February 2025

Principles of Accounting: Company Accounts: Introduction

By |2025-02-12T09:35:57+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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 […]
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Commerce:Invoices

By |2025-02-12T09:07:03+02:00February 12th, 2025|Notes, O Level Commerce Notes, Ordinary Level Notes, Principles of Accounts Notes|

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 […]
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Multinational Companies/ Trans National Companies

By |2025-02-12T09:09:24+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes, Principles of Accounts Notes|

Cocal Cola is an example of a Multinational Company. Image credit source.co.zw 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 […]
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Principles of Accounting: Discount Allowed

By |2025-02-12T09:07:31+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

  • As already pointed out elsewhere cash and cash equivalent are the life blood of business
  • It is also common cause that most businesses do sell goods on credit
  • To encourage prompt payment businesses offer discounts to their customers
  • When a business offers a […]
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Principles of Accounting: Balancing off the Accounts Example

By |2025-02-12T09:41:38+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Balancing off the Accounts Example

  • We have already looked at the steps you need to take when balancing off the accounts here
  • We will now look at a simple example:

The following transactions took place in the books of Esnath Pasipanodya in the month of August

20X7
August
1 Credit sales G Wadii $310; K […]

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Principles of Accounting: Accruals and Financial Statements

By |2025-02-12T09:29:33+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Accruals and Financial Statements

  • Accruals are amounts owing at the end of the period when they are due
  • For this reason they are sometimes known as owings
  • There are two types of owings in busines:
    1. Owed income which is accrued income at the end of the period for example when the […]
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Principles of Accounting: Capital and Revenue Expenditure

By |2025-02-12T09:15:28+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

  • In accounting it is paramount to separate between revenue and capital expenditure
  • Naturally all business expenditure can be classified as either revenue or capital expenditure

Capital Expenditure

  • Capital expenditure is not to be confused with the capital account or capital in general
  • Capital expenditure is when a business spends […]
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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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