Accounting For Business 21 October

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

ACCOUNTING FOR BUSINESS

AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS

CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME –

World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship

OPEN FOR ALL FREE FOR ALL


ACCOUNTING FOR BUSINESS

Dr. T.K. Jain.

AFTERSCHO☺OLCentre for social entrepreneurship

Bikaner M: 9414430763

[email protected]

www.afterschool.tk, www.afterschoool.tk


PROFITS FOR THE LAST 3 YEARS WERE Rs. 200, 2610,

3120 RESPECTIVELY. CLOSING STOCK INCLUDED DEFECTIVE

GOODS OF 220 AND 620 DURING LAST 2 YEARS. WHAT

IS GOODWILL AS PER AVERAGE PROFIT METHOD?


GOODWILL

• Normal Profit = 200, (2610), (3120-620)

• As the closing stock of last year already includes closing stock of 220 of previous year,so adjustment is being made only in last year’s closing stock.

• =average of 200, 2610,2500

• Average of these is 1770


Goods purchased and debited the supplier by Rs. 2500?

• When we buy goods, we have to credit the supplier, however, we have debited him by mistake. To correct the entry, we should now do reverse entry of double the amount. Now we should do the following entry:

• Error in posting (suspense A/c ) dr. 5000

• Supplier a/c credit 5000


Cost of plant 21000, residual value 1000, life 5 years, what should be

rate of depreciation in WDV?

• In WDV (written down value) method, we use the following formula:

• 1 – (1000/21000)^1/5

• 1- (1/21)^1/5

• =1 - .047^1/5

• = 1- .54

• =.46 or 46% answer.


1000 KG is being sent to wholesaler. 15% loss is

unavoidable. Cost is Rs. 3 per KG. Transport charges Rs400

• Cost = (3000+400) / 850

• = so cost is Rs. 4 per KG.


We send goods at 125% of cost. Commission 10% on sales at IP and 25% on sale above IP. 10%

goods lost in transit (IP Rs. 12500). 75% of remaining consignment sold

for Rs. 1 lakh. What is commission?

•


Solution

• IP of total consigment = 125000• (because 10 % is 12500)• Thus 75% costs 67500• IP of this : 67500*125/100=84375• 10% commission on sale at IP = 8437.5• 25% commission on sale above IP• 25% of 15625 = 3906• Total commission 12343.5


XYZ are partners with capital of Rs. 100, 200 and 300 respectively. Y

gives a loan of Rs. 500 and demands interest @ 40%. There is no agreement. How will you divide

profit of Rs. 120 among them?


Solution

• Interest on loan will be payable @ 6% thus he will get interest of only 30.

• Remainng profit of Rs. 90 will be distributed between partners equally.


Capital Rs. 2 lakh. Interest rate 12%. Last 4 year’s profits are: = -10000, -2500, 98000,76000. What

is goodwill as per super profit method? Opportunity cost 12000

• Ideal profit = 24000+12000=36000181

• Total of profit: 161500/4=40375

• 40375-36000=4375

• Discount rate = .1, annuity value 3.16

• =4375*3.16 = 13868 answer.


4 years annuity calculation…

1 / (1+r)^n

= 1/1.1 + 1/(1.1)^2 +1/(1.1)^3 + 1/(1.1)^4

=3.169 answer.


ABOUT AFTERSCHO☺OL

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 AFTERSCHO☺OL 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 AFTERSCHO☺OL

• 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• 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

• 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.


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 AFTERSCHO☺OL

• 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

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