February 2025

Introduction to the Trading and Profit and Loss Account

By |2025-02-12T09:16:08+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit pixabay.com Image credit pixabay.com ZIMSEC O Level Principles of Accounts Notes: Introduction to the Trading and Profit and Loss Account

  • The profit/loss of a business is calculated by preparing a trading and profit and loss account
  • It is sometimes called only the profit and loss account in error
  • It is also […]
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Cambrige Notes: Sole Trader:Trading and Profit and Loss Account/Income Statement Example

By |2025-02-12T09:04:58+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: Trading and Profit and Loss Account/Income Statement Example

From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6. A balance sheet is not required.

  • Stock at 31 December 20X6 was $12,408

Solution

S […]

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Uses and the importance of the Trading and Profit and Loss Account

By |2025-02-12T09:17:06+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

image credit tiespecialistas.com.br image credit tiespecialistas.com.br ZIMSEC O Level Principles of Accounts Notes: Uses and the importance of the Trading and Profit and Loss Account

  • People set up businesses to make a profit
  • Profit is the main objective of most privately owned businesses
  • However a business may fail to make a profit
  • The business […]
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Cambrige Notes: Simple Trading and Profit and Loss Account Example 2

By |2025-02-12T09:05:17+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: Simple Trading and Profit and Loss Account (Income Statement) Example 2 

From the following trial balance of J Nhiwatiwa after his first year’s trading, you are required to
draw up a trading and profit and loss account for the year ended 30 June 20X8. A statement of financial position is not required.

Stock […]

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Terms used in the Trading and Profit and Loss account

By |2025-02-12T09:17:42+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit clarkewillmot.com Image credit clarkewillmot.com ZIMSEC O Level Principles of Accounts Notes: Terms used in the Trading and Profit and Loss account

Gross profit

  • is the excess of sales over the cost of goods sold
  • If the amount of cost of goods sold is more than the amount of sales the result […]
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Sole Trader: Trading and Profit and Loss Account and Capital Accounts

By |2025-02-12T09:18:14+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit clarkewillmott.com Image credit clarkewillmott.com ZIMSEC O Level Principles of Accounts Notes: Terms used in the Trading and Profit and Loss account

  • The Trading and Profit and Loss Account is not balanced off at the end of the trading period
  • This means there are in no corresponding “balance b/d” in the […]
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The format of a Simple Trading and Profit and Loss Account

By |2025-02-12T09:18:46+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

image credit onlinecollegecourses.com image credit onlinecollegecourses.com ZIMSEC O Level Principles of Accounts Notes: The format of a Simple Trading and Profit and Loss Account

The Name of the Business/Proprieter

NB The exact names and types of expenses and other income will vary from business to business you should […]

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Sole Trader:Trading and Profit and Loss Account Example

By |2025-02-12T09:24:27+02:00February 12th, 2025|Notes, Ordinary Level Notes, Principles of Accounts Notes|

Image credit erekocynigit.com Image credit erekocynigit.com ZIMSEC O Level Principles of Accounts Notes: Trading and Profit and Loss Account Example

From the following trial balance of S Madondo, extracted after one year’s trading, prepare a trading and profit and loss account for the year ended 31 December 20X6. A balance sheet […]

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