Cambridge O Level/ IGSCE Accounts Notes Archives - Page 3 of 19

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

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

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

By Garikai Dzoma|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
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Cambrige Notes: Principles of Accounting: Discount Received

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Discount Received

By Garikai Dzoma|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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Cambrige Notes: Terms used in the Trading and Profit and Loss account/Income Statement
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Cambrige Notes: Terms used in the Trading and Profit and Loss account/Income Statement

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Terms used in the Trading and Profit and Loss account/Income Statement

By Garikai Dzoma|2025-02-12T09:04:21+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: Terms used in the Trading and Profit and Loss account/Income Statement

Gross profit

is the excess of sales over the cost of goods sold
If the amount of cost of goods sold is more than the amount of sales the result is a gross loss
Gross profit is found in the Trading […]

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Cambrige Notes: Differences between shares and debentures
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Cambrige Notes: Differences between shares and debentures

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Differences between shares and debentures

By Garikai Dzoma|2025-02-12T09:07:35+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Differences between shares and debentures

To access more topics go to the Commerce Notes page.

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Cambrige Notes: Principles of Accounting: Appropriation Account Example
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Cambrige Notes: Principles of Accounting: Appropriation Account Example

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Appropriation Account Example

By Garikai Dzoma|2025-02-12T09:21:32+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: Accounting for Partnerships: Appropriation Account Example

You can find the introduction to Appropriation Accounts here
Having introduced them we will now look at an example

Example Question Appropriation Account

Gandanga, Waeni and Banda are partners. They share profits and losses in the respctive ratios

\tfrac{3}{8} : \tfrac{3}{8}: \tfrac{1}{4}
For the year ended […]

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Cambrige Notes: Principles of Accounting: Goodwill: Changes in Profit Sharing Ratio Example
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Cambrige Notes: Principles of Accounting: Goodwill: Changes in Profit Sharing Ratio Example

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Goodwill: Changes in Profit Sharing Ratio Example

By Garikai Dzoma|2025-02-12T09:24:52+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: Accounting for Partnerships: Goodwill and Partnership businesses: Changes in Profit Sharing Ratio Example

This is an example of a question where there are changes in the profit sharing ratio of a partnership
We have already looked at the entries involved in such cases here

Example question

Mhaka, Banda, Feruka and Tangwena run […]

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Cambrige Notes: Principles of Accounting: Statement of Affairs
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Cambrige Notes: Principles of Accounting: Statement of Affairs

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Statement of Affairs

By Garikai Dzoma|2025-02-12T09:28:13+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: Statement of Affairs

As already covered in the introduction to single entry and incomplete records
One of the first required steps in order to prepare financial statements
Is to prepare a Statement of Affairs
A Statement of Affairs is a summary of an entity’s asset […]

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Cambrige Notes: Principles of Accounting: Causes of Depreciation
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Cambrige Notes: Principles of Accounting: Causes of Depreciation

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Causes of Depreciation

By Garikai Dzoma|2025-02-12T09:31:10+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 depreciation

We have already explained that depreciation is the wasting away of fixed assets
We have also explained that it is treated as an expense in the Income Statement where it should appear at least once a year
Now we will look at the causes of depreciation
It is […]

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Cambrige Notes: Principles of Accounting: Example question Manufacturing Accounts
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Cambrige Notes: Principles of Accounting: Example question Manufacturing Accounts

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Example question Manufacturing Accounts

By Garikai Dzoma|2025-02-12T09:34:44+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: Example question Manufacturing Accounts

Having looked at the nature of Manufacturing Accounts
And the structure of these accounts
It is time we look at a worked example

Manufacturing Accounts Example Question

E Makonese is a manufacturer. His trial balance at 31 December 20X8 is as follows:

Additional information:

Stocks at 31 […]

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Cambrige Notes: Principles of Accounting: Sales Control Accounts
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Cambrige Notes: Principles of Accounting: Sales Control Accounts

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Sales Control Accounts

By Garikai Dzoma|2025-02-12T09:37:40+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: Sales Control Accounts

Sales control accounts present a summarized version of what should be in the Sales Ledger in a given period
Below is a typical Sales Control Account:

The exact look of the sales control account obviously depends on the nature of transactions involved

Sources of information when preparing

[…]

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February 2025

Example Question Appropriation Account

Example question

Manufacturing Accounts Example Question

Sources of information when preparing