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8/11/2019 58204587study Material Accountancy Prepared by Com. Sujith Mulloli Manager Panur Branch (173 Pages)
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STUDY MATERIAL ON PAPER II FOR THE PROMOTIONTEST
AS
MANAGER GR IV IN KSFE
COMPILED BY
SUJITH MULLOLI,
MANAGER, PANUR BRANCH
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Principle !" F#n$%&en'%l Acc!#n'in(
SHORT ANSWER MODEL:
)*+%' $! -!# &e%n .- %cc!#n'in( c!ncep'/
Acc!#n'in( i 'e l%n(#%(e !" .#ine %n$ %""%ir !".#ine #ni', 'ee %re '! .e c!&nic%'e$ '! !'er % 0ell% '! 'e !0ner !" .#ine, 'r!#( %cc!#n'in( in"!r&%'i!n,0ic % '! .e #i'%.l- rec!r$e$, #&&%ri1e$ %n$ preen'e$,! % '! en%.le %ll pe!ple '! #n$er'%n$ e%il- %n$ pr%c'ic%ll-'e "#ll &e%nin( !" "#n$%&en'%l %cc!#n'in(, 'e %cc!#n'%n'%2e '! %(ree$ !n cer'%in c!ncep' 0ic 'e- %re '! "!ll!0*
3* Brie" 4)5 B#ine En'i'- C!ncep', 435 M!ne- Me%#re&en'C!ncep'
G!in( C!ncern C!ncep' 465 D#%l Apec' C!ncep'
En'i'- C!ncep'7 I' i 2er- i&p!r'%n' '! n!'e '%' "!r %cc!#n'in(p#rp!e 'e .#ine i 're%'e$ % % UNIT !r ENTITY %p%r'"r!& i' !0ner, cre$i'!r %n$ %ll !'er* T%' i '! %-, 'epr!prie'!r !" %n en'erprie i %l0%- c!ni$ere$ ep%r%'e %n$$i'inc' "!r& 'e .#ine 0ic e c!n'r!l* Ti c!ncep' i
p!p#l%rl- 8n!0n % En'i'-*
Te %&!#n' in2e'e$ .- 'e pr!prie'!r i 'e li%.ili'- !" 'e.#ine '! i' pr!prie'!r 'er&e$ % 9CAPITAL9 4'e &!rein2e'&en' 'e &!re CAPITAL .!!'in(5* Te 0i'$r%0%l !"&!ne- 2%l#e "r!& .#ine i %$2erel- %""ec'in( 'e CAPITAL4Te &!re 0i'$r%0%l 'e leer CAPITAL5
M!ne- Me%#re&en'7 Te M!ne- Me%#re&en' c!ncep'#n$erline, '! rec!r$ %ll 'r%n%c'i!n in &!ni'!r- 'er& !nl-*In !'er 0!r$, % "%c' !r %ppenin( 0ic c%nn!' .ee:pree$ in 'er& !" M!ne- i n!' rec!r$e$ in 'e %cc!#n'in(.!!8* Gener%l e%l' !" MD !" %n en'erprie c%nn!' .erec!r$e$, 0ile %l%r- p%i$ '! % 0!r8er c%n .e rec!re$ inM!ne- 2%l#e*
G!in( C!ncep'7 I' i %#&e$ '%' 'e .#ine 0ill e:i' "!r %l!n( 'i&e %n$ 'r%n%c'i!n %re rec!r$e$ "r!& 'e p!in' !"G!in( C!ncep', #n'il i' % en'ere$ in'! li;#i$%'i!n*
D#%l C!ncep'7 A "%r % c!ncerne$ '! Acc!#n'%n' e%c
'r%n%c'i!n % '0! %pec', '%' i !&e'in( %''%ine$ %n$!&e'in( i (i2en #p %' %n- (i2en p!in' !" 'i&e !" %
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'r%n%c'i!n* Acc!r$in( '! 'i c!ncep' 'e C%pi'%l !" 'e.#ine i e;#%l '! 'e Ae' !" 'e .#ine* Mr*< '%r'.#ine 0i' c% R* 3====, B#il$in( R*>====* Tee:prei!n c%n .e !0n in 'e "!r& !" e;#%'i!n % "!ll!07C%pi'%l 4Mr*< ?====5 @ Ae'4B#il$in( >====C% 3====5
* +%' %re Speci%l J!#rn%l %n$ Gener%l J!#rn%l/
Te .!!8 !r !#rn%l c%n .e cl%i"ie$ in'! '0! '-pe* One iGener%l !#rn%l %n$ Speci%l J!#rn%l* Gener%l J!#rn%l i %i&ple .!!8 !" cr!n!l!(ic%l rec!r$ in !r$er '! "%cili'%'e 'erec!r$in( 'r%n%c'i!n 0ic !cc#r ! in"re;#en'l-* Openin(en'rie, %$#'in(, cl!in( %n$ p!' cl!in( en'rie, c!rrec'in(en'rie %n$ c!&p!#n$ en'rie 0ic c%nn!' .e !0n in 'eSpeci%l J!#rn%l*
Te 'r%n%c'i!n !cc#r 2er- "re;#en'l-, %re cr!n!l!(ic%ll-rec!r$e$ in 'e Speci%l J!#rn%l* S%le .!!8, P#rc%e .!!8,Re'#rn .!!8, Bill .!!8 %n$ c% .!!8 %re 'e .!!8c!&in( #n$er c%'e(!r- !" Speci%l J!#rn%l*
Le$(er7 Le$(er i % .!!8 in 0ic 2%ri!# %cc!#n' in n%'#re!" Re%l, Per!n%l %n$ N!&in%l %cc!#n' !pene$* Te "in%l"in%nci%l p!i'i!n !" 'e .#ine e&er(e "r!& 'e %cc!#n'c!n'%ine$ in Le$(er* Te le$(er i %l! c%lle$ 'e Princip%l
.!!8* Le$(er i %l! 're%'e$ % .!!8 !" Sec!n$%r- en'rie %n$8in( !" %cc!#n'*
Te Acc!#n'in( C-cle7 Te Acc!#n'in( c-cle i % c!&ple'ee;#ence !" %cc!#n'in( pr!ce$#re 0ic %re repe%'e$ in 'e%&e !r$er $#rin( e%c %cc!#n'in( peri!$* Te c-cle incl#$erecording transaction in Subsidiary books, classiying t!esubsidiary books and data to be "osted to Ledgers, closing t!ebooks and "re"aration o inal accounts#
Tip7A* Te J!#rn%l i 'e .!!8 !" "ir' en'r- 4!ri(in%l en'r-5'e Le$(er i 'e .!!8 !" ec!n$ en'r-*
B* Te J!#rn%l i 'e .!!8 !" cr!n!l!(ic%l rec!r$, 'e Le$(eri 'e .!!8 !" %n%l-'ic%l rec!r$*
C* Te J!#rn%l % % .!!8 !" !#rce en'r-, %(re%'er 0ei(' % le(%l e2i$ence '%n 'ele$(er*
CI* Te Le$(er c!n'%ine$ %cc!#n' 0ile in 'eJ!#rn%l c!n'%ine$ 'r%n%c'i!n*
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re%o&al o business to a "articular con&enient "lace,indis"ensable re"air o a non recurring nature, ad&ertise%ente'"enses %ade under a contract or a ter% o years,una&oidable !ea&y a%ount s"ent on ad&ertise%ent to launc! ane( "roduct#
B%n8 Rec!ncili%'i!n '%'e&en'7 I' i c#'!&%r- "!r % .%n8, '!en$ '! i' c#'!&er % '%'e&en' !0in( !0 i %cc!#n''%n$* +en &!ne- i $ep!i'e$ in'! .%n8, 'e c#'!&er,en'er i' !n 'e $e.i' i$e !" 'e .%n8 %cc!#n' &%in'%ine$ .-i&el"* A' 'e %&e 'i&e 'e B%n8 %l! en'er i' !n 'e cre$i'i$e !" 'e c#'!&er9 %cc!#n', &%in'%ine$ .- 'e B%n8* T#%cc!r$in(l-, 'e c#'!&er $e.i' 'e B%n8 %cc!#n', %n$ .%n8cre$i' 'e c#'!&er9 %cc!#n'* Hence $e.i' .%l%nce !" 'ec#'!&er %n$ cre$i' .%l%nce !" .%n8 !#l$ .e e;#%l*
Un"!r'#n%'el-, 'r%n%c'i!n 0i' ce;#e %n$ !'er ne(!'i%.lein'r#&en', &%- c%#e '! $i""eren'i%'e 'e .%l%nce !"c#'!&er9 %cc!#n' 0i' .%n8 p%.!!8* T!e cause odierences is to be rectiied "re"aring a )ank ReconciliationState%ent#
A# $!e*ues de"osited but not collected, )# $!e*ue issued butnot cleared, $# )ank c!arges le&ied and Direct "ay%ent in t!ebank are t!e "ri%e causes to s!o( dierences in $as! book(it! )ank +ass )ook#
S!r' One +!r$7
E'"enses %re 'e !#'"l!0 !" %e' !r incre%e in li%.ili'ienece%r- '! pr!$#ce %n$ $i'ri.#'e (!!$ %n$ er2ice*
Lossi %n e:pen$i'#re 0ic $!e n!' .rin( %n- .ene"i' '! 'ec!ncern*
E'"enditure: P#rc%e !" %n %e' i c%lle$ E:pen$i'#re*Ac;#ii'i!n !" %n %e' i n!' %n e:pene .ec%#e i' $!e $!en!' re#l' in 'e !#'"l!0 !" %e'*
)alance S!eet:B%l%nce See' i % '%'e&en' prep%re$ 0i' %n%i& '! 8n!0 'e e:%c' "in%nci%l p!i'i!n !" 'e c!ncern !" 'el%' $%- !" "in%nci%l -e%r*
E*uity:A cl%i& 0ic c%n .e en"!rce$ %(%in' 'e %e' !" 'e"ir& in 'e c!#r'
c%lle$ E;#i'-* Since 'e cl%i& %(%in' 'e %e' !" 'e "ir& i
el$ .- .!' !0ner %n$ cre$i'!r 'ere"!re .!' %re c%lle$E;#i'ie*
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Liabilities:Cl%i& !" cre$i'!r %(%in' %e' !" 'e "ir& &%-.e $e"ine$ % Li%.ili'ie* Te li%.ili'ie 0ic c%n .e $i.#re$0i'in !ne -e%r %n$ 0ic %re p%i$ !#' !" c#rren' %e' i
c%lle$ $urrent Liabilities#
Long Ter% Liabilities-i'ed Liabilities: All li%.ili'ie 0icc%nn!' .e $#e "!r p%-&en' in !ne -e%r %n$ 0ic $! n!'re;#ire c#rren' %e' "!r 'eir p%-&en' %re cl%i"ie$ % l!n('er& li%.ili'ie !r "i:e$ li%.ili'ie*
Assets:Ae' &%- .e $e"ine$ % %n- !0ne$ p-ic%l !.ec'4'%n(i.le5 !r ri('4in'%n(i.le5 %2in( % &!ne- 2%l#e Te 'er&$urrent Assets i #e$ '! $ic%r(e c% %n$ !'er %e',
0ic %re re%!n%.l- e:pec'e$ '! .e re%li1e$ in c% !rc!n#&e$ $#rin( 'e n!r&%l !per%'in( peri!$ !" 'e .#ine*
Te o"erating cycle!" % .#ine i n!r&%ll- )3 &!n'9
$urrent Assets%re n!r&%ll- %rr%n(e$ in 'e .%l%nce ee' in %li;#i$i'- !r$er % "!ll!07 ) C% 3 B%n8 B%l%nce Te&p!r%r-In2e'&en' 6 Bill Recei2%.le > S#n$r- De.'!r S'!c8 InTr%$e ? P%-&en' in A$2%nce
-i'ed Assets:An- Ae' #e$ "!r 'e er2ice i' -iel$ in 'epr!$#c'i!n !" !'er (!!$ %n$ er2ice &%- .e $e"ine$ %Fi:e$ Ae'* Fi:e$ Ae' %re n!' &e%n' "!r re%le* Fi:e$Ae' elp in 'e pr!$#c'i!n !" (!!$ %n$ er2ice*
Te p#rp!e prep%rin( Trading Account i '! c%lc#l%'e 'eGr! Pr!"i'L! !" 'e B#ine* T# Gr! Pr!"i' @ S%le C!' !" G!!$ S!l$ !r Gr! pr!"i' C!' !" G!!$ !l$ @ S%le
Gr! Pr!"i' Openin( S'!c8 P#rc%e Direc' E:pene Cl!in( S'!c8 @ S%le*
$losing Entries: A "%r % c!ncerne$ '! %n Acc!#n'%n', %ll%cc!#n' rel%'in( '! e:pene %n$ (%in ' .e cl!e$ %' 'een$ !" 'e -e%r* In !r$er '! cl!e #c %cc!#n' 'e- %re'r%n"erre$ ei'er '! Tr%$in( Acc!#n' !r Pr!"i' %n$ L!Acc!#n'
J!#rn%l en'rie re;#ire$ '! 'r%n"er 'e %cc!#n' '! Tr%$in(%n$ Pr!"i' L! Acc!#n' i c%lle$ 9Cl!in( En'rie9
+rinci"le o $losing Entries:Te principle !" "r%&in( % cl!in(en'r- i 2er- e%-* I" %n %cc!#n' %2in( % $e.i' .%l%nce, '!
