Cambridge O Level/ IGSCE Accounts Notes

/Cambridge O Level/ IGSCE Accounts Notes

July 2018

Cambrige Notes: The clearing of cheques

By |2018-08-01T07:14:12+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Money and Banking: The clearing of Cheques.

  • There are three ways and circumstances in which a cheque may be cleared.

If the payee and drawer use the same bank and branch

  1. The payee deposits the cheque into his/her account.
  2. The payee is credited and,
  3. The drawer is debited.

If the payee and drawer use the same […]

Comments Off on Cambrige Notes: The clearing of cheques

Cambrige Notes: Private Limited Companies

By |2018-08-01T07:18:31+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Business Organisations: Private Limited Companies

  • Its operations are governed by the Companies Act.
  • Formed by 2-50 shareholders.
  • In other countries a company is formed by 2 or more people with no maximum number of shareholders.
  • Has a lot of legal formalities including:
  • It has to create an Articles of Association, Memorandum of Association and […]
Comments Off on Cambrige Notes: Private Limited Companies

Cambrige Notes: Public Limited Companies

By |2018-07-25T09:57:34+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Business Organisations: Public Limited Companies

Formation

  • Membership is open to the public.
  • Membership is by invitation through a prospectus.
  • Formed by at least two shareholders and there is no upper limit.
  • Governed by the Companies Act.
  • The founding members have to draw up a prospectus, articles and memorandum of association and a statutory declaration and […]
Comments Off on Cambrige Notes: Public Limited Companies

Cambrige Notes: Differences between shares and debentures

By |2018-07-25T09:57:34+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Differences between shares and debentures

To access more topics go to the Commerce Notes page.

Comments Off on Cambrige Notes: Differences between shares and debentures

Cambrige Notes: Differences between Ordinary and Preference Shares

By |2018-08-01T07:20:17+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC O Level Commerce Notes: Differences between Ordinary and Preference Shares

To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.

Comments Off on Cambrige Notes: Differences between Ordinary and Preference Shares

Cambrige Notes: Source Documents and their uses

By |2018-08-01T07:28:21+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Source Documents and their uses

  • Accounting is the systematic recording of financial transactions in monetary terms.
  • Every time a business makes a transaction in the real world a paper trail is created.
  • The paper trail is known as/are a source document(s)
  • A source document is the original document that shows that a transaction took place.
  • For […]
Comments Off on Cambrige Notes: Source Documents and their uses

Cambrige Notes: The trial balance

By |2018-07-25T09:57:34+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: The trial balance

  • It has already been explained that at the core of accounting is the double entry principle.
  • The principle states that there are two aspects or sides to every transaction: a debit and a credit.
  • A trial balance is a list of all the debits and all the […]
Comments Off on Cambrige Notes: The trial balance

Cambrige Notes: Preparing a Trial Balance

By |2018-07-25T09:57:34+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Preparing a Trial Balance

  • As already said a trial balance is extracted from the ledger accounts by listing all the credit and debit balances that are in the entity’s books at the end of each trading period.
  • The following steps are involved in the extraction and preparation of a trial […]
Comments Off on Cambrige Notes: Preparing a Trial Balance

Cambrige Notes: Users of Accounting Information

By |2018-08-01T07:22:57+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

ZIMSEC Principles of Accounts Notes: Users of Accounting Information.

  • Users of accounting information can be divided into two groups:
  • Internal users and,
  • External users.
  • Users of accounting information are sometimes known as stakeholders since they are affected and in turn affect the concerned entity’s operations.

Internal Users

  • These are found inside the business entity itself and they include:
  • Owners– Determine […]
Comments Off on Cambrige Notes: Users of Accounting Information

Cambrige Notes: Determining whether an account has a debit or credit balance

By |2018-08-01T07:25:44+00:00July 25th, 2018|Cambridge O Level/ IGSCE Accounts Notes, Notes, Ordinary Level Notes|

Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes:Determining whether an account has a debit or credit balance

  • Sometimes in a bid to confuse you during the examination examiners will present you with a jumbled list of balances which might require you to determine whether the accounts should be on the debit side or credit side of the trial balance.
  • […]

Comments Off on Cambrige Notes: Determining whether an account has a debit or credit balance