Principles of Accounts Notes Archives - Page 2 of 19 - Free ZIMSEC & Cambridge Revision Notes

Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios
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Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

By garikaib|2025-02-12T09:35:55+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

The idea of goodwill has been explored in full here
We have also looked at the unique treatment of goodwill in partnership businesses here
Below we will look at what happens when there is a change in the profit sharing ratio of a […]

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Principles of Accounting: Statements of Changes in Equity
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Principles of Accounting: Statements of Changes in Equity

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Statements of Changes in Equity

By garikaib|2025-02-12T08:57:27+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Statements of Changes in Equity

Besides the Statement of Financial Position and Income Statement
Companies are also required to prepare a Statement of Changes in Equity
This statement as implied by its name shows changes in equity from the beginning to the end of the year
Equity […]

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Building Societies

By garikaib|2025-02-12T09:34:53+02:00February 12th, 2025|Notes, O Level Commerce Notes, Ordinary Level Notes, Principles of Accounts Notes|

FBC Building Society. Image credit businessdaily.co.zw ZIMSEC O Level Commerce Notes: Money and Banking: Building Societies

Building Societies

Is a type of a financial institution.
A building society is a financial organization which pays interest on investments by its members and lends capital for the purchase or […]

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Purchases Journal and Purchases Ledger example

By garikaib|2025-02-12T09:14:02+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Purchases Day Book example. Image credit Frank Wood’s Business Accounting 1. ZIMSEC O Level Principles of Accounts Notes: Purchases Journal and Purchases Ledger example

J Dzungu has the following purchases for the month of May 2015:
May 1 From D Muti: 4 […]

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Sole Trader: Trading and Profit and Loss Account and Capital Accounts

By garikaib|2025-02-12T09:18:14+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit clarkewillmott.com ZIMSEC O Level Principles of Accounts Notes: Terms used in the Trading and Profit and Loss account

The Trading and Profit and Loss Account is not balanced off at the end of the trading period
This means there are in no corresponding “balance b/d” in the […]

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Principles of accounts:Bank Overdrafts

By garikaib|2025-02-12T09:08:30+02:00February 12th, 2025|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|2025-02-12T09:16:50+02:00February 12th, 2025|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|2025-02-12T09:09:05+02:00February 12th, 2025|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|2025-02-12T09:37:17+02:00February 12th, 2025|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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