Topic: Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

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FA – May 2012 – L1 – SA – Q38 – Recording Financial Transactions

Identifying the closing balance to be shown in the company’s statement of financial position from the income tax account.

Question

The Income Tax Account of Wazobia Limited showed a balance of N50,000 on 1 January 2011. Tax paid during the year was N45,000 and the estimated tax based on current year’s account is N60,000

What is the amount to be shown in the company’s statement of financial position as the closing balance from the company’s Income Tax Account?

Answer

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Tags: Financial Position, Income Tax, Tax Accounting
Level: Level 1

FA – May 2012 – L1 – SA – Q37 – Recording Financial Transactions

Calculating the amount to be debited to the income statement as income tax.

Question

The Income Tax Account of Wazobia Limited showed a balance of N50,000 on 1 January 2011. Tax paid during the year was N45,000 and the estimated tax based on current year’s account is N60,000

What is the amount to be debited to the company’s income statement as income tax for the year ended 31 December 2011?

Answer

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Tags: Financial Statements, Income Tax
Level: Level 1

FA – May 2012 – L1 – SA – Q22 – Recording Financial Transactions

Identifying the periodic statement sent by the consignee.

Question

What is the name of a periodic statement sent by the consignee to the consignor?

Answer

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Tags: Consignment, Source Documents
Level: Level 1

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

Question

Goods sold on cash and carry basis returned by a customer is treated in the account by:

A. Debiting Sales and Crediting Cash
B. Debiting Sales and Crediting Accounts Payable
C. Debiting Inventory and Crediting Cash
D. Debiting Inventory and Crediting Bank
E. Debiting Sales and Crediting Accounts Receivable.

Answer

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Tags: Inventory, Returns, Sales
Level: Level 1

FA – Nov 2011 – L1 – SA – Q5 – Recording Financial Transactions

This question asks about the source document used for recording entries on the credit side of the bank cash book.

Question

Apart from bank payment vouchers, what other source document can be used to record entries on the credit side of the bank cash book?

Answer

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Tags: Cash Books, Source Documents
Level: Level 1

FA – Nov 2011 – L1 – SA – Q4 – Recording Financial Transactions

This question asks about the art of recording monetary transactions to ascertain the financial position.

Question

The art of recording all monetary transactions of an entity to ascertain the financial position is called?

Answer

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Tags: Bookkeeping, Recording Transactions
Level: Level 1

FA – Nov 2011 – L1 – SA – Q17 – Recording Financial Transactions

This question tests knowledge of the first phase of recording financial transactions.

Question

The first phase of recording financial transactions in the books of accounts is the
A. Preparation of Trial Balance
B. Analysis of financial statements
C. Writing of source documents
D. Drawing of trading account
E. Wooing customers to buy goods

Answer

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Tags: Recording Transactions, Source Documents
Level: Level 1

FA – Nov 2011 – L1 – SA – Q8 – Recording Financial Transactions

This question asks which source document is used when goods are returned by a customer.

Question

Which of the following source documents is received from a supplier of goods in relation to goods returned by a customer?
A. Returned invoice
B. Return inward note
C. Credit note
D. Debit note
E. Return outward note

Answer

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Tags: Credit Note, Return Inwards, Source Documents
Level: Level 1

FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

Question

Florence Ajade pays her professional subscription through instructions to her bank to make annual regular payments of a fixed amount from her current account. When the subscription increases, she issues revised instructions to the bank to reflect the new amount.

Which of the following methods of payment is she using?
A. Internet banking transfer
B. Standing order
C. Payable order
D. Direct credit
E. Standing bill of payment

Answer

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Tags: Bank Instructions, Payment Methods, Standing Order
Level: Level 1

FA – Nov 2020 – L1 – SA – Q3 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies an item that is not a source document in accounting.

Question

Which of the following is NOT a source document?
A. Proforma invoice
B. Debit note
C. Journal
D. Statement of account
E. Cheque stub

Answer

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Tags: Accounting Records, Source Documents
Level: Level 1

FA – May 2018 – L1 – SB – Q6a – Recording Financial Transactions

Explains the chart of accounts and its usefulness in recording transactions.

Question

Explain chart of accounts and its usefulness.

Answer

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Tags: Chart of Accounts, Classification, Financial Statements
Level: Level 1

FA – May 2018 – L1 – SB – Q1 – Recording Financial Transactions

Prepares a three-column cash book, ledger accounts, and a trial balance for a sole trader.

