 Capital work in progress, Whenever you constructed building and is not constructed as building which is ready to use Till then ਸੂੁ੆ੋ, ੄੍, ੄੎৉, ੔੍৉৉৉�שר੍� mixes- ੎ੋ৉क੍উউউউউউউউউউউউ. ੀ੍, ੋੋ, ੇর੍রীউউউউউউউউউউউউউউ. ڤ OULDN'T YOU BE SAD? ڤ ڤ ڤ ڤ ڒ ڤ ڤ ڤ ڡ ڤ ڤ ڡ ډ ڨ ڜ ڈ ڭ ژ ڈ ڈ ژ ڑ ڈ ښ ژ ژ ڔ ږ ڝ ڒ ژ ڐ ڈ ڈ ڈ ډ ژ ژ ڡ ژ ژ ஓ ڈ ڈ ژ ڈ ژ ژ ڈ ڑ ڕ ڕ ژ ژ ڑ ڈ ژ ڝ ژ ڈ ڈ ژ ڈ ڕ ڈ Ė ژ ژ ژ ڈ  to put to poor consumption, whatever it is. To that, whatever amount you incur, it becomes a cost, in any manner. Cost of acquisition, same acquire in case of acquisition. Credit, I already discussed credit. Current asset, I discussed you current asset. Current asset means the assets which are reliable in next 12 months, either in cash or in debtors or in sale or the stock in trade is current asset because it is saleable. Romance is current asset because it will be current, if it is good, then it will convert it, like that. Current asset, current asset, current liabilities payable in the next 1 year or the operating cycle. There can be a company or industry where the operating cycle means purchase, sale, realisation, may be 3 or 2 or 4 years, a shipping industry. You want to construct a ship, so it will, the constructs will take 4 or 5 years, so that will be current asset. You have to note 1 year. Normally, the period is 1 year. Debit, I have discussed. Deferred revenue expenditure, as you discussed that time now, whatever expenditure you incurred this year, but will be used for next 4 year, 3 year, 5 year. You put deferred revenue expenditure. Then out of which, suppose you are utilising an expenditure of 4 year, 1 by 4, every year you debit to the expenditure, deferred revenue expenditure, it will coming under the asset side because revenue expenditure incurred, but deferred because this expenditure could not be used for the revenue of this year. It will be usable for another years also. Then deficit, gata, loss, deficit. Depreciable amount, the amount on which you provide the depreciation, I have put this furniture. It cost is 10,000. Okay, so on 10,000, I can call depreciation. Repair, maintenance, upkeeping is not cost. So, that is not depreciable amount. On amount on which I claim depreciation is depreciation. Depreciable method, they are 2, 3 method. Whether it is return on value method or straight line, 10,000 purchase, 10 year is life, 1, 10. Okay, 10,000 purchase, life I don't know, 10 year it may be, but 1st year it will be used well, it look very nice. Okay, it will go more value. 2nd year it will be, you know, old will give less value. So, 1st year 15 percent, another return on value 15 percent, then return on return on value basis. So, depends on the type of asset and the method you follow. Dividend income, when you share is invested by me in a company and company pays me something, it is a dividend income out of income. Double entry bookkeeping, discuss year mark fund. Certain funds you are also receiving, year mark likes a grand fund, year mark for a particular grand, year mark for a particular course, year mark for a particular subject, particular seminar, that is the year mark fund. You cannot use those funds for other purposes. Normally for such fund, if the regular 12-year account is running, then in 12-year account, in 12-month there is a running account, then separate bank account is kept, or a separate case book is kept, for such year mark fund, certain grand fund you are utilizing, certain building fund you will have separate case book, or a separate account, if no major entries are there. Fair market will, expenses, discuss expenses, fair market value, if something is purchased or sold or valued at a particular price, then you say we are accounting all the transaction on historical course, on the cost basis. But sometimes somebody wants that what is the fair market value of the transaction, you may examine your course or a new system is introduced, abhi aapke it has not come in education system to have a fair market value, because it has come only in the big corporate, having the turn over listed companies, etc., that they have to give fair market value of their assets, but it has not come to education system, and if some education system listed company or a big corporate, and having a you know turn over more than 500 crore, then it will be applicable to them. So fair market was there, financial statement, I told balance sheet, income statement, statement or another supporting statement, other presented financial data are to be recorded or final statement, P&L balance is main, two statement, notes on account you append it, and other encloses, suppose the income add is one, you want to give more sub add, they are annex are schedules, etc., they are the financial statement, fix as I said I discussed with you, fix deposit, deposit for a special period is fixed deposit, once I discuss the fund, generally accept accounting principles, I telling you that accounting means not applicable, they are generally accepted accounting principles, when no principle is applicable, no standard is applied to particular, then generally accept account principles are made applicable to that. Grants, we are having the grants amount given by other body to use for a specific purposes, or for general purposes, if grant is specific, then you have specific grant account, if not general grant, then we credit it to the income account, income is income, income to expense account discussed with you, interest, interest we discussed on any loan received or paid, any deposit received or paid, we have to pay some interest, that is interest, internal control, internal control means if your transaction is checked by other person, or all transaction audited by somebody internally, for internal control means the transactions which are entering the books of account are properly recorded, for that there is internal control system, one person does not make payment, one person only does not make all entries, so they have a control, one internal check, one person check, another person, or there is the internal order coming outside, or there is a system software, or there is a management check, there is any check, all the check, or there are formats of reporting, standard