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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FINANCIAL LEASE?
 AS – 19
 THERE ARE 2 TYPES OF LEASE:
FINANCIAL AND OPERATING
 LESSOR GIVES PROPERTY
 LESSEE BECOMES OWNER FOR
SOME TIME
 IN OPERATING LEASE, THE
OWNERSHIP IS NOT TRANSFERRED
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DEPRECIATION
 AS – 6.

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WHAT ARE THE 3
FUNDAMENTAL
ASSUMPTIONS?
 GOING CONCERN
 CONSISTENCY
 ACCRUAL

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YOU HAVE TO KEEP SAME
METHOD OF DEPRECIATION
YEAR AFTER YEAR, WHY?
 BASED ON CONSISTENCY
ASSUMPTION.

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WHAT IS THE APEX BODY
ON ACCOUNTING IN USA?
 AMERICAN INSTITUTE OF
CERTIFIED PUBLIC ACCOUNTANTS
 (THIS IS INSTITUTION)
 ITS BODIES ARE AS UNDER:
 ACCOUNTING PRINCIPLES BOARD
 AND OTHER BODIES.

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WHAT IS ACCOUNTING
CYCLE?
 ALL THE STEPS FROM MAKING FIRST
ENTRY (ORIGINAL ENTRY) AND
RECORDING THE TRANSACTION TO
PREPARATION OF FINAL ACCOUNTS.
 THERE ARE 4 STEPS:
 1. RECORD IN BOOKS OF ORIGINAL
ENTRY. 2. POST IN LEDGER 3. PREPARE
TRIAL BALANCE 4. PREPARE FINAL
ACCOUNTS
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WHO ARE INTERNAL
USERS OF INFORMATION?
 BOARD OF DIRECTORS
 MANAGERS
 EMPLOYEES
 PARTNERS
 OFFICERS

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WHO ARE THE EXTERNAL
USERS OF INFORMATION?
 INVESTORS
 LENDERS
 CREDITORS
 SUPPLIERS
 GOVERNMENT
 PROSPECTIVE EMPLOYEES
 CUSTOMERS
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WHICH IS BROADER WORD –
ACCOUNTING OR
ACCOUNTANCY?
 ACCOUNTANCY

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WHICH IS BOADER BETWEEN
ACCOUNTING AND BOOK
KEEPING?
 ACCOUNTING

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DIFFERENCE BETWEEN
FINANCIAL ACCOUNTING &
MANAGEMENT ACCOUNTING?
 FINANCIAL ACCOUNTING IS CONCERNED
WITH PROVIDING INFORMATION FOR
EXTERNAL USERS WHILE MANAGEMENT
ACCOUNTING PROVIDES INFORMATION
FOR INTERNAL USERS.
 FINANCIAL ACCOUNTING FULFILLS
LEGAL REQUIREMENTS AND PREPARES
FINAL STATEMENTS LIKE P&L A/C ETC.
BUT MANAGEMENT ACCOUNTING HELPS
YOU IN DECISION MAKING. ITS TOOLS
ARE RATIO ANALYSIS, FUND FLOW
ANALYSIS ETC.
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Similarity / Difference
between social responsbility
accounting & HRA?
 Both are not legally compulsory
 Both are adopted by responsible
companies only.
 Social responsibiity accounting
focuses on social costs and social
benefits
 Human resource accounting (HRA)
focuses on investments made on
manpower.
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What is entity concept?
 Business unit is different from
owner.

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What is GAAP?
 GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES

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MONEY MEASUREMENT
CONCEPT?
 ONLY THE TRANSACTIONS WHICH
CAN BE RECORDED IN MONEY ARE
RECORDED – THOSE WHICH
CANNOT BE PUT INTO MONEY ARE
NOT RECORDED - FOR EXAMPLE
SUPPORT ENCOURAGEMENT GIVEN
BY A FRIEND CANNOT BE
RECORDED.
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PERIODICITY CONCEPT?
 ACCOUNTS SHOULD BE PREPARED
FOR A PERIOD – NOT FOR THE LIFE
OF ENTERPRISE.
 THIS CONCEPT IS USED ALONG
WITH ACCRUEL CONCEPT FOR
RECORDING INCOME AND
EXPENSES.

