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www.afterschooo l.tk AFTERSCHOOOL MATERIAL F OR PGPSE PARTICIPANTS 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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  • Advanced Accounting AFTERSCHOOOL DEVELOPING CHANGE MAKERS CENTRE FOR SOCIAL ENTREPRENEURSHIP PGPSE PROGRAMME World Most Comprehensive programme in social entrepreneurship & spiritual entrepreneurshipOPEN FOR ALL FREE FOR ALL

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Advanced Accounting

    Dr. T.K. Jain.AFTERSCHOOOLCentre for social entrepreneurshipBikanerM: 9414430763tkjainbkn@yahoo.co.inwww.afterschool.tkwww.afterschoool.tk

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Dividends are paid on which:Authorised capital (mentioned in memorandum of association)Paid up capitalCalled up capital

    Answer: paid up capital

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Amount set aside to meet losses due to bad debt is ? Provision

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • If proposed dividend is 20%, how much amount has to be set aside as reserve?7.5% answer.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Corporate dividend tax rate is ?10% answer.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Securities premium is shown as ? it is shown as security premium account in liabilities side of balance sheet in the heading reserves and surplus.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Profit prior to incorporation is transferred to ?General reserveCapital reserveP & L accountAnswer: Capital reserve.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • What are the methods of preparing cash flow statement?Direct method (here you directly add all gross cash receipts and cash payments)Indirect method (here you adjust profit earned from P& L account).

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • There are 3 types of cash flow activities - which are those? Operating activities (purchase sale etc.)Investment activities (plant, machinery etc.)Financing activities (issue of shares, debentures, bonds etc.).

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Interest paid by bank is what ?Operating activity.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • In cash flow statement, cash and cash equivalent include?BankCashShort investmentAll theseAnswer: all these.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • I have sold my old plant for Rs. 300000 (depreciated value Rs. 200000). What should I show in operating activity in Cash flow statement?NilI shall show the amount in investing activity.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • What will you do with loss prior to incorporation?You can do any of these:Show as goodwillShow as loss prior to incorporation in asset sideWrite off in P& L Account

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • How will you distribute income and expenses in pre and post incorporateion category?Based on timeDistributed expenses on the basis of sales (turnover).

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Can a company convert its fully paid shares into stocks?Yes under sec 94 .

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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 reservesHas to give bonus shares in 6 months of time from date of approval by board of directorsReserves 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • What is employee stock option?The option given to employees directors, etc. for purchasing shares at a predetermined price. (sec. 2, clause 15A)ESOS

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • What is buy back?Sec. 77 A of companies act 56 (amended in 99) give permission to company to buy back its shares out of :

    Free reservesSecurity premium accountProceeds of any shares / securities.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Buy back when not permitted?If it is not permitted by articlesSpecial resolution not passedDebt more than 2 times equityBuy back is less than 25% of paidup equity.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Suppose you go abroad to purchase some plant. Your expenses amount to Rs. 100000. What type of expenses are these? Capital expenses (will be added to the cost of the plant). (all the expenses incurred to purchase any plant / machinery are called capital expenses).

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Suppose you spend Rs. 3 crore on advertisements which will give you benefits over next 10 years. What type of expenses are these? Deferred Revenue Expenses (because the benefit will be available for a long time.)

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have received Rs. 10 Lakh from insurase company against a claim regarding fire in your factory. What kind of receipt is it?Capital receipt (because it is against loss of some assets).

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have received a subsidy of Rs. 200000 from govt. for starting a plant in backward area. What type of receipt is it? Revenue receipt.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You had given goods on credit to Ramu in 1999. You had considered a bad debt. Ramu made the payment in 2008. How will you treat receipt?Revenue receipt. Cash A/c DebitBad debt recovered account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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).

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have received interest on Bond. Rupees 5000 received will be treated as?Revenue receipt.Cash Account debitInterest on bond account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Yours is a CA /CS professional club. There is entrance fees of Rs. 10000 and annual fees Rs. 5000. Rishabh has joined the club. How will you do accounting?Entrance fees is capital receipt but annual fees is revenue expenses.Cash account DebitEntrance Fees Fund a/c creditAnnual fees account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have spent Rs. 50000 on repairs of your old plant. What type of expenses is it?Revenue expenses.

    Repairs and maintenance account debitCash account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have a furniture showroom. You sell furniture of Rs. 10 lakh and you havent received payment yet. What will be accounting treatment? It is a revenue receipt (although you havent yet received money.)Sale is recognised as soon as it is made. So entry will be :Party name a/c debitTo sales account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have purchased paper of Rs. 1000 to be used a stationery. How will you treat it?Revenue expensesStationery account debitTo cash account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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. How will you treat it?Deferred revenue expenses

    Advertisement & publicity a/c debitPurchase account credit.Bank account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have spent Rs. 2 00000 on overhaul of second machines so that you use those machines. What type of expense is it?Capital Expenses.

