Name of presentation

2004 Company name

 Second Page
• Your Text here

• Lorem ipsum dolor sit amet, consectetuer adipiscing

elit, sed diam nonummy nibh euismod tincidunt ut
laoreet dolore magna aliquam erat volutpat. Ut wisi
enim ad minim veniam, quis nostrud exerci tation
ullamcorper suscipit lobortis nisl ut aliquip ex ea
commodo consequat.

• Duis autem vel eum iriure dolor in hendrerit in

vulputate velit esse molestie consequat, vel illum
dolore eu feugiat nulla facilisis at vero eros et
accumsan et iusto odio dignissim qui blandit praesent
luptatum zzril delenit augue duis dolore te feugait nulla
facilisi.
Accounts
Afterschoool – developing change makers
CENTRE FOR SOCIAL ENTREPRENEURSHIP
PGPSE PROGRAMME – OPEN FOR ALL FREE FOR ALL
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Accounts
Bikaner
M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk
www.afterschoool.tk
 Name some current assets?
• Current assets are those, which will change
in next accounting year / financial year /
operating cycle.
• Examples: cash, inventory, debtors, bills
receivables, prepaid expenses, etc.
 What are direct expenses?
• These are the expenses, which are directly
identifiable with production – as production
goes up – these expenses will also increase.
• Example: purchase, wages, carriage inward,
octroi etc.
 What is suspense account – where
will it go?
• When there is some difference in trial
balance, we prepare suspense account for
the difference. It will go to balance sheet.
 Which are errors in accounting ?
• Error of commission
• Error of omission
• Error of principle
• Compensating error
• Error of posting – this will affect only one
account. (part of commission)
• Totaling errors (part of commission )
 Which is negotiable instrument?
• Options: bill of exchange, promisory note,
cheque, crossed cheque
• Answer: all except crossed cheque –
because all other can be transferred with
good rights.
 Which is the book of original entry?
• Journal
 Accounting equation approach is
based on which rule?
• Dual aspects
 Which convention says: value inventory
at cost or market price – whichever is
lower? of conservatism.
• Convention
 We have installed a new machinery –
where should we show the expenses of
Rs. 100000?
• Machinery account (real account).
 What is overriding commission?
• It is a commission calculated on Sale price –
invoice price / cost
• For example invoice price is 100, and sale
price is 120, and we pay 50% overriding
commission, the commission amount will be
10 per piece.
Wages of Rs. 5000 was shown as salary,
actually they were paid for installing new
machinery. Pass rectifying entry.

