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

Credit Note and Debit Note

By garikaib|2025-02-12T09:14:42+02:00February 12th, 2025|Notes, O Level Commerce Notes, Ordinary Level Notes, Principles of Accounts Notes|

A credit note. Image credit debitoor.com ZIMSEC O Level Commerce Notes: Credit Note and Debit Note

Credit Note

I issued by a supplier to a buyer.
It is usually printed in red or pink.
It is used when a supplier owes the buyer money.
It shows the flow of […]

Comments Off

Making Entries from Sales Day Book into the Sales Ledger Example

By garikaib|2025-02-12T09:07:06+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit: Frank Wood's Business Accounting 1 Image credit: Frank Wood’s Business Accounting 1 ZIMSEC O Level Principles of Accounts Notes: Posting to the Sales Ledger from the Sales Day Book

You are a bookkeeper for G Moyo. He are asks you to enter into the Sales Day Book the following transactions […]

Comments Off

Introduction to the Trading and Profit and Loss Account

By garikaib|2025-02-12T09:16:08+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit pixabay.com Image credit pixabay.com ZIMSEC O Level Principles of Accounts 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 […]

Comments Off

Entries into the Cash Book

By garikaib|2025-02-12T09:02:22+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Cash book entries. Image credit mexperience.com ZIMSEC O Level Principles of Accounts Notes: The Cash Book:Entries into the Cash Book

We will now look at the following example:

Write up a two-column cash book for a S Munodei’s Furniture Shop from the following details, and
balance it off […]

Comments Off

Principles of Accounting: Discount Allowed entries simple example
Gallery
Principles of Accounting: Discount Allowed entries simple example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Discount Allowed entries simple example

By garikaib|2025-02-12T09:10:32+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Source Documents: Three Column Cash Book: Discount Allowed Example

We have already looked at Discount Allowed here
Here we will look at a simple example in order to look at the entries you need to make
We sold goods worth $500 to J Chimusoro on credit on 8 January
On January 12 […]

Comments Off

Principles of Accounting: Trial Balance and Errors
Gallery
Principles of Accounting: Trial Balance and Errors

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Trial Balance and Errors

By garikaib|2025-02-12T09:01:50+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Trial Balance and Errors

As already stated there are two main reasons for preparing a Trial Balance:
1. It is used as a starting point for preparing financial statements
2. To check for errors in the accounting system
Given that the second purpose of a Trial Balance is to check for errors in […]

Comments Off

Principles of Accounting: Both prepaid and accrued income and expenses
Gallery
Principles of Accounting: Both prepaid and accrued income and expenses

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Both prepaid and accrued income and expenses

By garikaib|2025-02-12T09:31:59+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Both prepaid and accrued income and expenses

We have already looked at the treatment of:
However the assumption in each case was that these cases would occur in isolation
That is for example only an accrual would occur and […]

Comments Off

Principles of Accounting: Accounting for Capital and Revenue Expenditure
Gallery
Principles of Accounting: Accounting for Capital and Revenue Expenditure

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Accounting for Capital and Revenue Expenditure

By garikaib|2025-02-12T09:16:15+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Accounting for Capital and Revenue Expenditure

Now that we have explained the differences between capital and revenue expenditure
It is time to look at how these are recorded in the books
Obviously the treatment is not the same

Accounting Treatment of Capital Expenditure

Capital expenditure must be recorded in the General Ledger […]

Comments Off

Principles of Accounting: Rate of inventory turnover
Gallery
Principles of Accounting: Rate of inventory turnover

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Rate of inventory turnover

By garikaib|2025-02-12T09:38:53+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: 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 financial period […]

Comments Off