Recording Financial Transactions FA 1 Krishni Balasubramaniam ACCA

Recording Financial Transactions - FA 1 Krishni Balasubramaniam ACCA Member, Advanced Diploma in CIMA

Recording Financial Transactions BOOKS OF PRIME ENTRY - A source of information - First point of enty

Recording Financial Transactions Purpose and the content of the books of prime entry § All transactions are initially recorded in a book of prime entry § Provides a list of daily transactions

Recording Financial Transactions Book of prime entry Transaction type Sales day book Credit sales Purchase day book Credit purchases Sales return day book Returns of credit sales Purchase return day book Returns of credit purchases Cash book Cash and bank transactions Petty cash book Small cash transactions The journal Transactions not recorded elsewhere

Recording Financial Transactions Test your Understanding Which book of prime entry would be used to record credit purchase of goods worth $200 form X? A. B. C. D. Sales Day book Cash book Purchase day book Petty cash book

Recording Financial Transactions Test your Understanding Which book of prime entry would be used to record a return of goods sold on credit? A. B. C. D. Purchase day book Sales day book Purchase return day book Sales return day book

Recording Financial Transactions Day Books Date 04. 01. 16 Invoice 1 2 3 4 5 Name Jane Adam Steve Sam Harry Ref 18 06 12 42 22 $ 4, 500 8, 200 5, 000 12, 000 500 30, 200

Recording Financial Transactions Cash Payment Book Date 6. 4. 16 Detail John Machine Ann Tom Vehicle Bank $ 800 200 1, 000 2, 500 450 Discount $ 80 4, 950 580 Payable $ 800 Maintenance $ 200 500 1000 2500 450 4, 300 650

Recording Financial Transactions Test your Understanding Ann Receives $500 after allowing for a discount of $50 from Ben. How will the transaction be recorded in the cash book? A. B. C. D. Petty cash – Receivable $500, Discount $50 Receipt cash book – Receivable $500, Discount $50 Payment cash book – Receivable $500, Discount $50

Recording Financial Transactions Cash Receipt Book Date Detail Bank $ 8, 000 Discount $ 800 Receivable $ 7. 6. 15 Pam 7. 6. 15 Interest 7. 6. 15 Peter 2, 700 7. 6. 15 Ben 1, 500 200 1, 500 12, 700 1, 000 9, 500 Interest $ 8, 000 500 500

Recording Financial Transactions Petty Cash Book § Cash receipts and payment with analysis recorded § An imprest system will be used § Predetermined level of petty cash float

Recording Financial Transactions Test your Understanding Payment of $5 for stamps will be recorded in which of the books of prime entry? A. B. C. D. Petty cash book Receipt cash book Payment cash book The journal

Recording Financial Transactions Test your Understanding Credit purchase of Assets would be recorded in which book of prime entry? A. B. C. D. Petty cash book Receipt cash book Payment cash book The journal

Recording Financial Transactions Lesson Summary - Books of prime entry - Transfer to ledger

Recording Financial Transactions - FA 1 Krishni Balasubramaniam ACCA Member, Advanced Diploma in CIMA