Advanced Accounting
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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AFTERSCHOOOL MATERIAL FO
R PGPSE PARTICIPANTS
Advanced Accounting
Dr. T.K. Jain.
AFTERSCHOOOL
Centre for social entrepreneurship
Bikaner
M: 9414430763
[email protected]
www.afterschool.tk
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AFTERSCHOOOL MATERIAL FO
R PGPSE PARTICIPANTS
Dividends are paid on which:
Authorised
capital (mentioned in
memorandum of association)
Paid up capital
Called up capital
Answer: paid up capital
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AFTERSCHOOOL MATERI
Amount set aside to meet
losses due to bad debt is ?
Provision
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AFTERSCHOOOL MATERI
If proposed dividend is 20%, how
much amount has to be set aside as
reserve?
7.5%
answer.
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AFTERSCHOOOL MATERI
Corporate dividend tax rate is ?
10%
answer.
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AFTERSCHOOOL MATERI
Securities premium is shown
as ?
it
is shown as security premium account
in liabilities side of balance sheet in the
heading reserves and surplus.
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AFTERSCHOOOL MATERI
Profit prior to incorporation is
transferred to ?
General reserve
2. Capital reserve
3. P & L account
Answer: Capital reserve.
1.
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AFTERSCHOOOL MATERI
What are the methods of
preparing cash flow statement?
1.
2.
Direct method (here you directly add all
gross cash receipts and cash
payments)
Indirect method (here you adjust profit
earned from P& L account).
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AFTERSCHOOOL MATERI
There are 3 types of cash flow
activities - which are those?
1.
2.
3.
Operating activities (purchase sale etc.)
Investment activities (plant, machinery
etc.)
Financing activities (issue of shares,
debentures, bonds etc.).
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AFTERSCHOOOL MATERI
What is clause 32 of listing
agreement?
It
has been amended in 2000. It says:
“every company shall give a cash flow
statement along with balance sheet and
P& L account. “
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AFTERSCHOOOL MATERI
Interest paid by bank is what ?
Operating
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activity.
AFTERSCHOOOL MATERI
In cash flow statement, cash
and cash equivalent include?
Bank
2. Cash
3. Short investment
4. All these
Answer: all these.
1.
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AFTERSCHOOOL MATERI
I have sold my old plant for Rs.
300000 (depreciated value Rs.
200000). What should I show in
Nil
operating
activity in Cash flow
statement?
I shall show the amount in investing
activity.
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AFTERSCHOOOL MATERI
What will you do with loss prior
to incorporation?
You can do any of these:
1. Show as goodwill
2. Show as loss prior to incorporation in
asset side
3. Write off in P& L Account
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AFTERSCHOOOL MATERI
How will you distribute income and
expenses in pre and post
incorporateion category?
Based
on time
Distributed expenses on the basis of
sales (turnover).
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AFTERSCHOOOL MATERI
Can a company convert its fully
paid shares into stocks?
Yes
– under sec 94 ©.
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AFTERSCHOOOL MATERI
What are SEBI requirements for
issue of Bonus shares?
The company should not have defaulted in payment
of interest.
The articles should permit capitalisation of reserves
Has to give bonus shares in 6 months of time from
date of approval by board of directors
Reserves created by revaluation of assets cannot be
used.
Partly paid shares should be fully paid.
Such benefit should also be extended to convertible
debenture holders.
Only cash capital reserve can be utilised.
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AFTERSCHOOOL MATERI
What is employee stock option?
The
option given to employees directors,
etc. for purchasing shares at a
predetermined price. (sec. 2, clause
15A)
ESOS
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AFTERSCHOOOL MATERI
What is buy back?
1.
2.
3.
Sec. 77 A of companies act 56
(amended in 99) give permission to
company to buy back its shares out of :
Free reserves
Security premium account
Proceeds of any shares / securities.
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AFTERSCHOOOL MATERI
Buy back – when not permitted?
