January 2023

Cambrige Notes: Principles of Accounting: Introduction to Liquidity Ratios

By |2022-09-15T12:31:51+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Liquidity Ratios

  • Liquidity is a measure of how well a business can meet its short term obligations as and when they fall due
  • It is usually expressed in terms of how well the entity/business in question can convert its assets into cash
  • Short term obligations include amounts owed to […]

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Cambrige Notes: Principles of Accounting: Partnership Dissolution Solution to Example Question

By |2022-09-15T12:32:13+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Partnership Dissolution Example

  • We looked at the basics of partnership dissolution here
  • We also posted an example question here
  • Now we will present the solution to that question

The realisation account

  • Debtors and Receivables are just one and the same thing
  • Creditors can also be referred […]

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Cambrige Notes: Principles of Accounting: Non-Profits Example: Income and Expenditure Account

By |2022-09-15T12:31:58+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for non profit organisations Example

The Receipts and Payments Account

Chivero Angling Club Snack Bar Income Statement

Chivero Angling Club Income and Expenditure Account for the year ended 31 […]

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Cambrige Notes: Principles of Accounting: Bad Debts Recovered

By |2022-09-15T12:31:43+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Bad Debts Recovered

  • We have looked at the concept of Bad and Doubtful Debts
  • For a number of reasons a debt that was previously considered bad might become recoverable:
    • Maybe due to an agreement
    • A court settlement/order
    • The fortunes of the debtor improves
  • When this happens the debt must be […]

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Cambrige Notes: Principles of Accounting: Making entries in the Purchases Ledger

By |2022-09-15T12:31:28+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Making entries in the Purchases Ledger

  • In this example we will make entries into the Purchases Ledger, Cash Book and General Ledger
  • We will be skipping the books of original entry
  • Although this is not how things are done in practice
  • Examination/Exercise question might ask you to make double entries […]

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Cambrige Notes: Principles of Accounting: Trial Balance and Errors

By |2022-09-15T12:31:30+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Trial Balance and Errors

  • As already stated there are two main reasons for preparing a Trial Balance:
    1. It is used as a starting point for preparing financial statements
    2. To check for errors in the accounting system
  • Given that the second purpose of a Trial Balance is to check for errors […]

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Cambrige Notes: Principles of Accounting: Both prepaid and accrued income and expenses

By |2022-09-15T12:31:38+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Both prepaid and accrued income and expenses

  • We have already looked at the treatment of:
    1. Accrued expenses
    2. Accrued income
    3. Prepaid expenses
    4. Prepaid Income
  • However the assumption in each case was that these cases would occur in isolation
  • That is for example only an accrual would occur […]

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Cambrige Notes: Principles of Accounting: Electronic Data Processing

By |2022-09-15T12:31:17+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes Notes: Electronic Data Processing

  • With the advent of computers electronic data processing has become prevalent
  • Electronic data processing is the use of computers in recording, classifying, manipulating,presenting and summarizing data
  • In the early days of computers electronic processing was rather limited
  • At first it involved the use of electronic calculators to […]

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Cambrige Notes: Sales Returns Day Book Example Sales Return Day Book Example

By |2022-09-15T12:31:00+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Sales Return Day Book Example Sales Return Day Book Example

Enter up the Sales Day Book and the Returns Inwards Day Book from the following details. Then post to the customers’ accounts and show the transfers to the General Ledger.

2014

  • June 1 Credit sales to: B Danho $240; M Runde $126; G […]

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Cambrige Notes: Introduction to Shares

By |2022-09-15T12:31:03+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Shares

  • This is a unit or portion of capital.
  • It represents a stake in a limited liability business.

Types/Classes of shares.

  • There are basically two types of shares:
  • Ordinary and preference shares.

Ordinary shares

  • these represent equity ownership in the business (i.e. they are owned by the owners of […]

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