• Machinery Account Dr. 5000

• To salary account credit 5000
 Purchase : 100000, sales 90000, margin
= 20%. What is closing stock?
• Cost of sales is : 90000 *100/120
• = 75000.
• Thus closing stock is 100000-75000
• =25000 answer.
 I get 5% commission on profit after
charging commission. Profit is 58000.
what*is5/105
• 58000 my commission?
• = 2762 answer
Mohan drew bill on Gopal of Rs. 100000
for 3 month. Proceeds are to be shared
euqally. Mohan gets the bill discounted
for 12%. How much amount should
Mohan
• This issend Gopal? bill. The basic
accommodation
purpose is to finance working capital.
• 100000- 3000 = 97000.
• Thus Mohan will send Rs. 48500 to Gopal.
Answer.
 A bill is drawn on 12 June for 2 months.
What will be due date of this bill?
• Add 2 months, we get 12 august + add three
days – we get 15 august – but 15 August is
public holiday – so due date is 14 August.
Answer.
 I purchased a building of Rs. 200000
against debentures (issued at 20%
• discount).
Building What
Account Dr. should
200000 be entry ?
• To Firm Account (from whom we have
purchased building). 200000
• Next: ..
• 200000*20/80 = 50000 discount
• Firm Account Dr. 200000
• Discount on issue of debentures Dr.50000
• Debentures Account Credit 250000
 Who are the main users of
accouning information?
• Customers, employeees, lenders
• Government, public, investors, suppliers and
creditors.
 What are basis of accouning?
• Cash basis of accounting
• Accrual basis of accounting
• (generally accrual basis of acounting is
followed).
 What are essential characteristics of
accounting statements?
• They should be comparable
• They should be reliable
• They should give true and fair view of the
company
• They should be understandable
• They should be relevant.
 Define asset?
• A resoruce controlled by company – which
will give a stream of earnings in the future.
The resource may be physical or non-
physical resource. It must have a
measurable cost / value.
 Define liability?
• Present obligation of the company arising
out of past events – which will result in
outflow of resources emboding economic
benefits.
 Define current assets and current
liability?
• Assets and liability which will change in next
business cycle or in next one year are called
current assets and current liability.
 Define equity?
• Residual interest in the assets of a company
– after deducting all liability is called equity. It
is the excess of assets over liability.
• Equity = Assets – liability.
 Define income?
• Increase in economic benefits during an
accounting period is called income.
• Income = revenue + gain
• Revenue = income from ordinary business
activities (selling)
• Gain = other income (like income from
interest).
 Define Expense?
• Expense is decrease in economic benefit
during an accounting period.
• It may be outflow of money or depletion of
assets or incurrence of liability.
Your financial profit is Rs. 125000 as per
your statement – what is true profit– with
the following information.
• Cost of Asset of Rs. 25000 has been taken as
expense.
• Salary payable Rs. 7000 – ignored
• Purchased assets for 75000 – market value Rs.
85000. Recorded at market value.
• Expected profit of Rs. 10000 has been taken into
account (Rs. 10000 has not yet been realised –
because it will be there when car is sold – which
will take some time).
 What is the mistake in accounting in
previous question and what should be
done?
• We have failed to use historical and accrual
concepts of accounting – so we should
follow these principles.
 Answer:
• 125000
• Add:
• 25000 (assets shown as expense)
• Subtract:
• 7000, (salary)
• 10000 (unrealised income)
• = 133000 (answer)
 What is profit & stock as per the
following transactions:
• 1-4-7 purchased 10 units @50
• 2-4-7 purchased 10 units @ 70
• 3-4-7 sold 6 units @ 65
• 4-4-7 sold 9 units @ 65
 Solution ..
• Cost : (we can use only FIFO or Weighted
average method, LIFO is not permitted as per
AS2)
• 10*50 +10*70 = 1200
• Selling price = 65*15= 975
• Inventory = 350 (As per FIFO)300 (As per
weighted average method).
• Profit = (975+350)-1200 (fifo) = 125
• Or (975+300) -1200 = 75
 Solution continued ..
• Calculation of inventory:
• Total = 20 – used 15 = inventory of 5
• Under FIFO, the left out goods are those which
have been purchased last. Thus their rate is 70
per unit
• 5*70 =350.
• In case of weighted average, we shall calculate
their average cost: 1200/20= 60 per unit. 5*60 =
300
You have sold an assets of Rs. 50000 at
a profit of Rs. 10000. how much amount
will you show in your cash flow statement
under cash from operating activities?
• NIL
• (in in cash from operating activities – we
mention only regular sale. Sale of assets is
not part of regular sale).
You have set up a plant in notified
backward area. You have got a subsidy
of Rs. 1 crore from government. Where
will
• Youyou
willtransfer
transfer it?
it to capital reserve account.
 What is capital reserve?
• It includes following:
• Profits before incorporation
• Profit from sale of fixed assets
• Profit not available for distribution
• Profit on reissue of forfeited shares
• Premiums received on debentures etc.
• (share premium is not capital reserve)
• (Share premium and capital redemptin reserve
accounts are separate.)
You have made investment of Rs.
500000. their market price is now Rs.
400000. At what price will you record
them in balance sheet?
• Rs. 500000 (at cost itself). (if you do
revaluation – you may show it at 400000,
after preparing revaluation account).
 You have found that your goodwill is
worth Rs 400000. How much will you
record
• Nil in balance
– internally sheet?
generated goodwill is
generally not recorded.
 What are final accounts of a
company?
• Balance sheet and P& L account
• (as per section 210 of company act and as
per schedule VI
 Which are statutory books?
• Register of investments – sec. 49
• Register of mortgages and charges – sec 143
