February 2025

Cambrige Notes: Principles of Accounting: The Appropriation Account

By |2025-02-12T09:21:19+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships:The Appropriation Account

  • Apart from a few nuances partnerships prepare normal financial statements
  • These are almost indistinguishable from those of Sole Traders
  • They include the usual Income Statement ( Trading and Profit and Loss Account) and the Statement of Financial Position
  • If this is a manufacturing partnership the Manufacturing […]
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Cambrige Notes: Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

By |2025-02-12T09:24:35+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

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Cambrige Notes: Principles of Accounting: Single entry and Incomplete records

By |2025-02-12T09:28:02+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Single entry and Incomplete records: Introduction

  • It is not at all uncommon for business owners to have incomplete accounting records
  • A lot of SMEs (small and medium enterprises) often do not keep double entry accounting systems
  • Consider the example of a banana vendor it would be ridiculous for him to keep […]
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Cambrige Notes: Principles of Accounting: Introduction to Manufacturing Accounts

By |2025-02-12T09:30:59+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

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

  • Thus far we have taken it for granted that businesses purchase everything they sell
  • While it is true that a lot of business purchase inventory and sell it at a profit
  • There are some businesses that manufacture products
  • These manufacturing businesses typically:
    • Acquire Raw materials
    • Process this […]
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Cambrige Notes: Principles of Accounting: The format of Manufacturing Accounts

By |2025-02-12T09:34:32+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The structure of Manufacturing Accounts

  • In the other post we introduced you to manufacturing accounts
  • In this post we will look at typical formats of manufacturing accounts
  • This is not to say there are different formats, no
  • We are merely going to present a simple manufacturing account
  • Followed by one […]
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Cambrige Notes: Principles of Accounting: Purchases Control Accounts

By |2025-02-12T09:37:29+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Purchases Control Accounts

  • Purchases Control Accounts contain a summary view of the purchases ledger
  • Below is a typical purchases control account:
  • Naturally the exact entries depend on transactions that occur in the business in the period under review or the question in an exam

Sources of information when preparing

NB

  • It […]
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Cambrige Notes: Principles of Accounting: Correcting Errors using suspense account

By |2025-02-12T09:40:58+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Correcting Errors using suspense account

  • In another topic we learnt about the need, use and purpose of the suspense account
  • In this topic we will learn about how to correct errors that involve the suspense account
  • If you are looking at how errors that are not revealed by the trial […]
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Cambrige Notes: Entries into the Cash Book

By |2025-02-12T09:44:24+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The Cash Book:Entries into the Cash Book

  • We have already looked at the Cash Book here
  • We will now look at some typical transactions and the entries that will have to be made in the Cash Book the following example:

Write up a two-column cash book for a S Munodei’s Furniture Shop […]

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Cambrige Notes: Principles of Accounting: Discount Allowed entries simple example

By |2025-02-12T08:57:28+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Source Documents: Three Column Cash Book: Discount Allowed Example

  • We have already looked at Discount Allowed here
  • Here we will look at a simple example in order to look at the entries you need to make
  • We sold goods worth $500 to J Chimusoro on credit on 8 January
  • On January […]
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Cambrige Notes: Principles of Accounting: Discount Received

By |2025-02-12T09:01:06+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Source Documents: Three Column Cash Book: Discount Received

  • It is customary for businesses to sell goods on credit
  • In order to encourage prompt payment a business might offer a cash discount
  • In such instances the business will accept a lesser amount in settlement of a debt in exchange for early payment

    • […]

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