Principles of Accounts Notes Archives - Page 7 of 19 - Free ZIMSEC & Cambridge Revision Notes

Sales Journal and the Sales Ledger

By garikaib|2025-02-12T09:41:20+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

An example of a Sales Day Book showing entries. Image credit vc-doubleentry.co.uk ZIMSEC O Level Principles of Accounts Notes: Books of Original Entry: Sales Journal and the Sales Ledger

When cash or other payments e.g. Ecocash/Visa/MasterCard is received when […]

Comments Off

Multinational Companies/ Trans National Companies

By garikaib|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 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 […]

Comments Off

G Musandu: Solution: Balance Sheet

By garikaib|2025-02-12T09:42:57+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Balance Sheet for G Musandu. Image credit ojac.org ZIMSEC O Level Principles of Accounts Notes: Sole Trader: Trading and profit and loss accounts and balance sheets: Other items

This is the Balance Sheet Solution for the Trial Balance Question found here.

Comments Off

Principles of Accounting: Discount Allowed
Gallery
Principles of Accounting: Discount Allowed

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Discount Allowed

By garikaib|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 […]

Comments Off

Principles of Accounting: Balancing off the Accounts Example
Gallery
Principles of Accounting: Balancing off the Accounts Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Balancing off the Accounts Example

By garikaib|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 […]

Comments Off

Principles of Accounting: Accruals and Financial Statements
Gallery
Principles of Accounting: Accruals and Financial Statements

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Accruals and Financial Statements

By garikaib|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 […]

Comments Off

Principles of Accounting: Capital and Revenue Expenditure
Gallery
Principles of Accounting: Capital and Revenue Expenditure

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Capital and Revenue Expenditure

By garikaib|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 […]

Comments Off

Principles of Accounting: Acid Test Ratio / Quick Asset Ratio
Gallery
Principles of Accounting: Acid Test Ratio / Quick Asset Ratio

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Acid Test Ratio / Quick Asset Ratio

By garikaib|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 […]

Comments Off

Principles of Accounting: Departmental Accounting Example
Gallery
Principles of Accounting: Departmental Accounting Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Departmental Accounting Example

By garikaib|2025-02-12T09:32:10+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Departmental Accounts Example

We have already looked at the basics of departmental accounting here
Now it is time to look at an example

Example Question

From the following list of balances you are required to prepare a departmental Income Statement in columnar form for the year ended 31 March 20X5, in respect of […]

Comments Off