UNIVERSITY OF MUMBAI PROJECT REPORT ON STUDY OF PROCESS COSTING

IN PARTIAL FULLFILMENT FOR MASTERS OF COMMERCE (SEMESTER-1) 2013-14 PROJECT GUIDE PROF. MRS. FARHAD

SUBMITTED BY: KANNAN PRAKASH Roll No: 1903 MAHATAMA EDUCATION SOCIETYS PILLAIS COLLEGE OF ARTS, COMMERCE & SCIENCE NEW PANVEL MAHATAMA EDUCATION SOCIETYS PILLAIS COLLEGE OF ARTS, COMMERCE, SCIENCE NEW PANVEL

CERTIFICATE To whomsoever it may concern

This is to certify that the work entered in this journal is the work of KANNAN.PRAKASH, have successfully completed a project report on the concept of process costing topic terms of the year 2012-13 in the college as laid down by the college authority

______________ Professor/Guide

Date: __________

DECLARATION
I, Kannan Prakash student of M.COM, MAHATAMA EDUCATION SOCIETYS PILLAIS COLLEGE OF ARTS, COMMERCE & SCIENCE, hereby declare that I have completed the project report on the the concept of process costing in the academic year 2013-14. The information submitted by me is true & original to the best of my knowledge.

___________ Signature

EVALUATION CERTIFICATE This is to certify that the undersigned have assessed and evaluated the project on the effect of change in foreign exchange rate [as per Submitted by Kannan.Prakash student of M.Com Part-I.

as 11]

This project is original to that the best of our knowledge and has been accepted for internal assessment.

ACKNOWLEDGEMENT
I would like to thank my college that is Pillais College of Arts, Commerce and Science, New Panvel where I have gained plenty of knowledge which helped me in turning this project a success. Apart from my efforts, the success of any project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project. I would especially thank my Professor Prof. Farhad. Shaikh and the M.COM for giving her valuable guidance in the design and the changes that were required to be made for the proper implementation of the project. Without those efforts this project would not have been successful. I would also extend my thanks to our Vice Principal Mr. A.N.Kutty for his support and facilities provided to me for the same. Lastly, I would like to thank all those who directly and indirectly helped me in completion of this project.

INDEX

Sr.No. 1. 2 3. 4 5 6 7 8

CONTENTS Introduction Significance of housing co-operative socities

Pg.No.

Applicable Provisions for Co-operative Housing Socities Authorities Responsible for Co-operative oHusing Society Accounts of Co-operative Housing Socities Final Annual Statements of Accounts System of control over the working of auditors Conclusion Bibliography.

CO-OPERATIVE HOUSING SOCIETY

An arrangement in which an association or corporation owns a group of housing units and the common areas for the use of all the residents. The individual participants own a share in the cooperative which entitles them to occupy an apartment (or town house) as if they were owners, to have equal access to the common areas, and to vote for members of the Board of Directors which manages the cooperative. A cooperative differs from a condominium project in that the owners of the condominium units actually own their airspace and a percentage interest in the common area. In a cooperative there are often restrictions on transfer of shares such as giving priority to other members, limits on income or maximum sales price.

SIGNIFICANCE OF CO-OPERATIVE HOUSING SOCIETIES

Housing Societies function as small communities, organising social and economic activities for members and affording them opportunities including higher social values.

DEFINITION -The Definition of "Housing Society" under Section 2(16) of

Maharashtra Co-operative Societies Act 1960is as follows:"Housing Societies" means a Society, the object of which is to provide its members with open plots for housing, dwelling houses or flats; or if open plots, the dwelling houses or flats are already acquired, to provide its members common amenities and services." These housing societies of occupiers of tenements fall in sub-category:1. Tenant Co-partnership Housing Society; 2. Tenant Ownership Housing Society; and 3. Other Societies according to Rule 10(5) of the Mah.Co-op.Societies Rules, 1961.

Tenant Ownership Housing Society Housing Societies where land is held either on lease-hold or freehold basis by societies and houses are owned or to be owned by members. The houses or structures built thereupon on such land are owned by the building site from the society as a lease-holder. The lease contains conditions, prohibitory sub-letting, transfer etc.