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cl!e, 'en i' i cre$i'e$, %n$ ei'er Tr%$in( %n$ Pr!"i'L!Acc!#n'in( i $e.i'e$*
$losing Entries in res"ect o Trading Account:) Openin( S'!c83 S%le Re'#rn
P#rc%e Re'#rn 6* P#rc%e Acc!#n' >* Direc' E:peneinc#rre$ * S%le
? Cl!in( S'!c8
Cl!in( en'rie %2e 'e e""ec' !" cl!in( %ll re&enue accountsin 'e Le$(er incl#$in( 'e Tr%$in( %n$ Pr!"i'L! Acc!#n'%n$ 'e #l'i&%'e re#l' 4Ne' pr!"i' !r Ne' L!5 i 'r%n"erre$'! C%pi'%l Acc!#n'*
Te Fin%l Acc!#n' c!ni' !" 'e Tr%$in( %n$ Pr!"i'L!Acc!#n' %n$ 'e B%l%nce See'* +ile Pr!"i' %n$ L! %cc!#n're2e%l 'e ne' pr!"i'l! !" 'e in'i'#'i!n, .#' 'e B%l%nceee' !0 'e "in%nci%l p!i'i!n !" 'e B#ine % !n %p%r'ic#l%r $%'e* Te "in%nci%l p!i'i!n i in$ic%'e$ .- Ae'%n$ Li%.ili'ie* Tere"!re, B%l%nce See' i $e"ine$, % %'%'e&en' !" Ae' %n$ Li%.ili'ie !" % .#ine, prep%re$0i' % 2ie0 '! %cer'%in 'e "in%nci%l p!i'i!n !" 'e .#ine% !n % p%r'ic#l%r $%'e*
E:ce !" Ae' !" !2er Li%.ili'ie repreen' C%pi'%l !" 'eB#ine*
Te debit balance!" per!n%l !r re%l %cc!#n' repreen' %nAe' 0ile 'e credit balance denoteLi%.ili'ie*
Te "in%l cl!in( en'rie %re %""ec'e$ '! C%pi'%l Acc!#n'*
A"'er cl!#re !" %ll N!&in%l Acc!#n', 'e .%l%nce !" %ll 'eReal and +ersonalAcc!#n' %re 0ri''en !n % ee' !" p%per0i' % precri.e$ "!r&%', i 'er&e$ % )alance S!eet
Ob.ects o )alance S!eet:) Te e:i.i' 'e n%'#re %n$ 2%l#e!" Ae' !0ne$ .- 'e B#ine* 3 I' re2e%l 'e C%pi'%l!0in( .- 'e .#ine '! 'e !0ner %n$ !'er Li%.ili'ie !0in('! !#'i$er* I' (i2e in"!r&%'i!n re(%r$in( 'e S!l2enc- !"'e B#ine* 6 I' elp '! %e 'e B#ine pr!(re*
Ae' %n$ Li%.ili'ie %re %rr%n(e$ in 'e !r$er !" Li;#i$i'-*
Rectiication and Errors
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/A cre$i' %le !" R* )== '! R%&e % .een en'ere$ in 'e%le .!!8 % % %le !" R* )===@ p% rec'i"-in( en'rie
Ac'#%l %le i R* )==@ .#' rec!r$e$ %
R%&e Ac Dr )===
S%le Ac )===
Since n!' e""ec'e$ 'e Tri%l B%l%nce, e:ce %&!#n' (i2en '!p%r'ic#l%r %cc!#n' &%- .e rec'i"ie$ (i2in( !pp!i'e en'rie %
S%le Ac Dr ==
R%&e ==
Te %le .!!8 !2er c%' .- R* >=@
Since %le %cc!#n' % .een cre$i'e$ &!re R*>=@ +e c%nre$#ce i' .- (i2in( !pp!i'e en'r- '! S%le Ac, '#
S%le Ac Dr >=
T! S#pene Ac >=
A %le !" R* >= '! S#re 0% p!'e$ '! i %cc!#n' % %%le !" R*>
S#re i % $e.'!r '! 'e "ir&, ! 0e %lre%$- $e.i'e$ i& !nl-R* >
Te %c'#%l %&!#n' '! .e $e.i'e$ '! R* >= 'ere"!re R* 6> i-e' '! .e $e.i'e$ %
S#re Ac Dr 6>
T! S#pene Ac 6>
/A %le !" R* >= '! K%&%le 0% en'ere$ in 'e S%le B!!8% R >==, "r!& 0ere, e 0% $e.i'e$ .- R* >===
) Ac'#%l S%le i >=, 0r!n(l- en'ere$ in S%le B!!8 i >=='ere"!re R* 012 %ust be debited to Sales Ac#
3 Ac'#%l cre$i' S%le i >=, 0r!n(l- $e.i'e$ in K%&%le Ac iR* >===, 'ere"!re, Rs# 0312 %ust be credited to 4a%ales! A
c#Tere"!re, 0e &%- en'er $#e $e.i' %n$ cre$i' %cc!r$in(l-,
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%n$ 'e #pene %cc!#n' &%- .e 're%'e$ % .%l%ncin( "i(#re,'#7
S%le Ac Dr 6>=
S#pene4.%l%ncin(5Ac Dr 6>==
T! K%&%le Ac 6>=
A %le !" R* )=== '! S#re, 0% en'ere$ in P#rc%e .!!8"r!& 0ere, 'e %cc!#n' !" S#re 0% $e.i'e$ .- R*)==
) Ac'#%l %le i R* )===, 0r!n(l- en'ere$ in P#rc%e .!!8,! 0r!n(l- en'ere$ in P#rc%e %cc!#n' %l!, '# p#rc%e%cc!#n' i 0r!n(l- $e.i'e$ '! R* )===* Tere"!re, P#rc%e
%cc!#n' ' .e cre$i'e$ '!
R* )===, %' 'e %&e 'i&e S%le %cc!#n' ' .e cre$i'e$, R*)=== %l!*
3 In'e%$ !" R* )=== S#re i $e.i'e$ !nl- R* )== ! R*== ' %l! .e $e.i'e$ '! #re %cc!#n', %n$ .%l%ncin("i(#re &%- .e 're%'e$ %
S#pene %cc!#n', '#7
S#re Ac Dr ==
S#pene 4B%l%ncin(5 Ac Dr ))==
T! P#rc%e Ac )===
T! S%le Ac )===
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)) Te E:pene p%i$ in %$2%nce !r #ne:pire$ e:pene %re7
5+re"aid E'"anses6
)3 Inc!&e e%rne$ .#' n!' recei2e$ !r !#''%n$in( inc!&e !r
inc!&e recei2%.le 7
5Accrued 7nco%e6
) Une%rne$ Inc!&e !r inc!&e recei2e$ .#' n!' e%rne$ !rprep%i$ i7
57nco%e recei&ed in Ad&ance6
)6 Te per&%nen' %n$ gradual di%inution in 'e 2%l#e !"
