Principles of Accounts Notes Archives - Page 13 of 19 - Free ZIMSEC & Cambridge Revision Notes

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

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Trial Balance and Errors

By garikaib|2022-09-15T12:33:24+02:00January 24th, 2023|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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Principles of Accounting: Both prepaid and accrued income and expenses
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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|2022-09-15T12:33:16+02:00January 24th, 2023|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 […]

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Principles of Accounting: Accounting for Capital and Revenue Expenditure
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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|2022-09-15T12:33:08+02:00January 24th, 2023|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 […]

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

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Rate of inventory turnover

By garikaib|2022-09-15T12:33:00+02:00January 24th, 2023|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 […]

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Principles of Accounting: Example to Departmental Accounting Solution
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Principles of Accounting: Example to Departmental Accounting Solution

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Example to Departmental Accounting Solution

By garikaib|2022-09-15T12:32:54+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

This is a solution to the question posted here
It is an example of departmental accounting

OK Mart Hillside

Income Statement for the year ended 31 March 20×5

NB We are not asked to prepare the combined accounts but this should be straightforward enough. Please see notes on […]

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Principle of Accounting: The concept of goodwill
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Principle of Accounting: The concept of goodwill

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principle of Accounting: The concept of goodwill

By garikaib|2022-09-15T12:32:47+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: The concept of goodwill

It is not unusual for a business to be bought or sold as a going concern i.e.
The entire business (or business unit) and its related assets and liabilities
Often when a business is sold or bought it is at a price that is higher than […]

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Principles of Accounting: Format of Income Statement for Companies
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Principles of Accounting: Format of Income Statement for Companies

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Format of Income Statement for Companies

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

ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Income Statement

As already pointed out in our introduction
The structure of the Income Statement ( Profit and Loss part) prepared for limited liability companies such as Private Limited (PVT LTD) and Public Limited Liability companies
is especially different from those prepared for sole traders and partnerships

[…]

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