Principles of Accounting: Balancing off the accounts
ZIMSEC O Level Principles of Accounts Notes: Balancing off the accounts
February 2025
Principles of Accounting: Prepayments and the Financial statements
ZIMSEC O Level Principles of Accounts Notes: Prepayments and the Financial statements
- A prepayment is when an amount is paid before it is due
- In accounting there are two types of prepayments:
- Prepaid expenses and
- Prepaid income
Prepaid expenses
- This is when the business prepays an expense
- Examples are:
- When a business pays rent payable in advance or
- When it […]
Principles of Accounting: Capital and Revenue Expenditure
ZIMSEC O Level Principles of Accounts Notes: Capital and Revenue Expenditure
- In accounting it is paramount to separate between revenue and capital expenditure
- Naturally all business expenditure can be classified as either revenue or capital expenditure
Capital Expenditure
- Capital expenditure is not to be confused with the capital account or capital in general
- Capital expenditure is when a business spends […]
Principles of Accounting: Incomplete and Single Entry Example 1 solution
- This the solution to our first example question on incomplete and single entry
- First we need to calculate the Sales figure for the year ended 30 April 20×9:
Sales Figure Calculation
- Then we need to ascertain purchases for the year:
Purchases Figure Calculation
Income Statement for the year ended 30 April 20×9
NB This is how arrived at the Miscellaneous […]
Principles of Accounting: Solution to Capital and Current Accounts example
ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Capital and Current Accounts Example
- We have already looked at capital and current accounts here
- This is the solution to the question posted here
- We will use fixed capital accounts and current accounts to show the entries
The Capital Accounts
The Current Accounts for the partners
- This hopefully […]
Principles of Accounting: Partnership dissolution
ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Goodwill and Partnership businesses: Revaluation of Partnership Assets
- While it is true that a new partnership is created when partners leave and join the partnership
- The entries required to show this are actually different from the entries needed when a partnership does actual dissolve
- From an accounting point of view […]
Cambrige Notes: Principles of Accounting: Income Statement and Appropriation Account Example
Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Partnership Financial Statements Example
- This is the first part solution to the question that was posted here
- It examines the basic structure of Financial Statements of partnerships
- In this part we will look at the Income Statement and Appropriation Account for Save and Moyo
Solution
Save and Moyo
Income Statement […]
Cambrige Notes: Principles of Accounting: Missing figures
Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Single entry and Incomplete records: Missing figures
- As already pointed out creating financial statements using single entry or incomplete records requires filling in the gaps
- This is because naturally there will be some missing figures/amounts
- These amounts have to be ascertained
- We have already looked at how a Statement of […]
Cambrige Notes: Principles of Accounting: The reducing balance/diminishing balance method
Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) 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 […]
Cambrige Notes: Principles of Accounting: Trade Discount
Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Trade Discount
- Generally most businesses especially wholesalers and manufacturers have three types of customers:
- The General Public who buy only a few items
- Traders who only buy a few items
- Traders a large number of goods
- Traders have to eventually sell to their own customers in their own areas for […]