January 2023

Cambrige Notes: Principles of Accounting: Goodwill: When a new partner is admitted

By |2022-09-15T12:32:09+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for Partnerships: Goodwill and Partnership businesses: When a new partner is admitted

  • It is not uncommon for a partnership business to admit a new partner
  • This is happens for any number of reasons including:
    • To admit a partner with new skills
    • When the firm is expanding
    • To replace a partner […]
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Cambrige Notes: Principles of Accounting: Accounting for Non-Profits Example

By |2022-09-15T12:31:58+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for non profit organisations Example

On 1 January 20X8 The Lake Chivero Angling Club had the following assets:

  • Cash at bank $200
  • Snack bar stocks $800
  • Club house buildings $12,500

During the […]

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Cambrige Notes: Principles of Accounting: Introduction to Bad Debts

By |2022-09-15T12:31:42+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Introduction to Bad Debts

  • To understand the concept of Provision for Doubtful debts first we must look at Bad Debts
  • As outlined during the discussion of the matching/accruals concept
  • Most businesses conduct business on credit in addition to cash sales
  • Typically with cash sales payment is received when the […]
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Cambrige Notes: Principles of Accounting: Balancing off the accounts

By |2022-09-15T12:31:29+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Balancing off the accounts

  • Thus far we have only looked at how to record various transactions including:
    1. Purchases
    2. Sales
    3. Returns Outwards and Returns Inwards
    4. Other transactions such as those found in the General Ledger
  • You might have noticed an entry that is listed as “Balance c/d” or “Balance b/d” […]
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Cambrige Notes: Principles of Accounting: The Suspense Account

By |2022-09-15T12:31:32+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) 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 […]
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Cambrige Notes: Principles of Accounting: Introduction to data processing

By |2022-09-15T12:31:16+02:00January 24th, 2023|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes Notes: Introduction to data processing

  • Part of accounting involves data processing or processing data
  • Data-refers to raw and unprocessed information for example a transaction event such as the sale of goods bought for resale in exchange for cash
  • Information- is a term that is used to refer to data:
    • That is […]
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Principles of Accounts: The Analytical Petty Cash Book

By |2022-09-15T12:33:30+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

  • Although petty cash payments are varied in nature
  • In most businesses there are common items that benefit from  petty cash payments
  • For example motor repair expenses, petrol expenses, employee bus fare, stationary etc
  • For this reason in such businesses, the petty […]
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Principles of Accounting: An example of how to correct errors in a suspense account

By |2022-09-15T12:33:21+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: An example of how to correct errors in a suspense account

  • We have already looked at the suspense account and why it is needed
  • We will now look at an example

You have extracted a trial balance and drawn up accounts for the year ended 31 December 20X7. There was a shortage of […]

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Principles of Accounting: The Revaluation Method

By |2022-09-15T12:33:12+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Calculating/Estimating depreciation: The Revaluation Method

  • When there are a few big fixed assets it is easy to:
    1. Ascertain the cost
    2. Estimate its useful life
    3. Calculate/estimate its depreciation
    4. Account for its disposal
    5. Calculate/estimate profit or loss on disposal
  • For each asset because it is worth the effort
  • There are times when this […]
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Principles of Accounting: Bank Reconciliation Statement Example

By |2022-09-15T12:33:05+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Bank Reconciliation Statement Example

  • As discussed here preparing a bank reconciliation statement involves three steps:
    1. Obtaining the current bank statement
    2. Updating the Cash Book
    3. Preparing the Bank reconciliation statement
  • Now we will look at an example:

Draw up a bank reconciliation statement, after writing the cash book up to date, ascertaining the […]

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