February 2025

Principles of Accounting: Types of Business Organisations

By |2025-02-12T09:43:45+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting Notes: Types of Business Organisations

  • A business can be defined as an economic or commercial activity
  • All business activity can be subdivided into individual and separate transactions
  • A transaction is an event that results in a change in an asset, liability, or net worth of a business
  • In accounting various words are used to […]
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Principles of Accounting: General Journal transferring to new books

By |2025-02-12T09:21:17+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: General Journal transferring to new books

  • We have already looked at some of the uses of the General Journal
  • which is sometimes simply called the Journal or Journal Proper
  • We have also looked at an example where we made different types of entries into the Journal
  • Another use not illustrated in […]
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Principles of Accounting: An example of how to correct errors in a suspense account

By |2025-02-12T09:15:52+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts 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 of […]

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Principles of Accounting: The Revaluation Method

By |2025-02-12T09:42:46+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Calculating/Estimating depreciation: The Revaluation Method

  • When there are a few big fixed assets it is easy to:
    1. Ascertain the cost
    2. Estimate its useful life
    3. Calculate/estimate its depreciation
    4. Account for its disposal
    5. Calculate/estimate profit or loss on disposal
  • For each asset because it is worth the effort
  • There are times when this […]
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Principles of Accounting: Introduction to Bank Reconciliation Statements

By |2025-02-12T09:31:51+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Introduction to Bank Reconciliation Statements

  • When we looked at the Cash Book we mentioned that all bank related transactions are recorded in it
  • We glaringly ignored one fact the bank is also a business
  • They have their own set of records about our deposits and withdrawals
  • In modern times due to […]
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Principles of Accounting: Missing figures

By |2025-02-12T09:46:00+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Single entry and Incomplete records: Missing figures

  • As already pointed out creating financial statements using single entry or incomplete records requires filling in the gaps
  • This is because naturally there will be some missing figures/amounts
  • These amounts have to be ascertained
  • We have already looked at how a Statement of Affairs can […]
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Principles of Accounting: Solution to Manufacturing Accounts Example

By |2025-02-12T09:01:04+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Example question Manufacturing Accounts

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

By |2025-02-12T09:37:27+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: 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 an Accounting […]

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Principles of Accounting: Company Accounts: Introduction

By |2025-02-12T09:35:57+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Introduction

  • It is important to note that all accounts are prepared on the basis that the owner and his/her business are two separate persons
  • This does not matter if the business is not considered a separate legal entity for example partnerships and sole trader businesses
  • However actual companies […]
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Cambrige Notes: Principles of Accounting: Statements of Changes in Equity

By |2025-02-12T09:22:42+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 Limited Liability Companies: Statements of Changes in Equity

  • Besides the Statement of Financial Position and Income Statement
  • Companies are also required to prepare a Statement of Changes in Equity
  • This statement as implied by its name shows changes in equity from the beginning to the end of the […]
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