CERTIFIED ACCOUNTING TECHNICIAN STAGE 1 EXAMINATION - S.1.1 - RECORDING FINANCIAL TRANSACTIONS - MARKING GUIDE AND MODEL ANSWER

Oct 28, 2026

Marking guide and model answers for CERTIFIED ACCOUNTING TECHNICIAN STAGE 1 EXAMINATION, specifically S.1.1 on recording financial transactions, dated Tuesday 28 May 2024. The document provides the correct options and brief explanations for multiple questions covering double entry payroll accounting, aged receivables analysis, remittance advice contents, and related document classifications. It also includes calculations and reasoning for trade discounts, cash discounts, credit notes, bank reconciliation concepts, and cash withdrawal from a bank for personal use.

LanguageEnglish

CategoryExam

FormatPDF

Pages21

Reading Time53 min

AccessFree to download

S.1.1: Recording Financial Transactions

Question One

Question Two

Question Three

Question Four

Question Five

Question Six

Question Seven

Question Eight

Question Nine

Question Ten

CERTIFIED ACCOUNTING TECHNICIAN STAGE 1 EXAMINATION S.1.1: RECORDING FINANCIAL TRANSACTIONS DATE: TUESDAY 28, MAY 2024 MARKING GUIDE AND MODEL ANSWER | Question | Answer | Question | Answer | | --- | --- | --- | --- | | 1 | B | 26 | A | | 2 | C | 27 | D | | 3 | A | 28 | B | | 4 | C | 29 | A | | 5 | C | 30 | C | | 6 | A | 31 | C | | 7 | A | 32 | C | | 8 | D | 33 | B | | 9 | A | 34 | B | | 10 | B | 35 | C | | 11 | A | 36 | D | | 12 | C | 37 | A | | 13 | A | 38 | D | | 14 | B | 39 | B | | 15 | D | 40 | B | | 16 | B | 41 | D | | 17 | B | 42 | D | | 18 | A | 43 | D | | 19 | A | 44 | D | | 20 | D | 45 | B | | 21 | B | 46 | D | | 22 | C | 47 | C | | 23 | D | 48 | C | | 24 | C | 49 | A | | 25 | D | 50 | C | QUESTION ONE The correct Answer is B Payroll accounting is accounted for using the double entry bookkeeping system. Payroll transactions recorded using the wages control account as a credit entry. All the other options are not correct since they advocate for single entry which is not possible in accounting. QUESTION TWO The correct answer is C An aged receivables analysis provides a guide as to whether the business’ debts are being collected at the appropriate time. This is in turn is useful to the credit control for collection of receivablesand chased of amounts outstanding longer than the agreed credit period. Aged receivables analysis may assist management in options A and B but it is not the main purpose of trade receivables. QUESTION THRRE The correct answer is A A remittance advice is a document that describes payments that are being made, especially the part of the invoice that the customer sends back with payment, it normally contains: full name and address of the Payer and payee The invoice number and invoice amount and amount to be paid, The invoice date and date of payment. B is not correct since it is a negotiable instrument instructing a financial institution to pay a specific amount of a specific currency from a specified transactional account held in the drawer's name with that institution.it does not include invoice information. C Bank Reconciliation statement is not correct since it is a document prepared by a company that shows its recorded bank account balance matches the balance the bank lists. D Purchase order is not correct since it is a commercial source document issued when placing an order with vendors or suppliers. QUESTION FOUR The correct answer is C RWF 12,500-RWF 10,000= RWF 2,500 will increase owners ‘equity A. Is not correct, RWF 10,000 is the purchase cost B. Is not correct, RWF 12,500 is the selling price D. Is not correct because C is the only correct answer from the above responses Calculation of the best answer: Purchase cost: RWF 10,000 Sale value: RWF 12,500 Profit: RWF 12,500-RWF 10,000= RWF 2,500 QUESTION FIVE The correct answer is C A Invoice, goods received note, delivery note, credit note.– This comprises mainly of a list of internal documents, but delivery note is an external document. Credit note can be both internal and external. B Quotation, acknowledgement, letter of inquiry, letter of acceptance.– these are all external documents. D Police letter, national Identity card, audit report, driver’s license.– This consists of a list of other documents other than business documentations. Question SIX A B C D | | Trade discount | FRW | FRW | FRW | FRW | | --- | --- | --- | --- | --- | --- | | Pruchase | | 4,500,000 | 4,500,000 | 4,500,000 | 4,500,000 | | Less: Trade discount (5%) | (4,500,000X5%) | - 225,000 | 225,000 | - 225,000 | - 225,000 | | Less: cash discount (5%) | ((4,500,000-225,000)X2%) | | | - 85,500 | | | Less: Credit note value | | - 850,000 | 850,000 | | 850,000 | | Payable amount | | 3,425,000 | 5,575,000 | 4,189,500 | 5,125,000 | | | | | | | | | Explanation | | Right answer-Gasana took items more than FRW500,000, hence obtaining a trade discount and on return of the items, his balance should

FAQs

What accounting system is used to record payroll transactions in the guide?

Payroll accounting is recorded using the double entry bookkeeping system, with payroll transactions recorded using the wages control account as a credit entry.

What is an aged receivables analysis used for?

It helps assess whether business debts are collected on time, supporting credit control by helping chase receivables outstanding beyond the agreed credit period.

Why does a remittance advice need to include invoice and payment details?

The model answer states that remittance advice describes payments being made and typically includes payer/payee details, invoice number and invoice amount, and the invoice date and payment date.

Oct 28, 2026

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