Tenant Co-partnership Housing Society "The Society which holds both land and building either on lease-hold or free-hold and allots them to its members" The individual member contributes in first instance by purchasing shares and then pays rent for occupying the tenament allotted to him by Housing Society. It falls under Mah.Ownership Flats Acts, 1963. The only difference between Tenant Ownership Housing Society and Tenant Co-partnership Housing Society is that in the latter type.

APPLICABLE PROVISIONS FOR CO-OPERATIVE HOUSING SOCIETIES

Housing Societies have to function within the frame work of following provisions: Maharashtra Co-operative Societies Act, 1960 (MCSA) Maharashtra Co-operative Societies Rules, 1961(MCSR).Bye-laws governing the day- to-day functioning of the society as approved by the registrar at the time of registration of the society or amended thereafter. (Bye-laws) Notification, orders, Circulars issued by the Government or the Commissioner from time to time for smooth functioning of the society (Notifications). Government has issued a circular restricting the transfer fees to Rs 25,000/- and non-occupancy charges on let out flats/shops to 10% of the service charges excluding municipal taxes. Resolutions/decisions taken in the General Body of the members and the Committee within the above provisions. All the other laws of the land which are applicable to any other organization/individuals like Income-tax Act, Stamp Act, Service Tax Act, Property Tax, Civil, Criminal laws, etc.

AUTHORITIES RESPONSIBLE FOR HOUSING SOCIETIES

Registrar - Deputy/Assistant Registrar are regulators who register and administer the societies under their jurisdiction. In Mumbai the jurisdiction of each Deputy/Assistant registrar is as per Municipal Ward and other places as Taluka area. Co-operative Court- the Co-operative courts are set up in every District to resolve the disputes amongst the members, committee and the members which cannot be resolved by the registrar and needs cross examination of parties and evidences. The matters related to passing of resolutions in the general body/committee and the functioning of the society beyond the provisions of law. Local Authorities- The building is constructed as per the provisions of planning authorities/local authorities. Any dispute on illegal alternations, leakages, not maintaining the structures, supply of water, etc. to be referred to local authorities, Municipal councils. Police Station- Any disputes of criminal nature like the theft, robbery, man handling, murder to be referred to the local police station.

Federation- Housing Societies have to compulsory become the member of the District Housing Federation, who are registered under the provisions of the Act to guide and look after the welfare of the housing societies.

ACCOUNTS OF CO-OPERATIVE HOUSING SOCIETIES

Following accounting records are required to be maintained by the Co-operative Housing Societies as per Rule 65 of Maharashtra Co-operative Societies Rules, 1961 and Bye-laws No. 142 as applicable to co-operative Housing Societies. a) The cash and the bank book; b) The general ledger; c) The personal ledger (member wise monthly collection register); d) Bill register (month wise charges register); e) Vouchers for Payment; f) Monthly/quarterly bills raised on the members for outgoings of the society; g) Receipts of the collection of charges/transfer fees and other funds of the society; h) Bank passbook.

FINAL ANNUAL STATEMENTS OF ACCOUNTS

Following statement of accounts as final Annual Accounts of the society are prepared at the end of every year (31st March) on the basis of above records. 1. Trial Balance or Receipt and Payment Account for the year ending on 31st of each year. 2. Income and Expenditure Account for the financial year. 3. Balance Sheet as on the last day of the financial year.

DUE DATES FOR STATUTORY COMPLIANCE

1. The entire accounts along with final statement of accounts are prepared before 15th May of every year.

2. Annual General Body meeting to be done before 14th of August every year or get the extension of 3 months up to 14th November from the Registrar. 3. The society to appoint its own auditors in the General Body meeting to audit it accounts.

STATUTORY REGISTERS TO BE MAINTAINED

As per the bye-law No. 142 the society is required to maintain following registers, files and records. Register of member in I form: Contains the complete details of the member The list members in J form: Provides the list of the members admitted. The property register: Provides for the details of the property. The share register: Provides for the shares issued to the members Sinking fund register: This register contains the details of sinking fund collected from the members and the amount to be deposited on long term basis. The audit rectification register in O form: This provides for the objections raised by the members and the compliance carried out by the society is provided year wise. The investment register: All the details of investments such as type of investment, funds invested, type of investments, maturity date, maturity value, rate of return etc. are provided in the register. The nomination register: Every member of the society is entitled to make nomination and the same is recorded in this register. The loan register (if loan is raised): In case the society has raised the loan, the instalment to be paid, period of loan, etc. are mentioned in this register. The mortgage register (if the property is mortgaged): The property of the society is mortgaged by the society is recorded here. Even if the members have mortgaged their flats/shops and have availed the loan against mortgage, the same is recorded here.

