Report CopyRight/DMCA Form For : Recording Financial Transactions Fa1
SUMMARY OF CONTENT,INTRODUCTION,1 Intellectual levels. 2 Learning hours and educational recognition,3 Guide to ACCA examination structure. 4 Guide to ACCA examination assessment,RECORDING FINANCIAL TRANSACTIONS. 5 Qualification Structure,6 Relational diagram linking Recording. Financial Transactions with other exams,7 Overall aim of the syllabus. 8 Rationale,9 Main capabilities,10 Approach to examining the syllabus. 11 The syllabus,RECORDING FINANCIAL TRANSACTIONS STUDY. 12 Detailed study guide,13 Summary of changes to Recording Financial. Transactions,ACCA 2019 2020 All rights reserved, 1 INTELLECTUAL LEVELS For specified financial accounting audit and tax. examinations except where indicated otherwise, ACCA qualifications are designed to progressively ACCA will publish examinable documents once a. broaden and deepen the knowledge and skills year to indicate exactly what regulations and. demonstrated by the student at a range of levels legislation could potentially be assessed within. through each qualification identified examination sessions. Throughout the study guides assess both For this examination regulation issued or legislation. knowledge and skills Therefore a clear distinction is passed on or before 31st August annually will be. drawn within each subject area between assessing assessed from September 1st of the following year to. knowledge and skills and in assessing their August 31st of the year after Please refer to the. application within an accounting or business examinable documents for the exam where. context The assessment of knowledge is denoted by relevant for further information. a superscriptK and the assessment of skills is,denoted by the superscriptS. Regulation issued or legislation passed in,accordance with the above dates may be. 2 LEARNING HOURS AND EDUCATIONAL, examinable even if the effective date is in the future. RECOGNITION,The term issued or passed relates to when. regulation or legislation has been formally approved. As a member of the International Federation of, Accountants ACCA seeks to enhance the education The term effective relates to when regulation or. recognition of its qualification on both national and legislation must be applied to entity transactions. international education frameworks and with and business practices. educational authorities and partners globally In, doing so ACCA aims to ensure that its qualifications The study guide offers more detailed guidance on. are recognized and valued by governments the depth and level at which the examinable. regulatory authorities and employers across all documents will be examined The study guide. sectors To this end ACCA qualifications are should therefore be read in conjunction with the. currently recognized on the education frameworks in examinable documents list. several countries Please refer to your national,education framework regulator for further. information about recognition,3 GUIDE TO ACCA EXAMINATION. STRUCTURE AND DELIVERY MODE,The structure of examinations varies. The Foundations examinations contain 100,compulsory questions to encourage candidates to. study across the breadth of each syllabus,All Foundations examinations are assessed by two. hour computer based examinations,The pass mark for all FIA examinations is 50. 4 GUIDE TO ACCA EXAMINATION,ASSESSMENT,ACCA reserves the right to examine anything. contained within any study guide within any,examination session This includes knowledge. techniques principles theories and concepts as,ACCA 2019 2020 All rights reserved. 5 QUALIFICATION STRUCTURE, The qualification structure requires candidates who wish to be awarded the ACCA Diploma in Financial and. Management Accounting RQF Level 2 to pass both the FA1 and MA1 examinations and successfully complete. the Foundations in Professionalism module, 6 RELATIONAL DIAGRAM LINKING RECORDING FINANCIAL TRANSACTIONS WITH OTHER EXAMS. The FIA suite of qualifications is designed so that a student can progress through three discrete levels RQF Level. 2 3 and 4 However entry is possible at any point Students are recommended to enter Foundations in. Accountancy at the level which is most appropriate to their needs and abilities and to take examinations in order. but this is not a requirement,ACCA 2019 2020 All rights reserved. 7 OVERALL AIM OF THE SYLLABUS,To develop knowledge and understanding of the. main types of business transactions and,documentation and how these are recorded in an. accounting system up to the trial balance stage,8 RATIONALE. The syllabus for FA1 Recording Financial,Transactions introduces the candidate to the. fundamentals of preparing and recording financial,documentation from originating documents and. processing ledger transactions up to the trial,balance stage It also covers relevant banking. procedures associated with bookkeeping,maintaining and reconciling cash and petty cash. records and preparing the journal and relevant,control accounts and identifying and correcting. ACCA 2019 2020 All rights reserved,9 MAIN CAPABILITIES. On successful completion of this exam candidates should be able to explain and understand the following. A Types of business transactions and documentation. B Duality of transactions and the double entry system. C Banking system and transactions,E Ledger accounts. F Cash and bank,G Sales and credit transactions,H Purchases and credit transactions. I Reconciliation,J Preparing the trial balance,ACCA 2019 2020 All rights reserved. 10 APPROACH TO EXAMINING THE G Sales and credit transactions. 1 Recording sales,The syllabus is assessed by a two hour computer. based examination Questions will assess all parts of 2 Customer account balances and control. the syllabus and will include both computational accounts. and non computational elements The examination, will consist of 50 two mark questions H Purchases and credit transactions. 11 DETAILED SYLLABUS 1 Recording purchases, A Types of business transactions and 2 Supplier balances and reconciliations. documentation,I Reconciliation,1 Types of business transaction. 1 Purpose of control accounts and reconciliation,2 Types of business documentation. 2 Reconcile the cashbook,3 Process of recording business transactions. within the accounting system 3 Reconcile the receivables control account. B Duality of transactions and the double entry 4 Reconcile the payables control account. J Preparing the trial balance,1 Books of prime entry. 1 Prepare the trial balance,2 Double entry system,2 Correcting errors. 