If
it is not permitted by articles
Special resolution not passed
Debt more than 2 times equity
Buy back is less than 25% of paidup
equity.
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AFTERSCHOOOL MATERI
Suppose you go abroad to purchase
some plant. Your expenses amount
to Rs. 100000. What type of
Capital expenses (will be added to the
expenses are these?
cost of the plant).
(all the expenses incurred to purchase
any plant / machinery are called capital
expenses).
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AFTERSCHOOOL MATERI
Suppose you spend Rs. 3 crore on
advertisements – which will give you
benefits over next 10 years. What
Deferred Revenue Expenses (because
type of expenses are these?
the benefit will be available for a long
time.)
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AFTERSCHOOOL MATERI
You have received Rs. 10 Lakh from
insurase company against a claim
regarding fire in your factory. What
Capital
receipt (because
it is against loss
kind
of receipt
is it?
of some assets).
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AFTERSCHOOOL MATERI
You have received A loan from SBBJ
as Working capital term loan – to
augument your working capital. It is
in addition to your cash credit loan.
What
type
of receipt is it?
Capital
receipt
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AFTERSCHOOOL MATERI
You have received a subsidy of Rs.
200000 from govt. for starting a
plant in backward area. What type of
Revenue
receipt
is it?
receipt.
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AFTERSCHOOOL MATERI
You had given goods on credit to
Ramu in 1999. You had considered a
bad debt. Ramu made the payment in
2008.
Howreceipt.
will you treat receipt?
Revenue
Cash
A/c Debit
Bad debt recovered account credit.
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AFTERSCHOOOL MATERI
You have given Diwali advance to
your employees, what type of
expense is it?
It
is not expense. It is only an advance
(neither revenue nor expense).
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AFTERSCHOOOL MATERI
You have received interest on Bond.
Rupees 5000 received will be treated
as?
Revenue
receipt.
Cash Account debit
Interest on bond account credit.
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AFTERSCHOOOL MATERI
Yours is a CA /CS professional club.
There is entrance fees of Rs. 10000
and annual fees Rs. 5000. Rishabh
Entrance
has
joined fees
the club.
How
will you
is capital
receipt
but do
accounting?
annual fees is revenue expenses.
Cash
account Debit
Entrance Fees Fund a/c credit
Annual fees account credit.
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AFTERSCHOOOL MATERI
In order to take a tender, you have
deposited Rs. 1 crore as earnest
deposit. What type of expense is it?
It
is not an expenditure, it is only a
deposit.
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AFTERSCHOOOL MATERI
You have spent Rs. 50000 on repairs
of your old plant. What type of
expenses is it?
Revenue
expenses.
Repairs
and maintenance account debit
Cash account credit.
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AFTERSCHOOOL MATERI
You have a furniture showroom. You
sell furniture of Rs. 10 lakh and you
havent received payment yet. What
It is a revenue receipt (although you
will be accounting treatment?
havent yet received money.)
Sale is recognised as soon as it is made.
So entry will be :
Party name a/c debit
To sales account credit.
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AFTERSCHOOOL MATERI
You have purchased paper of Rs.
1000 to be used a stationery. How
will you treat it?
Revenue
expenses
Stationery account debit
To cash account credit.
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AFTERSCHOOOL MATERI
You have spent Rs. 1 crore on
advertisement and Rs. 50 lakh on
distribution of free samples. This
has been done to launch a new
product.
willexpenses
you treat it?
DeferredHow
revenue
Advertisement
& publicity a/c debit
Purchase account credit.
Bank account credit.
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AFTERSCHOOOL MATERI
You have spent Rs. 2 00000 on
overhaul of second machines so that
you use those machines. What type
Capital Expenses.
of expense is it?
Machinery
account debit
Bank account credit.
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AFTERSCHOOOL MATERI
You have opened the LOOTS
showroom. You spent Rs. 100000 on
inauguration. How will you treat it?