%e' $#e '! 0e%r %n$ 'e%r i
5De"reciation6
)> I" %$#'e$ p#rc%e %ppe%r in 'e Tri%l B%l%nce, cl!in('!c8 0ill n!' .e '%8en in'!7
4Tr%$in( Acc!#n'5
) Cl!in( S'!c8 i 'r%n"erre$ '! 7
4Tr%$in( Acc!#n'5
)? Acc#r%c- !" B!!8 !" Acc!#n' i 'e'e$ .-7
4Tri%l B%l%nce5
) On re'#rnin( 'e (!!$ '! 'e eller 'e .#-er en$7
4De.i' N!'e5
) +en recei2in( 'e re'#rne$ (!!$ 'e eller en$ '!.#-er %7
4Cre$i' N!'e5
3= Te Fin%nci%l p!i'i!n !" 'e .#ine i $e'er&ine$ .-$r%"'in(7
4B%l%nce See'5
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3) Gr! Pr!"i' i 'r%n"erre$ '!7
4C%pi'%l Acc!#n'5
33 Dr%0in( %re 'r%n"erre$ '!7
4C%pi'%l Acc!#n'5
3 Pr!"i' !n %le !" Fi:e$ Ae' i pr!"i'*
4C%pi'%l5
36 I" Re2en#e E:pen$i'#re i 're%'e$ % C%pi'%l E:pen$i'#re'e pr!"i' 0ill 7
4Incre%e5
3> Te #n0ri''en p!r'i!n !" 'e $e"erre$ re2en#e e:pen$i'#rei !0n !n 'e i$e !" B%l%nce See'
4Ae'5
3 I" Ae' c!'in( R*>====, 40ri''en $!0n 2%l#e iR*====5 0% !l$ "!r ==== 'e c%pi'%l pr!"i' 0!#l$ .e7
4R*)====5
3? Te repl%ce&en' c!' !" % 0!rn!#' p%r' !" M%ciner- ire2en#e e:pen$i'#re .ec%#e i' i' inc!&e e%rnin(c%p%ci'-*
4!nl- &%in'%in 5
3 An %&!#n' 're%'e$ % C%pi'%l E:pen$i'#re, i" i' inc!&ee%rnin( c%p%ci'-*4Incre%e5
3 S'%'e 0e'er 'e "!ll!0in( '%'e&en' %re Tr#eF%le
3 Pr!2ii!n "!r $ic!#n' !n $e.'!r % % $e.i' .%l%nce7
4F%le Cre$i' B%l%nce5
= In'ere' !n $r%0in( i %$$e$ '! $r%0in( %cc!#n'*
4Tr#e5
) C%rri%(e !#'0%r$ i cre$i'e$ '! Pr!"i'L! %cc!#n'*
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4F%le $e.i'e$ '!5
3 Inc!&e T%: %cc!#n' i $e.i'e$ '! Pr!"i'L! %cc!#n'*
4F%leDr%0in( %cc!#n'5
Reer2e "!r $ic!#n' !n cre$i'!r !0 %l0%- cre$i'.%l%nce*
4F%leDe.i' .%l%nce5
6 De.'e;#i'- r%'i! &e%#re !" 'e .#ine
4L!n( 'er& "in%nci%l .#ine5
> Li;#i$ %e' @ 4C#rren' Ae'4'!c8prep%i$ e:pene5
Li;#i$ r%'i! i %l! 8n!0n % @ Aci$ Te' %n$ #ic8 Ae'r%'i!*
? Te r%'i! %re pri&%ril- &e%#re !" re'#rn*4Pr!"i'%.ili'-5
r%'i! %re % &e%#re !" 'e pee$ 0i' 0ic 2%ri!#%cc!#n' %re c!n2er'e$ in'! C% !r %le*
4Ac'i2i'- R%'i!5
Te !" % .#ine "ir& i &e%#re$ .- i' %.ili'- '!%'i"- i' !r' 'er& !.li(%'i!n % 'e- .ec!&e $#e
4Li;#i$i'-5
6= I$e%l pr!prie'%r- r%'i! !#l$ .e @ >=Q
6) Hi(er 'e r%'i!, l!0er i 'e pr!"i'%.ili'-, i %pplic%.le '! @
Oper%'in( R%'i!
63 Te S%'i"%c'!r- r%'i! .e'0een in'ern%l %n$ e:'ern%l e;#i'-i @ ) 7 )
6 A&!#n' "r!& c#rren' %e' i re%li1e$ 0i'in @ One -e%r
66 %n%l-i in2!l2e 'e c!&p%ri!n !" $i""eren' "ir&9"in%nci%l r%'i! %' 'e
%&e p!in' !" 'i&e*
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4Cr! Sec'i!n%l5
6> R%'i! pr!2i$e % &e%#re !" c!&p%n-9 per"!r&%nce%n$ c!n$i'i!n
4#%li'%'i2e5
6 Te pri&%r- c!ncern !" % cre$i'!r 0en %ein( 'e'ren(' !" % "ir& i 'e
"ir&9
4Pr!"i'%.ili'- r%'i!5
6? Ad.usted +urc!ases: Gener%ll- $losing Stock i %$#'e$
%"'er 'e prep%r%'i!n !" Tri%l B%l%nce, %n$ 'esa%ei cre$i'e$'! Tr%$in( Acc!#n'* S!&e'i&e, 'e %$#'&en' i &%$e pri!r'! prep%r%'i!n !" 'e Tri%l B%l%nce* In #c % c%e, 'e cl!in('!c8 %cc!#n' %$#'e$ %(%in' P#rc%e Acc!#n' ie ne'p#rc%e i !0n in 'e Tr%$in( Acc!#n'* T# Cl!in( S'!c8i !0n in 'e Tri%l B%l%nce, 0ile P#rc%e Acc!#n' in 'eTri%l B%l%nce 0ill .e '-le$ % A$#'e$ P#rc%e
+ro&ision and Reser&es:Tee '0! 'er& %re (ener%ll- .ein(#e$ !ne "!r !'er, .#' 'i i n!' 'r#e* A Pr!2ii!n i %n
%&!#n' e' %p%r' "!r &ee'in( p!i.le l!e %n$ i' i c%r(e$%(%in' pr!"i', '# Pr!2ii!n !#l$ .e $e.i'e$ '! PL%cc!#n'* Te t(o actors $e'er&inin( 'e pr!2ii!n %re7 'e%&!#n' i e' %p%r' '! %eet a "ossible loss %n$ 'e %c'#%l%&!#n' !" loss is uncertain at t!e ti%e o "ro&ision is %ade#
Reser&e !n 'e !'er %n$, i %n a""ro"riation o "roit, ie!nce 'e pr!"i' %cer'%ine$ "r!& 'e PL %cc!#n' !&e%&!#n' i 8ep' % reer2e* S!, i" 'ere i n! pr!"i', 'ere i n!reer2e c%n .e &%$e* Te &!re reer2e %re %cc#l%'e$, 'e'r!n(er 'e "in%nci%l p!i'i!n !" 'e .#ine i* I" 'e reer2ei #'ili1e$ "!r &ee'in( 'es"ecial "ur"oses,#c % $i2i$en$e;#%li1%'i!n reer2e %n$ reer2e "!r repl%ce&en' !" %e' %reS"ecial Reser&es0ile i" i' i not %eant or s"ecial "ur"oses%re c%lle$ % 8eneral Reser&es#
Re&enue E'"enditure beco%es $a"ital E'"enditure:
Tere %re cer'%in e:pene ##%ll- 're%'e$ % Re2en#e
E:pen$i'#re .#' .ec!&e C%pi'%l E:pen$i'#re* Te "!ll!0in( %re!&e !" 'e e:%&ple7
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Wages, 'e- %re re2en#e i'e&, .#' 0%(e p%i$ '! 'e0!r8&en e&pl!-e$ '! erec' !r c!n'r#c' % Fi:e$ Ae', %reC%pi'%l E:pen$i'#re, %n$ ' .e 're%'e$ % p%r' !" 'e C!' !"'e Ae'* T!#( 'e 0%(e p%i$ '! c!&p%n-9 !0n0!r8&en, rel%'in( '! %.!2e c%e, !#l$ .e 're%'e$ % C%pi'%l
E:pen$i'#re*
Re"airs, %re %l! (ener%ll-, !" re2en#e n%'#re, .#' i" 0ep#rc%e % ec!n$ %n$ &%ciner- %n$ % #& i pen' '!0%r$rep%ir '! "ut it on running condition, ' .e 're%'e$ %C%pi'%l E:pen$i'#re*
Legal E'"enses, inc#rre$ in c!nnec'i!n 0i' 'e "urc!ase oi'ed assets,' .e 're%'e$ % C%pi'%l E:pen$i'#re*
$arriage and -reig!t,in c!nnec'i!n 0i' 'e"urc!ase o i'edassets%re C%pi'%l E:pen$i'#re*
Ad&ertising,pen' "!r % #(e %&!#n', 0i' % 2ie0 '! in'r!$#ce% Ne0 Pr!$#c', %re C%pi'%l E:pen$i'#re, % 'e beneit o suc!ad&ertising, (ill be a&ailable in uture years also#
De&elo"%ental E'"enditure: S!&e c!ncern, li8e C!llierie,Mine, Te%, R#..er %n$ !'er pl%n'%'i!n re*uire a &ery long"eriod o de&elo"%ent, .e"!re 'e- c%n .e(in '! e%rn %n-
inc!&e* S! 'ee e:pen$i'#re, i 're%'e$ % C%pi'%lE:pen$i'#re*
+reli%inary E'"enses, pri!r '! inc!rp!r%'i!n !" % C!&p%n-, %rec%lle$ Preli&in%r- !r F!r&%'i!n E:pene, %n$ 'ee e:pene%l'!#( re2en#e in n%'#re, %re 're%'e$ % C%pi'%lE:pen$i'#re, .ec%#e 'e beneit o suc! e'"enditure, (ill bea&ailable in uture years also#
Accounting Ratio and Ratio Analysis:
Acc!#n'in( R%'i!7 9T!e ter% accounting ratios is used todescribe signiicant relations!i"s bet(een igures s!o(n on a)alance S!eet or in a +roitLoss Account; A r%'i! i !nen#&.er e:pree$ in 'er& !" %n!'er*
R%'i! c%n .e e:pree$ % in7
A +ercentage:In 'i 0%-, 'e rel%'i!n .e'0een '0! "i(#re ie:pree$ in )=='* E(7 S%le i R*==== %n$ Gr! Pr!"i' iR*3====* GP r%'i! i 4====3====5Q
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) +ro"ortion: Here, 'e rel%'i!n .e'0een '0! %cc!#n'in("i(#re i e:pree$ in 'er& !" pr!p!r'i!n* I" 'e c#rren'%e' !" % .#ine %re R* 6=====, %n$ c#rren' li%.ili'ie %reR* 3=====, 'e pr!p!r'i!n !" c#rren' %e' %n$ li%.ili'ie i6=====73===== '%' i
