January 2023

Cambrige Notes: Principles of Accounting: Introduction to Accounting ratios

By |2022-09-15T12:31:50+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 Accounting Ratios

Introduction to ratios in Accounting

  • Often in business numbers given in isolation are difficult to interpret
  • For example Business A makes a profit of $10 000 while Business B makes a profit of $10 million
  • It would be difficult to know which business better between the two
  • Those […]
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Cambrige Notes: Principles of Accounting: Company Accounts: Introduction

By |2022-09-15T12:32:14+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 Limited Liability Companies: Introduction

  • It is important to note that all accounts are prepared on the basis that the owner and his/her business are two separate persons
  • This does not matter if the business is not considered a separate legal entity for example partnerships and sole trader businesses
  • However […]
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Cambrige Notes: Principles of Accounting: Introduction to Manufacturing Accounts

By |2022-09-15T12:32:00+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 Manufacturing Accounts

  • Thus far we have taken it for granted that businesses purchase everything they sell
  • While it is true that a lot of business purchase inventory and sell it at a profit
  • There are some businesses that manufacture products
  • These manufacturing businesses typically:
    • Acquire Raw materials
    • Process this […]
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Cambrige Notes: Principles of Accounting: Solution to Manufacturing Accounts Example

By |2022-09-15T12:32:02+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: Example question Manufacturing Accounts

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Cambrige Notes: Principles of Accounting: An example of how to correct errors in a suspense account

By |2022-09-15T12:31:33+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: 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 […]

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Principles of Accounting: Correcting Errors using 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: Correcting Errors using suspense account

  • In another topic we learnt about the need, use and purpose of the suspense account
  • In this topic we will learn about how to correct errors that involve the suspense account
  • If you are looking at how errors that are not revealed by the trial balance […]
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Principles of Accounting: The reducing balance/diminishing balance method

By |2022-09-15T12:33:13+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts 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 subsequently […]
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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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Principles of Accounting: Non-Profits Example: Statement of Financial Position

By |2022-09-15T12:32:56+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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

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Principles of Accounting: Income Statement and Appropriation Account Example

By |2022-09-15T12:32:48+02:00January 24th, 2023|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 […]

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