Principles of Accounts Notes Archives - Page 3 of 19 - Free ZIMSEC & Cambridge Revision Notes

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|2025-02-12T09:38:53+02:00February 12th, 2025|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|2025-02-12T09:38:03+02:00February 12th, 2025|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|2025-02-12T09:34:30+02:00February 12th, 2025|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|2025-02-12T09:42:53+02:00February 12th, 2025|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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Receipts and till slips

By garikaib|2025-02-12T09:23:10+02:00February 12th, 2025|Notes, O Level Commerce Notes, Ordinary Level Notes, Principles of Accounts Notes|

A till slip. Image credit health24.com ZIMSEC O Level Commerce Notes: Receipts and till slips

Receipt

Is issued by a seller to a buyer.
It is used to acknowledge a cash payment.
It is evidence of a cash sale.
It shows:

The names and addresses of the buyer and seller.
date […]

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The General Journal

By garikaib|2025-02-12T09:12:36+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

An example of journal entries. Image credit Frank Wood’s Business Accounting 1 ZIMSEC O Level Principles of Accounts Notes: The General Journal

As already said there are several books of Prime Entry namely:

The Sales Day Book
The Purchases Day Book
The Returns […]

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Uses and the importance of the Trading and Profit and Loss Account

By garikaib|2025-02-12T09:17:06+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

image credit tiespecialistas.com.br ZIMSEC O Level Principles of Accounts Notes: Uses and the importance of the Trading and Profit and Loss Account

People set up businesses to make a profit
Profit is the main objective of most privately owned businesses
However a business may fail to make a profit
The business […]

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Cash Discount,Discount Received and Discount Allowed

By garikaib|2025-02-12T09:05:08+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Cash Discount. Image credit wiser.com ZIMSEC O Level Principles of Accounts Notes: The Cash Book:Discount Received and Discount Allowed

Businesses prefer it if their customers pay quickly
Businesses may thus accept a sum slightly lower than the invoice amount in settlement of a debt if payment is […]

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Principles of Accounting: Discount Received
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Principles of Accounting: Discount Received

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Discount Received

By garikaib|2025-02-12T09:13:13+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 Received

It is customary for businesses to sell goods on credit
In order to encourage prompt payment a business might offer a cash discount
In such instances the business will accept a lesser amount in settlement of a debt in exchange for early payment
On […]

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