37) $ -raction : I' i e:pree$ % % "r%c'i!n .- 'e i&ple$i2ii!n !" !ne n#&.er .- 'e !'er* S%le i R* 6=====, %n$Ne' pr!"i' i
R* 6====, ne' pr!"i' "r%c'i!n i ))='!" S%le*
DRate or so %any ti%es :I' i c%lc#l%'e$ !0 &%n- 'i&e %"i(#re i, in c!&p%ri!n '! %n!'er "i(#re* I" c!' !" (!!$ !l$i R* 3=====, %n$ %2er%(e '!c8 i R* 6====, 'en 'e S'!c8
T#rn!2er R%'i! 0ill .e 7 43=====6====5 @ > 'i&e*
Te %ll %.!2e '-pe r%'i! %re c%lc#l%'e$ "!r 8n!0in( '0!'-pe !" c!&p%ri!n, ) Preen' r%'i! 0i' "#'#rep%' r%'i!"!r 'e %&e "ir&* 3 R%'i! !" !ne "ir& 0i' '%' !" i&il%r !ne!'er*
Ob.ecti&es o Accounting Ratio and Ratio Analysis:
Fin%nci%l r%'i! %n%l-i i #e$ '! $e2el!p &e%nin("#l
rel%'i!nip, .e'0een in$i2i$#%l i'e& in 'e )alance S!eetand +roitLoss Account# A pr%c'ic%l Fin%nci%l %n%l-i ielp"#l '! 'e &%n%(e&en' !" 'e B#ine, in !r$er '!i$en'i"-in(, 'e ri8 "%c'!r %n$ in'r!$#ce re&e$i%l c!#re !"%c'i!n %(%in' 'e ri8*
M%in O.ec'i2e7
) Hel"s in analysis o -inancial State%ents: I' i % #e"#l$e2ice "!r %n%l-1in( "in%nci%l '%'e&en', elpin( B%n8er,Cre$i'!r,In2e'!r, S%re!l$er e'c, (e''in( #""icien'in"!r&%'i!n %.!#' 'e "in%nci%l !#n$ne !" 'e .#ine*
3 Hel"s in i'ation o ideal standards:R%'i! %n%l-i elp 'e&%n%(e&en', in "i:in( i$e%l '%n$%r$, "!r 2%ri!# %cc!#n'in(i'e&* B- c!&p%rin( %c'#%l r%'i!, 0i' 2%ri!# i'e&, 'ee""icienc- !" 'e .#ine c%n .e &e%#re$*
-acilitates location o (eak s"ots o )usiness:C#rren' -e%rr%'i! %re c!&p%re$ 0i' '!e !" pre2i!# -e%r !r -e%r '!l!c%'e 'e 0e%8 p!'* Re&e$i%l &e%#re c%n '# .e '%8en
'! c!rrec' 'e&*
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6 Re%o&es co%"le'ity o inancial inor%ation: Te $%'%pr!2i$e$ in 'e "in%nci%l '%'e&en' i n!' % e%- % i' i'!#(' '! .e .ec%#e !" c!n"#in( c!&ple:i'- in n%'#re, %n$i n!' #e"#l ei'er '! 'e &%n%(e&en', !r '! 'e !#'i$er,#nle 'e $%'% (i2en '! .e i&pli"ie$ %n$ #&&%ri1e$* Te
#&&%ri1%'i!n %n$ i&pli"ic%'i!n i en%.le .- r%'i! %n%l-i*
Ty"es o Ratios:) Li;#i$i'- R%'i! 3 S!l2enc- R%'i! Ac'i2i'-R%'i!
6 Pr!"i'%.ili'- R%'i!
A Li*uidity Ratiosre"er '! 'e %.ili'- !" 'e "ir& '! &ee' i'c#rren' !.li(%'i!n* Ti i %l! c%lle$ S!r' Ter& S!l2enc-R%'i!* Tee r%'i! &e%#re 'e !r' 'er& !l2enc- !" 'e
.#ine*
C#rren' R%'i! !r +!r8in( C%pi'%l R%'i! %n$ #ic8 R%'i! !r Aci$Te' R%'i! !r Li;#i$ R%'i! %re '0! r%'i! '! .e #e$ '! 8n!0li;#i$i'- p!i'i!n !" 'e "ir&*
A C#rren' R%'i!, .- c!&p%rin( 'e c#rren' %e' %n$ c#rren'li%.ili'ie, !r' 'er& !l2enc- !" 'e "ir& c%n .e %cer'%ine$*
T%' i, $urrent Ratio
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A 7nterest $o&erage Ratio, !0 'e rel%'i!n .e'0eenin'ere' %n$ Pr!"i', .e"!re in'ere' %n$ '%:* Te r%'i! ic%lc#l%'e$ %7
7nterest $o&erage Ratio====>====@6======
In'ere' C!2er%(e R%'i! @ 6=====>==== @ Ti&e
B Debt E*uity Ratio,i 'e r%'i! .e'0een .!rr!0e$ "#n$ %n$!0ner "#n$, '%' i De.' %n$ E;#i'-* De.' re"er '! l!n( 'er&Li%.ili'ie* 4L!n( Ter& L!%n %n$ De.en'#re* E;#i'- incl#$e,%re c%pi'%l 4.!' !r$in%r- %n$ pre"erence5 Gener%l Reer2e%n$ !'er reer2e*
De.' E;#i'- R%'i! @ De.'E;#i'-
$ Total Assets to Debt Ratio,'rie '! &e%#re 'e pr!p!r'i!n !"'!'%l Ae' "#n$e$ .- l!n( 'er& $e.'*
T!'%l Ae' '! De.' R%'i! @ De.'T!'%l Ae'
Ti r%'i! e:pree 'e rel%'i!nip .e'0een l!n( 'er& l!%n%n$ T!'%l Ae' !" 'e .#ine*
D +ro"rietary Ratio, !0 'e rel%'i!nip, .e'0eenpr!prie'!r "#n$ %n$ '!'%l %e'*
Pr!prie'%r- R%'i! @ S%re!l$er9 F#n$T!'%l Ae'
Te %re!l$er9 "#n$ i R* >=====, T!'%l %e' %reR*=====* Fin$ !#' pr!prie'%r- r%'i!7
>===============
T%: r%'e >=Q
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)=Q Pre"erence S%re C%pi'%l 4 R*)= e%c 5 >=====
E;#i'- S%re C%pi'%l 4R* )= e%c5 >=====
S!l#'i!n7
EBIT R* >=====
Le T%: 3>====
PAT 3>====
Le Pre" $i2i$en$ >====
3=====4Pr!"i' %2%il%.le "!r e;#i'- %re!l$er5
EPS @ PATPre"erence Di2i$en$ @ 3=====>====@ R*6@
N!* !" E;#i'- %re
$Acti&ity Ratios or Turno&er Ratios, in$ic%'e 'e e""icienc-0i' 0ic 'e %""%ir !" 'e .#ine* Te %""%ir i rel%'e$ '!S%le* Hence 'ee r%'i! %re c%lle$ % T#rn!2er R%'i! !rE""icienc- R%'i!* T# 'e S%le !r C!' !" (!!$ !l$, ic!&p%re$ 0i' 2%ri!# %e'*
Te &%!r Ac'i2i'- R%'i! %re, ) In2en'!r- R%'i! !r T#rn!2erR%'i!
3De.'!r T#rn!2er R%'i! !r Recei2%.le T#rn!2er R%'i!, De.'C!llec'i!n Peri!$, 6 Cre$i'!r9 T#rn!2er R%'i! !r P%-%.leT#rn!2er R%'i! %n$
> +!r8in( C%pi'%l T#rn!2er R%'i!
) In2en'!r- T#rn!2er R%'i! !r S'!c8 T#rn!2er R%'i!, !00e'er in2e'&en' in '!c8 i e""icien'l- #e$ !r n!'*
Stock Turno&er Ratio@ $ost o goods soldA&erage Stock
C!' !" (!!$ !l$ @ 4Openin( S'!c8 P#rc%e %n$E:pene5Cl!in( S'!c8
Or $ost o goods sold@ Sales=8ross +roit
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3 Debtors Turno&er Ratio or Recei&able Turno&er Ratio, irel%'e$ '! S%le '! O#''%n$in( %&!#n' $#e "r!& De.'!r*De.'!r incl#$e, Bill recei2%.le %l!* S%le &e%n Cre$i'S%le !nl-* Since 'e r%'i! &e%#re 'e pr!&p'ne inc!llec'in( $e.', % i( r%'i! re"lec' e""icien' c!llec'i!n !"
De.'*
Debtors Turno&er Ratio < Cre$i' S%leA2er%(e De.'!r
De.' C!llec'i!n Peri!$, r%'i! in$ic%'e 'e 2!l#&e !" $e.'c!llec'e$ in 'ip#l%'e$ peri!$* Te l!n(er peri!$ !" c!llec'i!n i'e i(er ri8 !" .l!c8in( "#n$*
Debts collection "eriod
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Tere"!re, C!' !" G!!$ S!l$ @ Openin(S'!c8P#rc%eDirec' E:peneCl!in( S'!c8
3 Ne' Pr!"i' R%'i!, &e%#re 'e rel%'i!nip .e'0een Ne'Pr!"i' !n Ne' S%le* I' elp # '! $e'er&ine 'e !2er%ll
pr!"i'%.ili'- $#e '! 2%ri!# "%c'!r, #c % !per%'i!n%le""icienc-, 'r%$in( !" e;#i'- e'c* Since NP R%'i!, !0 'e!per%'i!n%l e""icienc- !" 'e .#ine, i(er 'e r%'i!, .e''eri' i*
Net +roit Ratio
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E Earning "er S!are ratio,!0 'e rel%'i!nip .e'0een Ne'Pr!"i' 4A"'er In'ere', T%: %n$ Pre"erence Di2i$en$5 %n$N#&.er !" E;#i'- S%re* Ti r%'i! i #e$ '! &e%#re 'epr!"i'%.ili'- !" 'e c!&p%n- !n per E;#i'- S%re*
E%rnin( per S%re @ NP %"'er In'ere', T%:Di2i$en$
N#&.er !" E;#i'- S%re
D Di2i$en$ per S%re7 Te pr!"i' %"'er p%-&en' !" T%: %n$Pre"erence $i2i$en$ %re %2%il%.le "!r e;#i'- %re!l$er*
Di2i$en$ per S%re @ Di2i$en$ p%i$ '! E;#i'- %re!l$erN#&.er !" E;#i'- %re
E Price E%rnin( R%'i!, &e%#re 'e rel%'i!nip .e'0een
&%r8e' price !" 'e S%re %n$ e%rnin( per %re*
Price E%rnin( R%'i! @ M%r8e' Price !" 'e S%re
E%rnin( per S%re
One 0!r$ ;#e'i!n "r!& Acc!#n'in( R%'i!7
M%r(in%l C!'in(
C!n'ri.#'i!n @ S%le PriceM%r(in%l C!'