Question

On January 1, 2016, Mr. Wale commenced business as a sole trader with N10,000,000, which he paid into the business bank account. He purchased a van for N6,000,000 from Mallam Tanko and paid half of the amount due by cheque on January 2, 2016. The following transactions took place in the month of January 2016:

Jan 2: Paid rent of N500,000 for two years in advance for the business premises by cheque.
Jan 3: Purchased goods worth N2,000,000 from Granules Limited and paid half of the amount by cheque so as to enjoy a cash discount of 4%.
Jan 4: Purchased furniture for N200,000 and computers for N250,000 by cheque.
Jan 6: Conducted sales promotion for one month, offering cash and trade discounts as follows:
- 5% discount on cash sales
- 10% trade discount for sales above N500,000
Jan 8: Sold goods for cash to Sanders Limited for N340,000.
Jan 10: Sold goods to Miles and Stone Limited for N1,000,000, who paid 75% by cheque.
Jan 12: Mr. Bobby purchased goods valued at N100,000 and paid in full by cash.
Jan 13: Deposited N300,000 cash in the bank.
Jan 15: Paid salaries by cheque (N80,000) and electricity bill by cheque (N10,000).
Jan 20: Paid the sum of N1,750,000 to Mallam Tanko for the van by cash.
Jan 27: Mr. Wale withdrew N10,000 for personal expenses.
Jan 30: Cash sales of N40,000 were made.

Required:
a. Prepare a three-column cash book. (6 Marks)
b. Prepare the ledger accounts for the transactions. (8 Marks)
c. Prepare a trial balance as at January 31, 2016. (6 Marks)

Answer

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Tags: Cash Book, Ledger Accounts, Trial Balance
Level: Level 1

FA – May 2018 – L1 – SA – Q20 – Recording Financial Transactions

Identifies the source document used to record transactions in the sales day book.

Question

The source of data for the recording of sales day book of a business enterprise is:
A. Returns inward note
B. Returns outward note
C. Official receipt
D. Payment voucher
E. Invoice

Answer

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Tags: Sales Day Book, Source Document, Transactions

FA – May 2018 – L1 – SA – Q2 – Recording Financial Transactions

Analyzes the impact of a purchase on the assets and liabilities of a business.

Question

Adeyemi Boat Shop bought a N70,000 electric hoist to lift engines out of boats. The Boat Shop paid N20,000 in cash for the hoist and signed a note to pay the balance in 90 days. This transaction will cause:
A. The Boat Shop’s assets to increase by N70,000 and liabilities to increase by N50,000.
B. No change in owners’ equity but a N50,000 increase in both assets and liabilities.
C. Assets to increase by N50,000 and owners’ equity to decrease by the same amount.
D. No change in total assets, but a N50,000 increase in liabilities.
E. Both assets and liabilities decrease by N50,000.

Answer

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Tags: Assets, Liabilities, Transaction Analysis
Level: Level 1

FA – May 2022 – L1 – SB – Q4b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Record business transactions in a three-column cashbook for Alhaji Aberuagba's business in June 2020.

Question

The following are the business transactions of Alhaji Aberuagba for the month of June 2020:

Date	Details
June 1	Balances brought forward: Cash ₦9,700, Bank ₦218,600
June 2	The amount due from customers: R. Hausa ₦100,000, C. Kola ₦28,000, P. Peters ₦18,000, R. Chinwe ₦60,000
June 3	Cash sales paid directly into the bank ₦13,400
June 5	Paid rent by cash ₦8,800
June 6	Paid suppliers by cheque after deducting 2½% discount: J. Charles ₦40,000, H. Salam ₦64,000, D. Craig ₦20,000
June 8	Withdrew cash from the bank for business use ₦25,000
June 10	Cash sales ₦20,600
June 12	D. Kehinde paid his account of ₦8,900 by cheque less ₦200 cash discount
June 14	Paid wages by cash ₦254,000
June 16	Paid accounts by cheque: L. Lucas ₦11,700 less ₦6,000 cash discount, D. Fisher ₦20,600 less ₦800 cash discount
June 20	Bought fixtures by cheque ₦800,000
June 24	Bought motor van paid by cheque ₦716,600
June 29	Received ₦16,900 cheque from D. Sanni
June 30	Cash sales ₦116,000

Required:
Record the above transactions in a three-column cashbook.

Answer

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Tags: Cash Transactions, Cashbook, Discounts, Receipts and Payments
Level: Level 1

FA – May 2022 – L1 – SA – Q13 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify a transaction that results in an increase in cash for the business.

Question

Which of the following transactions results in an increase in cash of the business?

A. Drawings from the business
B. Payment for a new asset
C. Proceeds from disposal of non-current asset
D. Payment to a supplier
E. Goods sold on credit to customers

Answer

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Tags: Business Transactions, Cashflow, Financial Reporting
Level: Level 1

FA – May 2022 – L1 – SA – Q6 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the accounting record that serves as both a book of original entry and a ledger.

Question

Which of the following accounting records serves as both a book of original entry and a ledger?

A. Sales day book
B. Purchases sales book
C. Returns inwards book
D. General ledger
E. Cash book

Answer

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Tags: Book of Original Entry, Cash Book, Ledger
Level: Level 1

FA – May 2022 – L1 – SA – Q2 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the correct posting when a proprietor withdraws cash from a business for private use.

