Paper 1 Recording Financial Transactions
Syllabus aims
To develop knowledge and understanding of the operational aspects of maintaining accounting records and procedures relating to invoicing, receipts and payments, recording income and expenditure, the preparation of ledger accounts and the preparation of an initial trial balance.
Objectives
On completion of this paper, candidates should be able to:
- distinguish between types of business transactions and documentation, recognising relevant basic business law and data protection legislation
- prepare basic ledger accounts under the double entry system
- record income and receipts from credit customers
- explain and account for irrecoverable debts
- record purchases, expenditure, and payments to suppliers
- account for banking transactions
- maintain general cash and petty cash records
- produce bank reconciliation statements
- record payroll transactions
- prepare and reconcile control accounts
- prepare an initial trial balance identifying and correcting errors using journal entries.