier and Customer Reconciliation
  • Control Accounts
  • Purchase and Sales Ledger Control Accounts
  • Set offs
  • Dishonoured payments and receipts
  • VAT Returns
  • VAT periods
  • Filling out the VAT return
  • Submitting the return
  • Ledger entries to record the payment or refund of vat
  • The end of paper VAT returns
  • Postage and packing charges
  • Bad Debts and VAT
  • Cash Accounting
  • Who can use the scheme?
  • Transactions with customer and suppliers based outside the UK
  • Outside the EU
  • Sales to customers outside the EU
  • Goods purchased from outside the EU
  • Reverse charge
  • Summary of VAT Return entries
  • Other VAT Schemes
  • The Flat Rate Scheme
  • Retail Schemes
  • The Margin Scheme for Second Hand Goods
  • Filling in the VAT return
  • Partial Exemption
  • Correction of Errors
  • The Journal
  • Aide memoire
  • Errors that will affect the trial balance
  • The suspense account
  • Introduction to Final Accounts
  • An introduction to profit
  • Gross profit
  • Stock Valuation
  • Net profit
  • Items of additional income
  • Discounts allowed and received
  • Non-trading businesses
  • Subsequent years trading
  • The Balance Sheet
  • The Accounting Equation
  • Developing the balance sheet
  • Working Capital
  • VAT registered businesses
  • Long Term Loans
  • Accruals and Prepayments
  • Disposal of Assets
  • Corrections to Final Accounts
  • Cash Budgets

If you choose to sit the exam at the end of this unit, you would be required to have registered as a student with the ICB first. You would also be required to have sat and passed the ‘A1, A2 and A3’ papers. You would then contact the ICB to book your exam.

To give you the best chance of success, we would advise that you complete both the M4 Practical Bookkeeping Unit AND the M4 Computerised Bookkeeping Unit.

PLEASE NOTE: If you have taken the M4 Computerised Bookkeeping Unit and sat the associated M4 exam then there is no further exam to sit.

Paper M4 – reconciliations and final accounts of a sole trader:

Home / place of work based assessment to include:

  • Underpinning knowledge
  • Reconciliation and correction of errors (customer and supplier reconciliations, bank reconciliation, correction of errors including the clearance of a suspense account balance)
  • The calculation of summary figures for control accounts
  • VAT Returns (cash and standard VAT returns only but including EU transactions)
  • Posting adjustments including disposal and acquisition of fixed assets
  • Revaluation of assets
  • Final accounts of a sole trader (profit and loss account and balance sheet)

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