Deferred
revenue expenses (because it
will benefit you for many years).
Inauguration
Bank
Expenses Debit
credit
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AFTERSCHOOOL MATERI
You have spent Rs. 100000 on wages
of workers for installation of
machinery. How will you treat it?
Capital
account
Entry:
Machinery
account debit
Bank account credit
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AFTERSCHOOOL MATERI
Where do you show contingent
liability in balance sheet?
You
don’t show it in balance sheet. It is
added as footnote with balance sheet.
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AFTERSCHOOOL MATERI
Differentiate provision &
reserve?
Provision
is a liability of uncertain
amount, which can be measured reliably
by using a substantial degree of
estimation. Reserve is to set aside some
money for future requirements. Provision
is present liability, but reserve is to set
aside some profit.
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AFTERSCHOOOL MATERI
If any economic benefit is probable,
what will you call it and how will you
treat it?
It
is contingent asset. It is not shown in
balance sheet / financial statements.
Directors may mention about it in their
report.
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AFTERSCHOOOL MATERI
Total of sales day book had been
undercast by Rs. 2000. how will you
rectify it?
We
will undertake credit entry in Sales
Account of Rs. 2000 more.
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AFTERSCHOOOL MATERI
Rs. 200 paid as wages for installing
new machinery has been shown as
wages. Is it ok?
It
is error of principle
Rectify it :
Machiinery account debit
Wages account credit.
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AFTERSCHOOOL MATERI
We purchased old plant and spent rs.
10000 on its repairs and debited
repairs account. Is it ok?
It
is also error of principle
Plant
account debit
Repairs account credit.
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AFTERSCHOOOL MATERI
I am the owner of my company. I
take away goods of Rs. 1000 for
home use and don’t make any entry
ofError
it. Isofitomission
ok?
Drawing
account debit
Purchase account credit.
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AFTERSCHOOOL MATERI
I have distributed Rs. 10000 worth of
goods as charity. I don’t believe in
recording charity. Is it OK?
Error
of commission
Charity
account debit
Purchase account credit.
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AFTERSCHOOOL MATERI
I have sold my office computer in Rs.
2000. since its value was completely
depreciated, so we didn’t make any
Error of commission
entry. Is it OK?
Cash
account debit
Computer account credit.
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AFTERSCHOOOL MATERI
Can error of principles be identified
by preparing trial balance?
NO
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AFTERSCHOOOL MATERI
Can compensatory errors be
identified by preparing trial balance?
NO
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AFTERSCHOOOL MATERI
Can Error of commission be
identified by preparing trial balance?
Yes
– if there is wrong posting or wrong
balancing or wrong casting
If the amount has been written wrong in
subsidiary – it is difficult to identify it
though trial balance.
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AFTERSCHOOOL MATERI
Can error of ommission be identified
by preparing trial balance?
Yes
or NO.
Yes – if posting to ledger has been left
(only one side).
No – if the entry has been completely
omitted.
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AFTERSCHOOOL MATERI
I treat purchase of machinery as
regular purchase. What type of error
is it?
Error
of principle.
Rectify
it :
Machinery account debit
Purchase account credit.
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AFTERSCHOOOL MATERI
Which errors may affect trial
balance?
Error
of partial omission
Error of principle
Error of complete omission
Answer: Error of partial omission
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AFTERSCHOOOL MATERI
Total of sales day book is
posted to ?
Credit
side of sales account.
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AFTERSCHOOOL MATERI
Cash account is ?
Real
Account
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AFTERSCHOOOL MATERI
Purchase account is ?
Real
account
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AFTERSCHOOOL MATERI
Sales account is?
Revenue
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account.
AFTERSCHOOOL MATERI
What is goodwill?
Intangible
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fixed assets
AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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
The only absolutely free course on internet
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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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 material
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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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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AFTERSCHOOOL MATERI
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social entrepreneurship for better
society
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AFTERSCHOOOL MATERI