Recording Financial Transactions (FA1)

Recording Financial Transactions (FA1)

Syllabus and
Study guide.

September 2025 to August 2026

Designed to help with planning study and to provide detailed
information on what could be assessed in any examination session

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 Recording Financial Transactions (FA1)

Contents
1. Overall aim of the syllabus .................................................................................................. 3
2. Introduction to the syllabus ................................................................................................ 3
3. Main capabilities ................................................................................................................ 4
4. Intellectual levels ............................................................................................................... 5
5. The syllabus ....................................................................................................................... 6
6. Detailed study guide ........................................................................................................... 7
7. Summary of changes to Recording Financial Transactions (FA1) ........................................ 11
8. Approach to examining the syllabus .................................................................................. 11
9. Relational diagram linking Recording Financial Transactions (FA1) with other exams .......... 11
10. Guide to ACCA examination structure and delivery mode ................................................ 12
11. Guide to ACCA examination assessment ........................................................................ 12
12. Qualification structure.................................................................................................... 13
13. Learning hours and education recognition ....................................................................... 13

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 Recording Financial Transactions (FA1)

1. Overall aim of the syllabus

The overall aim of the syllabus is 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.

2. Introduction to the syllabus

The syllabus for Recording Financial Transactions (FA1) introduces the candidate to the
fundamentals of preparing and recording financial documentation from originating documents
and processing business transactions up to the trial balance stage. It also covers relevant
banking procedures associated with bookkeeping, maintaining and reconciling cash and petty
cash records, preparing journal entries, updating relevant general ledger accounts and
identifying and correcting errors.

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 Recording Financial Transactions (FA1)

3. Main capabilities
On successful completion of this exam, candidates should be able to:

A Describe types of business transactions and documentation

B Explain the duality of transactions and double-entry bookkeeping

C Summarise the banking system and transactions

D Process payroll transactions

E Prepare general ledger accounts

F Record cash and bank transactions

G Record sales and credit transactions

H Record purchases and credit transactions

I Perform reconciliations

J Prepare the trial balance

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

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 Recording Financial Transactions (FA1)

4. Intellectual levels
ACCA qualifications are designed to progressively broaden and deepen the knowledge and
skills demonstrated by the student at a range of levels on their way through each qualification.

Throughout, the study guides assess both knowledge and skills. Therefore, a clear distinction is
drawn, within each subject area, between assessing knowledge and skills and in assessing
their application within an accounting or business context. The assessment of knowledge is
denoted by a superscript K and the assessment of skills is denoted by the superscript S.

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 Recording Financial Transactions (FA1)

1. Recording purchases, supplier account

5. The syllabus balances and payables

A Types of business transactions and I Reconciliation

documentation
1. Purpose of reconciliations
1. Types of business transaction
2. Reconcile the cash records
2. Types of business documentation
3. Reconcile individual supplier accounts
3. Process of recording business
transactions within the accounting J Preparing the trial balance
system
1. Prepare the trial balance
B Duality of transactions and double-
entry bookkeeping 2. Correcting errors

1. Double-entry bookkeeping

2. Journal entries

3. Elements of the financial statements

C Banking system and transactions

1. The banking process

2. Documentation

D Payroll

1. Processing payroll transactions within

the accounting system

E General ledger accounts

1. Prepare general ledger accounts

F Cash and bank

1. Maintaining cash records

2. Maintaining a petty cash record

G Sales and credit transactions

1. Recording sales, customer account

balances and receivables

H Purchases and credit transactions

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 Recording Financial Transactions (FA1)

6. Detailed study guide d) Prepare a petty cash voucher including

the sales tax element of an expense when
presented with an inclusive amount.[S]
A Types of business transactions 3. Process of recording business
and documentation transactions within the accounting
system
1. Types of business transaction
a) Identify the characteristics of accounting
a) Describe a range of business data and the sources of accounting
transactions including:[K] records, showing an understanding of
i) Sales how the accounting data and records
ii) Purchases meet the business’ requirements.[K]
iii) Receipts
iv) Payments b) Describe the key features of a
v) Petty cash computerised accounting system,
vi) Payroll including the use of external servers to
store data (the cloud).[K]
b) Define types of discounts including,
where applicable, the effect that trade c) Summarise how users locate, display and
discounts have on sales tax.[K] check accounting data to meet user
requirements and understand how data
c) Describe the processing and security entry errors are dealt with.[K]
procedures relating to the use of:[K]
i) Cash d) Summarise the tools and techniques
ii) Cheques used to process accounting transactions
iii) Credit and debit cards and period-end routines and consider
iv) Digital payment methods how errors are identified and dealt with.[K]