Minute book: The minutes book for the Managing Committee meetings. Managing Committee is supposed to meet at least once and record all the decisions taken in this book as an evidence and permanent record. The minutes book for the general body meetings. General body of the members are held once in a year as AGM or Special General Body meetings are held in between the year to discuss and decide about the working of the society. All the decisions, resolutions are required to be recorded in this book as an evidence and permanent record. The register of deposits made with the local authority, electric Supply Company and other authorities. The details of deposits are recorded in this register. The register of furniture, fixture and office equipment: The various assets of the society maintained in the office like furniture, date of purchase, suppliers name, decision taken in the committee/General Body, etc. are recorded in this register. The register of library books: The society is supposed to maintain a library of various books like MCS Act, Rules, Bye-laws and also other relevant guidance books. Details of such books are maintained in this register. The register of allotment of flats: Every housing society allots the flat/shops to its members. These details are required to be maintained in this register. Maintenance of various files: The Housing societies should maintain separate file for the correspondence made with different statutory authorities like Local Authority, Registrar, Federation, Electric Department, and Collector Police Station. Separate file has to be maintained for members application, nomination forms, transfer forms, building approval records, Registration records, Notice of Meetings, Circulars, complaints, etc. and also separate file for each member of the society.

AUDIT OF THE SOCIETY RECORDS

The account statements should be submitted for audit to the statutory auditor by 31st May. Appointment of an Internal Auditor is optional for the Society. Auditors can be appointed by the society in its general body meeting from the panel of certified auditors maintained by the Registrar or any Practising CA holding Certificate of completion of Co-operative Audit Course conducted by WIRC.

The registrar has prescribed the minimum audit fees of Rs.36/- per member per year as the Audit fees in the year 1992.

AUDIT REPORTS TO BE GIVEN ON COMPLETION OF AUDIT

Covering Report of True and Fair View of Financial Statements. General Remarks pointing out irregularities and compliances required and which may be read in the General body meeting of the society. Special Report only in case of violations of provisions of Act, Rules and Notifications which require the attention of Regulator i.e. Registrar. Form No. 1: This form has to be filled up by all the auditors of co-operative societies, including the housing societies, giving the General information of society, period of audit, audit classifications, number of members, maintaining statutory records, discussion of audit report with committee, etc. This form is available on the website of the Registrar of Cooperative Societies. Form No. 28: This is a specific form designed by the department to be given by the housing society auditors. It has information about the loan taken for construction, appointment of contractors, approvals obtained for construction, number of flats, shops, etc. planned, fund raising etc. are incorporated. The audit report also should accompany the Balance Sheet, Income and Expenditure Account for the year and the receipt and payment account duly certified by the Auditors along with the signature of the office bearers. The auditors also required to send a copy of the Auditor report to the Registrar as per the requirement of the MCS Act. After the audit is completed, the society is required to prepare an audit rectification report in "Form O" and the same should be certified by the auditor and advise the society to forward the same to the Registrar. The auditor is required to give an audit Classification as A,B, C or D in covering report and also in Form No. 1 prescribed by the Commissioner of Co-operation and Registrar of Co-

operative Societies. The classification is based on the entire working of the society, its record keeping, and compliance of the Act, Rules and Bye-laws and then the profitability of the society.

OTHER COMPLIANCES
The Housing Societies are required to file Income Tax returns every year and also make the payment of TDS, Service tax and file TDS returns, service Tax returns wherever applicable. The Guidance Note on audit procedures was published in Gujarat by the Registrar of Co-op. Societies in the year 1983 wherein the following important provisions are mentioned

METHOD OF ACCOUNTING
Normally the Co-Op Society adopts the method of accounting on mercantile system. The accounts books prescribed under the guidance notes and how to prepare cash book, ledger, etc. mentioned.

ROLE OF THE AUDITOR ENVISAGED

The auditor is known in Co-op. Society as Friend, Philosopher and Guide. The only role of auditor like other company is not doing only auditing but in the Co-op. Society the auditor has to give guidance in respect of preparing the books of accounts and he has to do the audit within the framework of the object of the society. The prime duty of the auditor is to scrutinize the functions of the society whether they are carrying within the framework of its objects or not and if he found that society is not working as per the objects, he has to report to the Managing Committee and if necessary he has to give the guidance in the Annual General Meeting.

