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 – Nov 2019 – L1 – SA – Q2 – Recording Financial Transactions, Books of Prime Entry

Identify the book of prime entry where trade discounts are recorded.

Question

In which of the following books of prime entry will trade discount be recorded?

Answer

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Tags: Accounting Process, Books of Prime Entry, Trade Discount
Level: Level 1

FA – Nov 2019 – L1 – SA – Q1 Recording Financial Transactions, Source Documents-

Identify which document is sent when an invoice is understated.

Question

Which of the following documents will a supplier send to a customer whose invoice was understated?

Answer

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Tags: Accounting Process, Source Documents
Level: Level 1

FA – May 2016 – L1 – SA – Q14 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

A question regarding the meaning of purchases in accounting.

Question

Purchases in accounting refer to goods bought for:
A. Repairs
B. Owners’ use
C. Resale
D. Office use
E. Permanent use

Answer

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Tags: Goods, Purchases, Resale
Level: Level 1

FA – May 2016 – L1 – SA – Q8 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

A question on identifying the permanent records of all transactions.

Question

Which of the following contains a permanent record of all transactions?
A. Sales Day Book
B. Invoice
C. Ledger
D. Debit Note
E. Purchases Day Book

Answer

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Tags: Books of Prime Entry, Permanent Records
Level: Level 1

FA – May 2016 – L1 – SA – Q7 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

A question regarding the journal entry required to correct an error in the recording of a non-current asset purchase.

Question

A company purchased a non-current asset for N4,500,000. The company’s accountant recorded the transaction in the company’s books by debiting the purchases account. Raise the journal entry to correct the error.
A. Dr. Purchases Account, Cr. Cash
B. Dr. Non-Current Assets Account, Cr. Cash
C. Dr. Purchases Account, Cr. Non-Current Assets Account
D. Dr. Non-Current Account, Cr. Purchases Account
E. Dr. Non-Current Register Account, Cr. Non-Current Asset Account

Answer

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Tags: Journal Entry, Non-Current Asset
Level: Level 1

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

Question

Mr. Ken Stevenson keeps single entry books of account. He had the following balances on 1 January, 2013:

N
Inventory
Payables
Prepaid insurance
Bank overdraft
Furniture
Motor vehicles
Receivables
Borrowings

The following information is extracted from his cash book in respect of the year ended 31 December 2013:

DR N	CR N
Revenue	279,500
Receipt from trade receivables	536,400







815,900	815,900

He had the following balances on 31 December 2013:

N
Motor vehicles
Inventory
Furniture
Receivables
Payables
Borrowings

Additional information:
(i) Interest on Borrowings to be accrued for at 5% per annum.
(ii) Bad debts of N12,600 are to be written off while 5% allowance is to be made on the net receivables at 31 December, 2013.
(iii) Depreciation is to be charged on the non-current assets at the rate of 10% per annum.

You are required to prepare:

a. Receivables control account (2 Marks)
b. Payables control account (2 Marks)
c. The opening capital (2 Marks)
d. Statement of Profit or Loss for the year ended 31 December 2013 (8 Marks)
e. Statement of Financial Position as at 31 December 2013 (6 Marks)

Answer

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Tags: Bad Debts, Control Accounts, Depreciation, Financial Position, Receivables and Payables, Single entry system, Statement of Profit or Loss
Level: Level 1

FA – May 2024 – L1 – SB – Q2b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Records the items in the relevant books of prime entry and explains how to post from the books of prime entry to the ledgers.

Question

b. Ladu Limited has the following transactions related to sales and purchases in the month of July 2023:

July 2: Purchases from Abe Limited: ₦300,000
July 5: Sales to Jide Limited: ₦150,000
July 9: Purchases returns to Abe Limited: ₦50,000
July 12: Sales returns from Jide Limited: ₦20,000
July 14: Purchases from Bola Limited (offering a trade discount of 5%): ₦400,000
July 15: Sales to Yau Limited: ₦200,000
July 22: Sales returns from Yau Limited: ₦30,000
July 25: Sales to Zeb Limited (cash discount of 2.5% granted): ₦250,000
July 26: Purchases from Cletus Limited: ₦250,000
July 31: Purchases returns to Cletus Limited: ₦30,000

Required:

i. Record the items in the relevant books of prime entry of Ladu Limited in July 2023. (7 Marks)

ii. State how the postings will be done from the books of prime entries into the ledgers. (5 Marks)

Answer

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Tags: Discounts, Prime Entry, Purchases, Sales
Level: Level 1

FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Examines internal control procedures over cash receipts in a business.

Question

Examines internal control procedures over cash receipts in a business.

Answer

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Tags: Cash Management, Internal Control
Level: Level 1

FA – MAY 2015 – L1 – SB – Q1b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Provide journal entries for transactions in a trading company.

Question

Babariga Trading Company has the following extracts from its financial records as at 31 January 2014:

Date	Transaction Description	Amount (N’000)
Jan 1	Cash in hand	50
Jan 1	Cash at bank	150
Jan 1	Receivables	300
Jan 1	Inventory	100
Jan 2	Purchased goods for cash	70
Jan 5	Goods bought from Faleye	500
Jan 9	Bought shop fittings and paid by cheque	27
Jan 12	Cash sales	129
Jan 15	Goods sold to Okonkwo	100
Jan 16	Paid Faleye by cheque on account	400
Jan 17	Cash sales	350
Jan 18	Paid cash into bank	150
Jan 20	Bought goods from Faruk	140
Jan 25	Sold goods to Shola	150
Jan 28	Bought desk-top computer by cheque	70
Jan 31	Paid for stationery in cash	40

Required:
Use Journal entries to record the above balances and transactions in the books of Babariga Trading Company. (14 Marks)

Answer

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Tags: Financial Transactions, Journal Entries, Trading Company
Level: Level 1

FA – MAY 2015 – L1 – SA – Q12 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the origin of accounting information in financial records

Question

Which of the following provides the origin of accounting information?
A. Accounting books
B. Source documents
C. Ledger
D. Cash book
E. Subsidiary book

Answer

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Tags: Accounting Information, 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.

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

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

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

Identifying the periodic statement sent by the consignee.

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

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

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.

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

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

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

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

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

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

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.

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.

FA – Nov 2019 – L1 – SA – Q2 – Recording Financial Transactions, Books of Prime Entry

Identify the book of prime entry where trade discounts are recorded.

FA – Nov 2019 – L1 – SA – Q1 Recording Financial Transactions, Source Documents-

Identify which document is sent when an invoice is understated.

FA – May 2016 – L1 – SA – Q14 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

A question regarding the meaning of purchases in accounting.

FA – May 2016 – L1 – SA – Q8 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

A question on identifying the permanent records of all transactions.

FA – May 2016 – L1 – SA – Q7 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

A question regarding the journal entry required to correct an error in the recording of a non-current asset purchase.

FA – May 2015 – L1 – Q3a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Prepare Receivables, Payables control accounts, Opening Capital, Statement of Profit or Loss, and Statement of Financial Position using given data from single entry

FA – May 2024 – L1 – SB – Q2b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Records the items in the relevant books of prime entry and explains how to post from the books of prime entry to the ledgers.

FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Examines internal control procedures over cash receipts in a business.

FA – MAY 2015 – L1 – SB – Q1b – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Provide journal entries for transactions in a trading company.

FA – MAY 2015 – L1 – SA – Q12 – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Identify the origin of accounting information in financial records

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