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: Rate of inventory turnover

By |2025-02-12T09:38:53+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Liquidity Ratios: Rate of inventory turnover

  • Proprietors often want to know how “well” their business is doing
  • Besides such measures as profitability
  • one way of estimating liquidity is through the rate of inventory turnover ratio
  • The ratio estimates the number of times inventory is sold or used in a given financial period […]
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Principles of Accounting: The format of Manufacturing Accounts

By |2025-02-12T09:44:23+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: The structure of Manufacturing Accounts

  • In the other post we introduced you to manufacturing accounts
  • In this post we will look at typical formats of manufacturing accounts
  • This is not to say there are different formats, no
  • We are merely going to present a simple manufacturing account
  • Followed by one that incorporates […]
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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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Cambrige Notes: Principles of Accounting: Solution to Capital and Current Accounts example

By |2025-02-12T09:21:01+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: Capital and Current Accounts Example

The Capital Accounts

The Current Accounts for the partners

    […]
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Cambrige Notes: Principles of Accounting: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

By |2025-02-12T09:24:35+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: Partnership Entries for Goodwill: Changes in Profit Sharing Ratios

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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 […]

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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 […]

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Cambrige Notes: Principles of Accounting: Purchases Control Accounts Example

By |2025-02-12T09:38:08+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: Purchases Control Accounts Example

You are required to prepare a purchases ledger control account from the following for the month of April. The balance of the account is to be taken as the amount […]

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