31 July Accounting For Business

ACCOUNTING FOR BUSINESS 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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ACCOUNTING FOR BUSINESS

Dr. T.K. Jain. AFTERSCHOOOL Centre for social entrepreneurship Bikaner M: 9414430763 [email protected] www.afterschool.tk www.afterschoool.tk www.afterschoool.tk

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I SEND GOODS OF RS. 2 LAKH TO MOHAN AT COST +40%. MOHAN HAS SOLD GOODS WORTH RS. 1.8 LAKHS (SELLING PRICE). WHAT SHOULD I SHOW AS CLOSING STOCK?  Cost

price of the goods sold is 1.8 *100/140 = 1.285  That means closing stock is 2-1.287  Closing stock is 71300 answer. www.afterschoool.tk

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WHO SENDS PROPORMA INVOICE – CONSIGNOR OR CONSIGNEE?  Consignor

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You have send goods of Rs. 1 lakh to Rishabh on consignment. However, you have incurred following expenses: Packing : 200, freight,  300, octroi : 400, transit insurance: 500, godown rent : 600, godown insurance: 700. The consignee has sold goods of Rs. 20000 only (selling price is 20% plus cost). What is your closing stock and what is stock reserve?

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Solution . . . .  

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Goods sold = 20000. cost price of these goods : 20000 * 100/120 = 16666 Thus cost of goods is 100000-16666 = 83334. However, there is some cost incurred. The cost is 1400 (200,300,400,500), which is to be added to it. 1400* 83334 / 100000 = 1167. Thus cost of closing stock is : 83334+1167 =84501. STOCK RESERVE: 100000-84501=15499 ANSWER. (selling price – cost)

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What profit will Lata show in her books, if she sends goods at cost +25% and instructs consignee to sell it at cost +50% and 4/5 of the goods have been sold (the cost of which is Rs. 2 lakh)?  Cost

2lakh + 25% = 250000. but the goods are sold at cost +50%. Thus we have selling price equal to 300000. Sales : 4/5 *300000 = 240000. the cost of these goods is 160000. thus there is profit of 80000 on these goods. www.afterschoool.tk

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In the previous question, if 2% commission charged by consignee, what will be profit?  2%

of 240000 is 4800.  Thus we will deduct this from 80000  We get 80000-4800  =75200.

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If in the previous question, commission includes del creder commission and there is bad debt of Rs. 40000, what will be profit?  Same

as previous (no change).

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A sends goods to B at cost + 1/3. 1/10th of the goods were lost in transit. 2/3rd of remaining were sold at 20% above invoice price. What is sale, what is profit? Cost of goods=45000 closing stock = nil 

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45000+1/3 = 60000. thus we had 54000 of goods at consignee. He sold 2/3rd of this at 20% above IP. 54*2/3=36000 Thus 36*1.2 = 43200 Remaining goods were sold at IP, so 18000 (1/3rd of 54000). thus sale = (43200+18000) profit = 61200 – (45000) =16200 profit. Ans. www.afterschoool.tk

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Goutam sends 1000 packets of Rs 200 each to Rishabh of London. 4/5 of the goods have been sold. 100 packets were damaged (normal loss). Consignor expenses Rs. 20000, selling expenses by consignee Rs. 20000. what is the cost per unit of remaining goods? 

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(we shall consider that Goutam had sent only 900 units – as 100 units are normal loss). Expenses: (20000/900 *1) = 22.22 Thus cost of remaining goods is : 200000/900*1 +22.22 = 222+22 = 244.4 answer. www.afterschoool.tk

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I sent 900 units of Rs. 90000 at cost +30%. The consignee sold them at Rs. 200 per unit. He will get 5% overwriting commission and 2% commission on sale. What is the commission payable to him?  Invoice

price : 100+30 = 130.  2% commission = 4 * 900 = 3600  Overwriting commission = 5% of (200130) = 3.5 per unit or 3.5 * 900= 3150.  Thus total commission is 6750 answer. www.afterschoool.tk

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ABO UT A FTERSCH OOO L 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? 

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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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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     

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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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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 study www.afterschoool.tk AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS 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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