August 2017

Principles of Accounting: Double entry for Depreciation

By |2022-09-15T12:33:12+02:00August 25th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts 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 asset […]


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Principles of Accounting: The Revaluation Method

By |2022-09-15T12:33:12+02:00August 25th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Calculating/Estimating depreciation: The Revaluation Method

  • When there are a few big fixed assets it is easy to:
    1. Ascertain the cost
    2. Estimate its useful life
    3. Calculate/estimate its depreciation
    4. Account for its disposal
    5. Calculate/estimate profit or loss on disposal
  • For each asset because it is worth the effort
  • There are times when this […]

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Principles of Accounting: The reducing balance/diminishing balance method

By |2022-09-15T12:33:13+02:00August 25th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: The reducing balance/diminishing balance method

  • As discussed in this topic there are number of ways in which depreciation can be calculated
  • The reducing balance method is one of these methods
  • It is also known as the diminishing balance method
  • A fixed percentage is deducted from the first from cost then subsequently […]

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Principles of Accounting: The straight line method

By |2022-09-15T12:33:13+02:00August 25th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Calculating/Estimating depreciation: The straight line method

  • As already pointed out there are number of ways in which depreciation can be calculated
  • The straight line method is merely one of these methods
  • It is the most popular and simplest method of calculating depreciation there is
  • First the cost of the asset is […]

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Principles of Accounting: Calculating/Estimating depreciation

By |2022-09-15T12:33:14+02:00August 25th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Calculating/Estimating depreciation

  • Before it is entered in the books depreciation has to be calculated
  • Where an accurate figure cannot be estimated an estimate has to be used
  • It is entirely up to the business in question to choose an appropriate way of calculating depreciation for each class of assets
  • Whatever the method […]

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Principles of Accounting: Causes of Depreciation

By |2022-09-15T12:33:15+02:00August 21st, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Introduction to depreciation

  • We have already explained that depreciation is the wasting away of fixed assets
  • We have also explained that it is treated as an expense in the Income Statement where it should appear at least once a year
  • Now we will look at the causes of depreciation
  • It is caused […]

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