February 2025

Principles of Accounting: Acid Test Ratio / Quick Asset Ratio

By |2025-02-12T09:36:42+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Liquidity Ratios: Acid Test Ratio / Quick Asset Ratio

  • As pointed out in our discussion of the Current Asset Ratio
  • Including stock when calculating stock might not be desirable
  • This is because it might not always be easy to turn the asset of stock/inventory into liquid cash so as to […]
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Principles of Accounting: Departmental Accounting Example

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

ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts Example

Example Question

From the following list of balances you are required to prepare a departmental Income Statement in columnar form for the year ended 31 March 20X5, in respect of […]

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Principles of Accounting: Statement of Financial Position Example

By |2025-02-12T09:32:22+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Partnership Financial Statements Example

  • This is the second part solution to the question that was posted here
  • The first part of the solution to this question can be found here
  • It examines the basic structure of Financial Statements of partnerships
  • In this part we will examine the structure […]
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Principles of Accounting: Company Accounts: Basic Terms

By |2025-02-12T09:41:31+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Basic Terms

  • As pointed out elsewhere there are subtle differences between accounting for sole trader businesses, partnerships and non-profit entities when compared to accounting for limited liability companies
  • This is due to differences in the way limited liability companies conduct their business when compared to the rest

    • […]

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Making Entries from Sales Day Book into the Sales Ledger Example

By |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 […]

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Introduction to the Trading and Profit and Loss Account

By |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 […]
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Principles of Accounting: Discount Allowed entries simple example

By |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 […]
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Principles of Accounting: Trial Balance and Errors

By |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 […]
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