TYPES OF AUDIT
[1] Statutory Audit [2] Continuous Audit [3] Internal Audit [4] Re-audit

[5] Test Audit [6] Tax Audit

SYSTEM OF CONTROL OVER THE WORKING OF THE AUDITORS

The District Registrar or Additional Registrars are asking for from the Auditors the quarterly reports for the progress of the audit and undertaking meetings at every three months for determining the progress of the audit undertaken by the various auditors. They are also scrutinizing audit memo Part-I and II.

AUDIT MEMOS
There is no prescribed schedule for the presentation of accounts under the Co. op. Societies Act; however, they have prescribed the audit memos in two parts, Part I and Part II. The auditor has to fill up the audit memos and they are in the questionnaire form. The important issues in respect of Audit Memos are discussed in this article hereinafter.

BOOKS OF ACCOUNT
Every society shall have to keep the books of account as prescribed by Rule 37.

SPECIAL FEATURES OF CO-OP. AUDIT

The special features of co-operative audit, to be borne in mind in general while conducting the audit are as follows. [1] EXAMINATION OF OVERDUE DEBTS Overdue debts for a period from 6 months to 5 (five) years and more than five years will have to be classified and shall have to be reported by an auditor. Overdue debts have far reaching consequences on the working of a Credit Society. It affects its working capital position. A further analysis of these overdue debts from the view point of chances of recovery will have to be made, and they will have to be classified as good and bad. The auditor will have to ascertain whether proper provision for doubtful debts is made and whether the same is satisfactory. The percentage of overdue debts to the working capital and loans and advances will have to be compared with last year so as to watch whether the trend is increasing or

decreasing whether due and proper actions of recovery are taken, the position regarding cases in co-operative courts, District Courts, etc. and the results thereof. [2] VALUATION OF ASSETS AND LIABILITIES The auditor will have to ascertain existence, ownership and valuation of assets. Fixed Assets should be valued at cost less adequate provision for depreciation. If the difference in the original cost of acquisition and the present market price is of far reaching significance, a note regarding the present market value may be appended so as to have a proper disclosure in the light of present inflatory conditions. The current assets be valued at cost or market price, whichever is lower. Regarding the liabilities, the auditor should see that all the known liabilities are brought into the account and the contingent liabilities are stated by way of note. [3] ADHERENCE TO CO-OPERATIVE PRINCIPLES The auditor will have to ascertain in general how far the objects, for which the co-operative organization is set up, have been achieved in the course of working. The assessment is not necessary in terms of profits but in terms of imparting of benefits to members who have formed the society. Considered from the view point of social benefits how far the sales could be affected at lower prices. For the achievement of these activities cost accounting methods, store control, methods, techniques of standard costing budgetary control etc. should be adopted. However these modern techniques are not in application and as such in practice a wide gap is found in the goals to be achieved and the actuals achievements, while auditing the expenses, the auditor should see that they are economically incurred and there is no wastage of funds. Middlemen commissions are as far as possible avoided and the purchases are made by the committee member directly from the wholesalers. The principles of audit against propriety should be followed. [4] OBSERVATIONS OF THE PROVISIONS OF THE ACT and RULES An auditor of a co-operative society is required to point out the infringement with the provisions of co-operative societies act and rules and bye-laws. Financial implications of such infringements should be properly assessed by the auditor and they should be reported. [5] VERIFICATION OF MEMBERS REGISTER AND EXAMINATION OF THEIR PASS BOOKS

