January 2023

Cambrige Notes: Principles of Accounting: Correcting errors example

By |2022-09-15T12:31:32+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: Correcting errors example

The following errors were discovered in the books of K Musana on 31 March 20×7

  1. Purchases $1,410 on credit from A Rombe had been entered in B Rombe’s account
  2. A cheque of $94 […]
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Cambrige Notes: G Musandu Solution:Trading and Profit and Loss Account

By |2022-09-15T12:31:09+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: Sole Trader: Trading and profit and loss accounts and balance sheets: Other items

  • This is a solution to the question here.

G Musandu

Trading and Profit and Loss Account (Income Statement) for the year ended 31 September 20×9

  • Sales returns and Returns inwards are the same thing

    • […]

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Cambrige Notes: Principles of Accounting: Three Column Cash Book

By |2022-09-15T12:31:19+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: Three Column Cash Book

  • Most businesses offer credit sales in order to increase sales
  • This creates the debtors accounts which are recorded in the ledger and appear in the Statement of Financial Position (Balance Sheet)
  • Cash and by extension working capital is the life blood of the business
  • To […]
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Cambrige Notes: Sole Trader Businesses

By |2022-09-15T12:31:02+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: Sole Trader Businesses

Characteristics/Features

  • It is a form of business where there is only one owner who manages and controls the business.
  • The owner of a business is also known as a proprietor and hence the business is also known as a sole proprietorship which means the business has one owner.
  • A […]
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Cambrige Notes: Introduction to the Trading and Profit and Loss Account

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: 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 |2022-09-15T12:30:52+02:00January 24th, 2023|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 |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

The Capital Accounts

The Current Accounts for the partners

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

By |2022-09-15T12:32:08+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: 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 |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: 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 |2022-09-15T12:32:00+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

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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