    Machinery account debitBank account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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 Expenses DebitBank credit

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • You have spent Rs. 100000 on wages of workers for installation of machinery. How will you treat it?Capital account

    Entry:Machinery account debitBank account credit

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Where do you show contingent liability in balance sheet?You dont show it in balance sheet. It is added as footnote with balance sheet.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Rs. 200 paid as wages for installing new machinery has been shown as wages. Is it ok?It is error of principleRectify it :Machiinery account debitWages account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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 debitRepairs account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • I am the owner of my company. I take away goods of Rs. 1000 for home use and dont make any entry of it. Is it ok?Error of omission

    Drawing account debitPurchase account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • I have distributed Rs. 10000 worth of goods as charity. I dont believe in recording charity. Is it OK?Error of commission

    Charity account debitPurchase account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • I have sold my office computer in Rs. 2000. since its value was completely depreciated, so we didnt make any entry. Is it OK?Error of commission

    Cash account debitComputer account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Can error of principles be identified by preparing trial balance?NO

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Can compensatory errors be identified by preparing trial balance?NO

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • I treat purchase of machinery as regular purchase. What type of error is it?Error of principle.

    Rectify it : Machinery account debitPurchase account credit.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Which errors may affect trial balance?Error of partial omissionError of principleError of complete omission

    Answer: Error of partial omission

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Total of sales day book is posted to ?Credit side of sales account.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Cash account is ? Real Account

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Purchase account is ?Real account

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Sales account is?Revenue account.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • What is goodwill?Intangible fixed assets

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Why such a programme?To promote people to take up entrepreneurship and help develop the societyTo enable people to take up franchising and other such options to start a business / social development projectTo enable people to take up social development as their missionTo enable people to promote spirituality and positive thinking in the world

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • About AFTERSCHOOOL PGPSE the best programme for developing great entrepreneursMost flexible, adaptive but rigorous programmeAvailable in distance learning modeCase study focused- latest cases Industry oriented practical curriculumDesigned to make you entrepreneurs not just an employeeOption to take up part time job so earn while you learn The only absolutely free course on internet

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Workshops from AFTERSCHOOOLIIF, DelhiCIPS, JaipurICSI Hyderabad BranchGyan Vihar, JaipurApex Institute of Management, JaipurAravali Institute of Management, JodhpurXavier Institute of Management, Bhubaneshwar Pacific Institute, UdaipurEngineering College, Hyderabad

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Flexible Specialisations:Spiritualising business and societyRural development and transformationHRD and Education, Social DevelopmentNGO and voluntary workInvestment analysis,microfinance and inclusion Retail sector, BPO, KPOAccounting & Information system (with CA / CS /CMA)Hospital management and Health careHospitality sector and culture and heritageOther sectors of high growth, high technology and social relevance

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Salient features:The only programme of its kind (in the whole world)No publicity and low profile courseFor those who want to achieve success in life not just a degreeIndepth knowledge and expertise Professional approac: World class approachStrong intellectual and business capabilitiesFlexible 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 backgroundLatest and constantly changing curriculum keeping pace with the timePlacement for those who are interestedAdmissions open throughout the year Latest and most advanced technologies, books and study material

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • 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 businessBusiness plan, Research projectsParticipation in conferences / seminarsWorkshops on leadership, team building etc. Written submissions of research projects/articles / papersInterview of entrepreneurs, writing biographies of entrepreneursEditing of journals / newslettersConsultancy / research projects Assignments, communication skill workshopsParticipation in conferences and seminarsGroup discussions, mock interviews, self development diaryng Mind Power Training & writing workshop (by Dr. T.K.Jain)

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Pedagogy Case analysis,Articles from Harvard Business Review Quiz, seminars, workshops, games, Visits to entrepreneurs and industrial visitsPresentations, Latest audio-visualsGroup discussions and group projectsPeriodic self assessmentMentoring and counsellingStudy exchange programme (with institutions out of India)Rural development / Social welfare projects

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • BranchesAFTERSCHOOOL 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Case StudiesWe 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.

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • Basic values at afterschooolShare to learn moreInteract to develop yourselfFear is your worst enemyMake mistakes to learn Study & discuss in a groupCriticism is the healthy route to mutual support and help Ask fundamental questions : why, when, how & where?Embrace change and compete with yourself only

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS

  • www.afterschoool.tk social entrepreneurship for better society

    AFTERSCHOOOL MATERIAL FOR PGPSE PARTICIPANTS