ACCOUNTING

(FUNDAMENTALS)
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Bikaner
M: 9414430763
tkjainbkn@yahoo.co.in
www.afterschool.tk
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HOW MANY ACCOUNTING
STANDARDS HAVE BEEN
ISSUED BY ICAI?
 29

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AS -1?
 ACCOUNTING POLICIES

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AS -2?
 VALUEATION OF INVENTORIES.

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AS -3
 CASH FLOW STATEMENT

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AS – 4
 EVENTS OCCURING AFTER
BALANCE SHEET DATE

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AS – 5?
 NET PROFIT OR LOSS AND
CHANGES IN ACCOUNTING
POLICIES

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AS - 6
 DEPRECIATION

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AS – 7
 ACCOUNTING OF CONSTRUCTION
CONTRACTS.

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AS – 8?
 R & D (RESEARCH AND
DEVELOPMENT)
 (THIS STANDARD HAS BEEN
WITHDRAWN IN 2003).

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AS – 9 ?
 REVENUE RECOGNITION

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AS – 10?
 ACCOUNTING OF FIXED ASSETS.

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AS -11?
 EFFECTS OF CHANGES IN FOREIGN
EXCHANGE RATES.

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AS -12?
 ACCOUNTING FOR GOVERNMENT
GRANTS

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AS -13?
 ACCOUNTING FOR INVESTMENT

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AS -14?
 ACCOUNTING FOR AMALGAMATION

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AS – 15?
 EMPLOYEE BENEFITS INCLUDING
VRS ETC.

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AS – 16?
 BORROWING COSTS INCLUDING
LOANS ETC.

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AS – 17?
 SEGMENT REPORTING (WHEN AN
MNC / LARGE COMPANY HAS
MANY BRANCHES OR WANT TO
REPORT ACCOUNTING OF
DIFFERENT SEGMENTS – IT IS
USEFUL).

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AS – 18?
 RELATED PARTY DISCLOSURE

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AS – 19?
 LEASE – AND ACCOUNTING OF
LEASE - BOTH FINANCIAL AND
OPERATING LEASE.

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AS – 20 ?
 EARNING PER SHARE

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AS 21 ?
 CONSOLIDATED FINANCIAL
STATEMENT

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AS 22?
 ACCOUNTING FOR TAXATION

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AS – 23?
 INVESTMENTS IN ASSOCIATES IN
CONSOLIDATED FINANCIAL
STATEMENTS.

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AS 24?
 DISCONTINUING OPERATIONS

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AS 25?
 INTERIM FINANCIAL STATEMENT.

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AS 26?
 ACCOUNTING OF INTELLECTUAL
PROPERTY RIGHTS, INTENGIBLE
ASSETS, ETC.

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AS 27?
 JOINT VENTURES

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AS 28 ?
 IMPAIRMENT OF ASSETS

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AS 29?
 PROVISIONS, CONTINGENCIES AND
CONTINGENT ASSETS.

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 3 FUNDAMENTALS WHILE
SELECTING ACCOUNTING
POLICIES?
 PRUDENCE
 SUBSTANCE OVER FORM
 MATERIALITY

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WHEN CAN YOU CHANGE
ACOUNTING POLICIES?
1. WHEN IT IS REQUIRED BY THE
LAW OF THE LAND
2. CHANGE WOULD RESULT IN
BETTER PRESENTATION OF
ACCOUNTING AND FINANCIAL
STATEMENTS.

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WHAT IS MEASUREMENT?
ASSIGNING OF NUMBERS TO
OBJECTS OR EVENTS IS CALLED
MEASUREMENT. IT HAS 3
ELEMENTS:
2. IDENTIFICATION OF OBJECT
3. STANDARD TO USE
4. EVALUATION OF DIMENSION OF
OBJECT ON STANDARDS.
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WHAT ARE PRINCIPLES OF
MEASUREMENT?
1. HISTORICAL COST
2. CURRENT COST
3. REALISATION VALUE
4. PRESENT VALUE

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IF I SELL MY CAR TODAY, I
GET RS. 400000 FROM IT.
WHAT AM I TALKING ?
 REALISATION VALUE

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 IF I PURCHASE A TAXI, IT
WILL GIVE ME EARNING OF
RS. 1 LAKH EVERY YEAR FOR
NEXT 10 YEARS. WHAT AM I
TALKING ABOUT?
 PRESENT VALUE (HERE WE WILL
TAKE PRESENT VALUE OF FUTURE
EARNINGS).

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I SHALL GET RETURNS OF RS. 5000,
40000 AND 100000 IN NEXT 3 YEARS.
DISCOUNT RATE IS 10% WHAT IS
PRESENT VALUE?

 5000/ (1+.1)^1 + 40000/

(1+.1)^2 + 100000 / (1+.1)^3
 = 4545+33057+ 75131
 =112733 APPROX.

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MENTION ANY 3 BOOKS OF
ORIGINAL ENTRY?
 PURCHASE DAY BOOK
 SALES DAY BOOK
 CASH BOOK
 PURCHASE RETURN DAY BOOK
 ETC.

