January 2023

Principles of Accounting: Discount Allowed entries simple example

By |2022-09-15T12:33:32+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Source Documents: Three Column Cash Book: Discount Allowed Example

  • We have already looked at Discount Allowed here
  • Here we will look at a simple example in order to look at the entries you need to make
  • We sold goods worth $500 to J Chimusoro on credit on 8 January
  • On January 12 […]
Read More
Comments Off on Principles of Accounting: Discount Allowed entries simple example

Principles of Accounting: Trial Balance and Errors

By |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 […]
Read More
Comments Off on Principles of Accounting: Trial Balance and Errors

Principles of Accounting: Both prepaid and accrued income and expenses

By |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

Read More
Comments Off on Principles of Accounting: Both prepaid and accrued income and expenses

Principles of Accounting: Accounting for Capital and Revenue Expenditure

By |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 […]
Read More
Comments Off on Principles of Accounting: Accounting for Capital and Revenue Expenditure

Principles of Accounting: Rate of inventory turnover

By |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 […]
Read More
Comments Off on Principles of Accounting: Rate of inventory turnover

Principles of Accounting: Example to Departmental Accounting Solution

By |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

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 […]

Read More
Comments Off on Principles of Accounting: Example to Departmental Accounting Solution

Principle of Accounting: The concept of goodwill

By |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 […]
Read More
Comments Off on Principle of Accounting: The concept of goodwill

Principles of Accounting: Format of Income Statement for Companies

By |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

    • […]

Read More
Comments Off on Principles of Accounting: Format of Income Statement for Companies
Toggle Sliding Bar Area
Go to Top