Advanced Accounts

Afterschoool – developing change makers

CENTRE FOR SOCIAL
ENTREPRENEURSHIP
PGPSE PROGRAMME – OPEN FOR ALL
FREE FOR ALL

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 Advanced Accounts
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Bikaner
M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk
www.afterschoool.tk

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Who are the main users of
accouning information?
 Customers, employeees, lenders
 Government, public, investors, suppliers
and creditors.

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What are basis of accouning?
 Cash basis of accounting
 Accrual basis of accounting

 (generally accrual basis of acounting is

followed).

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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.

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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.

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Define liability?
 Present obligation of the company
arising out of past events – which will
result in outflow of resources emboding
economic benefits.

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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.

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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.

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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).

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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.

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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).

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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.

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Answer:
 125000

 Add:

 25000 (assets shown as expense)

 Subtract:

 7000, (salary)

 10000 (unrealised income)

 = 133000 (answer)

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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

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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

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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

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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).

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You have set up a plant in notified
backward area. You have got a
subsidy of Rs. 1 crore from
government. Where will you transfer
it?
 You will transfer it to capital reserve
account.

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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.)

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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).

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You have found that your goodwill is
worth Rs 400000. How much will you
record in balance sheet?
 Nil– internally generated goodwill is
generally not recorded.

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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

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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

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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.

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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.

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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.

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 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.

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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

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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.

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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

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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

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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

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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

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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)

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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

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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.

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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.

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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

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www.afterschoool.tk
social entrepreneurship for better
society

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