February 2025

Cambrige Notes: The Sales Returns and Purchases Returns Day Books

By |2025-02-12T08:59:54+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: The Sales Returns and Purchases Returns Day Books

  • Most businesses allow customers to return goods that they have bought for various reasons
  • For example if the goods are ill-fitting, of the wrong color, they exceeded ordered quantity, were damaged in transit or are not functioning as expected i.e. malfunctioning.
  • The return […]
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Cambrige Notes: Introduction to Limited Liability Companies

By |2025-02-12T09:03:14+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Pick n Pay is an example of a limited liability company. Image credit tmsm.co.zw Pick n Pay is an example of a limited liability company. Image credit tmsm.co.zw

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

  • Contrary to popular belief among students and common people the word […]
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Cambrige Notes: Receipts and till slips

By |2025-02-12T09:06:27+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Receipts and till slips

Receipt

  • Is issued by a seller to a buyer.
  • It is used to acknowledge a cash payment.
  • It is evidence of a cash sale.
  • It shows:
    1. The names and addresses of the buyer and seller.
    2. date of receipt issue.
    3. Reason for payment.
    4. Description Of goods-if it is a receipt for […]
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Cambrige Notes: Principles of Accounting: Introduction to Liquidity Ratios

By |2025-02-12T09:23:33+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 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 |2025-02-12T09:27:01+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 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 |2025-02-12T09:29:59+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: 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 |2025-02-12T09:33:20+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: 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 |2025-02-12T09:36:32+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: 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 |2025-02-12T09:39:55+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: 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 |2025-02-12T09:43:23+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: Both prepaid and accrued income and expenses

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