February 2025

Cambrige Notes: Principles of Accounting: Disposal of Fixed Assets Example

By |2025-02-12T09:32:52+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: Disposal of Fixed Assets Example

  • Now that we have looked at the entries required to record depreciation
  • It is time to look at a simple example:

A business whose financial year ends at 31 December purchased on 1 January 20X7 a machine for $5,000. The machine was to be depreciated by ten […]

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

By |2025-02-12T09:36:11+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: Making entries in the Sales Ledger

  • In this example we will make entries into the Sales 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 […]
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Cambrige Notes: Sole Trader: Simple Statement of Financial Position Example 2

By |2025-02-12T09:39:37+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: Sole Trader: Simple Statement of Financial Position Example 2

From the following trial balance of J Nhiwatiwa after his first year’s trading, you are required to
draw up a trading and profit and loss account (Income Statement) for the year ended 30 June 20X8 as well as Statement of Financial Position as at […]

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Cambrige Notes: Principles of Accounting: Prepayments and the Financial statements

By |2025-02-12T09:42:54+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: Prepayments and the Financial statements

  • A prepayment is when an amount is paid before it is due
  • In accounting there are two types of prepayments:
  • Prepaid expenses and
  • Prepaid income

Prepaid expenses

  • This is when the business prepays an expense
  • Examples are:
    • When a business pays rent payable in advance or
    • When […]
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Cambrige Notes: Principles of Accounting: Introduction to data processing

By |2025-02-12T08:55:48+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 Notes: Introduction to data processing

  • Part of accounting involves data processing or processing data
  • Data-refers to raw and unprocessed information for example a transaction event such as the sale of goods bought for resale in exchange for cash
  • Information- is a term that is used to refer to data:
    • That is […]
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Cambrige Notes: Cash Book Entries to record Cash Deposited into the Bank

By |2025-02-12T08:59:37+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cash Book Example. Frank Wood's Business Accounting I Cash Book Example. Frank Wood’s Business Accounting I

ZIMSEC O Level Principles of Accounts: Books of Original Entry: Cash Book Entries to record Cash Deposited into the Bank

  • If a business receives cash from its customers and
  • The cash is later paid into (deposited) […]
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Cambrige Notes: Features of Invoices

By |2025-02-12T09:03:02+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: Invoices

  • There are two main types of invoices:
  • A proforma invoice and,
  • ordinary invoices.

Proforma invoice

  • Is a document in the form of an invoice.
  • Is send by a supplier to a potential buyer.
  • It may be used as a quotation.
  • It shows terms of payment.
  • It show quantities of goods/services.
  • Is […]
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Cambrige Notes: Credit Note and Debit Note

By |2025-02-12T09:06:19+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

A credit note. Image credit debitoor.com A credit note. Image credit debitoor.com

ZIMSEC O Level Commerce Notes: Credit Note and Debit Note

Credit Note

  • I issued by a supplier to a buyer.
  • It is usually printed in red or pink.
  • It is used when a supplier owes the buyer money.
  • It shows the flow of money […]
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Cambrige Notes: Principles of Accounting: Profitability Ratios

By |2025-02-12T09:23:21+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: Profitability Ratios

  • So we have already introduced you to accounting ratios
  • These ratios include a group of ratios that are known as profitability ratios
  • Such ratios measure how well a business performed in profit terms in a given period
  • At this level you are required to know how to calculate three […]
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Cambrige Notes: Principles of Accounting: Partnership Dissolution Example

By |2025-02-12T09:26:44+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: Partnership Dissolution Example

  • We have looked at reasons why a partnership might dissolve here
  • Now we will look at an example question
  • The solution to this question can be found by clicking here

Question

Nkosi,Xo and Zack have been in partnership for several years, sharing profits and losses in […]

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