3 The journal,4 Elements of financial statements,C Banking system and transactions. 1 The banking process,2 Documentation,1 Processing payroll transactions into the. accounting system,E Ledger accounts,1 Prepare ledger accounts. F Cash and bank,1 Maintaining a cashbook,2 Maintaining a petty cashbook. ACCA 2019 2020 All rights reserved, 12 DETAILED STUDY GUIDE 3 Process of recording business transactions. within the accounting system,A TYPES OF BUSINESS TRANSACTION AND. DOCUMENTATION a Identify the characteristics of accounting data. and the sources of accounting data records, 1 Types of business transaction showing understanding of how the accounting. data and records meet the business, a Understand a range of business transactions requirements K. including K,i Sales b Understand how users locate display and. ii Purchases check accounting data records to meet user. iii Receipts requirements and understand how data entry. iv Payments errors are dealt with K,v Petty cash, vi Payroll c Outline the tools and techniques used to. process accounting transactions and period end, b Understand the various types of discount routines and consider how errors are identified. including where applicable the effect that and dealt with K. trade discounts have on sales tax K,d Consider the risks to data security data. c Describe the processing and security procedures protection procedures and the storage of. relating to the use of K data K, ii Cheques e Understand the principles of coding in entering. iii Credit and debit cards accounting transactions including K. iv Debit cards for receipts and payments and i Describing the need for a coding system for. electronic payment methods financial transactions within a double entry. bookkeeping system, 2 Types of business documentation ii Describe the use of a coding system within. a filing system,a Outline the purpose and content of a range of. business documents to include but not limited f Code sales invoices supplier invoices and. to K credit notes ready for entry into the books of. i Invoice prime entry S,ii Credit note, iii Remittance advice g Describe the accounting documents and. management reports produced by, b Prepare the financial documents to be sent to computerised accounting systems and. credit customers including S understand the link between the accounting. i Sales invoices system and other systems in the business K. ii Credit notes, iii Statements of account B DUALITY OF TRANSACTIONS AND THE. DOUBLE ENTRY SYSTEM,c Prepare remittance advices to accompany. payments to suppliers S 1 Books of prime entry, d Prepare a petty cash voucher including the a Outline the purpose and content of the books. sales tax element of an expense when of prime entry including their format K. presented with an inclusive amount S,b Explain how transactions are entered in the. books of prime entry K,ACCA 2019 2020 All rights reserved. c Outline how the books of prime entry integrate d Outline the processing and security procedures. with the double entry bookkeeping system K relating to the use of cash cheques credit. cards and debit cards for receipts and, d Enter transactions including the sales tax effect payments and electronic payment methods K. where applicable into the books of prime,entry S 2 Documentation. 2 Double entry system a Explain why it is important for an organisation. to have a formal document retention policy K,a Define the accounting equation K. b Identify the different categories of documents, b Understand and apply the accounting that may be stored as part of a document. equation K retention policy K, c Understand how the accounting equation D PAYROLL. relates to the double entry bookkeeping, system K 1 Process payroll transactions within the. accounting system,d Process financial transactions from the books. of prime entry into the double entry a Prepare and enter the journal entries in the. bookkeeping system S general ledger to process payroll transactions. 3 The journal i Calculation of gross wages for employees. paid by the hour paid by output and, a Understand the use of the journal including the salaried workers. reasons for content and format of the ii Accounting for payroll costs and deductions. journal K iii The employers responsibilities for taxes. state benefit contributions and other, b Prepare journal entities directly from deductions S. transactions books of prime entry as, applicable or to correct errors S b Identify the different payment methods in a. payroll system e g cash cheques, 4 Elements of the financial statements automated payment K. a Define and distinguish between the elements of c Explain why authorisation of payroll. the financial statements K transactions and security of payroll. information is important in an, b Identify the content of a statement of financial organisation K. position and statement of profit or loss and,other comprehensive income K E LEDGER ACCOUNTS. C BANK SYSTEM AND TRANSACTIONS 1 Prepare ledger accounts. 1 The banking process a Enter transactions from the books of prime. entry into the ledgers S,a Explain the differences between the services. offered by banks and banking institutions K b Record journal entries in the ledger accounts S. b Describe how the banking clearing system c Balance and close off ledger accounts S. c Identify and compare different forms of,ACCA 2019 2020 All rights reserved. F CASH AND BANK d Prepare the receivables control account or. receivables ledgers by accounting for S,1 Maintaining a cash book i Sales. ii Sales returns, a Record transactions within the cashbook iii Payments from customers including. including any sales tax effect where applicable checking the accuracy and validity of. receipts against relevant supporting,information, b Prepare the total balance and cross cast cash iv Discounts. book columns S v Irrecoverable debt and allowances for. irrecoverable debts including any effect of, c Identify and deal with discrepancies S sales tax where applicable. 2 Maintaining a petty cash book H PURCHASES AND CREDIT TRANSACTIONS. a Enter and analyse petty cash transactions in 1 Recording purchases. the petty cash book including any sales tax, effect where applicable S a Record purchase transactions taking into. b Balance off the petty cash book using imprest i Various types of discount. and non imprest systems S ii Sales tax,iii The impact on the sales tax ledger account. c Reconcile the petty cash book with cash in where applicable S. b Enter supplier invoices and credit notes into the. d Prepare and account for petty cash appropriate book of prime entry S.