ZIMSEC · O Level · Syllabus 4051
Principles of Accounts
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Form 3 5 topics
- Introduction to accounting and the accounting equation Accounting is recording, classifying and summarising financial information so that owners, managers, banks and ZIMRA can make decisions.
- Source documents and books of original entry Transactions are first recorded in journals before posting to the ledger:
- Double entry and the ledger Every transaction has two effects: one account is debited and another credited with the same amount.
- The trial balance A trial balance lists all ledger balances at a date in two columns. If double entry is correct, the totals agree.
- Cash book and petty cash book Columns for discount, cash and bank on each side. Receipts on the debit side; payments on the credit side.
Form 4 1 topicsExam year
Form 3 1 topics
Form 4 3 topicsExam year
- Adjustments: accruals, prepayments, depreciation and bad debts Final accounts follow the accruals principle: income and expenses belong to the period in which they are earned or incurred.
- Correction of errors and suspense accounts Corrected by a journal entry: debit the account that should be debited (or credit the wrong account), with a narration.
- Incomplete records and club accounts Many small traders keep only a cash record. Profit can still be found.