February 2025

Cambrige Notes: Principles of Accounting: Revaluation of Partnership Assets

By |2025-02-12T09:25:58+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Goodwill and Partnership businesses: Revaluation of Partnership Assets

  • It is often the case that when a business is sold the selling price of its assets would differ from their book values
  • In such instances there is either a profit or loss on the sale of the assets
  • This […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Revaluation of Partnership Assets

Cambrige Notes: Principles of Account: Incomplete and Single Records Example 2

By |2025-02-12T09:29:11+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Single entry and Incomplete records: Example 2

  • Our first example on this topic was relatively straight forward
  • We will now look at a more challenging and comprehensive example
  • On how to create Financial Statements in cases where only single entry and incomplete records are kept

The Question

William Sachikonye runs a second-hand […]

Read More
Comments Off on Cambrige Notes: Principles of Account: Incomplete and Single Records Example 2

Cambrige Notes: Principles of Accounting: Double entry for Depreciation

By |2025-02-12T09:32:11+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes:  Double entry for Depreciation

  • Once depreciation has been calculated using either:
  • The straight line method or
  • The reducing balance method
  • It is recorded in the books using double entry
  • Before we mention the entries it is important to state this

The old method of accounting for depreciation by recording it in the […]

Read More
Comments Off on Cambrige Notes: Principles of Accounting: Double entry for Depreciation

Cambrige Notes: Principles of Accounting: General Journal opening new books entries

By |2025-02-12T09:35:37+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: General Journal opening new books entries

  • This is a solution to a question found here
  • One of the uses of the Journal is to create a new set of books when a propieter decides to move on to double entry and keeping a proper set of accounts
  • Now we will […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: General Journal opening new books entries

Cambrige Notes: Principles of Accounting: Bank Reconciliation Statement Example

By |2025-02-12T09:38:55+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Bank Reconciliation Statement Example

  • As discussed here preparing a bank reconciliation statement involves three steps:
    1. Obtaining the current bank statement
    2. Updating the Cash Book
    3. Preparing the Bank reconciliation statement
  • Now we will look at an example:

Draw up a bank reconciliation statement, after writing the cash book up to date, ascertaining […]

Read More
Comments Off on Cambrige Notes: Principles of Accounting: Bank Reconciliation Statement Example

Cambrige Notes: Principles of Accounting: Money measurement concept and Historical cost concept

By |2025-02-12T09:42:14+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes:Money measurement concept and Historical cost concept

  • At the heart of the accounting discipline are two important concepts:
  • The Money measurement concept and
  • The Historical cost concept

The Money measurement concept

  • It is also known as the measurability concept
  • The concept dictates that only transactions and events that are capable of being measured […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Money measurement concept and Historical cost concept

Cambrige Notes: Principles of Accounting: Types of Business Organisations

By |2025-02-12T09:45:51+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes Notes: Types of Business Organisations

  • A business can be defined as an economic or commercial activity
  • All business activity can be subdivided into individual and separate transactions
  • A transaction is an event that results in a change in an asset, liability, or net worth of a business
  • In accounting various words are […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Types of Business Organisations

Cambrige Notes: The General Journal Example

By |2025-02-12T08:58:58+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

An example of journal entries. Image credit Frank Wood's Business Accounting 1 An example of journal entries. Image credit Frank Wood’s Business Accounting 1

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The General Journal Example

You are a bookkeeper for J Benzi. You are to show the journal entries necessary to record […]

Read More
Comments Off on Cambrige Notes: The General Journal Example

Cambrige Notes: Introduction and basic terms

By |2025-02-12T09:02:17+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction and basic terms

  • Accounting is a system comprising the following elements: In summary Accounting is the process of identifying, measuring and communicating business information to assist users in making informed, useful decisions.
  • Only monetary transactions are recorded in accounting using the historical and monetary principles.
  • This simply means that only […]
Read More
Comments Off on Cambrige Notes: Introduction and basic terms

Cambrige Notes: The format of a Balance Sheet/Statement of Financial Position

By |2025-02-12T09:05:44+02:00February 12th, 2025|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The format of a Balance Sheet/Statement of Financial Position

The Name of the Business(The Name of the Sole Trader is used in Sole Trader Businesses)

Statement of Financial Position as at 31 December 2016

  • The name of the business is to be replaced by the name of the […]
Read More
Comments Off on Cambrige Notes: The format of a Balance Sheet/Statement of Financial Position
Toggle Sliding Bar Area
Go to Top