Examination of entries in members pass books regarding the loan given and its repayment, and confirmation of loan balances in person is very much important in co-operative organization to assure that the entries in the books of account are free from manipulation. Specifically in the rural and agricultural credit societies the members are not literate and as such this is a good safeguard on their part. Of course this checking will be resorted to test checking which a matter of judgment of the auditor. [6] SPECIAL REPORT TO THE REGISTRAR During the course of audit if an auditor notices that there are some serious irregularities in the working of the society, he may report these special matters to the Registrar, drawing his specific attention to the points. The Registrar on receipt of such special report may take necessary action against society. In the following cases, for instance special report may become necessary. [a] Personal profiteering by members of managing committee in the transactions of the society which are ultimately detrimental to the interest of the society. [b] Detection of fraud relating to cash, property and stores of the society. [c] Specific examples of mismanagement. Decisions of management against co-operative principles. [d] In case of Urban Co-operative Bank disproportionate advances to vested group of people such as relatives of management and deliberate negligence about the recovery thereof. Cases of reckless advancing where the management is negligent, about taking adequate security and safeguards for judging the credit worthiness of the party. [7] DISCUSSION OF DRAFT AUDIT REPORT WITH MANAGING COMMITTEE On conclusion of the audit, the auditor should ask the Secretary of the Society to convene the managing committee meeting to discuss the audit draft report. The audit report should never be finalized without discussion with managing committee. Minor irregularities may be got settled and rectified. The matter of policy should be discussed in details.

IN THE BOOKS OF KENDRIYA VIHAR. CO.OP HOUSING SOCIETY

TRADING A/C FOR THE YR.2011 & 12

PARTICULARS
To opening stock To purchase of grains To purchase 9,93,000 (-)return (5,000) 9,88,000 6,000 1,300 900 40,300 1,62,500 2,73,000 13,08,000 1,62,500 13,08,000 6,000

AMT2011
1,20,000

AMT2012

PARTICULARS AMT2011 AMT2012

1,27,500 12,50,000 (2,000) 35,000 60,000

35,000 By sales (-) by sales return By closing stock

To furniture purchase To freight charges To coolie charges To gross profit c/d

PROFIT AND LOSS A/C FOR THE YR.2011 & 12

PARTICULARS To office rent 9,000 10,000 600 10,000 2,000 By interest on members loan 333 By interest on investment 600 By rebate received 53,150 12,000 AMT2011 AMT2012 PARTICULARS By gross profit b/d AMT2012 40,300 AMT2012 2,73,000

+ outstanding 1,000 To outstanding audit fess To depreciation on dead stock To depreciation on

350

6,000

3,000

furniture To RDD To printing and stationary To salary To outstanding salary To sales tax 3,000 1,500 750 9,667

10,550 -

50,000 3,000 4,000

(+)outstanding 1,000 To travelling expense To bank charges To net profit c/d 1,250 26,250 42,200 93,450 2,600 1,500 2,10,300 2,94,000 93,450 2,94,000

PROFIT AND LOSS APPROPRIATION A/C FOR YR.2011 & 12

PARTICULARS To reserve fund To dividend equalisation reserve To balance c/d AMT2011 10,550 844 AMT2012 PARTICULARS AMT2011 42,200 AMT2012 2,10,300

52,500 By net profit b/d 4,206

30,806 42,200

1,53,594 2,10,000 42,200 2,10,300

BALANCE SHEET AS ON 31.3.2011 & 31.3.2012

LABILITIES SHARE CAPITAL Authorised share capital Subscribed issue paid up RESERVE FUND Common goods fund Reserve fund 45,100 55,650 1,500 AMT2011 AMT2012 ASSETS CASH & BANK BAL. AMT2011 AMT2012

?
14,100

?
Bank current bal. 14,100 Cash bal. 33,500 100 37,783 400

INVESTMENT 12,000 Bank shares 20,000 Reliance shares +52,500 Investment 2,00,000 5,000 2,000 5,000 2,000

+ reserve fund 10,550

Dividend equalisation reserve STAFF PROVIDENT FUND SECURED LOAN Bank loan

844

4,206 PROVIDENT FUND

LAONS & ADVANCES Members loan

83,250 30,000

31,000

31,000 SUNDRY DEBTORS CURRENT ASSETS

UNSECURED LOAN DEPOSITS Member deposits CURRENT LIABILITY & PROVISIONS Outstanding rent/sales tax

30,000

Closing stock

35,000 -

60,000

50,000 FIXED ASSETS Dead stock 7,000

6,850 6,650 (333)

(-)depreciation (350) 1,000 1,000 Furniture 6,000

(-)depreciation 600) Outstanding audit/salary 600 3,000 MISCELLANIOUS EXPENSES &LOSSES NOT WRITTEN OFF 1,500 OTHER ITEM Interest accrued Creditors UNPAID/UNCLAIM ED DIVIDENT INTEREST DUE BUT NOT PAID OTHER LIABILITY P/L APPROPRIATION p/l appropriation 30,806 1,53,594 10,000 CURRENT LOSSES -

