January 2023

Cambrige Notes: Principles of Accounting: Goodwill upon death or retirement of a partner

By |2022-09-15T12:32:10+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 partner dies/retires

  • Death is an inevitable part of life
  • Sometimes a partner might die
  • Also in other instances a partner might choose to leave the business i.e. retire
  • In all the cases above the affected partner ends up leaving the business
  • Technically […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Goodwill upon death or retirement of a partner

Cambrige Notes: Principles of Accounting: Accounting for non profit organisations

By |2022-09-15T12:31:57+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

  • While it is true that the majority of entities exist primarily to make a profit
  • There are still a large number of organisations which are not for profit
  • While profit is the overriding aim in for profit business
  • Non profit organisations are driven by other goals […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Accounting for non profit organisations

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

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: Disposal of Fixed Assets Example

  • Now that we have looked at the entries required to record depreciation
  • It is time to look at a simple example:

A business whose financial year ends at 31 December purchased on 1 January 20X7 a machine for $5,000. The machine was to be depreciated by ten […]

Read More
Comments Off on Cambrige Notes: Principles of Accounting: Disposal of Fixed Assets Example

Cambrige Notes: Principles of Accounting: Preparation of bank reconciliation statement

By |2022-09-15T12:31:48+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: Preparation of bank reconciliation statement

  • We have already looked at what bank reconciliation statements are and why we need them
  • Here we will look at steps required to prepare them and their format
  • First it must be pointed out that the Bank Column in the Cash Book like all of […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Preparation of bank reconciliation statement

Cambrige Notes: Principles of Accounting: Accruals and Financial Statements

By |2022-09-15T12:31:37+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: Accruals and Financial Statements

  • Accruals are amounts owing at the end of the period when they are due
  • For this reason they are sometimes known as owings
  • There are two types of owings in busines:
    1. Owed income which is accrued income at the end of the period for example when […]
Read More
Comments Off on Cambrige Notes: Principles of Accounting: Accruals and Financial Statements

Principles of Accounting: Prepayments and the Financial statements

By |2022-09-15T12:33:17+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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 […]
Read More
Comments Off on Principles of Accounting: Prepayments and the Financial statements

Principles of Accounting: Capital and Revenue Expenditure

By |2022-09-15T12:33:08+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

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 […]
Read More
Comments Off on Principles of Accounting: Capital and Revenue Expenditure

Principles of Accounting: Incomplete and Single Entry Example 1 solution

By |2022-09-15T12:32:58+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

  • 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 […]

Read More
Comments Off on Principles of Accounting: Incomplete and Single Entry Example 1 solution

Principles of Accounting: Partnerships: Capital and Current Accounts

By |2022-09-15T12:32:52+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Capital and Current Accounts

  • Like a normal business partnerships are formed when their owners (partners) inject capital into the business
  • While the principles of recording capital are the same as those of a Sole Trader business
  • There are certain differences that need to be borne in mind
  • One of these […]
Read More
Comments Off on Principles of Accounting: Partnerships: Capital and Current Accounts

Principles of Accounting: Example revaluation of partnership assets

By |2022-09-15T12:32:38+02:00January 24th, 2023|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Accounting for Partnerships: Goodwill and Partnership businesses: Revaluation of Partnership Assets

  • As already pointed out in another post, sometimes it is necessary for a partnership to revalue its assets
  • We have already looked at the entries necessary to record these changes in value
  • Now we will look at an example of how […]
Read More
Comments Off on Principles of Accounting: Example revaluation of partnership assets
Toggle Sliding Bar Area
Go to Top