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About Garikai Dzoma

He holds an Honours in Accountancy degree from the University of Zimbabwe. He is passionate about technology and its practical application in today's world.

September 2017

Principles of Accounting: Sales Control Account Example

By | 2017-09-20T10:57:31+00:00 September 20th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Sales Control Account Example

Question

Prepare a sales ledger control account from the following information for October 20X6, carrying down the balance at 31 October:

  • Oct 1 Sales ledger balances […]
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Principles of Accounting: Purchases Control Accounts Example

By | 2017-09-20T10:26:39+00:00 September 20th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Purchases Control Accounts Example

You are required to prepare a purchases ledger control account from the following for the month of April. The balance of the account is to be taken as the amount of […]

Principles of Accounting: Sales Control Accounts

By | 2017-09-20T10:08:17+00:00 September 20th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Sales Control Accounts

  • Sales control accounts present a summarized version of what should be in the Sales Ledger in a given period
  • Below is a typical Sales Control Account:
  • The exact look of the sales control account obviously depends on the nature of transactions involved

Sources of information when preparing

  • It […]

Principles of Accounting: Purchases Control Accounts

By | 2017-09-18T13:08:34+00:00 September 18th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Purchases Control Accounts

  • Purchases Control Accounts contain a summary of the purchases ledger
  • Below is a typical purchases control account:
  • Naturally the exact entries depend on transactions that occur in the business in the period under review or the question in an exam

Sources of information when preparing

NB

  • It is possible […]

Principles of Accounting: Introduction to Control Accounts

By | 2017-09-18T11:57:09+00:00 September 18th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Introduction to Control Accounts

  • We have already pointed out that errors do occur during the bookkeeping and accounting process
  • Some errors can be revealed by creating a trial balance
  • Control Accounts are another mechanism that can be used to discover errors in the books
  • Control Accounts are used to minimize errors as […]

Principles of Accounting: Accounting for Capital and Revenue Expenditure

By | 2017-09-18T10:39:47+00:00 September 18th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Accounting for Capital and Revenue Expenditure

  • Now that we have explained the differences between capital and revenue expenditure
  • It is time to look at how these are recorded in the books
  • Obviously the treatment is not the same

Accounting Treatment of Capital Expenditure

  • Capital expenditure must be recorded in the General Ledger […]

Principles of Accounting: Capital and Revenue Expenditure

By | 2017-09-18T10:39:12+00:00 September 18th, 2017|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 […]

Principles of Accounting: Bad Debts Recovered

By | 2017-09-05T13:10:28+00:00 September 5th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Bad Debts Recovered

  • We have looked at the concept of Bad and Doubtful Debts
  • For a number of reasons a debt that was previously considered bad might become recoverable:
    • Maybe due to an agreement
    • A court settlement/order
    • The fortunes of the debtor improves
  • When this happens the debt must be reinstated […]

Principles of Accounting: Bad Debts and Provision for Doubtful Debts Example

By | 2017-09-05T13:11:27+00:00 September 5th, 2017|Notes, Ordinary Level Notes, Principles of Accounts Notes|

ZIMSEC O Level Principles of Accounts Notes: Bad Debts and Provision for Doubtful Debts Example

A business, which started trading on 1 January 20X7, adjusted its doubtful debt provision at the end of each year on a […]

Principles of Accounting: Introduction to Provision for Doubtful Debts

By | 2017-09-05T12:48:50+00:00 September 5th, 2017|Notes, Ordinary Level 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 […]