5,400

Interest on deposits

6,000

1,65,500

3,52,900

1,65,000

3,52,900

COMPARITIVE STUDY OF TRADING A/C

1. Year 2011 has no opening stock and closing stock of 2011 hence it will be opening stock for next year i.e. 53,000. 2. Purchase of grains only in the year 2011. 3. Purchase of 2012 is Rs.9,93,000 and has return of Rs.5,000. No purchase in yr.2011. 4. Purchase of furniture in yr.2012 of Rs.6,000 5. Freight charges have increased from Rs.1,300 to 6,000. 6. Coolie charges in yr.2011 of Rs.900 7. Sales have increased from Rs.1,27,000 in yr.2011 to 12,50,000 in yr.2012 and has return of Rs.2,000. 8. Closing stock of yr.2011 is Rs.35,000 and for yr.2012 Rs.60,000.

9. The gross profit for yr.2011 is 40,300 and due to high sales the gross profit for yr.2012 has increased to 2,73,000.

COMPARITIVE STUDY OF PROFIT AND LOSS A/C

1. All the expense recorded on dr. side of p&l a/c and income on cr.side. 2. The following expense recorded on dr.side for year2011 & 2012 office rent Rs.9,000 and 10,000,salary Rs.10,550 and 50,000,tavelling exp Rs.1,250and Rs.2,600, bank charges Rs.26,250 and Rs.1,500, printing and stationary Rs.750 and Rs.9,667 for respective year. 3. The outstanding expense should be added to subsequent head for yr2011 & 2012. o/s office rent Rs.1,000.o/s sales tax Rs.1,000,o/s audit fees Rs.600 and 2,000. 4. Depreciation on dead stock should be calculated on 5% amount comes to Rs.350 and Rs.333 and on furniture 10% amount=Rs.600. 5. All the incomes should be recorded on cr. Side of P/L a/c. 6. Interest on member loan Rs.53,150 & Rs.12,000 for 2011 & 12 respectively and investment Rs.6,000 for yr.2012 7. Net profit for 2011 & 2012 is 42,000 & 2,10,300 respectively.

COMPARITIVE STUDY OF P/L APP. A/C

1. 25% of current years profit should be transferred to reserve fund and 2% of current years profit should be transferred to dividend equalisation reserve. 2. In the above question the amount transferred to reserve fund is Rs.10,550 &52,500 and dividend equalisation reserve fund is Rs.844 & 4,206.

COMPARITIVE STUDY OF BALANCE SHEET

1. Balance sheet has two sides liabilities and assets. 2. Authorised capital is not known hence represented by ? 3. Liability has various heads.1st is share capital. Share capital remains same for both year i.e. Rs.14,100. 4. Next head is reserve fund goods reserve fund Rs.1,500 & Rs.12,000, reserve fund Rs.55,650 & Rs.72,500, dividend eq. reserve Rs.844 & Rs.4,206 for 2011 & 2012 respectively.

5. 6. 7. 8.

Staff provident fund and unsecured loan is nil for both year. Secured loan for both the year remains same i.e.Rs.31,000. Members deposit Rs.30,000 & Rs.50,000 for both 2011 & 2010. Current liability shows o/s of Rs.1,600 & Rs.4,000, interest on deposit and creditors Rs.1,500 & Rs.10,000 for 2012 respectively. 9. Unclaimed dividend, interest due but not paid, other liability are nil for both the years 10. P/L app. a/c shows balance of Rs.30,806 & Rs.1,53,594. 11. Assets side show cash and bank balance of Rs.33,600 & Rs.38,183. 12. Investment on bank and reliance shares Rs.5,000 & Rs.2,000 for both the years. Additional investment of Rs.2,00,000 in yr.2012. 13. Members loan Rs.83,250 for yr.2011. 14. Sundry debtors Rs.30,000 for yr.2012. 15. Currents assets includes closing stock of Rs.35,000 & Rs.60,000 for respective yr. 16. Dead stock amounting to Rs.6,650 after deducting depreciation and furniture Rs.5,400 . 17. Other item includes interest accrued on investment of Rs.6,000 for yr.2012 18. Miscellaneous exp. And current losses are nil. 19. Balance sheet gets tallied at Rs.1,65,500 and Rs.3,52,900 for 2011 & 2012 repectivel.