NZQA Expiring unit standard 25939 version 3 Page 1 of 3 Title Demonstrate and apply knowledge of an accounting system Level 4 Credits 10 Purpose People credited with this unit standard are able to: explain the principles of an accounting system; analyse, classify, and record general ledger transactions in an accounting system; and reconcile general ledger transactions to other ledgers and report general ledger transactions. Classification Accounting > Accounting - Middle Level Available grade Achieved Entry information Recommended skills and knowledge Unit 11609, Perform the accounting functions for cash transactions; Unit 11610, Perform the accounting functions for accounts receivable; and Unit 11611, Perform the accounting functions for accounts payable; or demonstrate equivalent knowledge and skills. Explanatory notes 1 People must be assessed against this unit standard in their workplace using naturally occurring evidence, or in a realistic simulation of such a context. Competence must be demonstrated within timeframes expected in a commercial environment. 2 The expanded accounting equation used for this unit standard must accord with generally accepted accounting practice. 3 In this unit standard, accounting system includes general and subsidiary ledgers, including but not limited to – cash, accounts receivable, accounts payable. Outcomes and evidence requirements Outcome 1 Explain the principles of an accounting system. Evidence requirements 1.1 The explanation describes an accounting system in terms of source documents, journals, ledgers, financial statements, and chart of accounts. NZQA National Qualifications Services SSB Code 130301 New Zealand Qualifications Authority 2016 NZQA Expiring unit standard 1.2 25939 version 3 Page 2 of 3 The explanation describes the accounting subsystems. Range cash, inventory, accounts receivable, accounts payable. 1.3 The explanation describes the need for internal control in accounting systems. 1.4 The explanation describes internal control and procedures for accounting subsystems. Range cash, inventory, accounts receivable, accounts payable. Outcome 2 Analyse, classify, and record general ledger transactions in an accounting system. Range adjustment journal entries, standing journal entries, subsidiary ledger control account entries. Evidence requirements 2.1 General ledger transactions are differentiated from subsidiary ledger transactions. 2.2 General ledger transactions are analysed and classified in accordance with a chart of accounts. 2.3 Analysis and classification are justified in terms of the expanded accounting equation. 2.4 Recorded general ledger transaction details match source information. Outcome 3 Reconcile general ledger transactions to other ledgers and report general ledger transactions. Evidence requirements 3.1 General ledger control totals are compared with the control totals of subsidiary ledgers. 3.2 Any discrepancies highlighted by the reconciliation process are resolved. Range 3.3 two different discrepancies requiring adjustment. General ledger reports are produced. Range trial balance, statement of financial performance, statement of financial position. NZQA National Qualifications Services SSB Code 130301 New Zealand Qualifications Authority 2016 NZQA Expiring unit standard Replacement information 25939 version 3 Page 3 of 3 This unit standard and unit standard 11622 have been replaced by unit standard 29014. This unit standard is expiring. Assessment against the standard must take place by the last date for assessment set out below. Status information and last date for assessment for superseded versions Process Version Date Last Date for Assessment Registration 1 21 August 2009 31 December 2018 Rollover 2 24 October 2014 31 December 2018 Review 3 19 May 2016 31 December 2018 Consent and Moderation Requirements (CMR) reference 0113 This CMR can be accessed at http://www.nzqa.govt.nz/framework/search/index.do. Please note Providers must be granted consent to assess against standards (accredited) by NZQA, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment. Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards. Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards. Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements. NZQA National Qualifications Services SSB Code 130301 New Zealand Qualifications Authority 2016