2. Types of business documentation e) Identify risks to data security, data

protection procedures and the storage of
a) Summarise the purpose and content of a data.[K]
range of business documents; including
but not limited to:[K] f) Explain the principles of coding in
i) Customer (sales) invoice entering accounting transactions
ii) Supplier (purchase) invoice including:[K]
iii) Credit note i) Describing the need for a coding
iv) Debit note system for financial transactions
v) Delivery note within double-entry bookkeeping
vi) Remittance advice ii) Describing the use of a coding
system within an accounting system
b) Prepare the financial documents to be
sent to credit customers including:[S] g) Code sales invoices, supplier invoices
i) Customer (sales) invoice and credit notes ready for entry into the
ii) Credit note accounting system.[S]
iii) Statements of account

c) Prepare remittance advice to accompany

payments to suppliers.[S]

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 Recording Financial Transactions (FA1)

h) Describe the accounting documents and b) Describe how the bank clearing system
management reports produced by works.[K]
computerised accounting systems and
understand the link between the c) Identify and compare different forms of
accounting system and other systems in payment.[K]
the business.[K]
d) Summarise the processing and security
B Duality of transactions and procedures relating to the use of cash,
cheques, credit cards, debit cards and
double-entry bookkeeping digital payment methods.[K]
1. Double-entry bookkeeping 2. Documentation
a) Define the accounting equation.[K] a) Explain why it is important for an
organisation to have a formal document
b) Demonstrate the use of the accounting retention policy.[K]
equation.[K]
b) Identify the different categories of
c) Describe how the accounting equation documents that may be stored as part of
relates to double-entry bookkeeping.[K] a document retention policy.[K]
d) Explain how transactions are entered into
the accounting system.[K] D Payroll

2. Journal entries 1. Process payroll transactions within the

accounting system
a) Explain the use of journal entries,
including the reasons for and format of a) Calculate and prepare entries in the
journal entries.[K] accounting system to process payroll
transactions including:[S]
b) Prepare journal entries for various i) Calculation of gross wages for
transactions.[S] employees paid by the hour, paid by
output and salaried workers
3. Elements of the financial statements ii) Accounting for payroll costs and
deductions
a) Define and distinguish between the iii) The employers’ responsibilities for
elements of the financial statements.[K] taxes, state benefit contributions
and other deductions
b) Identify the content of a statement of
financial position and a statement of b) Identify the different payment methods in
profit or loss and other comprehensive a payroll system; for example, cash,
income.[K] cheques and automated payments.[K]

c) Explain why authorisation of payroll

C Banking system and transactions and security of payroll
transactions information is important in an
organisation.[K]
1. The banking process

a) Explain the differences between the

services offered by banks and other
financial services businesses.[K]

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 Recording Financial Transactions (FA1)

E General ledger accounts c) Prepare the receivables general ledger

account by accounting for:[S]
1. Prepare general ledger accounts i) Sales
ii) Sales returns
a) Prepare general ledger accounts, clearly iii) Receipts from customers, including
showing the balances brought forward checking the accuracy and validity of
and carried forward as appropriate.[S] receipts against relevant supporting
information
iv) Discounts
F Cash and bank v) Contra entries

1. Maintaining cash records d) Prepare entries in the accounting system

to record cash sales, credit sales and
a) Record cash transactions within the receipts from customers.[S]
accounting system, including any sales
tax effect where applicable.[S] e) Account for irrecoverable debts and
allowances for irrecoverable debts.[S]
2. Maintaining a petty cash record

a) Enter and analyse petty cash H Purchases and credit

transactions in the accounting system, transactions
including any sales tax effect where
applicable.[S] 1. Recording purchases, supplier account
balances and payables
b) Demonstrate the use of the imprest and
non-imprest systems of maintaining a a) Record purchase transactions taking into
petty cash record.[S] account:[S]
i) Various types of discounts
c) Reconcile the petty cash record with ii) Sales tax
cash in hand.[S] iii) The impact on the sales tax general
ledger account where applicable
d) Prepare and account for petty cash
reimbursements.[S] b) Enter supplier invoices and credit notes
received from suppliers into the
G Sales and credit transactions accounting system.[S]