Question

When a proprietor of a business withdraws cash from the organization for private use, the proper postings are:

DR	CR
A. Cash account	Drawings account
B. Drawings account	Capital account
C. Bank account	Drawings account
D. Drawings account	Cash account
E. Bank account	Cash account

Answer

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Tags: Cash Withdrawal, Drawings, Posting, Private Use
Level: Level 1

FA – May 2022 – L1 – SA – Q1 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the document that accompanies goods returned by a customer to a supplier.

Question

The document that accompanies goods returned by a customer to a supplier is called:

A. Credit note
B. Debit note
C. Invoice
D. Payment voucher
E. Receipt

Answer

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Tags: Credit Note, Financial Documents, Returned Goods
Level: Level 1

FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions

Identify the source document for the sales day book.

Question

A source document for the sales day book is
A. Invoice
B. Cheque stub
C. Customer advice
D. Credit advice
E. Requisition form

Answer

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Tags: Financial Transactions, Sales, Source Documents
Level: Level 1

Topic: Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

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FA – May 2012 – L1 – SA – Q38 – Recording Financial Transactions

Identifying the closing balance to be shown in the company’s statement of financial position from the income tax account.

You're reporting an error for "FA – May 2012 – L1 – SA – Q38 – Recording Financial Transactions"

FA – May 2012 – L1 – SA – Q37 – Recording Financial Transactions

Calculating the amount to be debited to the income statement as income tax.

You're reporting an error for "FA – May 2012 – L1 – SA – Q37 – Recording Financial Transactions"

FA – May 2012 – L1 – SA – Q22 – Recording Financial Transactions

Identifying the periodic statement sent by the consignee.

You're reporting an error for "FA – May 2012 – L1 – SA – Q22 – Recording Financial Transactions"

FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions

Identifying the correct accounting treatment for sales returns on a cash and carry basis.

You're reporting an error for "FA – May 2012 – L1 – SA – Q11 – Recording Financial Transactions"

FA – Nov 2011 – L1 – SA – Q5 – Recording Financial Transactions

This question asks about the source document used for recording entries on the credit side of the bank cash book.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q5 – Recording Financial Transactions"

FA – Nov 2011 – L1 – SA – Q4 – Recording Financial Transactions

This question asks about the art of recording monetary transactions to ascertain the financial position.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q4 – Recording Financial Transactions"

FA – Nov 2011 – L1 – SA – Q17 – Recording Financial Transactions

This question tests knowledge of the first phase of recording financial transactions.

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FA – Nov 2011 – L1 – SA – Q8 – Recording Financial Transactions

This question asks which source document is used when goods are returned by a customer.

You're reporting an error for "FA – Nov 2011 – L1 – SA – Q8 – Recording Financial Transactions"

FA – Nov 2020 – L1 – SA – Q15 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies the method of payment for regular fixed amounts through bank instructions.

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FA – Nov 2020 – L1 – SA – Q3 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identifies an item that is not a source document in accounting.

You're reporting an error for "FA – Nov 2020 – L1 – SA – Q3 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2018 – L1 – SB – Q6a – Recording Financial Transactions

Explains the chart of accounts and its usefulness in recording transactions.

You're reporting an error for "FA – May 2018 – L1 – SB – Q6a – Recording Financial Transactions"

FA – May 2018 – L1 – SB – Q1 – Recording Financial Transactions

Prepares a three-column cash book, ledger accounts, and a trial balance for a sole trader.

You're reporting an error for "FA – May 2018 – L1 – SB – Q1 – Recording Financial Transactions"

FA – May 2018 – L1 – SA – Q20 – Recording Financial Transactions

Identifies the source document used to record transactions in the sales day book.

You're reporting an error for "FA – May 2018 – L1 – SA – Q20 – Recording Financial Transactions"

FA – May 2018 – L1 – SA – Q2 – Recording Financial Transactions

Analyzes the impact of a purchase on the assets and liabilities of a business.

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FA – May 2022 – L1 – SB – Q4b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Record business transactions in a three-column cashbook for Alhaji Aberuagba's business in June 2020.

You're reporting an error for "FA – May 2022 – L1 – SB – Q4b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2022 – L1 – SA – Q13 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify a transaction that results in an increase in cash for the business.

You're reporting an error for "FA – May 2022 – L1 – SA – Q13 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2022 – L1 – SA – Q6 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the accounting record that serves as both a book of original entry and a ledger.

You're reporting an error for "FA – May 2022 – L1 – SA – Q6 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2022 – L1 – SA – Q2 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the correct posting when a proprietor withdraws cash from a business for private use.

You're reporting an error for "FA – May 2022 – L1 – SA – Q2 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2022 – L1 – SA – Q1 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the document that accompanies goods returned by a customer to a supplier.

You're reporting an error for "FA – May 2022 – L1 – SA – Q1 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions

Identify the source document for the sales day book.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q12 – Recording Financial Transactions"

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