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AFTERSCHOOOL DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME World Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship OPEN FOR ALL FREE FOR ALL
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Advanced Accounting
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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If proposed dividend is 20%, how much amount has to be set aside as reserve?
7.5% answer.
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10% answer.
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it is shown as security premium account in liabilities side of balance sheet in the heading reserves and surplus.
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2.
Direct method (here you directly add all gross cash receipts and cash payments) Indirect method (here you adjust profit earned from P& L account).
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3.
Operating activities (purchase sale etc.) Investment activities (plant, machinery etc.) Financing activities (issue of shares, debentures, bonds etc.).
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It has been amended in 2000. It says: every company shall give a cash flow statement along with balance sheet and P& L account.
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Operating activity.
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I have sold my old plant for Rs. 300000 (depreciated value Rs. 200000). What should I show in operating activity in Cash flow statement?
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How will you distribute income and expenses in pre and post incorporateion category?
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The company should not have defaulted in payment of interest. The articles should permit capitalisation of reserves Has to give bonus shares in 6 months of time from date of approval by board of directors Reserves created by revaluation of assets cannot be used. Partly paid shares should be fully paid. Such benefit should also be extended to convertible debenture holders. Only cash capital reserve can be utilised.
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The option given to employees directors, etc. for purchasing shares at a predetermined price. (sec. 2, clause 15A) ESOS
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1. 2. 3.
Sec. 77 A of companies act 56 (amended in 99) give permission to company to buy back its shares out of : Free reserves Security premium account Proceeds of any shares / securities.
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If it is not permitted by articles Special resolution not passed Debt more than 2 times equity Buy back is less than 25% of paidup equity.
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Suppose you go abroad to purchase some plant. Your expenses amount to Rs. 100000. What type of expenses are these?
Capital expenses (will be added to the cost of the plant). (all the expenses incurred to purchase any plant / machinery are called capital expenses).
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Suppose you spend Rs. 3 crore on advertisements which will give you benefits over next 10 years. What type of expenses are these?
Deferred Revenue Expenses (because the benefit will be available for a long time.)
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You have received Rs. 10 Lakh from insurase company against a claim regarding fire in your factory. What kind of receipt is it?
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You have received A loan from SBBJ as Working capital term loan to augument your working capital. It is in addition to your cash credit loan. What type of receipt is it?
Capital receipt
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You have received a subsidy of Rs. 200000 from govt. for starting a plant in backward area. What type of receipt is it?
Revenue receipt.
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You had given goods on credit to Ramu in 1999. You had considered a bad debt. Ramu made the payment in 2008. How will you treat receipt?
Revenue receipt. Cash A/c Debit Bad debt recovered account credit.
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You have given Diwali advance to your employees, what type of expense is it?
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You have received interest on Bond. Rupees 5000 received will be treated as?
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Yours is a CA /CS professional club. There is entrance fees of Rs. 10000 and annual fees Rs. 5000. Rishabh has joined the club. How will you do accounting?
Entrance fees is capital receipt but annual fees is revenue expenses. Cash account Debit Entrance Fees Fund a/c credit Annual fees account credit.
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In order to take a tender, you have deposited Rs. 1 crore as earnest deposit. What type of expense is it?
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You have spent Rs. 50000 on repairs of your old plant. What type of expenses is it?
Revenue expenses. Repairs and maintenance account debit Cash account credit.
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You have a furniture showroom. You sell furniture of Rs. 10 lakh and you havent received payment yet. What will be accounting treatment?
It is a revenue receipt (although you havent yet received money.) Sale is recognised as soon as it is made. So entry will be : Party name a/c debit To sales account credit.
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You have purchased paper of Rs. 1000 to be used a stationery. How will you treat it?
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You have spent Rs. 1 crore on advertisement and Rs. 50 lakh on distribution of free samples. This has been done to launch a new product. How will you treat it?
Deferred revenue expenses Advertisement & publicity a/c debit Purchase account credit. Bank account credit.
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You have spent Rs. 2 00000 on overhaul of second machines so that you use those machines. What type of expense is it?
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You have opened the LOOTS showroom. You spent Rs. 100000 on inauguration. How will you treat it?
Deferred revenue expenses (because it will benefit you for many years). Inauguration Expenses Debit Bank credit
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You have spent Rs. 100000 on wages of workers for installation of machinery. How will you treat it?
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You dont show it in balance sheet. It is added as footnote with balance sheet.
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Provision is a liability of uncertain amount, which can be measured reliably by using a substantial degree of estimation. Reserve is to set aside some money for future requirements. Provision is present liability, but reserve is to set aside some profit.
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If any economic benefit is probable, what will you call it and how will you treat it?
It is contingent asset. It is not shown in balance sheet / financial statements. Directors may mention about it in their report.
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Total of sales day book had been undercast by Rs. 2000. how will you rectify it?
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Rs. 200 paid as wages for installing new machinery has been shown as wages. Is it ok?
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We purchased old plant and spent rs. 10000 on its repairs and debited repairs account. Is it ok?
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I am the owner of my company. I take away goods of Rs. 1000 for home use and dont make any entry of it. Is it ok?
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I have distributed Rs. 10000 worth of goods as charity. I dont believe in recording charity. Is it OK?
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I have sold my office computer in Rs. 2000. since its value was completely depreciated, so we didnt make any entry. Is it OK?
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NO
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NO
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Yes if there is wrong posting or wrong balancing or wrong casting If the amount has been written wrong in subsidiary it is difficult to identify it though trial balance.
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Yes or NO. Yes if posting to ledger has been left (only one side). No if the entry has been completely omitted.
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Cash account is ?
Real Account
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Purchase account is ?
Real account
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Revenue account.
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What is goodwill?
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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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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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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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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 www.afterschoool.tk AFTERSCHOOOL MATERIAL material FOR PGPSE PARTICIPANTS
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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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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