form of reporting, all these taken together is constitute as internal control, means there has to be system where intensely somebody wants to commit a mistake, the system will reveal the mistake, that is internal control system, investment if something is held, invested or investment purpose is investment, suppose you have extra funds, you invested in some investment means the activity which the company is not carrying, with the entity is not carrying and surplus funds are invested, that is called the investment, whenever we make fixed deposit routine period is not investment, it is putting extra funds for a time being, but I am making security investment, then investing the money because I have surplus funds, I want to go in the secondary market, or I want to invest in other company's capital, so that is the investment, internal transaction, internal department, internal transaction suppose you want to transfer some funds into other department, or some amount to pay it by them, or some cash transfer you are making, internal department transfer, sometimes you don't have fund, you are receiving fund from other internal department, you have to credit the department, that department debit to you, so when all department reconcile, then all debit card will be nil, so internal department entry at the area becomes nil, infrastructure assets, those assets will be a part of special nature, use removal and subject to condition, infrastructure asset, infrastructure means suppose this institute, we are building IAT, so we have to provide infrastructure, what infrastructure, land levelling, roads, building, etc., no building is used for education, not infrastructure, roads, lighting etc., all infrastructure, so that the common person, when he come to the IAT center, then he go to the basic facility, so basic facility which reaches to the institution, or which are supposed to be provided to the person operating here under, are called the infrastructure facility, okay, it is separate for municipality infrastructure, to make road, to make bridge, to make drainage, to make sewerage, all infrastructure for them, to this infrastructure facility, journal book, entry, cash book, we go by cash entry, other than cash payment, we were making transaction, one debit, one credit, that is called journal, okay, separate journal is made for that, one debit and one credit, so we make a journal entry, for we make a journal book, journal entry we describe, lapse deposit, laser we deposit, this is the perform of the laser, you have seen date, particular cash book folio, debit and credit, first debit, then credit, and last may, the balance, debit or credit net balance, leads, somebody is taken on random, leads is a leads, okay, we give some property on leads, it is a type of renting arrangement, liability, we discuss liability, what is liability, long term investment, there are two type investment, short term or long term, long term investment, normally investment which are realizable after one year, long term investment, investment made in realizable within one year, short term investment, that is the theory which we have normally used for short term and long term in the accounts, mortgage, suppose any land property building is charged to somebody against the loan or anything guarantee, then we need the term mortgage, okay, educational fund, you all know, narration, suppose we make an entry and we give the narration, this matter was purchased on this rate at this, etc., from this party or whatever narration we make, or this trumps, etc., that is narration and before any entry, we put some detail of entry that become the narration, net assets, net assets, are you aware of net assets, they are different type, different body of net asset, what is your asset, what is your liability, the increase of the asset or liability is net asset, sometimes net asset used in the terms of current asset, sometimes fixed asset, sometimes total asset, so net asset means whenever requirement to show is what asset, okay, net means asset means liability, net asset is net asset, current asset we show, current asset or current liability, net current asset, okay, that is type of net asset, when something liability is netted to asset, it becomes a net asset, net bloke, suppose you purchase frontage of 10,000, okay, 1,000, 1,000 depreciation charge, so 10,000 minus 1,000, 1,000 go to profit and loss on debit side, out of 10,000 to 1,000 is incurred, so it will be expenditure, expenditure asset is one side, so 10,000 frontage of purchase, 1,000 consume, we use the 10 year life, 1,000 is consumed this year, 1,000 go to depreciation, so 10,000 minus 1,000, 9,000 is the net bloke, okay, net bloke, so net bloke will furniture, fixture, asset all total, total assets minus total depreciation will give you net bloke, bloke means bloke normally is referred for the fixed asset, for the other than current asset, bloke, net bloke, net asset, period end, the last day of any accounting period is quarterly, half year is your period end, prepared expenses, the expenditure, the expenditure paid this year but will be benefit will be next year, suppose you have given the, you know, you have taken a policy or a driving insurance vehicle on 1st January up to 30th December, 9 month is prepared, so that is why your fees and other expenses will also cover in the prepared and unharned or unpaid that we also cover but where the system is regular you can go by the accounting treatment and accounting policy also, ratio analysis, ratio analysis means we put current ratio, turnover ratio, debt ratio, suppose you have 1 crore capital and turnover is 10, so turnover to capital ratio 1 is to 10 suppose you have said 1 crore asset and 50,000 capital, so asset to capital ratio 1 is to 2, so the relevant ratio which are relevant to each other or ratio like debt equity, how much total debt, how much equity, in a business you have put 1,000 rupees, so 250 your debt, 750 equity, so debt ratio 1 is to 3, so people will say you have invested 1 and take a borrowing 3, so people will examine the ratio, so ratio analysis make you in the long way because you have compared the ratio year to year, what was the ratio in previous