February 2025

Principle of Accounting: The concept of goodwill

By |2025-02-12T09:34:30+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: The concept of goodwill

  • It is not unusual for a business to be bought or sold as a going concern i.e.
  • The entire business (or business unit) and its related assets and liabilities
  • Often when a business is sold or bought it is at a price that is higher than […]
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Cambrige Notes: Principles of Accounting: The Appropriation Account

By |2025-02-12T09:21:19+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: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 […]
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Cambrige Notes: Principles of Accounting: Partnership Dissolution Entries

By |2025-02-12T09:26:34+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: Partnership Dissolution Entries

  • While the dissolution of each partnership is no doubt unique
  • There are entries that are typical to the dissolution of each partnership
  • During dissolution the following entries are typically made:
    1. When we transfer provision such as for bad debts/depreciation to their respective asset accounts:
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    Principles of Accounting: Goodwill and Partnership businesses

    By |2025-02-12T09:35:12+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

    • Now that we have explained the idea of goodwill
    • It is time we examine the concept of goodwill in relation with partnerships
    • As already explained accounting standards require that goodwill be recorded only when a business is bought or sold
    • Partnership business are special in […]
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    Cambrige Notes: Principles of Accounting: Solution to Appropriation Account Example

    By |2025-02-12T09:21:42+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: Solution to Appropriation Account Example

    Solution

    Gandanga, Waeni and Banda

    Appropriation Account for the Year ended 31 December 20×8

    To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level […]

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    Cambrige Notes: Principles of Accounting: Partnership Dissolution Example

    By |2025-02-12T09:26:44+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: Accounting for Partnerships: Partnership Dissolution Example

    • We have looked at reasons why a partnership might dissolve here
    • Now we will look at an example question
    • The solution to this question can be found by clicking here

    Question

    Nkosi,Xo and Zack have been in partnership for several years, sharing profits and losses in […]

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    Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

    By |2025-02-12T09:35:55+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

    ZIMSEC O Level Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

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    Cambrige Notes: Principles of Accounting: Partnership Financial Statements Example

    By |2025-02-12T09:21:48+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: Partnership Financial Statements Example

    • As already said elsewhere partnerships also prepare Financial Statements at the end of every period
    • These do not differ much from say those of a Sole Trader
    • Financial Statements of a Partnership include:
    • An Income Statement for the period ended
    • An Appropriation account […]
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    Cambrige Notes: Principles of Accounting: Partnership Dissolution Solution to Example Question

    By |2025-02-12T09:27:01+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: Partnership Dissolution Example

    • We looked at the basics of partnership dissolution here
    • We also posted an example question here
    • Now we will present the solution to that question

    The realisation account

    • Debtors and Receivables are just one and the same thing
    • Creditors can also be referred […]
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    Principles of Accounting: Goodwill: Changes in Profit Sharing Ratio Example

    By |2025-02-12T09:37:27+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: Changes in Profit Sharing Ratio Example

    • This is an example of a question where there are changes in the profit sharing ratio of a partnership
    • We have already looked at the entries involved in such cases here

    Example question

    Mhaka, Banda, Feruka and Tangwena run an Accounting […]

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