February 2025

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

By |2025-02-12T09:25:08+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: 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: William Sachikonye Statement of Financial Position

By |2025-02-12T09:29:34+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: Single entry and Incomplete records: Example 2

William Sachikonye Statement of Financial […]

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Cambrige Notes: Principles of Accounting: Disposal of Fixed Assets

By |2025-02-12T09:32:42+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: Disposal of Fixed Assets

  • Eventually all fixed assets (non-current assets) bought for resale reach their end of life
  • More often than not a non-current asset is sold way before it reaches its end of life
  • This can happen for any number of reasons:
    • To raise cash and improve the business’s liquidity […]
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Cambrige Notes: Principles of Accounting: Introduction to Bank Reconciliation Statements

By |2025-02-12T09:38:40+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: 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 […]
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Cambrige Notes: Principles of Accounting: Prepayments and the Financial statements

By |2025-02-12T09:42:54+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: 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 […]
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Principles of Accounting: Introduction to Prepayments and Accruals

By |2025-02-12T09:25:18+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Introduction to Prepayments and Accruals

  • It has been stated in another topic that financial statements are prepared using the matching concept
  • The concept states that when calculating profit:
  • Revenue must be matched with expenditure incurred in generating that revenue
  • In a simple and very small business most if not all transactions are […]
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Principles of Accounting: Introduction to Provision for Doubtful Debts

By |2025-02-12T09:08:38+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Introduction to Provision for Doubtful Debts

  • As we have pointed out in our examination of bad debts the story does not end there
  • In our discussion of bad debts we stated that bad debts are only written of in the period in which they occur
  • Sometimes this happens many periods after […]
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Principles of Accounting: Incomplete and Single Records Example 1

By |2025-02-12T08:59:15+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Single entry and Incomplete records: Example 1

Question

On 1 May 20X8 Jenny Barnes, who is a retailer, […]

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Principles of Accounting: Introduction to Accounting for Partnerships

By |2025-02-12T09:05:43+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounting: Introduction to Accounting for Partnerships

  • It is quite common for two or more people to enter into a business partnership with one another
  • We have already looked at types of business entities here
  • You can also read more about Partnerships in a post found here
  • While most of the accounting concepts […]
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Principles of Accounting: Example entries upon death or retirement of a partner

By |2025-02-12T09:12:28+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

  • We have already examined the entries required to record Goodwill in the books upon the death or retirement of one of the partners here
  • We will now look at an example to demonstrate the stages involved

Death/Retirement Example

Peter, George and Muchineripi have been in partnership for the past five years. They own a retail shop in Harare’s CBD where […]

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