Principles of Accounts Notes Archives - Free ZIMSEC & Cambridge Revision Notes

Source Documents and their uses

By garikaib|2025-02-12T08:59:40+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

A bank cheque is an example of a source document. Image credit delcampe.net ZIMSEC O Level Principles of Accounts Notes: Source Documents and their uses

Accounting is the systematic recording of financial transactions in monetary terms.
Every time a […]

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Stakeholders of the Business

By garikaib|2025-02-12T09:15:58+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes, Principles of Accounts Notes|

Every business has several stakeholders. Image credit modernservantleader.com ZIMSEC O Level Business Studies 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 […]

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The contents of a Balance Sheet/Statement of Financial Position

By garikaib|2025-02-12T09:34:08+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

The balance sheet contains several items that have to be explained. Image credit alignmt.com ZIMSEC O Level Principles of Accounts Notes: The contents of a Balance Sheet/Statement of Financial Position

While a Balance Sheet could just be […]

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Principles of Accounting: Introduction to data processing
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Principles of Accounting: Introduction to data processing

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Introduction to data processing

By garikaib|2025-02-12T08:57:42+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting Notes: Introduction to data processing

Part of accounting involves data processing or processing data
Data-refers to raw and unprocessed information for example a transaction event such as the sale of goods bought for resale in exchange for cash
Information- is a term that is used to refer to data:
- That is timely and […]

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Principles of Accounting: The Sales Ledger
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Principles of Accounting: The Sales Ledger

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: The Sales Ledger

By garikaib|2025-02-12T09:28:27+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: The Sales Ledger

A sale occurs when goods bought with intention of reselling them are sold
We have already looked at the Sales Day Book and the Sales Leger here
We have already looked at how transactions can be entered in the Sales Day Book and transferred to the Sales […]

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Principles of Accounting: The Accruals concept and the Materiality concept
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Principles of Accounting: The Accruals concept and the Materiality concept

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: The Accruals concept and the Materiality concept

By garikaib|2025-02-12T09:19:23+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: The Accruals concept and the Materiality concept

As we has already been pointed out in another topic here
The accounting function is governed by several concepts which form part of what are known as International Financial Reporting Standards
In this topic we will look at:
1. The Accruals/Matching Concept and
2. The […]

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Principles of Accounting: Disposal of Fixed Assets
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Principles of Accounting: Disposal of Fixed Assets

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Disposal of Fixed Assets

By garikaib|2025-02-12T09:02:16+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Disposal of Fixed Assets

Eventually all fixed assets (non-current assets) bought for resale reach their end of life
More often than not a non-current asset is sold way before it reaches its end of life
This can happen for any number of reasons:
- To raise cash and improve the business’s liquidity standing

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Principles of Accounting: Bank reconciliation statement and bank overdraft
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Principles of Accounting: Bank reconciliation statement and bank overdraft

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Bank reconciliation statement and bank overdraft

By garikaib|2025-02-12T09:39:20+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Bank reconciliation statement and bank overdraft

Preparing a bank reconciliation statement is easy
In the last example we assumed that the business had a positive balance shown by a a debit bank balance in the bank column of the cash book and a credit balance on the bank statement
In reality […]

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Principles of Accounting: William Sachikonye Statement of Financial Position
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Principles of Accounting: William Sachikonye Statement of Financial Position

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: William Sachikonye Statement of Financial Position

By garikaib|2025-02-12T09:12:39+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Single entry and Incomplete records: Example 2

This is a continuation of the question posted here and
It is the last part of the solution found here
Now that we have created the Income Statement it is time to create the Statement of Financial Position