Accounting For Business 25 October


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Accounting For Business 25 October

  2. 2. ACCOUNTING FOR BUSINESS Dr. T.K. Jain. AFTERSCHO☺OL Centre for social entrepreneurship Bikaner M: 9414430763 [email_address] ,
  3. 3. Question on FIFO <ul><li>Young Entrenpreneurs Ltd. has furnished the following details </li></ul><ul><li>Date Particulars Units Rate (Rs.) </li></ul><ul><li>01.03.2008 Opening stock 100 1.75 </li></ul><ul><li>05.03.2008 Purchased 150 1.50 </li></ul><ul><li>12.03.2008 Purchased 300 1.60 </li></ul><ul><li>08.03.2008 Issued 200 - </li></ul><ul><li>18.03.2008 Issued 250 - </li></ul><ul><li>What is the value of closing stock using FIFO method: </li></ul>
  4. 4. SOLUTION <ul><li>THE CLOSING STOCK IS OF 100 UNITS. Thus this closing stock will be valued at the last rate so </li></ul><ul><li>100*1.6 = 160 is the closing stock. Answer. </li></ul>
  5. 5. Find the value of closing stock using LIFO principle <ul><li>The following are the details supplied by Greenguards Ltd.. in respect of its raw materials for the Month of December, 2007 </li></ul><ul><li>Date Receipts price issues </li></ul><ul><li>(Units) </li></ul><ul><li>01.12.2005 2,000(Opening) 5 </li></ul><ul><li>07.12.2005 1,000 6 </li></ul><ul><li>10.12.2005 - - 2,500 </li></ul><ul><li>15.12.2005 2,000 6.50 </li></ul><ul><li>31.12.2005 - - 2,200 </li></ul><ul><li>On 31.12.2007, a shortage of 100 units was found </li></ul>
  6. 6. Solution …. <ul><li>Closing stock </li></ul><ul><li>= (2+1+2) – (2.5+2.2)= .3 thousand </li></ul><ul><li>However, 100 units are normal loss </li></ul><ul><li>Thus we shall value closing stock for 200 units. Thus closing stock is 200 * 5 (the rate of the first material) = 1000. </li></ul><ul><li>In LIFO, the last material goes first, so what is left is with the first rate. </li></ul>
  7. 7. Valuation of Stock <ul><li>Physical verification of stock was done on 23rd October. the value of stock was Rs 4,80,000 following transactions took place between 23rd October and 31 October — </li></ul><ul><li>1. Out of goods sent on consignment, goods costing Rs 24,000 were unsold. </li></ul><ul><li>2. Purchases of Rs 40,000 were made, out of which goods worth Rs 16,000 were delivered on 5th November </li></ul><ul><li>3. Sales were Rs 1,36,000, which include goods worth Rs 32,000 sent on approval. Half of these goods were returned before 30th June, but no intimation is available regarding the remaining goods. Goods are sold at cost plus 25%. However, goods costing Rs24,000 had been sold for Rs12,000. </li></ul><ul><li>You want to determine the value of stock on 31 October. </li></ul>
  8. 8. Solution ….. <ul><li>Stock on 23 October 480000 </li></ul><ul><li>Add 24000 unsold </li></ul><ul><li>Add purchases (40000 – 16000)=24000 </li></ul><ul><li>Sales (136000 – 32000) = 104000 </li></ul><ul><li>Sales includes abnormal sales 24000 </li></ul><ul><li>Normal sales (80000+16000)*100/125 </li></ul><ul><li>Less -Cost of sales = 76800 + 24000 </li></ul><ul><li>=480000 +(24000+24000-76800-24000)=427200 </li></ul>
  9. 9. What is the closing stock & depreciation? <ul><li>Ajay Saharan Inc.: Assets Balance on 01.01.2008 is Rs 28,000. The Company purchased during the year Rs 16,000 Depreciation is to be charged on the assets as follows — 1/5th of their values is to, be written off in the year of purchase and 2/5th in each of the next 2 years. Of the stock as on 01.01.2008, ½ was one year old and ½ was 2 years old. </li></ul>
  10. 10. Solution <ul><li>Dep on goods purchased 16000*1/5 =3200 </li></ul><ul><li>½ of the goods were 1 year old and ½ 2 year old. So solve it as follows: </li></ul><ul><li>7000 on assets of 14000 purchased 1 year back and 14000 on assets purchased 2 years back. </li></ul><ul><li>Thus total dep. = 3200+7000+14000=24200 answer. </li></ul>
  11. 11. ABOUT AFTERSCHO☺OL <ul><li>Afterschoool conducts three year integrated PGPSE (after class 12 th 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. </li></ul>
  12. 12. Why such a programme? <ul><li>To promote people to take up entrepreneurship and help develop the society </li></ul><ul><li>To enable people to take up franchising and other such options to start a business / social development project </li></ul><ul><li>To enable people to take up social development as their mission </li></ul><ul><li>To enable people to promote spirituality and positive thinking in the world </li></ul>
  13. 13. Who are our supporters? <ul><li>Afterschoolians, our past beneficiaries, entrepreneurs and social entrepreneurs are supporting us. </li></ul><ul><li>You can also support us – not necessarily by money – but by being promotor of our concept and our ideas. </li></ul>
