Cambrige Notes: Differences between shares and debentures
ZIMSEC O Level Commerce Notes: Differences between shares and debentures
To access more topics go to the Commerce Notes page.
February 2025
Cambrige Notes: Principles of Accounting: Appropriation Account Example
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 […]
Cambrige Notes: Principles of Accounting: Goodwill: Changes in Profit Sharing Ratio Example
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 […]
Cambrige Notes: Principles of Accounting: Statement of Affairs
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 […]
Cambrige Notes: Principles of Accounting: Causes of Depreciation
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 […]
Cambrige Notes: Principles of Accounting: Example question Manufacturing Accounts
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 […]
Cambrige Notes: Principles of Accounting: Sales Control Accounts
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
-
[…]
Cambrige Notes: Principles of Accounting: An example of how to correct errors in a suspense account
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 […]
Cambrige Notes: Cash Discount,Discount Received and Discount Allowed
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 […]
Cambrige Notes: Purchases Journal and the Purchases Ledger
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 […]