FOUNDATIONS IN ACCOUNTANCY
Paper FA1
Recording Financial
Transactions
Pilot Paper
Time allowed: 2 hours
ALL 50 questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
, ALL 50 questions are compulsory and MUST be attempted
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to
each multiple choice question.
Each question is worth 2 marks.
1 Which of the following is an example of capital expenditure?
A Paying for refurbishment as part of upgrading a building
B Paying carriage outwards in respect of selling goods
C Paying legal fees in order to recover customer debts
D Paying bonuses to production operatives
2 Vic’s receivables ledger balances total $50,000, which does not agree with his trade receivables control account. The
following errors were found:
(1) A credit note for $750 was not recorded in the receivables ledger
(2) A contra entry of $2,000 was entered in the control account but not in the receivables and payables ledgers.
What should be the total of the balances on his receivables ledger after correcting the following errors?
A $52,750
B $50,000
C $49,250
D $47,250
3 Christa pays her mortgage by instructing her bank to make monthly payments of a fixed amount from her current
account. When the mortgage rate changes she issues revised instructions to the bank.
Which method of payment is Christa using?
A Standing Order
B Payable Order
C Direct Debit
D Crossed cheque
4 A firm has a credit facility with a local trade supplier. An invoice for purchases has been credited to the supplier’s
account and debited to the sales account.
Which of the following journal entries will correct the error?
A Dr Sales account Cr Supplier account
B Dr Supplier account Cr Sales account
C Dr Purchases account Cr Sales account
D Dr Sales account Cr Bank account
2
Paper FA1
Recording Financial
Transactions
Pilot Paper
Time allowed: 2 hours
ALL 50 questions are compulsory and MUST be attempted.
Do NOT open this paper until instructed by the supervisor.
This question paper must not be removed from the examination hall.
The Association of Chartered Certified Accountants
, ALL 50 questions are compulsory and MUST be attempted
Please use the space provided on the inside cover of the Candidate Answer Booklet to indicate your chosen answer to
each multiple choice question.
Each question is worth 2 marks.
1 Which of the following is an example of capital expenditure?
A Paying for refurbishment as part of upgrading a building
B Paying carriage outwards in respect of selling goods
C Paying legal fees in order to recover customer debts
D Paying bonuses to production operatives
2 Vic’s receivables ledger balances total $50,000, which does not agree with his trade receivables control account. The
following errors were found:
(1) A credit note for $750 was not recorded in the receivables ledger
(2) A contra entry of $2,000 was entered in the control account but not in the receivables and payables ledgers.
What should be the total of the balances on his receivables ledger after correcting the following errors?
A $52,750
B $50,000
C $49,250
D $47,250
3 Christa pays her mortgage by instructing her bank to make monthly payments of a fixed amount from her current
account. When the mortgage rate changes she issues revised instructions to the bank.
Which method of payment is Christa using?
A Standing Order
B Payable Order
C Direct Debit
D Crossed cheque
4 A firm has a credit facility with a local trade supplier. An invoice for purchases has been credited to the supplier’s
account and debited to the sales account.
Which of the following journal entries will correct the error?
A Dr Sales account Cr Supplier account
B Dr Supplier account Cr Sales account
C Dr Purchases account Cr Sales account
D Dr Sales account Cr Bank account
2