1. Recording sales, customer account c) Prepare the payables general ledger

balances and receivables account by accounting for:[S]
i) Purchases
a) Record sales transactions taking into ii) Purchase returns
account:[S] iii) Payments to suppliers, including
i) Various types of discount checking the accuracy and validity of
ii) Sales tax the payment against relevant
iii) The impact on the sales tax ledger supporting information
account where applicable. iv) Discounts
v) Contra entries
b) Enter sales invoices and credit notes
issued to customers into the accounting d) Prepare entries in the accounting system
system.[S] to record cash purchases, credit
purchases and payments to suppliers.[S]

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 Recording Financial Transactions (FA1)

I Reconciliation
1. Purpose of reconciliations

a) Describe the purpose of reconciliations

to external documents as a checking
device to aid management and help
identify errors.[K]

b) Explain why it is important to reconcile to

external documents regularly and to deal
with discrepancies quickly and
professionally.[K]

2. Reconcile the cash records

a) Reconcile the cash records to a bank

statement and deal with any
discrepancies.[S]

3. Reconcile individual supplier accounts

a) Reconcile the balances on individual

supplier accounts to supplier statements
and deal with any discrepancies.[S]

J Preparing the trial balance

1. Prepare the trial balance

a) Extract an initial trial balance.[S]

2. Correcting errors

a) Identify the types of errors that are

revealed by extracting a trial balance.[K]

b) Identify the types of errors that are not

revealed by extracting a trial balance.[K]

c) Prepare manual journal entries to correct

errors in the trial balance.[S]

d) Identify when a suspense account is

required and clear the suspense account
using manual journal entries.[S]

e) Redraft the trial balance following

correction of all errors.[S]

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 Recording Financial Transactions (FA1)

7. Summary of changes to Recording Financial

Transactions (FA1)
ACCA periodically reviews its qualification syllabuses so that they fully meet the needs of
stakeholders such as employers, students, regulatory and advisory bodies and learning
providers.

There have been minor wording changes only to the study guide for September 2025 to June
2026:

SLO Change
A2 a) “Sales (customer) invoice” changed to “Customer (sales) invoice”
A2 b) “Sales invoice” changed to “Customer (sales) invoice”
G1 “trade receivables” changed to “receivables”
G1 c) “trade receivables” changed to “receivables”
H1 “trade payables” changed to “payables”
H1 c) “trade payables” changed to “payables”

8. Approach to examining the syllabus

The syllabus is assessed by a two-hour computer-based examination. Questions will assess all
parts of the syllabus and will include both computational and non-computational elements.
The examination will consist of 50 two-mark questions.

9. Relational diagram linking Recording Financial

Transactions (FA1) with other exams
The Foundations in Accountancy (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 FIA at the level which is most appropriate to their
needs and abilities and to take examinations in order but this is not a requirement.

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 Recording Financial Transactions (FA1)

10. Guide to ACCA examination structure and

delivery mode
The structure of examinations varies.

The FIA examinations contain 100% compulsory questions to encourage candidates to study
across the breadth of each syllabus.

All FIA examinations are assessed by two-hour computer-based examinations.

The pass mark for all FIA examinations is 50%.

11. Guide to ACCA examination assessment

ACCA reserves the right to examine anything contained within the study guide at any
examination session. This includes knowledge, techniques, principles, theories, and concepts
as specified. For specified financial accounting, audit and tax examinations, except where
indicated otherwise, ACCA will publish examinable documents once a year to indicate exactly
what regulations and legislation could potentially be assessed within identified examination
sessions.

For this examination, regulation issued or legislation passed on or before 31 August annually,
will be assessed from 1 September of the following year to 31 August of the year after. Please
refer to the examinable documents for the exam (where relevant) for further information.

Regulation issued or legislation passed in accordance with the above dates may be examinable
even if the effective date is in the future. The terms ‘issued’ or ‘passed’ relate to when
regulation or legislation has been formally approved.

The term ‘effective’ relates to when regulation or legislation must be applied to entity
transactions and business practices.

The study guide offers more detailed guidance on the depth and level at which the examinable
documents will be examined. The study guide should therefore be read in conjunction with the
examinable documents list.

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 Recording Financial Transactions (FA1)

12. 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.

13. Learning hours and education recognition

As a member of the International Federation of Accountants, ACCA seeks to enhance the
education recognition of its qualification on both national and international education
frameworks, and with educational authorities and partners globally. In doing so, ACCA aims to
ensure that its qualifications are recognised and valued by governments and regulatory
authorities and employers across all sectors. To this end, ACCA qualifications are currently
recognised on the educational frameworks in several countries. Please refer to your national
education framework regulator for further information about recognition.

ACCA’s content partners are BPP Learning Media and Kaplan Publishing. They create their own
learning materials. For more information about the types of materials o ered, please visit their
websites and contact them directly.

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