February 2025

Principles of Accounting: The Prudence concept and the Business entity concept

By |2025-02-12T09:21:30+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: The Prudence concept and the Business entity concept

  • In another topic you were introduced to the idea of accounting concepts
  • These are the underlying principles that govern the accounting discipline
  • In this topic we will look at the following concepts:
  • The Business Entity Concept
  • The Prudence Concept

Business Entity Concept

  • You might […]
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Principles of Accounting: Disposal of Fixed Assets Example

By |2025-02-12T09:03:12+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Disposal of Fixed Assets Example

  • Now that we have looked at the entries required to record depreciation
  • It is time to look at a simple example:

A business whose financial year ends at 31 December purchased on 1 January 20X7 a machine for $5,000. The machine was to be depreciated by ten equal […]

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Principles of Accounting: Bank Reconciliation Statement Overdraft Example

By |2025-02-12T09:41:30+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Bank Reconciliation Statement Overdraft Example

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Principles of Accounting: Accounting for non profit organisations

By |2025-02-12T09:18:08+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for non profit organisations

  • While it is true that the majority of entities exist primarily to make a profit
  • There are still a large number of organisations which are not for profit
  • While profit is the overriding aim in for profit business
  • Non profit organisations are driven by other goals including:
      […]
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Principles of Accounting: The Appropriation Account

By |2025-02-12T09:20:48+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships:The Appropriation Account

  • Apart from a few nuances partnerships prepare normal financial statements
  • These are almost indistinguishable from those of Sole Traders
  • They include the usual Income Statement ( Trading and Profit and Loss Account) and the Statement of Financial Position
  • If this is a manufacturing partnership the Manufacturing Account is […]
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Principles of Accounting: Partnership dissolution

By |2025-02-12T09:30:31+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Goodwill and Partnership businesses: Revaluation of Partnership Assets

  • While it is true that a new partnership is created when partners leave and join the partnership
  • The entries required to show this are actually different from the entries needed when a partnership does actual dissolve
  • From an accounting point of view […]
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Users of Accounting Information

By |2025-02-12T09:15:31+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

There are various users of accounting information. Image credit Enlgish-Today-Jarkata. There are various users of accounting information. Image credit Enlgish-Today-Jarkata.

ZIMSEC Principles of Accounts Notes: Users of Accounting Information.

  • Users of accounting information can be divided into two groups:
  • Internal users and,
  • External users.
  • Users of accounting information are sometimes known as stakeholders […]
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Preparing a Trial Balance

By |2025-02-12T09:06:24+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Preparing a Trial Balance

  • As already said a trial balance is extracted from the ledger accounts by listing all the credit and debit balances that are in the entity’s books at the end of each trading period.
  • The following steps are involved in the extraction and preparation of a trial balance:
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    Partnership Business

    By |2025-02-12T09:21:11+02:00February 12th, 2025|Notes, O Level Business Studies Notes, Ordinary Level Notes, Principles of Accounts Notes|

    Deloitte and Touche are examples of a Partnership Business.

    Deloitte and Touche are examples of a Partnership Business.ZIMSEC O Level Business Studies Notes: Partnership Business

    Characteristics/Features

    • A partnership is an unincorporated association of two or more individuals to carry on a business for profit. General partnerships are usually made up of 2-20 partners. Special […]
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    Sole Trader: Simple Balance Sheet Example 2

    By |2025-02-12T09:36:52+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

    Image credit udiscover-psbedu.paris Image credit udiscover-psbedu.paris ZIMSEC O Level Principles of Accounts Notes: Sole Trader: Simple Balance Sheet Example 2

    From the following trial balance of J Nhiwatiwa after his first year’s trading, you are required to
    draw up a trading and profit and loss account for the year ended 30 June […]

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