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GIVE 2 EXAMPLES OF
SOURCE DOCUMENTS IN
ACCOUNTING?
 INVOICE
 VOUCHER

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WHICH ARE THE
IMPERSONAL ACCOUNTS?
 REAL ACCOUNTS
 NOMINAL ACCOUNTS

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WHICH ARE THE
PERSONAL ACCOUNTS?
 ARTICIFICIAL
 REPRESENTATIVE
 NATURAL (PERSONAL)

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WHAT TYPE OF ACCOUNT
IS DRAWING ACCOUNT?
 REPRESENTATIVE PERSONAL
ACCOUNT

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WHAT TYPE OF ACCOUNT
IS GOVERNMENT
ACCOUNT?
 ARTIFICIAL (LEGAL) ACCOUNT

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WHAT TYPE OF ACCOUNT
IS MACHINERY ACCOUNT?
 REAL IMPERSONAL ACCOUNT

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WHAT TYPE OF ACCOUNT
IS DEBTOR’S ACCOUNT?
 NATURAL PERSONAL ACCOUNT

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WHAT TYPE OF ACCOUNT
IS SALES ACCOUNT?
 NOMINAL ACCOUNT (REVENUE)

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WHAT TYPE OF ACCOUNT
IS PURCHASE ACCOUNT?
 REAL

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WHAT TYPE OF ACCOUNT IS
ADJUSTED PURCHASE
ACCOUNT?
 NOMINAL

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WHAT TYPE OF ACCOUNT
IS INVESTMENT ACCOUNT?
 REAL

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WHAT TYPE OF ACCOUNT
IS RENT ACCOUNT?
 NOMINAL

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WHAT TYPE OF ACCOUNT
IS BANK DEPOSIT
ACCOUNT?
 PERSONAL

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WHAT TYPE OF ACCOUNT IS PROVISION
FOR DEPRECIATION ACCOUNT?

 REAL (VALUATION ACCOUNT)

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WHAT TYPE OF ACCOUNT IS
PROVISION FOR BAD DEBT
ACCOUNT?

 VALUATION ACCOUNT – PERSONAL

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WHAT TYPE OF ACCOUNT IS
BAD DEBT RECOVERD
ACCOUNT?
 NOMINAL (GAIN)

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WHAT TYPE OF ACCOUNT
IS PRE PAID SALARY
ACCOUNT?
 PERSONAL

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WHAT TYPE OF ACCOUNT IS
RENT RECEIVED IN ADVANCE
ACCOUNT?
 PERSONAL

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WHAT TYPE OF ACCOUNT
IS DRAWING ACCOUNT?
 PERSONAL

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EMPLOYEES TOOK GOODS WORTH
1000 AND AMOUNT WAS DEDUCTED
FROM SALARY, WHAT WILL BE
ENTRY?

 SALARY A/C DEBIT

 TO PURCHASE ACCOUNT CREDIT

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WAGES PAID RS. 1000. WORKERS
WORKED ON INSTALLATION OF NEW
MACHINE

 ACCOUNTING ENTRY:
 MACHINERY ACCOUNT DEBIT
 TO CASH (OR BANK) CREDIT

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WHICH ACCCOUNTS ARE
BALANCED?
 REAL ACCOUNT AND PERSONAL
ACCOUNTS (THEIR BALANCE IS
SHOWN IN BALANCE SHEET – SO
THEY ARE BALANCED)
 NOMINAL ACCOUNTS ARE NOT
BALANCED – THEIR BALANCE IS
TRANSFERRED TO P & L ACCOUNT.

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PROCESS OF TRANSFERRING
ENTRY FROM JOURNAL TO
LEDGER IS ?
 POSTING

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LEDGER BOOK IS ALSO
KNOWN AS?
 PRINCIPAL BOOK OF ACCOUNTS

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WRITE 3 METHODS OF
PREPARING TRIAL
BALANCE?
 TOTAL METHOD
 BALANCE METHOD
 TOTAL AND BALANCE METHOD

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MENTION 3 SUBSIDIARY
BOOKS?
 PURCHASE BOOK
 SALES BOOK
 SALES RETURN BOOK
 BILLS PAYABLE BOOK
 JOURNAL PROPER
 BILLS RECEIVABLE BOOK
 PURCHASE RETURN BOOK
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MENTION 4 TYPES OF
CASH BOOKS?
 SIMPLE CASH BOOK
 PETTY CASH BOOK
 CASH BOOK WITH DISCOUNT
COLUMN
 CASH BOOK WITH BANK AND
DISCOUNT COLUMN

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WHAT IS USE OF
SUBSIDIARY BOOK?
 EFFICIENCY, SPEED,
SPECIALISATION
 AVAILABILITY OF INFORMATION
 FACILITY IN CHECKING
 DIVISION OF WORK

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PREPARE : PURCHASE BOOK
OR PURCHASE RETURN
BOOK?
 PURCHASE RETURN BOOK

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WE PURCHASED A CAR, WHERE WILL
ENTRY GO : PURCHASE BOOK /
JOURNAL PROPER

 JOURNAL PROPER

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STATIONERY ITEMS :
PURCHASE / JOURNAL
PROPER
 JOURNAL PROPER

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CREDIT PURCHASE OF STATIONERY ITEMS
BY STATIONERY DEALER: PURCHASE /
JOURNAL PROPER

 PURCHASE

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TOTAL OF PURCHASE DAY
BOOK IS TRANSFERRED TO
?
 PURCHASE ACCOUNT (DEBIT SIDE).

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SALES BOOK IS A PART OF
JOURNAL / LEDGER?
 JOURNAL

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TOTAL OF SALES BOOK IS
POSTED IN ?
 SALES ACCOUNT (CREDIT SIDE).

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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
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 The only absolutely free course on
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
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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)

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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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social entrepreneurship for
better society

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