accounting for business 23 october

www.afterschoool.tk AFTERSCHO☺OL's MATERIAL FOR PGPSE PARTICIPANTS

ACCOUNTING FOR BUSINESS

AFTERSCHO☺OL – DEVELOPING CHANGE MAKERS

CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME –

World’ Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurship

OPEN FOR ALL FREE FOR ALL


ACCOUNTING FOR BUSINESS

Dr. T.K. Jain.

AFTERSCHO☺OLCentre for social entrepreneurship

Bikaner M: 9414430763

[email protected]

www.afterschool.tk, www.afterschoool.tk


We sent some goods to BM at Kolkata with 20% profit on IP

(invoice price). 1/10th of the goods were lost in fire. The cost of the lost goods was Rs. 20000. what is the invoice price of the goods sent?

• Sell price of the goods lost is :

• 20000*100/80 = 25000

• This is 1/10 of the total goods, so the total goods are of 250000 at invoice price. Ans.


We send goods of Rs. 3 lakh to Goti of Kolkata on consignment.

Commission = 2% on sales and 3% del credere commission. Sales = 4 lakh. Bad debt Rs. 5000. What is

profit of (we) Consignor and consignee??

• Commission = 20000

• Our profit (400000 – (3lakh+20000)=80000


Solution

• Profit of consignee

• = 20000 – (bad debt of Rs. 5000)

• =15000 answer.


A & B are partners with ratio 3:2. their capital are 50000 & 30000. Reserves are 15000. C takes 1/6

share in the firm taking shares from A and B in 3:2 ratio and contributes

Rs. 25000, what are the closing balances of their capitals?

• Let us first divide reserve: A = 9000,B=6000• Their Capital are in the ratio (A+B):C =5:1• Total capital is 95000. Share of C = 95000*1/5 = 19000


Solution

• Thus Rs. 25000-19000 = 6000 are for goodwill. Which will go to A & B in 3:2, thus new capitals of A,B,C are:

• A = 50000+9000+3600 = 62600

• B=30000+6000+2400 = 38400

• C = 19000 answer =19000


A & B are partners with capital 25000 & 15000.Interest on capital

is 10%. Annual profit Rs. 2400,what is interest payable to partners?

• The total interest payable is 4000. However, profits are only 2400. thus this profit will be distributed among A & B in the ratio 5:3

• A = 1500 and B = 900 answer.


I draw a bill on Ram on 1 Apr. 2008 as 30 days after sight. I show the bill on 20 April. What is the due

date of bill?

• 30 days from 20 april means 20 May. + 3 days grace period:

• The bill is due on 23 May. Answer.


• Goti Ltd. issued 2,00,000 shares of Rs.100 each at a premium of Rs.20 per share payable as follows: On application Rs.20 On allotment Rs 50 (including premium) On first call Rs.30 On second and final call Rs.20

• Applications were received for 3,00,000 shares and pro rata allotment was made to applicants of 2,40,000 shares. Money excess received on application was employed on account of sum due on allotment as part of share capital. E, to whom 4,000 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay the first call, his shares were forfeited and F, the holder of 6,000 shares failed to pay the two calls and his shares were forfeited after the second call. Of the forfeited shares, 8,000 shares were reissued to G at a discount of 10%, the whole of E’s forfeited shares being reissued.


Solution

• On forfeiture of E’s shares: • E had applied for 24/20*4000 shares = 4800• Application money received = 96000• Entry: Share Capital A/c Dr. 320000, Share

Premium A/c Dr. 80000• To Allotment Ac. Credit : 184000• To first Call credit 120000• To forefeiture Ac. Credit 96000• They have been reissued to G at 10%

discount, so money transferred to capital reserve is : (96000-40000) = 56000


Solution

• Forfeiture of F’s shares. • Entry : • Share capital A/c Dr. 600000• First Call Credit 180000• Second Call credit 120000• Share forfeiture A/c 300000Of these 6000 shares, 4000 were reissued to G

at 10%, so money transferred to capital reserve will be : (200000 – 40000) = 160000 ans.


• Goti Ltd. issued 10,000 equity shares of Rs.10 each at a premium of 20% payable Rs.4 on application (including premium), Rs.5 on allotment and the balance on first and final call. The company received applications for 15,000 shares and allotment was made pro-rata. P. to whom 3,000 shares were allotted, failed to pay the amount due on allotment. All his shares were forfeited after the call was made. The forfeited shares were reissued to Q at par. Assuming that no other bank transactions took place, the bank balance of the company after effecting the above transactions ?


Bank Balance of the company

• 10000*12= 120000 – 18000 + 30000

• =132000 answer. Notes:

• Amount received from P

• 15/10*3000 = 4500*4 = 18000

• Amount not received from P

• 36000 – 18000 = 18000.

• Reissue of shares to Q = 3000*10=30000


ABOUT AFTERSCHO☺OL

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.


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


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.


About AFTERSCHO☺OL 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 • The only absolutely free course on internet


Workshops from AFTERSCHO☺OL

• 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


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


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• 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

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 • EsGotitial 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)


Pedagogy

• Case analysis,• Articles from Harvard Business Review • Quiz, seminars, workshops, games, • Visits to entrepreneurs and industrial visits• PreGotitations, 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


Branches

• AFTERSCHO☺OL 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.


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.


Basic values at AFTERSCHO☺OL

• 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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accounting for business 23 october

Sports

forfeited shares

equity shares of rs

goods of rs

reissue of shares

application rs

premium of rs

payable rs

forfeiture of es shares