year, what was the ratio two year back, now what is the ratio, so you can compare year to year and therefore you can take a decision for that decision making ratio analysis done, it is varied analysis done in lot of material ratio, consumption ratio, capital out ratio, total out ratio, network and you know debt equity, so hey other than debt equity lot of ratio profitability ratio, expenditure to expenditure ratio, earning to earning ratio, whatever is a big analysis, this analysis gives you very high you know, you know the diversion of the income, diversion of the expenditure or the trend of the income, trend of the expenditure, trend of the asset creation, trend of the wealth creation, all trends are examined by the ratio because you can get monthly also, you can calculate quarterly also, you can calculate yearly also, you can calculate, you can compare the ratio with the other similar industry and similar unit also, so it is a very big benefit available to the accounting person that by ratio analysis they can conclude lot of things, okay and when the diversion ratio is much bigger, there is abnormal division, suppose ratio should have been 1 is to 2, in case of 1 is to 5, you can question why it has gone, what are the region, when will come back, lot of decision making can take this, ratio analysis is the best part to take to you know to put to put the benefit of the decision making at every level, okay, the sheet is the sheet, the sheet and payment account we have discussed, reconciliation, bank reconciliation, reconciliation of any account, reconciliation of any director, whatever entry we make, what they make, we reconcile, okay, reconciliation and confirmation must in the business to the extent possible, revenue expenditure will discuss capital and revenue, special fund will already discussed, the deadline method I have discussed depreciation, surplus deficit, trial batch we have discussed, useful life, this expenditure useful life 10 year, 9 year, 10 year, any equipment, any machine, this computer you will have only 3 year with the fast obsolete, so it depends on the nature of a set, okay, return on to discuss, return on value method we have discussed, now the accounting concept, this was very important will take 5 minutes only, entity concept, first I discussed with you the entity concept, without that we will not be able to understand entity is a entity is different, I am different, dual aspect accounting equivalence come, dual aspect means one transaction debit other credit, if there is income there has to be expenditure matching to the income, if there is expenditure there has to be matching income to that whether earned, whether received or not received but it should be earned, if not earned it means expenditure has been incurred for the earning to be resulted in future year, so some part of expenditure may be capitalized also because no earning this year, deferred also, so there should be dual aspect one should be earning and there should be expenditure, there should be debit, there should be credit, there should be asset plus, either asset minus or liability plus, so dual aspect concept, okay going concept, concept I discussed with you every unit must go if you are aware that this unit will freeze at this place then all asset liabilities should be valued at disposal value suppose all we I don't want run the IT center then this furniture hall will take who will take it has to be dog it has to be finished this will broken etc etc it will scrap value otherwise it is value say 1 crore or if we destroyed will face it people take it away then the value hardly more than 50,000 or 1 lakh so that is the disposal so going concern means this is going on people will study industry will go business will carry on so going concern it will go for a long run even if you are not aware 2 or 3 years it will go long way so going concern concept money measurement concept every transaction has to be measured in money okay money measurement concept without money measurement you cannot discuss any transaction in your life money measurement concept cost concept everything has a cost suppose somebody told that land is acquired and there is no cost it has to have a cost to you if it is not cost then you have to create a cost single rupee to identify the transaction and then describe free of cost given by the government you have to disclose that you cannot say it is cost there has to be a cost for every transaction this country is going in a different direction I am telling you because I am finalist analyst production is going down manufacturing going down okay mining going down everything is being going down service sector is on boom everybody wants to become IIT everybody wants to become charter counter everybody wants to do everything okay service concept medical all medicals are open all treatment are available okay all type of vegetables are available all types of cloth and China China Australia need not to go anywhere everything on your table everything available to you so service sector is developed what will happen to us what will happen to us have you thought sometimes how many years this country will run nobody has thought it I have analyzed it different way the only money has come to your pocket to the public is by valuation of our own land every day we are valuing our house valuing our plot valuing additional land valuing agriculture land selling the agriculture land now agriculture having land value 10 lakh rupees 100 crore is sold 50 crore and then buy it car and then you know this and that and yes all everything and that creates value he put yes this trend will go to IIT this will go there there all IIT has created okay everybody is coming to Bombay okay everybody is going to any state because the land valuation is there so who has purchased the land real estate developer from where money came from the bank bank says no no your value is 50 crore I will give 25 crore how 50 crore this gives this land can produce 10 lakh rupees grain how it can be 50 crore how it can be 50 crore but I printed money gave it to the developer developer gave it to the agriculturist or B solar I put my all person IIT or and then car and all