Principles of Accounts Notes Archives - Page 12 of 19 - Free ZIMSEC & Cambridge Revision Notes

Principles of accounts:Bank Overdrafts

By garikaib|2022-09-15T12:39:53+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Business often make use of Overdrafts. Image credit telegraph.co.uk ZIMSEC O Level Principles of Accounts Notes: The Cash Book:Bank Overdrafts

Bank overdrafts are a way for businesses to borrow money in the short term
With bank overdrafts the business is allowed to withdraw […]

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Principles of Accounting: The petty Cash Book
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Principles of Accounting: The petty Cash Book

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: The petty Cash Book

By garikaib|2022-09-15T12:33:29+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Source Documents: The petty Cash Book

As a business grows it is customary to have a Petty Cash Book and a Cash Book
In large businesses if all small transactions were to be recorded in the in the Cash Book it would become unwieldy
Imagine the example of a retail giant such […]

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Principles of Accounting: Correcting errors example
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Principles of Accounting: Correcting errors example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Correcting errors example

By garikaib|2022-09-15T12:33:22+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Correcting errors example

We have looked at entries required to correct various errors
Now consider the following example

The following errors were discovered in the books of K Musana on 31 March 20×7

Purchases $1,410 on credit from A Rombe had been entered in B Rombe’s account
A cheque of $94 paid […]

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Principles of Accounting: Calculating/Estimating depreciation
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Principles of Accounting: Calculating/Estimating depreciation

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Calculating/Estimating depreciation

By garikaib|2022-09-15T12:33:14+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

Before it is entered in the books depreciation has to be calculated
Where an accurate figure cannot be estimated an estimate has to be used
It is entirely up to the business in question to choose an appropriate way of calculating depreciation for each class of assets
Whatever the method […]

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Principles of Accounting: Sales Control Accounts
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Principles of Accounting: Sales Control Accounts

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Sales Control Accounts

By garikaib|2022-09-15T12:33:07+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts 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

It […]

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Principles of Accounting: Statement of Affairs Example
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Principles of Accounting: Statement of Affairs Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Statement of Affairs Example

By garikaib|2022-09-15T12:32:59+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

We have explained what a Statement of Affairs is
Now we will look at an example of how to prepare a Statement of Affairs

Question

W Soja started his business on 1 April 20X2 with $35,000 in a bank account. Unfortunately
he did not keep proper books […]

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Principles of Accounting: Example question Manufacturing Accounts
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Principles of Accounting: Example question Manufacturing Accounts

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Example question Manufacturing Accounts

By garikaib|2022-09-15T12:32:53+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: 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 December 20X8: […]

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

Notes, Ordinary Level Notes, Principles of Accounts Notes

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

By garikaib|2022-09-15T12:32:45+02:00January 24th, 2023|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: Introduction to ethics and basic terms
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Principles of Accounting: Introduction to ethics and basic terms

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Introduction to ethics and basic terms

By garikaib|2022-09-15T12:32:30+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Business Ethics

History has shown that accountants occupy an important within the organisation
The financial well being is of fundamental importance to all stakeholders
Unlike other employees of the organisation an accountant’s responsibility is not exclusively to satisfy the needs of an individual client or employer
He/She need not blindly […]

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