principles of accounting notes Archives - Free ZIMSEC & Cambridge Revision Notes

Principles of Accounting: Discount Received entries simple example
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Principles of Accounting: Discount Received entries simple example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Discount Received entries simple example

By garikaib|2025-02-12T09:13:46+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Source Documents: Three Column Cash Book: Discount Received entries simple example

We have looked at the concept of Discount Received here
In this topic we will look at entries that can be used to record discount received
One thing to be wary off is that different suppliers will likely have different discount […]

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Principles of Accounting: Correcting errors example
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Principles of Accounting: Correcting errors example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Correcting errors example

By garikaib|2025-02-12T09:09:05+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Correcting errors example

We have looked at entries required to correct various errors
Now consider the following example

The following errors were discovered in the books of K Musana on 31 March 20×7

Purchases $1,410 on credit from A Rombe had been entered in B Rombe’s account
A cheque of $94 paid […]

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Principles of Accounting: Calculating/Estimating depreciation
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Principles of Accounting: Calculating/Estimating depreciation

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Calculating/Estimating depreciation

By garikaib|2025-02-12T09:37:17+02:00February 12th, 2025|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: Sales Control Account Example
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Principles of Accounting: Sales Control Account Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Sales Control Account Example

By garikaib|2025-02-12T09:27:23+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Sales Control Account Example

We have looked at the nature of the Sales Ledger Control Account in detail
Now it is time to look at a detailed example:

Question

Prepare a sales ledger control account from the following information for October 20X6, carrying down the balance at 31 October:

Oct 1 Sales ledger balances […]

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Principles of Accounting: Non-Profits Example: Income and Expenditure Account
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Principles of Accounting: Non-Profits Example: Income and Expenditure Account

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Non-Profits Example: Income and Expenditure Account

By garikaib|2025-02-12T09:23:53+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for non profit organisations Example

This is the first part of the question posted here
We have already looked at accounting for non-profit organisations here

The Receipts and Payments Account

Chivero Angling Club Snack Bar Income Statement

Chivero Angling Club Income and Expenditure Account for the year ended 31 December 20×8

[…]

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Principles of Accounting: Partnership Financial Statements Example
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Principles of Accounting: Partnership Financial Statements Example

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Partnership Financial Statements Example

By garikaib|2025-02-12T09:28:29+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: 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 for the […]

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Principles of Accounting: Format of Income Statement for Companies
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Principles of Accounting: Format of Income Statement for Companies

Notes, Ordinary Level Notes, Principles of Accounts Notes

Principles of Accounting: Format of Income Statement for Companies

By garikaib|2025-02-12T09:42:53+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Income Statement

As already pointed out in our introduction
The structure of the Income Statement ( Profit and Loss part) prepared for limited liability companies such as Private Limited (PVT LTD) and Public Limited Liability companies
is especially different from those prepared for sole traders and partnerships

[…]

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

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

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

By Garikai Dzoma|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

The idea of goodwill has been explored in full here
We have also looked at the unique treatment of goodwill in partnership businesses here
Below we will look at what happens when there is a change in the profit sharing ratio […]

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Cambrige Notes: Principles of Accounting: William Sachikonye Statement of Financial Position
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Cambrige Notes: Principles of Accounting: William Sachikonye Statement of Financial Position

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: William Sachikonye Statement of Financial Position

By Garikai Dzoma|2025-02-12T09:29:34+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: Single entry and Incomplete records: Example 2

This is a continuation of the question posted here and
It is the last part of the solution found here
Now that we have created the Income Statement it is time to create the Statement of Financial Position

William Sachikonye Statement of Financial […]

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Cambrige Notes: Principles of Accounting: Disposal of Fixed Assets
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Cambrige Notes: Principles of Accounting: Disposal of Fixed Assets

Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes

Cambrige Notes: Principles of Accounting: Disposal of Fixed Assets

By Garikai Dzoma|2025-02-12T09:32:42+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: Disposal of Fixed Assets

Eventually all fixed assets (non-current assets) bought for resale reach their end of life
More often than not a non-current asset is sold way before it reaches its end of life
This can happen for any number of reasons:
- To raise cash and improve the business’s liquidity […]

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February 2025

Question

The Receipts and Payments Account

Chivero Angling Club Snack Bar Income Statement

Chivero Angling Club Income and Expenditure Account for the year ended 31 December 20×8

William Sachikonye Statement of Financial […]