  14. 14. About AFTERSCHO☺OL PGPSE – the best programme for developing great entrepreneurs <ul><li>Most flexible, adaptive but rigorous programme </li></ul><ul><li>Available in distance learning mode </li></ul><ul><li>Case study focused- latest cases </li></ul><ul><li>Industry oriented practical curriculum </li></ul><ul><li>Designed to make you entrepreneurs – not just an employee </li></ul><ul><li>Option to take up part time job – so earn while you learn </li></ul><ul><li>The only absolutely free course on internet </li></ul>
  15. 15. Workshops from AFTERSCHO☺OL <ul><li>IIF, Delhi </li></ul><ul><li>CIPS, Jaipur </li></ul><ul><li>ICSI Hyderabad Branch </li></ul><ul><li>Gyan Vihar, Jaipur </li></ul><ul><li>Apex Institute of Management, Jaipur </li></ul><ul><li>Aravali Institute of Management, Jodhpur </li></ul><ul><li>Xavier Institute of Management, Bhubaneshwar </li></ul><ul><li>Pacific Institute, Udaipur </li></ul><ul><li>Engineering College, Hyderabad </li></ul>
  16. 16. Flexible Specialisations: <ul><li>Spiritualising business and society </li></ul><ul><li>Rural development and transformation </li></ul><ul><li>HRD and Education, Social Development </li></ul><ul><li>NGO and voluntary work </li></ul><ul><li>Investment analysis,microfinance and inclusion </li></ul><ul><li>Retail sector, BPO, KPO </li></ul><ul><li>Accounting & Information system (with CA / CS /CMA) </li></ul><ul><li>Hospital management and Health care </li></ul><ul><li>Hospitality sector and culture and heritage </li></ul><ul><li>Other sectors of high growth, high technology and social relevance </li></ul>
  17. 17. Salient features: <ul><li>The only programme of its kind (in the whole world) </li></ul><ul><li>No publicity and low profile course </li></ul><ul><li>For those who want to achieve success in life – not just a degree </li></ul><ul><li>Flexible – you may stay for a month and continue the rest of the education by distance mode. / you may attend weekend classes </li></ul><ul><li>Scholarships for those from poor economic background </li></ul><ul><li>Latest and constantly changing curriculum – keeping pace with the time </li></ul><ul><li>Placement for those who are interested </li></ul><ul><li>Admissions open throughout the year </li></ul><ul><li>Latest and most advanced technologies, books and study material </li></ul>
  18. 18. Components <ul><li>Pedagogy curriculum and approach based on IIM Ahmedabad and ISB Hyderabad (the founder is alumnus from IIMA & ISB Hyderabad) </li></ul><ul><li>Meditation, spiritualisation, and self development </li></ul><ul><li>EsGotitial softwares for business </li></ul><ul><li>Business plan, Research projects </li></ul><ul><li>Participation in conferences / seminars </li></ul><ul><li>Workshops on leadership, team building etc. </li></ul><ul><li>Written submissions of research projects/articles / papers </li></ul><ul><li>Interview of entrepreneurs, writing biographies of entrepreneurs </li></ul><ul><li>Editing of journals / newsletters </li></ul><ul><li>Consultancy / research projects </li></ul><ul><li>Assignments, communication skill workshops </li></ul><ul><li>Participation in conferences and seminars </li></ul><ul><li>Group discussions, mock interviews, self development diaryng </li></ul><ul><li>Mind Power Training & writing workshop (by Dr. T.K.Jain) </li></ul>
  19. 19. Pedagogy <ul><li>Case analysis, </li></ul><ul><li>Articles from Harvard Business Review </li></ul><ul><li>Quiz, seminars, workshops, games, </li></ul><ul><li>Visits to entrepreneurs and industrial visits </li></ul><ul><li>PreGotitations, Latest audio-visuals </li></ul><ul><li>Group discussions and group projects </li></ul><ul><li>Periodic self assessment </li></ul><ul><li>Mentoring and counselling </li></ul><ul><li>Study exchange programme (with institutions out of India) </li></ul><ul><li>Rural development / Social welfare projects </li></ul>
  20. 20. Branches <ul><li>AFTERSCHO☺OL 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. </li></ul>
  21. 21. Case Studies <ul><li>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. </li></ul>
  22. 22. Basic values at AFTERSCHO☺OL <ul><li>Share to learn more </li></ul><ul><li>Interact to develop yourself </li></ul><ul><li>Fear is your worst enemy </li></ul><ul><li>Make mistakes to learn </li></ul><ul><li>Study & discuss in a group </li></ul><ul><li>Criticism is the healthy route to mutual support and help </li></ul><ul><li>Ask fundamental questions : why, when, how & where? </li></ul><ul><li>Embrace change – and compete with yourself only </li></ul>
  23. 23. social entrepreneurship for better society