accounting & economics for business 4 november

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

ACCOUNTING & ECONOMICS 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 & ECONOMICS FOR BUSINESS

Dr. T.K. Jain.

AFTERSCHO☺OLCentre for social entrepreneurship

Bikaner M: [email protected]

www.afterschool.tk, www.afterschoool.tk

http://www.afterschool.tk/

http://www.afterschoool.tk/


A COMPANY HAS CAPITAL RESERVE OF Rs. 5 lakh,

Developent rebate reserve of Rs. 5 lakh, profit prior to incorporation Rs. 10 lakh, Securities premium Rs. 5

lakh and general reserve Rs. 1 lakh. It has to redeem preference

shares of Rs. 15 lakh, how should it proceed?


Solution

• It can use only general reserve available here. Other reserves cannot be used for redemption of preference shares (as per section 80 of companies act in India). So for 14 lakhs, it will have to raise additional capital by going public (public issue).


A company has 2000 preference shares, out of which 1500 are fully paid (face value = Rs. 10). It wants to redeem at 10% premium. What

should it do?

• We have to first call remaining amount on 500 preference shares and make them fully paid and then we have to make a provision for premium from P& L Account. We have to ensure that we have adequate funds for redemption and then we can redeem.


On April 1, 2006 the statement of affairs shows capital Rs. 30,000

and on 31st March, . 2007Rs. 50,000 During the year the trader employed R.s. 10,000 as

additional capital and witlihdrewRs. 5,000. Calculate the profit or

loss for the year 2006-07.• (50000+5000) – (30000+10000) = 15000

profit. Answer.


Calculate the amount of total purchases from the following

information:Opening balance of creditors Rs. 30,000 and ClOsing balance Rs.

50,000. Amount paid t. thecreditors during the year was Rs. 60,000. Cash purchases were Rs.

20,000.• (60 + 50) – 30 = 80 + 20 = 1 lakhs total.


Calculate the amount of credit sales from the following details:Opening balance of debtors Rs.

25,000, closmg balance of debtors Rs. 30,000, cash recceived

from debtors Rs. 75,000, discount allowed to debtors Rs. 5,000.

• (75+30+5) – (25) = 85 thousands answer.


A trader keeps incomplete records During the year his cash purchases

were Rs 8,000 and creciit purchases were Rs. 20,000. His

opening balance creditors was Rs. 7,000 and closing balance was Rs. 10,000. Calculate the amount paid

to the creditors during the year.• (20000+7000) – (10000) = 17000 answer.


In the beginning of the year, a trader had Opening balance of Bills Receivable Aco:count Rs. 10,000.

Amount received from bills receivable during the year was Rs.

25,000 andl3 bills received from debtors were Rs. 20,000. What will be the balance of Bills Receivable

Aco at the end of the year?• (10000+20000) – (25000) = 5000


What will happen if the prices of a commodity increases (it is a

general commodity)?

• Demand will decrease (law of demand).


If the local pizzeria raises the price of a medium pizza from Rs. 60 to Rs. 100 and quantity demanded

falls from 700 pizzas a night to 100 pizzas a night, the price elasticity of

demand for pizzas is what?


Solution

• % change in demand / % change in price• Demand changed from 700 to 100• Or change in demand / change in price *

price / demand• =600/40 *60/ 700• =1.28 answer.


Suppose a consumer’s income Increases from Rs. 30,000 to Rs. 36,000. As a result, the consumer

increases her purchases of compact discs (CD.) from 25 CD. to

30 CD., Whatis the consumer’s Income elasticity

of demand for CD.?


Solution

• % change in demand / % change in income

• = 5/ 6000 * 30000/25• =1 answer.


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


www.afterschoool.tk social entrepreneurship for better

society

http://www.afterschoool.tk/