January 2023

Cambrige Notes: Principles of Accounting: Source Documents: Vouchers

By |2022-09-15T12:31:18+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Source Documents: Vouchers

  • A voucher is a written instrument that serves to confirm or witness (vouch) for some fact such as a transaction
  • Vouchers that can be defined as an instrument of a redeemable transaction type
  • which is worth a certain monetary value
  • and which may be spent only for specific reasons […]
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Cambrige Notes: Stakeholders of the Business

By |2022-09-15T12:31:01+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Stakeholders of the Business

  • Many people are involved in running a business.
  • Some have direct interest while others have indirect interest in the running of the business.
  • These individuals or groups are known as stakeholders.
  • At any given time and during each and every business operation each stakeholder group will have […]
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Cambrige Notes: Multinational Companies/ Trans National Companies

By |2022-09-15T12:31:04+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Multinational Companies/ Trans National Companies

  • These are large limited liability companies with branches in other countries and a headquarters in one country.
  • Control is centralized and products have very similar features
  • for example Zimplats (Implats), Coca Cola, Shell and BP.

Advantages

To host country

  • Multinational companies bring several […]
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Cambrige Notes: The clearing of cheques

By |2022-09-15T12:30:51+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Money and Banking: The clearing of Cheques.

  • There are three ways and circumstances in which a cheque may be cleared.

If the payee and drawer use the same bank and branch

  1. The payee deposits the cheque into his/her account.
  2. The payee is credited and,
  3. The drawer is debited.

If the payee and drawer use the same […]

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Cambrige Notes: Principles of Accounting: Capital and Current Accounts Example

By |2022-09-15T12:32:04+02:00January 24th, 2023|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

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Cambrige Notes: Principle of Accounting: The concept of goodwill

By |2022-09-15T12:32:07+02:00January 24th, 2023|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 concept of goodwill

  • It is not unusual for a business to be bought or sold as a going concern i.e.
  • The entire business (or business unit) and its related assets and liabilities
  • Often when a business is sold or bought it is at a price that is […]
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Cambrige Notes: Principles of Accounting: Acid Test Ratio / Quick Asset Ratio

By |2022-09-15T12:31:52+02:00January 24th, 2023|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: Acid Test Ratio / Quick Asset Ratio

  • As pointed out in our discussion of the Current Asset Ratio
  • Including stock when calculating stock might not be desirable
  • This is because it might not always be easy to turn the asset of stock/inventory into liquid cash so […]
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Cambrige Notes: Principles of Accounting: Departmental Accounting Example

By |2022-09-15T12:31:59+02:00January 24th, 2023|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

Example Question

From the following list of balances you are required to prepare a departmental Income Statement in columnar form for the year ended 31 March 20X5, in […]

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Cambrige Notes: Principles of Accounting: Capital and Revenue Expenditure

By |2022-09-15T12:31:44+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Capital and Revenue Expenditure

  • In accounting it is paramount to separate between revenue and capital expenditure
  • Naturally all business expenditure can be classified as either revenue or capital expenditure

Capital Expenditure

  • Capital expenditure is not to be confused with the capital account or capital in general
  • Capital expenditure is when a business […]
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Cambrige Notes: Principles of Accounting: Balancing off the Accounts Example

By |2022-09-15T12:31:30+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Balancing off the Accounts Example

  • We have already looked at the steps you need to take when balancing off the accounts here
  • We will now look at a simple example:

The following transactions took place in the books of Esnath Pasipanodya in the month of August

20X7
August
1 Credit sales G Wadii $310; […]

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