Principles of Accounts Notes Archives - Page 9 of 19 - Free ZIMSEC & Cambridge Revision Notes

Sole Trader: Simple Statement of Financial Position Example 1

By garikaib|2025-02-12T09:35:06+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Sole Trader: Simple Balance Sheet Example 1

From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6 and a balance sheet as at 31 December 20×6

Inventory at 31 December 20X6 was $12,408

Solution

The […]

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Principles of Accounting: Manual processing
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Principles of Accounting: Manual processing

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Manual processing

By garikaib|2025-02-12T08:59:13+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting Notes: Manual processing

Data processing has been performed manually for millennia (thousands of years)
Manual data processing literary means data processing by hand
Ancient merchants used to record their trading transactions on clay tablets
Kings would record their trade, census and tax data on clay, copper, bronze, brass and stone tablets
This data […]

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Principles of Accounting: Making entries in the Sales Ledger
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Principles of Accounting: Making entries in the Sales Ledger

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Making entries in the Sales Ledger

By garikaib|2025-02-12T09:28:49+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Making entries in the Sales Ledger

In this example we will make entries into the Sales Ledger, Cash Book and General Ledger
We will be skipping the books of original entry
Although this is not how things are done in practice
Examination/Exercise question might ask you to make double entries […]

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

Notes, Ordinary Level Notes, Principles of Accounts Notes

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

By garikaib|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
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Principles of Accounting: Disposal of Fixed Assets Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Disposal of Fixed Assets Example

By garikaib|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
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Principles of Accounting: Bank Reconciliation Statement Overdraft Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Bank Reconciliation Statement Overdraft Example

By garikaib|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

We have looked at the process of preparing bank statements here
We also looked at an example here
However we have made the distinction between a debit bank balance an an overdrawn account
We will now look at an example of how to prepare […]

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Principles of Accounting: Accounting for non profit organisations
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Principles of Accounting: Accounting for non profit organisations

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Accounting for non profit organisations

By garikaib|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
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Principles of Accounting: The Appropriation Account

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: The Appropriation Account

By garikaib|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
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Principles of Accounting: Partnership dissolution

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Partnership dissolution

By garikaib|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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