C!n'ri.#'i!n @ Fi:e$ C!'Pr!"i'
Pr!"i' @ C!n'ri.#'i!nFi:e$ C!'
Bre%8 E2en P!in'4in #ni'5 @ Fi:e$ C!'SP per #ni'MC perUni'
Bre%8 E2en S%le @ Fi:e$ C!'PVR
S%leV%ri%.le C!' @ Fi:e$ C!' !rPr!"i'
Bre%8 E2en S%le @ FC
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Accounting Ratios
Te pr!&inen' "%c'!r $eri2e$ "r!& R%'i! An%l-i i
Eiciency o -ir%
6 B%l%nce See' R%'i! %re %l! 8n!0n %-inancial Ratios
> Gi2e %n e:%&ple !" B%l%nce See' R%'i!7
$urrent Ratios
Pr!"i' %n$ L! R%'i! %re %l! c%lle$
O"erating Ratio
? Gi2e %n e:%&ple !" Pr!"i' %n$ L! r%'i!
8ross +roit Ratio
Te i'e& '%8en "r!& Pr!"i'L! %cc!#n' %n$ B%l%nce See''! "in$ r%'i! i c%lle$
$o%bined Ratio
Gi2e %n e:%&ple !" C!&.ine$ R%'i!
Rate o return on $a"ital E%"loyed
)= Li;#i$i'- in % .#ine i 'e p!'en'i%l %.ili'- '! &ee' i'7
$urrent Obligations
))Te "%il#re !" % c!&p%n- '! &ee' i' !.li(%'i!n $#e '! l%c8!" %$e;#%'e li;#i$i'- 0ill re#l' in7
)ad $redit Rating#
)3 Te ratio#e$ '! &e%#re 'e !r' 'er& "in%nci%l %n%l-ii
$urrent Ratio or Working $a"ital Ratio
) C#rren' R%'i! &%'ce 'e7
$urrent Assets to $urrent Liabilities
)6 Te !r' 'er& !l2enc- !" % "ir& c%n .e &e%#re$ .- 7
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$urrent Ratio
)> Te $i""erence .e'0een C#rren' R%'i! %n$ #ic8 R%'i! i
Stock
) +ic r%'i! !0 'e %.ili'- !" % .#ine '! &ee' i'i&&e$i%'e c!&&i'&en'
/uick Ratio
)? #ic8 Ae' incl#$e$ c%, $e.'!r %n$ ec#ri'ie 0icc%n .e re%li1e$ 0i'!#' $i""ic#l'- .#' n!'
Stock and +re"aid E'"enses
) #ic8 Li%.ili'ie re"er '! %ll c#rren' li%.ili'ie e:cep'
)ank O&erdrat
) Te r%'i! 0ic c%n .e % 2er- re%li'ic (#i$e '! !l2enc-*
/uick Ratio
3= #ic8 R%'i! !#l$ .e #e$ in c!n#nc'i!n 0i' 'e
$urrent Ratio
3) Te r%'i! 0ic &e%#re !0 &%n- 'i&e 'e %2er%(e'!c8 i !l$ $#rin( 'e peri!$*
7n&entory Turno&er Ratio
33 A2er%(e %(e !" in2en'!r- i %l! 8n!0n % 7
7n&entory Holding +eriod
3 Te r%'i! e'%.lie rel%'i!nip .e'0een cre$i' %le %n$%2er%(e $e.'!r7
Debtors Turno&er Ratio
36 Te r%'i! 0ic en%.le % c!&p%n- '! &ee' i' l!n( 'er&!.li(%'i!n7
Sol&ency Ratio
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3> De.'E;#i'- R%'i!, T!'%l Ae' '! De.' R%'i! %n$Pr!prie'%r- R%'i! %re c!&e #n$er
Sol&ency Ratios
3 Te R%'i! 0ic &e%#re 'e rel%'i!nip .e'0een $e.'c%pi'%l %n$ e;#i'- c%pi'%l
De.'E;#i'- R%'i!
3? Te r%'i! &e%#re 'e rel%'i2e cl%i& !" cre$i'!r %n$!0ner !n 'e %e' !" 'e "ir&
De.'E;#i'- R%'i!
3 Te %2er%(e %ccep'%.le De.'E;#i'- R%'i! i )7)
3 C%pi'%l E&pl!-e$ '! T!'%l Ae' R%'i! i %l! c%lle$*
Pr!prie'%r- R%'i!
= Te r%'i! 0ic re2e%l 'e rel%'i!nip 0i' !0ne$ c%pi'%l"#n$ %n$ '!'%l %e'
Pr!prie'%r- R%'i!4 C%pi'%l E&pl!-e$ '! T!'%l Ae' R%'i!5
) E;#i'- S%re C%pi'%lPre"erence S%re C%pi'%l Reer2e Un$i'ri.#'e$ Pr!"i' %n$ S#rpl#Acc#l%'e$ L!eFic'i'i!# Ae'
S%re!l$er F#n$
3 Te r%'i! '#$ie 'e "ir& $e.'er2icin( c%p%ci'-
In'ere' C!2er%(e R%'i!
A -'e&%'ic #e !" C!l#&n in 'e le$(er %n$ 'e .!!8 !"!ri(in%l en'r- c%lle$7
C!l#&n%r B!!8 Keepin(
6 Pr!"i'%.ili'- R%'i! per'%in '! 'e rel%'i!nip 0i'
S%le %n$ In2e'&en'
> Te r%'i! e:pree 'e rel%'i!nip .e'0een (r! pr!"i'
%n$ %le7
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Gr! Pr!"i' R%'i!
Te !2er%ll pr!"i'%.ili'- !" % c!&p%n- i &e%#re$ .- 'er%'i! !"
Ne' Pr!"i' R%'i!
? Te r%'i! c!&p%re 'e C!' !" G!!$ S!l$ %n$ 'eOper%'in( E:pene !n Ne' S%le i
Oper%'in( R%'i!
Te .r!%$e' &e%#re !" !2er%ll pr!"i'%.ili'- !" % .#inei c%lc#l%'e$ .- 'e r%'i! !"
Re'#rn !n In2e'&en' R%'i!
Te re%l !0ner !" 'e c!&p%n- i
E;#i'- S%re!l$er
6= Te Per&%nen' "#n$ !" 'e c!&p%n- incl#$e %re!l$ere;#i'-
N!n c#rren' Li%.ili'ie
63 Te R%'i! !" Ne' Pr!"i' '! S%re!l$er F#n$7
Re'#rn !n S%re!l$er F#n$
6 Te #& !" E;#i'- C%pi'%l, Pre"erence C%pi'%l, Gener%lReer2e, C%pi'%l Reer2e %n$ Pr!"i' %n$ L! Acc!#n' i
S%re!l$er F#n$
66 Te C!&.ine$ e""ec' !n Ne' Pr!"i' R%'i! %n$ 'e C%pi'%lT#rn!2er R%'i!
Re'#rn !n C%pi'%l E&pl!-e$
6> A '%'e&en' prep%re$ '! in$ic%'e 'e incre%e in 'e c%re!#rce '! #'ili1e 'e %&e "!r .#ineF#n$ Fl!0 S'%'e&en'
6 S'%'e&en' !" c%n(e in "in%nci%l p!i'i!n i %n %n%l-i !"&!2e&en' !" "#n$ .e'0een
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T0! B%l%nce See'
6? In 'e n%rr!0 ene, 9F#n$9 % .een e;#%'e$ '! c%0ile in 'e 0i$er ene i' re"er
+!r8in( C%pi'%l
6 An%l-i #e$ '! $e'er&ine "in%nci%l c!n$i'i!n %n$per"!r&%nce !" % .#ine
R%'i! An%l-i
6 Te R%'i! !0 'e rel%'i!nip .e'0een Ae' %n$Li%.ili'ie
S!l2enc- R%'i!
>= Te R%'i! '!e %re 0!r8e$ !#' '! e2%l#%'e 'eper"!r&%nce !" 'e .#ine in utili>ing t!e resources
T#rn!2er R%'i!
>) T! 0!r8!#' 'e !r''er& "in%nci%l p!i'i!n !" 'ec!&p%n- 0i' 'e elp !"
Li;#i$i'- R%'i!
>3 Oper%'in( r%'i!, Re'#rn !n In2e'&en' r%'i!, Re'#rn !nC%pi'%l E&pl!-e$ R%'i!, Re'#rn !n E;#i'- %n$ E%rnin( perS%re r%'i! %re cl%e !"Pr!"i'%.ili'- R%'i!
> Pr!"i' e%rne$ .- 'e c!ncern "r!& i' .#ine !per%'i!n%n$ n!' "r!& 'e !'er !#rce i
Oper%'in( Pr!"i' R%'i!
>6 Oper%'in( Pr!"i' R%'i! !0 'e rel%'i!nip .e'0eenOper%'in( Pr!"i' %n$
Ne' S%le
>> A Pl%n prep%re$ in -'e&%'ic "!r 'e #'ili%'i!n !"&%np!0er %n$ &%'eri%l re!#rce
Te B#$(e'
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> In % .#ine !r(%ni1%'i!n % B#$(e' repreen' %n e'i&%'e!" "#'#re
C!' %n$ Re2en#e
>? Te B#$(e' &%- .e cl%i"ie$ &%inl- in'! '0! '-pe 0ic%re
C%pi'%l B#$(e' %n$ Oper%'in( B#$(e'
> C%pi'%l B#$(e' %re per'%inin( '! 'e pr!p!e$ e:pen$i'#re"!r
Ne0 Pr!ec' '! .e i&ple&en'e$
> All ec'i!n%l .#$(e' %re in'e(r%'e$ in'! %
A M%'er B#$(e'
= $!anges in (orking ca"ital .e'0een 'e !penin( %n$cl!in( .%l%nce ee' $%'e 0ill .e %cer'%ine$ .- prep%rin(
F#n$ Fl!0 S'%'e&en'
) Tere %re '0! '-pe !" F#n$ Fl!0 S'%'e&en' !ne i .%e$!n c% %n$ !'er i !n
+!r8in( C%pi'%l
3 Per'%inin( '! prep%r%'i!n !" F#n$ Fl!0 S'%'e&en' 'ei'e&in 'e B%l%nce See' %re cl%i"ie$
C#rren' %n$ N!n c#rren' c%'e(!rie
Te li%.ili'ie p%-%.le !2er % peri!$ l!n(er '%n !ne -e%r%re c%lle$ %
N!n c#rren' li%.ili'ie
6 A 'r%n%c'i!n re#l' incre%e !" "#n$ %n$ $ecre%e !""#n$ i 8n!0n %
S!#rce !" "#n$ %n$ %pplic%'i!n !" "#n$ repec'i2el-
> Sce$#le !" C%n(e in +!r8in( C%pi'%l i prep%re$ 0i''e elp !"
