accounts from incomplete records anil gomez technical supports by my kiddies abey & neha
TRANSCRIPT
Accounts from incomplete records
Anil Gomez
• Technical supports • by
• my kiddies
• Abey & neha
A real life illustration
• Let us learn how profit is calculated without the help of the accounting science
• This practice is still popular• You have a lesson but poor Harry
calculating his days profit without the help of a teacher
Harry called it common sense accounting
• Solutions to the accounting problems using one’s commonsense is called commonsense accounting
Harry the lonely & aimless narrates his chronicle
• UNFORTUNATEA BOY OF UR AGEDoesn’t know where to go
HARRY’S GRANDMA
It was all fate harry’s parents were dead while was a plus1 class• A poor boy like you, had all
desires and craves for love, affection, protection, education etc But his fate denied all these and was bound to take the brunt of the family. poor granny is helpless to school him
How pathetic
The little one had no choice but to opt peanut selling
After buying peanuts he walked towards the park
peanut
Bought peanutsfor rs30
He reached the park
• He began selling in front of the park
During the course he took Rs 25 from the cash box
• With this money he had a cup of tea and packed some food for granny
Having tea
Due to crowd his stock got exhausted soon, he further bought nuts for Rs40 by borrowing from his friend
• Harry becomes liable for
Rs 40thanks
HE IS THINKING “HOW CAN I PAY OFF THIS”
WHAT FATE
At sundown he finished his sale and set out homeward
• . When reached home his unfortunate grand mother asked how much you made from ur business
The question of her grandma made him think
How muchWas
With u in the morning?
ONLYRS 30
the boy still is in puzzlementHOW MUCH
UHAVENOW?
Rs 90only
Conversation contd
Grandma: then ur profit is RS 60only(ie 90-30)
• SON: no granny , I borrowed 40 from my friend Don’t I have to pay that back
Grandma: certainly u have to pay ur debt first after that ur profit is 20 only• SON: no granny ,I am still confused • Grandma :what is it now ?
SON:I took Rs 25 for our tea & food etc
• Grandma :Then u are at loss of Rs 5
No granny then every businessman spend a lot for their personal matters
We makeProfitFor
Our livingDon’t we?
Granny baffled
This created granny in a puzzled state
• After a while granny continued You are right my boy The personal exps like spending for tea, food etc really not a loss
Harry: you mean that Rs 25 spent for food is a part of our profit• Granny: my dear then we had not
sustained any loss as I said • Harry: then why did you say with
profit of RS 20 personal expenses should be deducted and u stamped me loss maker of 5rs
granny: you are my grandson You are shrewd business man • Harry: then how much is my profit?
Granny and grand son asks you
• Should the profit be increased or reduced by the personal exps met for my son and me
• FINALLY OUR PRIFIT IS HOW MUCH?
See Harry's friends enjoying their + one life
• Look at that class room
Harry's friends learning formats of capital comparison method
Suffering teacher thrilled
guys
with
Is this how Harry learned?Clg cap 90Add drawings 25Less additional cap 40Less opg cap 30Profit earned Rs 45
LearnThis
formathai
The message
• Let us take the good of Harry who uses brain for application while his friends use brain for mugging up not realizing what he learns
Let us promote the kids to apply
sensecommon
Anil Gomez says it is not