Principles of Accounting: Balancing off the accounts
ZIMSEC O Level Principles of Accounts Notes: Balancing off the accounts
February 2025
Principles of Accounting: Prepayments and the Financial statements
ZIMSEC O Level Principles of Accounts Notes: Prepayments and the Financial statements
- A prepayment is when an amount is paid before it is due
- In accounting there are two types of prepayments:
- Prepaid expenses and
- Prepaid income
Prepaid expenses
- This is when the business prepays an expense
- Examples are:
- When a business pays rent payable in advance or
- When it […]
Principles of Accounting: Bad Debts and Provision for Doubtful Debts Example
ZIMSEC O Level Principles of Accounts Notes: Bad Debts and Provision for Doubtful Debts Example
- We have looked at Bad Debts, Provision for Doubtful Debts and Bad Debts Recovered
- Now we will look at an example:
A business, which started trading on 1 January 20X7, adjusted its doubtful debt provision at the end of each year on a […]
Principles of Accounting: Current Asset Ratio
ZIMSEC O Level Principles of Accounting: Introduction to Liquidity Ratios: Current Asset Ratio
- As pointed out in the introduction
- One of the liquidity ratios that you need to be familiar with is the Current Asset Ratio
- Like all liquidity ratios it measures how well a business will be able to settle its short term obligations as and when […]
Principles of Accounting: Introduction to Departmental Accounts
ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts
- It is customary to split a large business into various departments
- For example large retail shops like Pick n’ Pay and OK
- A shop might have:
- A furniture department e.g. kitchen tables and chairs
- Home electrical e.g. irons and fridges
- Refrigerated foods
- Fruit and Veggies
- Liquor
- Cleaning
- Foodstuffs etc
[…]
Principles of Accounting: Income Statement and Appropriation Account Example
ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Partnership Financial Statements Example
- This is the first part solution to the question that was posted here
- It examines the basic structure of Financial Statements of partnerships
- In this part we will look at the Income Statement and Appropriation Account for Save and Moyo
Solution
Save and Moyo
Income Statement and Appropriation […]
Principles of Accounting: Company Accounts: Introduction
ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Introduction
- It is important to note that all accounts are prepared on the basis that the owner and his/her business are two separate persons
- This does not matter if the business is not considered a separate legal entity for example partnerships and sole trader businesses
- However actual companies […]
Commerce:Invoices
ZIMSEC Commerce Notes: Invoices
- There are two main types of invoices:
- A proforma invoice and,
- ordinary invoices.
Proforma invoice
- Is a document in the form of an invoice.
- Is send by a supplier to a potential buyer.
- It may be used as a quotation.
- It shows terms of payment.
- It show quantities of goods/services.
- Is used when goods are send […]
Sales Journal and the Sales Ledger
An example of a Sales Day Book showing entries. Image credit vc-doubleentry.co.uk ZIMSEC O Level Principles of Accounts Notes: Books of Original Entry: Sales Journal and the Sales Ledger
- When cash or other payments e.g. Ecocash/Visa/MasterCard is received when […]
Multinational Companies/ Trans National Companies
Cocal Cola is an example of a Multinational Company. Image credit source.co.zw ZIMSEC O Level Business Studies Notes: Multinational Companies/ Trans National Companies
- These are large limited liability companies with branches in other countries and a headquarters in one […]