C#rren' %e' %n$ c#rren' li%.ili'ie !nl-
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Te i'e& 0ic %re $e.i'e$ '! Pr!"i' %n$ L! %cc!#n' .#'$! n!' rel%'e$ '! (ener%l .#ine %c'i2i'ie
N!n Tr%$in( I'e&
? Te i'e& 0ic %re %$$e$ .%c8 '! Ne' Pr!"i', $#rin( 'epreen'%'i!n !" F#n$ "r!& Oper%'i!n*
N!n Tr%$in( i'e& %n$ N!n F#n$ i'e&
Te C%pi'%l !" % c!&p%n- 0ic i $i2i$e$ in'! n#&.er !"#ni' i c%lle$
S%re
Te c%pi'%l r%ie$ .- i#e !" %re i
S%re C%pi'%l
?= Te %&!#n' '%'e$ in 'e c%pi'%l cl%#e !" 'e&e&!r%n$#& !" %!ci%'i!n !" 'e C!&p%n-
A#'!ri1e$ C%pi'%l
?) Te pr!ce !" %ccep'in( 'e !""er !" 'e %pplic%n' "!r 'ep#rc%e !" S%re
All!'&en' !" S%re
?3 Te #np%i$ %&!#n' !n 'e %pplic%'i!n %n$ %ll!'&en' !"%re c%n .e $e&%n$e$ .- 'e c!&p%n- in in'%ll&en' ic%lle$
C%ll !n S%re
? Te i#e !" %re '! % elec'e$ (r!#p !" per!n i c%lle$
Pri2%'e Pl%ce&en' !" S%re
?6 A per 'e C!&p%n- Ac' cer'%in p!r'i!n !" 'e #nc%lle$c%pi'%l '! .e 8ep' % reer2e i c%lle$
Reer2e C%pi'%l
?> Te reer2e 0ic i cre%'e$ !#' !" c%pi'%l pr!"i'
C%pi'%l Reer2e
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? Te n#&.er !" %re %pplie$ i le '%n n#&.er !" %re!""ere$ "!r i#e, i c%lle$
Un$er S#.crip'i!n
?? Te n#&.er !" %re %pplie$ "!r &!re '%n 'e n#&.er !"%re !""ere$ "!r i#e
O2er S#.crip'i!n
? Te %re %ll!'e$ '! #.cri.er le '%n n#&.er !" %re'e- %2e %pplie$ "!r i c%lle$
Pr!r%'% %ll!'&en'
? E:pene inc#rre$ !n 'e "!r&%'i!n !" % C!&p%n- %re8n!0n %
Preli&in%r- E:pene
= Te %re 0ic %re i#e$ .- 'e c!&p%n- '! i'e&pl!-ee !r $irec'!r %' % $ic!#n' r%'e i
S0e%' E;#i'- S%re
) Te docu%ents ackno(ledgingin$e.'e$ne "!r 'e &!ne-len', .- % c!&p%n- "r!& per!n !r !r(%ni1%'i!n !""erin(rep%-&en' 0i' in'ere' i c%lle$
De.en'#re
3 Te $e.en'#re !n 0ic !p'i!n i (i2en '! c!2er' 'e&in'! %re %' '%'e$ r%'e !" e:c%n(e %"'er % cer'%in peri!$
C!n2er'i.le De.en'#re
De.en'#re %re rep%-%.le .- % c!&p%n- !n 'e e:pir- $%'ein l#&p #& !r in %n %nn#%l in'%ll&en'*
Re$ee&%.le De.en'#re
6 A debenture like instru%ent, i#e$ %c8n!0le$(e$ $e.'0ere 'e r%'e !" in'ere' i (ener%ll- pre$e'er&ine$
Te B!n$
> Rep%-&en' !" %&!#n' '! 'e De.en'#re !l$er i
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Re$e&p'i!n !" De.en'#re
+%' i 'e &ini& re;#ire&en' !" De.en'#reRe$e&p'i!n Reer2e !" % c!&p%n-
>=Q !" 2%l#e !" $e.en'#re i#e$
? Testate%ent o assets and liabilities'%'in( 'e "in%nci%lp!i'i!n !" %n en'erprie i
P!i'i!n S'%'e&en'
Te state%ent 0ic !0 'e ne' re#l' !" .#ine!per%'i!n $#rin( %n %cc!#n'in( peri!$
Inc!&e S'%'e&en'
In 0ic !r$er % C!&p%n-9 .%l%nce ee' i prep%re$/
Or$er !" Per&%nenc-
= Preli&in%r- E:pene, Dic!#n' !n i#e !" %re, S%rei#e e:pene %n$ De2el!p&en' E:pen$i'#re %re !0n#n$er 'e e%$in( !"
Micell%ne!# E:pen$i'#re
) +%' i 'e last !eading!n 'e %e' i$e !" 'e .%l%nceee' !" % C!*
Pr!"i' %n$ L! Acc!#n'4$e.i' .%l%nce5
3 +%' i 'e &%in e%$in( !" % c!&p%n- %(%in' A#'!ri1e$C%pi'%l, I#e$ C%pi'%l, S#.cri.e$ C%pi'%l, C%lle$ #p C%pi'%l%n$ P%i$ #p C%pi'%l
S%re C%pi'%l
+ic p%r' %n$ ce$#le !" C!&p%n-9 Ac', )> precri.e'e "!r& !" B%l%nce See'/
P%r' I Sce$#le IV
6 B%l%nce See', PL %cc!#n', C% Fl!0 S'%'e&en',Direc'!r Rep!r' %n$ A#$i'!r Rep!r' %re incl#$e$ !" %c!&p%n-
Fin%l Acc!#n' !" % C!&p%n-
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> Te li%.ili'ie '!e %re c!&e in'! e:i'ence !n 'e%ppenin( !" !&e #ncer'%in e2en'
C!n'in(en' Li%.ili'ie
A $i2i$en$ p%i$ .- 'e c!&p%n- .e'0een '0! %nn#%l(ener%l &ee'in( i
In'eri& Di2i$en$
? Rep!r' !n C!rp!r%'e G!2ern%nce %n$ Direc'!rRep!ni.ili'- '%'e&en' %re %l! p%r' !" 'e
Fin%nci%l S'%'e&en'
A '%'e&en' !" 9Re'%ine$ E%rnin(9 i c%lle$ PL%ppr!pri%'i!n %cc!#n'
Te re"ortin 0ic 'e '%'e !" %""%ir, #c % PBT, PAT,cre%'i!n !" reer2e %n$ pr!2ii!n %n$ pr!p!e$ $i2i$en$ %re!0n i
Direc'!r Rep!r'
)== Testate%ent indicatesin"l!0 %n$ !#'"l!0 !" c% $#rin(
%n %cc!#n'in( peri!$ i 4AS 5
C% Fl!0 S'%'e&en'
)=) C!&p%r%'i2e '%'e&en', C!&&!n Si1e S'%'e&en', Tren$An%l-i, R%'i! An%l-i, C% Fl!0 S'%'e&en' %n$ F#n$ Fl!0S'%'e&en' %re 'e 'ecni;#e #e$ "!r 'e %n%l-i
Fin%nci%l S'%'e&en'
)=3 +en 'e Fin%nci%l '%'e&en' !" % "ir& "!r '0! !r &!re
-e%r %re c!&p%re$, i' i c%lle$7
In'r%"ir& c!&p%ri!n
)= +en 'e Fin%nci%l S'%'e&en' !" $i""eren' "ir& "!r 'e%&e peri!$ %re c!&p%re$, i' i c%lle$7
In'er"ir& c!&p%ri!n
)=6 A ratio0ic i e:pree$ in &%'e&%'ic%l rel%'i!nip
.e'0een '0! i'e& !r (r!#p !" i'e& !0n in 'e "in%nci%l'%'e&en'
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Acc!#n'in( R%'i!
)=> Te r%'i! 0ic &e%#re 'e e""ec'i2ene 0i' 0ic%e' %re #e$ "!r (ener%'in( %le*
Ac'i2i'- R%'i!
)= I" -!# %re % cre$i'!r !" % c!&p%n-, &en'i!n %n- '0! r%'i!'%' -!# 0!#l$ li8e '! c%lc#l%'e7C#rren' %n$ #ic8 r%'i!
)=? I" -!# %re % De.en'#re !l$er !" % c!&p%n-, &en'i!n %n-'0! r%'i! '%' -!# 0!#l$ li8e '! c%lc#l%'e7
De.'e;#i'- r%'i! %n$ In'ere' C!2er%(e r%'i!
)= I" -!# %re % %re!l$er !" % c!&p%n-, &en'i!n %n- '0!r%'i! '%' -!# 0!#l$ li8e '! c%lc#l%'e7
Ne' Pr!"i' %n$ Re'#rn !n C%pi'%l E&pl!-e$ R%'i!
)= A '%'e&en' '%' !0 in"l!0 %n$ !#'"l!0 !" c%"#n$ "r!& !per%'in(, "in%ncin( %n$ in2e'in( %c'i2i'ie $#rin(% -e%r*
C% Fl!0 S'%'e&en'
))= Tes!ort ter% !ig!ly li*uid in&est%ents,'%' %re re%$il-c!n2er'i.le in'! c% 0i'!#' %n- ri8 !" c%n(e in 2%l#e %re7
C% E;#i2%len'
))) C% %le, c% recei2e$ "r!& $e.'!r, p%-&en' !" 0%(e%n$ Inc!&e T%: %re e:%&ple !"
