FA1 - Recording Financial Transactions

Master the fundamentals of recording financial transactions and build a strong foundation in accounting principles.

Foundation Level Essential Paper Global Pass Rate: 65%
Recording Financial Transactions

About FA1

FA1 - Recording Financial Transactions introduces you to the fundamentals of maintaining financial records and the role of bookkeeping in business.

This course provides a foundation for all subsequent financial accounting studies. You'll learn how to record transactions in day books and ledgers, perform bank reconciliations, and extract a trial balance. FA1 is the first step toward building a career in accounting and finance.

Why FA1 is Important

FA1 is essential for anyone starting their journey in accounting. It provides the fundamental knowledge needed to:

  • Understand the principles of double-entry bookkeeping
  • Record business transactions accurately
  • Prepare basic financial documents
  • Build a strong foundation for advanced accounting studies
  • Develop skills applicable to various business environments

Exam Details

Duration: 2 hours
Pass Mark: 50%
Availability: On-demand throughout the year
Format: Computer-based exam

FA1 Syllabus Areas

Types of Business Transactions

  • Understanding different business organizations
  • Types of business transactions and documentation
  • Goods and services tax (GST) and sales tax
  • Accounting for cash and credit transactions
  • Capital and revenue expenditure

Double-Entry Bookkeeping

  • The accounting equation and its application
  • Principles of double-entry bookkeeping
  • Recording transactions in ledger accounts
  • Balancing ledger accounts
  • Sales and purchases ledgers

Books of Prime Entry

  • Purpose and use of day books
  • Sales day book and purchases day book
  • Returns day books
  • Cash book and petty cash book
  • Journal entries

Bank Reconciliation

  • Purpose of bank reconciliation
  • Comparing cash book with bank statement
  • Identifying differences and adjustments
  • Preparing bank reconciliation statements
  • Dealing with unpresented checks and deposits

Payroll Accounting

  • Recording wages and salaries
  • Accounting for payroll taxes
  • Statutory deductions (PAYE, social security)
  • Employer contributions
  • Recording payroll in the accounts

Trial Balance

  • Purpose of the trial balance
  • Extracting a trial balance from ledger accounts
  • Identifying and correcting errors
  • Suspense accounts
  • Limitations of the trial balance

Professional Skills Developed

Bookkeeping Skills

Ability to maintain accurate financial records using double-entry principles

Transaction Recording

Skills to record various business transactions in appropriate books

Numerical Accuracy

Enhanced numerical skills and attention to detail in financial calculations

Bank Reconciliation

Ability to reconcile bank statements with company records

Payroll Processing

Understanding of payroll accounting and statutory requirements

Trial Balance Preparation

Skills to extract and verify trial balances from ledger accounts

Start Your FA1 Journey Today

Build a strong foundation in accounting with our comprehensive FA1 course