Cambridge O Level/ IGSCE Accounts Notes Archives - Page 6 of 19

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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Cambrige Notes: Principles of Accounting: An example of how to correct errors in a suspense account
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Cambrige Notes: Principles of Accounting: An example of how to correct errors in a suspense account

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

Cambrige Notes: Principles of Accounting: An example of how to correct errors in a suspense account

By Garikai Dzoma|2025-02-12T09:41:15+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: An example of how to correct errors in a suspense account

We have already looked at the suspense account and why it is needed
We will now look at an example

You have extracted a trial balance and drawn up accounts for the year ended 31 December 20X7. There was a shortage […]

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Cambrige Notes: Cash Discount,Discount Received and Discount Allowed
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Cambrige Notes: Cash Discount,Discount Received and Discount Allowed

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

Cambrige Notes: Cash Discount,Discount Received and Discount Allowed

By Garikai Dzoma|2025-02-12T09:44:40+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: The Cash Book:Discount Received and Discount Allowed

Businesses prefer it if their customers pay quickly
Businesses may thus accept a sum slightly lower than the invoice amount in settlement of a debt if payment is made within a certain period
This reduction is known as a cash discount
Cash discount-an amount given in exchange and […]

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Cambrige Notes: Purchases Journal and the Purchases Ledger

By Garikai Dzoma|2025-02-12T08:57:44+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

An example of entries being made in a Purchases Day Book. Image credit rtahosting.co.uk

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Purchases Journal and the Purchases Ledger

As has already been said transactions are first recorded […]

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

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

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

By Garikai Dzoma|2025-02-12T09:01:25+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 entries simple example

We have looked at the concept of Discount Received here
In this topic we will look at entries that can be used to record discount received
One thing to be wary off is that different suppliers will likely have different […]

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Cambrige Notes: Sole Trader: Trading and Profit and Loss Account and Capital Accounts
Cambrige Notes: Sole Trader: Trading and Profit and Loss Account and Capital Accounts

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

Cambrige Notes: Sole Trader: Trading and Profit and Loss Account and Capital Accounts

By Garikai Dzoma|2025-02-12T09:04:32+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: Terms used in the Trading and Profit and Loss account

The Trading and Profit and Loss Account is not balanced off at the end of the trading period
This means there are in no corresponding “balance b/d” in the books
Instead the Net Profit increases the capital of the owner
This […]

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