C% "l!0 "r!& !per%'in( %c'i2i'ie
))3 Tr%n%c'i!n !" % (ener%l n%'#re 0ic !cc#r "re;#en'l- %re"ir' rec!r$e$ in 'eSpeci%l J!#rn%l
)) Prep%i$ e:pene %re %cc!#n'
Per!n%l %cc!#n' 0i'!#' n%&e
))6 Tri%l .%l%nce &%$e %"'er 'e %$#'in( %n$ cl!in( en'rie
%2e .een p!'e$ i c%lle$
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P!' cl!in( TB
))> Ae' 0ic re$#ce i' 2%l#e, .- #%(e .#' %re n!'repl%ce$ i c%lle$ %
+%'in( Ae'
)) Fi:e$ C%pi'%l i %l! c%lle$7
Bl!c8 Ae'
))? C!' !" (!!$ !l$ ellin( e:pene i e;#%l '!
C!' !" %le
)) C!' !" (!!$ !l$ Gr! pr!"i' i e;#%l '!
S%le
)) A Tri%l .%l%nce li' 'e .%l%nce, !" %ll ledger accounts%n$
C% B!!8
)3= Te pr!ce .- 0ic 'e legality o dis!onored bill ien#re$
N!'in( %n$ Pr!'e'in(
)3) O2er$r%"' "!r % .#ine &e%n cre$i' .%l%nce % per
C% B!!8
)33 De.i' n!'e i prep%re$ in c!nnec'i!n 0i'
P#rc%e
)3 S%le re'#rn %cc!#n' i %
N!&in%l Acc!#n'
)36 Cre$i' n!'e i en' .-
SellerSer2ice Pr!2i$er
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)3> All!0%nce &%$e "!r 'e pr!&p' p%-&en' i c%lle$
C% Dic!#n'
)3 +ri''en e2i$ence "!r % p%-&en' !" c% i c%lle$
V!#cer
)3? A li%.ili'- !r inc!&e &%- .e % .%l%nce
Cre$i' .%l%nce
)3 er2e % cross=reerence .e'0een 'e J!#rn%l %n$Le$(er
F!li! N#&.er
)3 Ae' !r e:pene &%- .e % .%l%nce
De.i' B%l%nce
)= Tr%n"er !" &!ne- !r &!ne-9 0!r' "r!& !ne p%r'- '!%n!'er i 'er&e$ %
Tr%n%c'i!n
)) $lass o accountsc!&priin( .!' $e.'!r %n$ cre$i'!r%re c%lle$
Per!n%l Acc!#n'
)3 +en reer2e i in2e'e$ in !#'i$e ec#ri'ie, i' i c%lle$
Reer2e F#n$
) Li%.ili'- "!r .ill $ic!#n'in( i
C!n'in(en' Li%.ili'-
)6 Speci%l J!#rn%l i %l! c%lle$
S#.i$i%r- .!!8
)> Pe''- c% .!!8 i &%in'%ine$ #n$er -'e&
I&pre'
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)6> D!#.le en'r- -'e& 0% pr!p!#n$e$ .-
L#c% P%ci%!li
)6 Te .%l%nce !" %ll %e' !0n in 'e Tr%il .%l%nce 0ill .e'%8en '!
B%l%nce See'
)6? C% $ic!#n' i %ll!0e$ .-
Cre$i'!r
)6 Te &%in $i'inc'i!n .e'0een c%pi'%l %n$ re2en#e
e:pen$i'#re i .%e$ #p!n
Peri!$ !" .ene"i' $eri2e$
)6 Rene0%l "ee "!r % p%'en' i %
Re2en#e E:pen$i'#re
)>= Te reer2e $eri2e$, "r!& c%r(in( !" c%pi'%l e:pen$i'#re'! re2en#e
Secre' Reer2e
)>) C!' !" Air c!n$i'i!nin( 'e !""ice !" MD i % e:pen$i'#re
C%pi'%l E:pen$i'#re
)>3 J!#rn%l en'rie '%' .e(in !r !pen % ne0 e' !" .!!8 .-$e.i'in( %e' %n$ cre$i'in( li%.ili'ie %n$ c%pi'%l
Openin( en'r-
)> De.i' .%l%nce !" %ll per!n%l %cc!#n' %re c!llec'i2el-c%lle$
S#n$r- $e.'!r
)>6 Te %cc!#n'in( c!n2en'i!n per'%in '! c!n'in(en'li%.ili'ie !0n in 'e .!!8 !" %cc!#n' i
C!n2en'i!n !" M%'eri%li'-
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)>> Te c!ncep' per'%in '! 'e %cc!#n'in( e;#%'i!n Ae' @Li%.ili'ie i
D#%l %pec' c!ncep'
)> Acc!r$in( '! 0ic c!ncep', pr!prie'!r !" % .#ine i're%'e$ % cre$i'!r
B#ine En'i'- C!ncep'
)>? Te c!ncep' .%e$ #p!n 'e &erc%n'ile -'e& !"%cc!#n'in(
Accr#%l C!ncep'
)> Te n%'#re !" e:pen$i'#re, '%' 0!#l$ %2e .een 1er!.%l%nce %"'er 'e cl!in( en'rie p%e$
Re2en#e E:pen$i'#re
)> Li"e &e&.erip "ee recei2e$ .- % cl#. i 're%'e$ %
C%pi'%l Receip'
)= Pr!"i' !n 'e %le !" "#rni'#re in % n!n pr!"i' &%8in(!r(%ni1%'i!n i !0n !n 'e
Cre$i' i$e !" 'e Inc!&eE:pen$i'#re AC
)) Te 'er& #e$ '! $ecri.e 'e pr!ce !" 0ri'in( $!0n 'el!n( 'er& in2e'&en' %n$ in'%n(i.le %e'
A&!r'i1%'i!n
)3 O.!lecence &e%n $ecline in 'e 2%l#e $#e '!
Inn!2%'i!n %n$ In2en'i!n
) Te %e' 0ic (ener%ll- %#&e$ n!' '! .e $epreci%'e$
L%n$
)6 T!e lands !" 0ic 2%l#e i $i&iniin( .- "re;#en' #%(e
+%'e$ L%n$ 4#%rr- %n$ Mine5
)> Te 'ree 0%- !" e:prei!n !" r%'i! %re Percen'%(e,R%'e %n$ Pr!p!r'i!n !" p#re R%'i!
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) Tree cl%i"ic%'i!n !" r%'i! %re
Tr%$i'i!n%l, "#nc'i!n%l %n$ %cc!r$in( '! n%'#re
)? Te r%'i! 0ic &e%#re 'e c!n'ri.#'i!n !" "in%nce .-
!0ner c!&p%re$ 0i' 'e "in%nce pr!2i$e$ .- 'e !#'i$er
) Te e:ce !" c#rren' %e' !2er c#rren' li%.ili'ie i
Ne' 0!r8in( c%pi'%l
) A c!&p%n- 0ic % %n- !" i' i ec#ri'ie li'e$ in %n-rec!(ni1e$ '!c8 e:c%n(e i
Li'e$ C!&p%n-
)?= A c!&p%n-, ' .e re(i'ere$, i' %n %r'i"ici%l le(%lper!n, % le(%l en'i'-, 2!l#n'%r- %!ci%'i!n !" per!n "!rpr!"i' %n$ &e&.er %2e li&i'e$ li%.ili'ie %re 'e &%inc%r%c'eri'ic !" %
C!&p%n-
)?) S%re !" % c!&p%n-, $i2i$e$ in'! n#&.er !" e;#%l #ni',%2in( pr!per'- ri(', 're%'e$ % (!!$, -p!'ec%'e$, c%n .e
.!#(' , !l$ ! 'ee %re
M!2%.le Pr!per'ie
)?3 S!are!olders t!ose are entitled,'! % %re in 'e in 'e#rpl# pr!"i' !" 'e c!&p%n-, %"'er p%-&en' !" pr!"i' '! e;#i'-%re!l$er
Pre"erence %re!l$er
)? Te reser&e originates"!r& 'e !#rce !'er '%n re(#l%r
%c'i2i'ie !" 'e .#ine i
C%pi'%l Reer2e
)?6 Pr!"i' !n %le !" "i:e$ %e', re2%l#%'i!n !" %e' %n$li%.ili'ie, "!r"ei'#re %n$ rei#e !" %re %n$ pri!r '!inc!rp!r%'i!n %re !#rce !"
C%pi'%l Reer2e
)?> M%8in( %n !""er, in2i'in( 'e p#.lic '! #.cri.e 'e %rei (ener%ll- 8n!0n %
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Ini'i%l P#.lic O""erIPO
)? T!e notice or circular in2i'in( p#.lic '! #.cri.e '! i'%re %n$ $e.en'#re !r '! &%8e $ep!i' 0i' i'
Pr!pec'#
)?? Te %&!#n' !" Mini& S#.crip'i!n !" %re i$e'er&ine$ .-
Direc'!r !" C!&p%n-
)? T! &ee' e:pene "!r p#rc%e "i:e$ %e', preli&in%r-e:pene, 0!r8in( c%pi'%l re;#ire&en' %n$ ##%l c!n$#c' !".#ine .- % c!&p%n- $eri2e$ "r!&
Mini& S#.crip'i!n
)? S!are issue e'"enses%re !0n in 'e B%l%nce See' %%e' #n$er 'e e%$in( !"