• Register of members and index – sec. 150
• Debenture holders – sec. 152
• Minute book – sec193
• Contracts etc. sec. 301
• Directors & Directors’s shareholding – sec. 303
& 307
• Investment in securities other companies
 What is annual return?
• Every company has to prepare in 60 days
(from AGM) annual return and submit in
prescribed proforma to the registrar. (part I &
II of schedule V) and sec. 149.
 What is maximum remuneration to
directors?
• 5% of profit – if one director only
• 10% of profit - if two whole time directors
• 11% of profit – if 2 whole time directors, 1
part time director and one manager.
 4a +7b = 17 & 4a-2b=21, what is
a&b?
• Let us subtract II equation from I. 4a gets
cancelled. We get 9B = -4 or b = -4/9
• Let us put this value in I equation, we get: 4a
– 28/9 =17 or 4a =17+28/9
• 4a = 181/9
• A = 181/9 *1/4
• =181/36 answer.
 ABOUT AFTERSCHOOOL
Afterschoool conducts three year integrated PGPSE (after class 12th
along with IAS / CA / CS) and 18 month PGPSE (Post Graduate
Programme in Social Entrepreneurship) along with preparation for
CS / CFP / CFA /CMA / FRM. This course is also available online
also. It also conducts workshops on social entrepreneurship in
schools and colleges all over India – start social entrepreneurship
club in your institution today with the help from afterschoool and
help us in developing society.
 Why such a programme?
• To promote people to take up entrepreneurship and
help develop the society
• To enable people to take up franchising and other
such options to start a business / social
development project
• To enable people to take up social development as
their mission
• To enable people to promote spirituality and positive
thinking in the world
 Who are our supporters?
• Afterschoolians, our past beneficiaries,
entrepreneurs and social entrepreneurs are
supporting us.
• You can also support us – not necessarily by
money – but by being promotor of our
concept and our ideas.
 About AFTERSCHOOOL PGPSE – the best
programme for developing great entrepreneurs
• Most flexible, adaptive but rigorous programme
• Available in distance learning mode
• Case study focused- latest cases
• Industry oriented practical curriculum
• Designed to make you entrepreneurs – not just an
employee
• Option to take up part time job – so earn while you
learn
• The only absolutely free course on internet
 Workshops from AFTERSCHOOOL
• IIF, Delhi
• CIPS, Jaipur
• ICSI Hyderabad Branch
• Gyan Vihar, Jaipur
• Apex Institute of Management, Jaipur
• Aravali Institute of Management, Jodhpur
• Xavier Institute of Management, Bhubaneshwar
• Pacific Institute, Udaipur
• Engineering College, Hyderabad
 Flexible Specialisations:
• Spiritualising business and society
• Rural development and transformation
• HRD and Education, Social Development
• NGO and voluntary work
• Investment analysis,microfinance and inclusion
• Retail sector, BPO, KPO
• Accounting & Information system (with CA / CS /CMA)
• Hospital management and Health care
• Hospitality sector and culture and heritage
• Other sectors of high growth, high technology and social
relevance
 Salient features:
• The only programme of its kind (in the whole world)
• No publicity and low profile course
• For those who want to achieve success in life – not just a degree
• Indepth knowledge and expertise
• Professional approac: World class approach
• Strong intellectual and business capabilities
• Flexible – you may stay for a month and continue the rest of the
education by distance mode. / you may attend weekend classes
• Scholarships for those from poor economic background
• Latest and constantly changing curriculum – keeping pace with the
time
• Placement for those who are interested
• Admissions open throughout the year
• Latest and most advanced technologies, books and study material
 Components
• Pedagogy curriculum and approach based on IIM Ahmedabad and ISB
Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad)
• Meditation, spiritualisation, and self development
• Essential softwares for business
• Business plan, Research projects
• Participation in conferences / seminars
• Workshops on leadership, team building etc.
• Written submissions of research projects/articles / papers
• Interview of entrepreneurs, writing biographies of entrepreneurs
• Editing of journals / newsletters
• Consultancy / research projects
• Assignments, communication skill workshops
• Participation in conferences and seminars
• Group discussions, mock interviews, self development diaryng
• Mind Power Training & writing workshop (by Dr. T.K.Jain)
 Pedagogy
• Case analysis,
• Articles from Harvard Business Review
• Quiz, seminars, workshops, games,
• Visits to entrepreneurs and industrial visits
• Presentations, Latest audio-visuals
• Group discussions and group projects
• Periodic self assessment
• Mentoring and counselling
• Study exchange programme (with institutions out of India)
• Rural development / Social welfare projects
 Branches
• AFTERSCHOOOL will shortly open its
branches in important cities in India including
Delhi, Kota, Mumbai, Gurgaon and other
important cities. Afterschooolians will be
responsible for managing and developing
these branches – and for promoting social
entrepreneurs.
 Case Studies
• We want to write case studies on social
entrepreneurs, first generation
entrepreneurs, ethical entrepreneurs. Please
help us in this process. Help us to be in
touch with entrepreneurs, so that we may
develop entrepreneurs.
 Basic values at afterschoool
• Share to learn more
• Interact to develop yourself
• Fear is your worst enemy
• Make mistakes to learn
• Study & discuss in a group
• Criticism is the healthy route to mutual support and
help
• Ask fundamental questions : why, when, how &
where?
• Embrace change – and compete with yourself only
www.afterschoool.tk
social entrepreneurship for better society