luxuries and the person along with the luxuries they got money from luxuries and this way the country is moving what will happen God knows nothing is going positive if the production manufacturing service sector export you go export and bring money to the country then it is a addition to the GDP nothing government put all taxes anywhere put taxes collect money distribute salary distribute salary distribute defense distribute defense distribute grain food grain narega mandrega make every people finish for 400 rupees job no no no 400 I am getting narega 300 why go 400 work one hour only no work any labor very costly what will happen to this country have anybody heard have you thought of it what is going to effect there is a great problem to this country under the in the severe issues we are we are serving the country there is a great problem every every manufacturing unit every trader every commerce people every public servant every institution everybody has to think in a manner how the cost can be reduced how the cost of living can be reduced how the surplus can be created how the waste expenditure can be reduced how export can be cut down to a large extent and how GDP is strengthened everybody has to think on the issue today if you sale out if we all we say we are selling all the plots tomorrow all banks will close down all institutions will finish and everybody will think over here what happened to it car war who will buy the car tell me nobody old car nobody will buy old pen nobody will all mobile nobody buy is it a 30,000 mobile you are 2000 nobody will give you what is going to happen nothing we are in a very serious condition so friends we have to see a lot of way I have you know deviated this thing but in the country's interest in the interest of the economy we have to think and to build a strong power everywhere in the manner that this country is saved only because we had a saving system we are surviving and we have covered this world meltdown and now if again land valuation goes up all 100 crore 200 crore 500 crore 600 crore IIT value is 10,000 crore sale it somebody who will leave it here I won't go know what will happen to it but that is the issue we discussed periodic matching cost and revenue concept and realisation concept in other words every asset every part is realisable means suppose you have an asset you can sale it and can realise it if you say not realisable then that cannot be a asset and that is a realisable concept where we are valuing our own land all flats all system going to big way and everybody I am also thinking I have 200 crore don't worry say I am crore ok so this is the system I have discussed with you and you know actual base of accounting I have discussed with you post basis and all concept I have discussed with you and the land I the speaker my chad accountant fellow is there he will be there with you for 2-3 days ok we from this meeting particularly for my lecture you only take two things in your life one thing is accounting is the easiest thing of the life but it is a must to adder the accounting system we should have professionals always with us we should carry this accounting as the top important top priority item top priority sector in all every business this will give the eye opening at each every department each every centre at every place it should be made on acral basis all the time and you people should feel it very easy that it is not a burden on anybody once you start everything will come in the positive manner in the proper manner in the things it is desirable in the manner it is acceptable and in the manner it is needed by the current society by the current institution pattern by the current economy by the global economy we have the excellent administrators the bureaucracy and the administrator throughout the country who are taking care of each and every state and we should support them we should strengthen at every level to the administration so that you know everything goes right if we will be able to give them right figure in the right direction you know they are not you know expert of finance and everything they are administrator and the best part playing their own field so we should give them the full strength by giving full data complete data analysis and complete control and full proof accounting so that they can take better decision and they all taken together we can we can strengthen the economy and we can take the India way forward thank you very much Chair Mr. Agarwal is an important person now he is chairman professional development council in the Ikai this is one of the most important organa of Ikai they are basically engaged in manufacturing new CS conducting exams developing their professional skill and etc and he is in charge of that curriculum etc so he has taken out of his busy and important job quite a big amount of time for us as a chairman PDC he is giving lecture so how much importance Ikai is giving to this type of capacity building program I think we should appreciate it and until and unless we start appreciating this then we will not be doing justice to them also Ikai is a professional body each one of them owning a big big firms earning in lakhs but still they are coming here giving lecture talking to us because they feel they feel that we should also develop capacity and improve our accounting practices in all the educational institutions because educational institutions are the backbone of the nations all these educational institutions you will represent IIT, ISR, IAM they are the backbone of the nations so that is why they are also devoting so much time so please try to understand them and learn as much as possible raise as many questions but be very practical also when you raise their questions questions should be to the point and very what is called provoking provoking type questions so that they can give a very good technical reply because account is also technical subject and highly technical subject no, no, no it's good I consider it's a very technical it will take a very easy if you feel technical you don't be able to understand good way to communicate confidence can you please give a big hand to share this of course let's break for lunch