How to pass FA (Financial Accounting) a simple guide by professionals
Why FA Is One of the Most Important ACCA Papers
FA (Financial Accounting) is the paper that teaches you how to record business transactions, prepare financial statements, and understand accounting rules.
If BT teaches you how a business works, and MA teaches how decisions are made, FA teaches how to keep the financial records of that business in a clean and correct way.
Most Pakistani students fear FA because they think accounting is difficult. But in reality, FA becomes easy when explained in simple language with real-life examples and that’s exactly what we are doing here at VCA.
If you follow a steady routine, practice daily, and understand the logic behind entries, you will pass FA on the first attempt comfortably.
1. Understanding the FA Syllabus
FA mainly focuses on how to record, classify, and report financial information.
Here is the full syllabus broken down into everyday language:
| Topic | What It Means | Why It Matters |
| Double Entry System | Recording transactions in debit and credit | This is the foundation of accounting |
| Trial Balance | Checking if records are correct | Helps find errors early |
| Adjustments | Things like prepaid expenses, accruals, depreciation | Makes accounts accurate |
| Financial Statements | Preparing income statement and balance sheet | Shows profit and financial position |
| Inventory | Valuing closing stock | Impacts profit directly |
| Cash & Bank | Managing receipts and payments | Basic business survival |
| Receivables & Payables | Customers who owe money and bills you owe | Shows business cash flow |
| Non-current Assets | Recording and depreciating long-term assets | Required in every business |
| Control Accounts | Summarized customer/supplier balances | Helps find mistakes |
| Errors & Suspense Account | Fixing mistakes in accounts | Very common in exam questions |
Once you understand these topics, FA becomes one of the easiest papers to score.
2. High-Priority Topics You Must Prepare First
Focus on the topics that appear in almost every exam.
High-Priority Areas
| Topic | Why It’s Important |
| Double Entry + Ledger Accounts | Basis of 30 – 40% of exam questions |
| Trial Balance + Errors | Very common MCQs |
| Adjustments (accruals, prepayments) | Always tested |
| Depreciation + Disposal of assets | High scoring numerical area |
| Financial Statements | Combination of multiple topics |
| Inventory Valuation (FIFO, AVCO) | Guaranteed question |
| Control Accounts | Repeated every session |
Medium Priority
| Topic | Why It Matters |
| Bank Reconciliation | Simple marks easy to score |
| Receivables & Payables | Small MCQs + short calculations |
| Limited Company Accounts | Light introduction |
This priority list will help students stay focused and pass confidently.
3. Learn FA With Very Simple Examples
Double Entry Example
If a business buys a laptop for Rs. 40,000 cash:
Laptop (Asset) – Debit 40,000
Cash – Credit 40,000
Debit means what the business receives.
Credit means what the business gives.
Accrual Example
You used electricity for Rs. 5,000 in June but will pay the bill in July.
This is an accrued expense.
Record:
Electricity Expense – Debit 5,000
Accrued Expense – Credit 5,000
Depreciation Example
A machine costing Rs. 100,000 is used for 5 years.
Depreciation = 100,000 / 5 = 20,000 per year.
Inventory Example
If you bought 10 items at Rs. 100 and 10 more at Rs. 120:
Using FIFO, the first 10 sold will be charged at Rs. 100.
Using AVCO, the average cost per item will be used.
Financial Statement Example
Income Statement:
Revenue – Expenses = Profit
Balance Sheet shows:
Assets = Capital + Liabilities
Once students understand these examples, FA becomes simple and interesting.
4. A Simple and Practical 4-Week Study Plan for FA
Weekly Study Plan
| Week | Topics | Daily Practice |
| Week 1 | Double Entry, Ledger Accounts, Trial Balance | 15 – 20 MCQs + 2 ledger questions |
| Week 2 | Accruals, Prepayments, Depreciation, Inventory | 10 MCQs + 2 numerical questions |
| Week 3 | Control Accounts, Bank Reconciliation, Errors | 10 – 15 MCQs + fix 3 – 4 errors daily |
| Week 4 | Full Financial Statements + Revision + Mocks | 1 full question daily + mixed MCQs |
Daily Routine
| Time | Task |
| 10 minutes | Revise yesterday’s notes |
| 40 minutes | Learn new topic |
| 30 minutes | Solve MCQs |
| 20 minutes | Practice numerical questions |
| 5 minutes | Note down formulas |
This routine is perfect for students who want a balanced and steady preparation.
5. Most Common FA Question Types You Must Practice
Students should focus on these question patterns first:
Double Entry Questions
- Identify correct debit/credit
- Missing figure questions
- Ledger balancing questions
Trial Balance and Errors
- Correcting wrongly recorded entries
- Fixing suspense account questions
Adjustments
- Accrued expenses
- Prepaid expenses
- Depreciation and disposal
Financial Statements
- Prepare a full income statement
- Prepare a balance sheet
- Adjust for closing stock, prepaid items, and depreciation
Inventory
- FIFO method
- AVCO method
- Calculate cost of sales and closing stock
Control Accounts
- Prepare receivables control account
- Prepare payables control account
Bank Reconciliation
- Identify unrecorded receipts/payments
- Correct bank balance
These topics repeat every session, so mastering them guarantees marks.
6. How to Practice Past Papers Effectively
Here is the VCA approach:
| Step | Method |
| Step 1 | Start past papers once you complete Week 2 |
| Step 2 | Solve one topic at a time (e.g., only inventory) |
| Step 3 | Move to combined questions (inventory + adjustments + depreciation) |
| Step 4 | Attempt exam-style mock papers |
| Step 5 | Immediately review your mistakes |
| Step 6 | Solve the same weak areas again after 2–3 days |
This step-by-step practice improves accuracy and confidence.
7. Avoid These Common Mistakes in FA
| Mistake | Why Students Lose Marks |
| Mixing debit and credit | Leads to wrong entries |
| Forgetting adjustments | Affects financial statements |
| Weak control accounts practice | These are guaranteed marks |
| Wrong inventory method | Simple topic but often ignored |
| Leaving questions halfway | Reduces total attempt percentage |
FA is scoring if mistakes are avoided.
8. Revision Plan for the Last Week
Students should revise FA in this order:
| Day | Task |
| 1–2 | Double entry + ledger + trial balance |
| 3 | Accruals, prepayments, depreciation |
| 4 | Inventory + control accounts |
| 5 | Financial statements |
| 6 | Mixed MCQs + one mock |
| 7 | Light revision + short notes |
This will prepare you perfectly for exam day.
9. Build a Strong Exam Mindset for FA
FA becomes easy when:
- You solve 10 – 15 MCQs daily
- You think of accounting as a real business
- You break transactions into small steps
- You revise formulas and small notes frequently
- You stay relaxed and avoid cramming
If you want more help with study habits, revision style, confidence building, and exam strategy, you can also read our main guide:
“Key Steps to Pass Any ACCA Paper on the First Attempt”.
It explains the full ACCA learning approach that works for every paper.
10. What Comes After FA?
Once you complete FA, your Applied Knowledge level is finished.
After this, the next level is Applied Skills.
We will publish all paper-specific guides one by one with the same simple and student-friendly approach.
Start Your ACCA Journey with VCA
If you want structured notes, easy explanations, daily practice plans, and proper exam guidance, join VCA.
We teach ACCA in a simple, friendly, and practical way perfect for students in Sialkot and across Pakistan.
Admissions are open. Contact VCA today and start your ACCA preparation the right way.