Principles of Accounts Notes Archives - Page 6 of 19 - Free ZIMSEC & Cambridge Revision Notes

G Musandu Solution:Trading and Profit and Loss Account

By garikaib|2022-09-15T12:39:58+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Trading and Profit and Loss Account for G Muasandu. Image credit fidato.ca ZIMSEC O Level Principles of Accounts Notes: Sole Trader: Trading and profit and loss accounts and balance sheets: Other items

This is a solution to the question […]

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Principles of Accounting: Three Column Cash Book
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Principles of Accounting: Three Column Cash Book

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Three Column Cash Book

By garikaib|2022-09-15T12:33:33+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

Most businesses offer credit sales in order to increase sales
This creates the debtors accounts which are recorded in the ledger and appear in the Statement of Financial Position (Balance Sheet)
Cash and by extension working capital is the life blood of the business
To prevent […]

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Principles of Accounting: Balancing off the accounts
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Principles of Accounting: Balancing off the accounts

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Balancing off the accounts

By garikaib|2022-09-15T12:33:25+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

Thus far we have only looked at how to record various transactions including:
1. Purchases
2. Sales
3. Returns Outwards and Returns Inwards
4. Other transactions such as those found in the General Ledger
You might have noticed an entry that is listed as “Balance c/d” or “Balance b/d” in […]

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Principles of Accounting: Prepayments and the Financial statements
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Principles of Accounting: Prepayments and the Financial statements

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Prepayments and the Financial statements

By garikaib|2022-09-15T12:33:17+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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 […]

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Principles of Accounting: Bad Debts and Provision for Doubtful Debts Example
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Principles of Accounting: Bad Debts and Provision for Doubtful Debts Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Bad Debts and Provision for Doubtful Debts Example

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

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 […]

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Principles of Accounting: Current Asset Ratio
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Principles of Accounting: Current Asset Ratio

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Current Asset Ratio

By garikaib|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: 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 […]

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Principles of Accounting: Introduction to Departmental Accounts
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Principles of Accounting: Introduction to Departmental Accounts

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Introduction to Departmental Accounts

By garikaib|2022-09-15T12:32:55+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

[…]

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Principles of Accounting: Income Statement and Appropriation Account Example
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Principles of Accounting: Income Statement and Appropriation Account Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Income Statement and Appropriation Account Example

By garikaib|2022-09-15T12:32:48+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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 […]

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Principles of Accounting: Company Accounts: Introduction
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Principles of Accounting: Company Accounts: Introduction

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Company Accounts: Introduction

By garikaib|2022-09-15T12:32:34+02:00January 24th, 2023|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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