February 2025

Cambrige Notes: Introduction to the Trading and Profit and Loss Account

By |2025-02-12T09:04:02+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: Introduction to the Trading and Profit and Loss Account

  • The profit/loss of a business is calculated by preparing a trading and profit and loss account
  • It is sometimes called only the profit and loss account in error
  • It is also more accurately known as the: Statement of Comprehensive Income
  • It is […]
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Cambrige Notes: Private Limited Companies

By |2025-02-12T09:07:12+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Business Organisations: Private Limited Companies

  • Its operations are governed by the Companies Act.
  • Formed by 2-50 shareholders.
  • In other countries a company is formed by 2 or more people with no maximum number of shareholders.
  • Has a lot of legal formalities including:
  • It has to create an Articles of Association, Memorandum of Association and […]
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Cambrige Notes: Principles of Accounting: Solution to Capital and Current Accounts example

By |2025-02-12T09:21:01+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: Capital and Current Accounts Example

The Capital Accounts

The Current Accounts for the partners

    […]
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Cambrige Notes: Principles of Accounting: Goodwill and Partnership businesses

By |2025-02-12T09:24:22+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: Goodwill and Partnership businesses

  • Now that we have explained the idea of goodwill
  • It is time we examine the concept of goodwill in relation with partnerships
  • As already explained accounting standards require that goodwill be recorded only when a business is bought or sold
  • Partnership business are […]
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Cambrige Notes: Principles of Accounting: Rate of inventory turnover

By |2025-02-12T09:27:51+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: Rate of inventory turnover

  • Proprietors often want to know how “well” their business is doing
  • Besides such measures as profitability
  • one way of estimating liquidity is through the rate of inventory turnover ratio
  • The ratio estimates the number of times inventory is sold or used in a given […]
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Cambrige Notes: Principles of Accounting: Example to Departmental Accounting Solution

By |2025-02-12T09:30:47+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 Departmental Accounts Example

OK Mart Hillside

Income Statement for the year ended 31 March 20×5

NB We are not asked to prepare the combined accounts but this should be straightforward enough. Please see […]

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Cambrige Notes: Principles of Accounting: Accounting for Capital and Revenue Expenditure

By |2025-02-12T09:34:15+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 Capital and Revenue Expenditure

  • Now that we have explained the differences between capital and revenue expenditure
  • It is time to look at how these are recorded in the books
  • Obviously the treatment is not the same

Accounting Treatment of Capital Expenditure

  • Capital expenditure must be recorded in the General […]
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Cambrige Notes: Principles of Accounting: Introduction to Control Accounts

By |2025-02-12T09:37:19+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: Introduction to Control Accounts

  • We have already pointed out that errors do occur during the bookkeeping and accounting process
  • Some errors can be revealed by creating a trial balance
  • Control Accounts are another mechanism that can be used to discover errors in the books
  • Control Accounts are used to minimize errors […]
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Cambrige Notes: Principles of Accounting: The Suspense Account

By |2025-02-12T09:40:44+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: The Suspense Account

  • A trial balance is prepared in order to:
    1. Ease the process of preparing financial statements
    2. To reveal errors
  • Errors that are revealed by the trial balance include:
    1. Addition and other arithmetic errors
    2. Single/Incomplete entries into the books
    3. Entering different amounts on the debit and credit sides […]
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Cambrige Notes: G Musandu: Solution: Statement of Financial Position

By |2025-02-12T09:44:09+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: Trading and profit and loss accounts and Statement of Financial Position: Other items

  • This is the Statement of Financial Solution for the Trial Balance Question found here.

G Musandu

Statement of Financial Position as at 30 September 20×9

To access more topics go to the

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