February 2025

Cambrige Notes: Principles of Accounting: Making entries in the Purchases Ledger

By |2025-02-12T09:36:32+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: Making entries in the Purchases Ledger

  • In this example we will make entries into the Purchases Ledger, Cash Book and General Ledger
  • We will be skipping the books of original entry
  • Although this is not how things are done in practice
  • Examination/Exercise question might ask you to make double entries […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Making entries in the Purchases Ledger

Cambrige Notes: Principles of Accounting: Correcting Errors

By |2025-02-12T09:40:22+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: Correcting Errors

  • Errors are not uncommon in accounting processes
  • Often these errors are discovered and revealed at a later date than on the date they were made
  • Errors should not be corrected by tearing/cancelling out the wrong number or similar methods
  • Instead they are corrected by making Journal entries
  • Examination […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Correcting Errors

Cambrige Notes: Principles of Accounting: Importance of Accounting

By |2025-02-12T09:46:02+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 Notes: Importance of Accounting

  • Accounting plays an important role within the organisation
  • Accounting is important for a number of reasons:

Importance and role of accounting

  • It allows the business to record transactions for future reference
  • Provides information about whether a business is profitable or not
  • Provides information about the liquidity of the […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Importance of Accounting

Principles of Accounting: The petty Cash Book

By |2025-02-12T09:16:50+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Source Documents: The petty Cash Book

  • As a business grows it is customary to have a Petty Cash Book and a Cash Book
  • In large businesses if all small transactions were to be recorded in the in the Cash Book it would become unwieldy
  • Imagine the example of a retail giant such […]
Read More
Comments Off on Principles of Accounting: The petty Cash Book

Principles of Accounting: The Suspense Account

By |2025-02-12T09:10:59+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: The Suspense Account

  • A trial balance is prepared in order to:
    1. Ease the process of preparing financial statements
    2. To reveal errors
  • Errors that are revealed by the trial balance include:
    1. Addition and other arithmetic errors
    2. Single/Incomplete entries into the books
    3. Entering different amounts on the debit and credit sides of […]
Read More
Comments Off on Principles of Accounting: The Suspense Account

Principles of Accounting: The straight line method

By |2025-02-12T09:38:20+02:00February 12th, 2025|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 […]
Read More
Comments Off on Principles of Accounting: The straight line method

Principles of Accounting: Introduction to Bank Reconciliation Statements

By |2025-02-12T09:31:51+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Introduction to Bank Reconciliation Statements

  • When we looked at the Cash Book we mentioned that all bank related transactions are recorded in it
  • We glaringly ignored one fact the bank is also a business
  • They have their own set of records about our deposits and withdrawals
  • In modern times due to […]
Read More
Comments Off on Principles of Accounting: Introduction to Bank Reconciliation Statements

Principles of Accounting: Non-Profits Example: Statement of Financial Position

By |2025-02-12T09:26:33+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

Read More
Comments Off on Principles of Accounting: Non-Profits Example: Statement of Financial Position

Principles of Accounting: Income Statement and Appropriation Account Example

By |2025-02-12T09:29:18+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

  • 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 and Appropriation […]

Read More
Comments Off on Principles of Accounting: Income Statement and Appropriation Account Example

Principles of Accounting: Statements of Changes in Equity

By |2025-02-12T08:57:27+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Limited Liability Companies: Statements of Changes in Equity

  • Besides the Statement of Financial Position and Income Statement
  • Companies are also required to prepare a Statement of Changes in Equity
  • This statement as implied by its name shows changes in equity from the beginning to the end of the year
  • Equity […]
Read More
Comments Off on Principles of Accounting: Statements of Changes in Equity
Toggle Sliding Bar Area
Go to Top