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WHAT IS ACCRUAL
CONCEPT?
 EFFECTS OF TRANSACTIONS ARE
RECOGNISED WHEN THEY OCCUR
(MERCANTILE BASIS) – NOT ON
THE BASIS OF CASH DEALINGS.

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MATCHING CONCEPT?
 ALL EXPENSES OF A PERIOD
SHOULD BE MATCHED WITH
REVENUE OF THAT PERIOD.

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REALISATION CONCEPT?
 ANY CHANGE IN ASSETS SHOULD
BE RECORDED ONLY WHEN FIRM
REALISES IT.

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DUAL ASPECT CONCEPT?
 EVERY TRANSACTION HAS 2
ASPECTS - ASSETS WILL INCREASE
/ DECREASE SIMULTANEOUS
LIABILITY WILL INCREASE /
DECREASE OR INCREASE /
DECREASE IN ONE ASSET WILL
DECREASE / INCREASE ANOTHER
ASSET. OR INCREASE / DECREASE
IN ONE LIABILITY WILL DECREASE /
INCREASE ANOTHER LIABILITY.
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WHAT IS CONSERVATISM?
 PROVIDE FOR ALL LOSSES AND
DON’T ANTICIPATE ANY INCOME.

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WHAT WILL HAPPEN IF
ONE ASSET INCREASES?
 THERE WILL BE SIMULTANEOUS
INCREASE IN LIABILITY OR
SIMULTAEOUS DECREASE IN
ANOTHER ASSET. (DUAL ASPECT
CONCEPT).

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WHAT IS ASB?
 ACCOUNTING STANDARDS BOARD.
(SET UP ON 21 APRIL 1977).

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INVENTORY CAN BE
MEASURED ONLY BY WHICH
2 METHODS?
 EITHER FIFO OR WEIGHTED
AVERAGE METHOD
 FIFO = FIRST IN FIRST OUT
 (AS PER ACCOUNTING STANDARD
AS2)

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WHAT IS REVENUE?
 GROSS INFLOW OF CASH /
RECEIVABLES / OTHER
CONSIDERATIONS ARISING IN THE
COURSE OF ORDINARY BUSINESS
(AS 9) (HOWEVER, INSURANCE,
HIRE PURCHASE, LEASE, GOVT.
GRANTS, SUBSIDIES,
CONSTRUCTION WORK ETC. ARE
NOT IN PERVIEW OF THIS
DEFINITION).
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 MNC OR A COMPANY
SITUATED IN DIFFERENT
AREAS CAN PRESENT
INFORMATION ON DIFFERENT
AREAS – UNDER WHICH AS?

 AS -17 – SEGMENT REPORTING –

MENTION SEGMENT WISE INCOME /
EXPENSES

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IN WHICH LEASE, THE
ASSETS ARE CAPITALISED BY
THE LESSEE?
 FINANCIAL LEASE (SEE AS 19)

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WHAT IS VRS?
 VOLUNTARY RETIREMENT SCHEME
(RECORDED UNDER AS 15).

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WHAT IS IPR?
 INTELLECTUAL PROPERTY RIGHT
 (IT INCLUDE TRADE MARK,
INTANTIGLE ASSETS ETC).
 RECORDED AS PER AS 26.

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SUPPOSE YOU WANT TO
PRREPARE QUARTERLY
FINANCIAL STATEMENTS –
WHICH AS IS APPLICABLE?
 AS 25 – INTERIM FINANCIAL
REPORTING

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WHAT IS EPS?
 EARNING PER SHARE
 (RECORDED AS PER AS 20)

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SUPPOSE YOUR COMPANY
HAS A SUBSIDIARY COMPANY
– HOW WILL YOU PREPARE
YOUR ACCOUNTS?
 SUBSIDIARY COMPANY IS ONE
WHERE HOLDING COMPANY HAS
MAJORITY STAKE.
 HOLDING COMPANY HAS TO
CONSOLIDATE BOTH THE
ACCOUNTS (AS 21).

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DIFFERENCE BETWEEN
PROVISION & RESERVE?
 PROVISION IS ALWAYS FOR AN
IDENTIFIABLE LIABILITY BUT
RESERVE CAN BE FOR GENERAL
PURPOSE ALSO (RECORDING OF
PROVISION AS PER AS 29)

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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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www.afterschoool.tk
social entrepreneurship for
better society

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