Case 1

Wonder World Super Market

(Inrportance of Accounting)
Ranrcsh Mi.ghni, an engineer no'n llSA. reluned ro his rrolhcrland on.\ gust l, 1991. Ile thoughl ol stnlring his o$,n trusiness ins(ead ol rvorkiDg lor a conrpxny. The idcr ol startirg a !upcrmlllket fl.ishcd in hrs miid. He, being from r well ro d(] ftnril1, rhoughr of a big luFrmrrkeL und ram.d ir as wol'-DER woItLD stIPLIt MARKIIl.

IIe lisred down rhe brsic rcquirenenrs ro \lr hrs b!siness. On his iitlh.r's rL1ric., he 1 )k x hlD olRs. 30lakhs li.m S([e Brnk oi ]ndia Hi\ hrbcr rlso supfo(ed hlm b] glving R! l0 hkhs Rrnesh ii.sr purchased 500 squde }.ltuls ol land on thc rord side ,1|d consrrxcred,r big sho'vroonr. To !ivc an rltract !c look, he opted for mrblc llolring in ihe
consrrucred ro

showroom.,\rrnge ents lirr sindo$ disfh)s $,ere made ard glrss rlnrrrxhs $crc rldngc goods xlhacli!eiy. He ul,pointed 10 workcrs i(r he p cusroniers locatedre posnion of goods. Hc esrablished 1r\o scpralc counters. one ror cxsh ancl orher fbr supply baslels & kollc)s n) cary goods.
Aparl liom rll rhese rrangements. he phced prcttv jndoor plans at rhe erch coflrer ol thc showroom. The cnLire shosroom uls 3ir condilioned. By Dcccrnbcr 25. 1997, hls altractive rnd rell equifped supermrrket wa\ rcrdy. Hc th.red to Lnru!urlte ir on lanuary 1.1998.

srs perl;ct, he had nothl.g to do lhe rest ol ii!e dat s Sr)hcthought ol !erilying ihe bills hD hxd r.cl calc!Lall'rs rhe ro(!l rnn)urI hc hrd spenr b) rhen. He s:rs vet to conirnr \rhcthcr he harl spert Rs.:10 l.rkhs f. slxr$ron and the \rorkeN rere efticient en.ugh in m{kinS pur!hrscs. SLr.h thought !rnloking quesrioDs ma.le him bus] fi]l t$o dr!s.'lhe nc\r day he frund our $at he had b lls of Jls.l9.{r lakhs. whlle thc:c Brs no accoLrnt lor tlrc brixnce ornounr llis bank,VC sho$ed r brhnce ofRs.z 6lakhs.nly. H. wrs unsu'e nhelher Lhcrc $xs rn) misuse oi rnoney Hc nicd hrrd to ifd out jt there wcrc l.opholes rn tlre systern $ tl t pillerlge \ras dore. He feh thrt h. $r\ In r nriscrable sillration. IIc lrt as il rhe Nlnrle btrrdcn r)lworld saL on his \houldeN.
As his phnning

He pondered oler ihi! pr|hl.m and decidcd tr) writc

.esulLed in

r11 the bills in r bool bur it r big lisr. Though his lttcnpt \rs .o ecr. he \ris un,trar. oi ;\tcs ol thc slstem ofrec,rfili.s drc ucnr\ in rhe books olrccount

Rrmesh approaclred one of his li icnds. Ms. Nelinrkshi Ayyangrr. ,r seience srrduxrc.

whowrsalso n busincs\. Iiedilcussedhispr.rlrlems$iLhircr.Ilcsridlhilourollhe bills $orrh Rs.:0 lrkhs. tarl ol the bills s,erc mxct. li)r crcdrt pur.hrses. wages lvere prid to rhe workers rtpointcd lor rhe nxinLeflncc.l thc srpernrarker lnd to the sorkers who nude lurnrrure Hc rdiscrl cloubrs on whcrhcr dre trcltmenl IL. bill on purchaslng goods 1_.r.rsh srs lhe samd ar lhc goods purchrsed on crcdi( FIe ruisel ! seies of such d.Lrhis. Nllinxkshi lokl |rrr that sho \us xls) n.t good rt accounting .lnd her)cc she lvas t Lrng her un.lc s id\i.e, sho lvas x.hrilcied u.coun[nt. ]lel uncle lrvc ho a bird'i, ele vi.$ (r lhe.orcepl ol rccurilirg ,\ctounting is thr arl ol rrcordiDg the b siness rrEnsactions in a chroDological ordcr so as io niake rhr rcxder understand thc transaction and find out nel rciult ofbusia.ss. She also .ippointcd rn

To clarily his do!bij. Jre roid liim thrt e\pendr .e was dl\iled ir!n capitrl expcndituc rnd relcnue er|enditri. \\:ag.: illd t,, sorkLr.s $h1) il.rde tnrnillLe aie onll once a1 the linr. ol' !erred.is crpi icifcndiLurc le,:.rus. r|e p.vnr.nl is 'l,rd. acqulsrlror of tix.!i l!s.r. viz. l,lIJriiure whlle {xges peid Ir} w.rkers rppoinrt..:l itr

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