Micell%ne!# E:pen$i'#re
)= A c!&p%n- i %#'!ri1e$ '! i#e i' %re %' % price 0ici &!re '%n i' "%ce 2%l#e, i' i %i$ '! .e
I#e %' pre&i#&
)) A c!&p%n- i %#'!ri1e$ '! i#e i' %re %' % price 0ici le '%n 'e "%ce 2%l#e, i %i$ '! .e
I#e %' $ic!#n'
)3 Te #.cri.er "%il '! p%- %ll!'&en' &!ne- %"'er%pplic%'i!n, 'e $#e i c%lle$ %
C%ll in %rre%r
) +en 'e p#.lic % subscribed e*ual to t!e s!aresoered by t!e co%"any,i %i$ '! .e
F#ll S#.crip'i!n
)6 Acc!r$in( '! SEBI (#i$eline 'e &ini& #.crip'i!n% .een "i:e$ %'
=Q !" en'ire i#e
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)> Acc!r$in( '! SEBI (#i$eline, 'e #.crip'i!n &!ne-' .e recei2e$ 0i'in &!n' "r!& 'e $%'e !" %ll!'&en'
) Te $irec'!r %n$ e&pl!-ee %re (i2en % ri(' '! #.cri.e!r p#rc%e %' % "#'#re $%'e 'e ec#ri'ie !" 'e c!&p%n- %'
pre$e'er&ine$ price, 'i ce&e i %i$ '! .e
E&pl!-ee '!c8 !p'i!n pl%n
)? Te %&!#n' !" c%lle$ #p c%pi'%l 0ic % .een %c'#%ll-p%i$ .- 'e %re!l$er, i c%lle$
P%i$ #p c%pi'%l
) Te r%'e !" $ic!#n' !n %re ' not e'ceed ?2@#n'il
!'er0ie, per&ii!n i (r%n'e$ .-
C!&p%n- L%0 B!%r$
) Te pre"eren'i%l %ll!''ee 0ill n!' ell 'eir %re in 'e!pen &%r8e' "!r % &ini& peri!$ !" -e%r "r!& 'e $%'e!" %ll!'&en' -e%r
)= Te Pr!&!'er, 2en'#re c%pi'%li', "in%nci%l in'i'#'i!n%n$ .#-er %n$ #pplier !" 'e c!&p%n-9 pr!$#c' %re
(ener%ll- eli(i.le !" %ll!'&en'
Pre"eren'i%l All!'&en'
)) Te 'er& 9B!!8 B#il$in(9 i re"erre$ 0i'Pre"eren'i%l All!'&en'
)3 +en % c!&p%n- %ccep' &!ne-, p%i$ .- !&e i'%ll!''ee, "!r 'e c%ll n!' -e' $#e, #c %&!#n' i 8n!0n %
C%ll in %$2%nce
) I" %r'icle !" %!ci%'i!n ilen' %.!#' in'ere' !n c%ll in%rre%r, 'e in'ere' 0ill .e c%r(e$
>Q PA
)6 AT 0%' r%'e !" in'ere' 0ill .e p%i$ %(%in' c%ll in%$2%nce '! %re!l$er
Q PA
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)> I" % c!&p%n- .#- i' !0n %re "r!& 'e &%r8e', 'epr!ce i 8n!0n %
B#- .%c8 !" %re
) Gener%l reer2e, reer2e "#n$, cre$i' .%l%nce !" PL%cc!#n', "r!& pr!cee$ !" %n- %re !r ec#ri'ie %n$ec#ri'ie pre&i#& %cc!#n' %re !#rce '! .#-
S%re %' .#- .%c8 -'e&
)? Te .#- .%c8 !" %re !#l$ n!' e:cee$, Q !" '!'%lp%i$ #p c%pi'%l %n$ "ree reer2e !" 'e c!&p%n-
3>Q
) Gener%l reer2e, reer2e "#n$, cre$i' .%l%nce !" PL%cc!#n', !" % c!&p%n- %re p!p#l%rl- 8n!0n %
Free Reer2e
)A bank account o"ened by a co%"any, 0i' % .%n8er, '!per"!r& i' !.li(%'i!n, #n$er 'e ce&e !" .#- .%c8 !"ec#ri'ie
9Ecr!0 Acc!#n'9
3== An issue o s!ares,in 0ic e:i'in( %re!l$er, %2e%n !p'i!n '! #.cri.e, '! ne0 %re .el!0 'e &%r8e' pricei c%lle$
Ri(' I#e !" S%re
3=) T!e debentures t!ose %re ec#re$ ei'er !r p%r'ic#l%r%e' !" 'e c!&p%n- i c%lle$ %
Sec#re$ De.en'#re
3=3 Te $e.en'#re $! n!' %2e ec#ri'-, %n$ !l$er !" #c$e.en'#re %re 're%'e$ % #nec#re$ cre$i'!r i c%lle$ %
Si&pleN%8e$ De.en'#re
3= De.en'#re %re '!e $e.en'#re, 0ic %re n!''r%n"er%.le .- &ere $eli2er- i c%lle$ %
Re(i'ere$ De.en'#re
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3=6 De.en'#re %re '!e $e.en'#re, 0ic %re 'r%n"er%.le.- &ere $eli2er- i c%lle$ %
Be%rer De.en'#re
3=> Te $e.en'#re 0ic %2e '! .e rep%i$, .e"!re !'er$e.en'#re %re 8n!0n %
Fir' De.en'#re
3= A2%il%.ili'- !" nece%r- "#n$, n! in'er"erence in 'eM%n%(e&en', Fi:e$ r%'e !" In'ere' %n$ Re'#rn !" F#n$ %re'e i(ni"ic%nce !"
I#in( De.en'#re
3=? Te $e.en'#re 0ic %re i#e$ 0i'!#' $ecl%rin(pre$e'er&ine$ r%'e !" in'ere', %n$ i#e price i e%2il-$ic!#n'e$, #c $e.en'#re %re 8n!0n %
Deep Dic!#n' B!n$er! C!#p!n B!n$
3= De.en'#re %re (ener%ll- i#e$ 0i' % peci"ie$ r%'e !"in'ere', %n$ 'i peci"ie$ r%'e i c%lle$
C!#p!n R%'e B!n$
3= Re$e&p'i!n !" $e.en'#re i n!' p!i.le !#' !" C%pi'%l!nl-, .#'
De.en'#re Re$e&p'i!n reer2e
3)= Te $e.en'#re re$e&p'i!n reer2e i n!' re;#ire$ in c%e!" re$e&p'i!n .-
C!n2eri!n
3)) Gener%ll- % c!&p%n- c%n p#rc%e i' !0n $e.en'#re, in'e !pen &%r8e', %' % p!in' !" 'i&e, 0en i' $e.en'#re %re;#!'e$
Bel!0 P%r
3)3 In % 2er'ic%l "!r& !" B%l%nce See', li%.ili'ie %re !0n#n$er 'e e%$in( 9S!#rce !" F#n$9 .#' Ae' %re !0n %
Applic%'i!n !" F#n$
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3) +! 0ill i(n 'e Fin%l Acc!#n' !" % C!&p%n-/
Secre'%r- !r M%n%(er %n$ !ne Direc'!r 0i' MD
3)6 All C!&p%nie %re %$!p'e$ %cc!#n' -'e&
Accr#%l S-'e&
3)> A' 'e en$ !" 'e "in%nci%l '%'e&en', a narration isnoted, per'%inin( '! 'e c!n'in(en' li%.ili'ie, Depreci%'i!np!licie %n$ V%l#%'i!n !" '!c8
E:pl%n%'!r- N!'e
3) A su%%ari>ed records o transactions %""ec'in( !ne
per!n, !ne 8in$ !" pr!per'-, !r !ne cl% !" (%in !r l!e
Acc!#n'
3)? I&per!n%l %cc!#n' &%- .e ei'er,
Re%l !r N!&in%l %cc!#n'
3) Acc!#n' !" pr!per'ie !r p!ei!n %re c!&e #n$er
Re%l Acc!#n'
3) +en % .#ine&%n9 Ae' e:cee$ !2er i Li%.ili'ie,e i %i$ '! .e
S!l2en'
33= An!'er n%&e !" n!&in%l %cc!#n'
Fic'i'i!# Acc!#n'
33) Te 'r%$er !0n %cc!#n' in 'e B#ine, 0!#l$ .e
Hi C%pi'%l %cc!#n'
333 N%&e 'esub di&ision ledger,c!n'%inin( C%pi'%l Acc!#n',Dr%0in( Acc!#n', %n$ %ll !'er 'r%n%c'i!n in pri2%'e n%'#re
Pri2%'e Le$(er
33 Te &%in !.ec' !" i '! cle%rl-, in$ic%'e 'e p!i'i!n
!" e%c %cc!#n' in rel%'i!n '! % 'r%$er
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Le$(er Acc!#n'
336 Acc!#n' er2e '! in$ic%'e 0e'er 'e per!n i %$e.'!r !r cre$i'!r !" % 'r%$er
Per!n%l Acc!#n'
33> Acc!#n' er2e '! !0 'e inc!&in( %n$ !#'(!in( !"'e e2er%l Ae', $e%l' in .- 'e Tr%$er
Re%l Acc!#n'
33 Acc!#n' er2e '! !0 #n$er 0%' e%$in(e:pene, 0ere inc#rre$, in c%rr-in( !n 'e .#ine, %n$0%' 0ere 'e !#rce !" Inc!&e
N!&in%l Acc!#n'
33? Per!n%l %n$ Re%l Acc!#n' %re cl!e$ .- 9.%l%ncin(9, %n$N!&in%l Acc!#n' %re cl!e$ .- 'r%n"errin( '!
Pr!"i' %n$ L! Acc!#n'
33 G!!$ Acc!#n' !#l$ n!' .e cl!e$ #n'il 'e 2%l#e !" i !0n !n 'e cre$i' i$e !" '%' Acc!#n'
Un!l$ G!!$
33 Per!n%l Acc!#n' !#l$ !nl- .e $e.i'e$ !r cre$i'e$0en 'ere i %
Cre$i' Tr%n%c'i!n
3= Te B!!8 !" P#rc%e, S%le, Re'#rn In0%r$, Re'#rnO#'0%r$, C%, Bill Recei2%.le %n$ Bill P%-%.le %rec!&&!nl- c%lle$ %
S#.i$i%r- J!#rn%l
3) Ori(in%l J!#rn%l % .een #pere$e$ .-
S#.i$i%r- J!#rn%l
33 Te 'r%n%c'i!n per'%inin( '! e'tra ordinary nature,0ic $! n!' "%ll 0i'in %n- !" 'e S#.i$i%r- J!#rn%l i c%lle$
Ori(in%l J!#rn%l
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3 Te In2!ice B!!8, B!#(' B!!8 %n$ P#rc%e J!#rn%l%re p!p#l%rl- 8n!0n %
Te P#rc%e B!!8
36 +en (!!$ %re .!#(' !n cre$i', (e recei&e a state%ent,4p%r'ic#l%r !" (!!$5 %l!n( 0i' 'e (!!$ 'e&el2e !r .-p!' i c%lle$
Te In2!ice
3> Te en'rie in 'e P#rc%e J!#rn%l, !ri(in%'e "r!&
In2!ice In0%r$
3 Te 0ill c!n'%in, %n e:%c' c!p- !" e%c in2!ice, en'!#' '! 'e c#'!&er, 0en cre$i' %le %re '%8en pl%ce
O#'0%r$ In2!ice B!!8
3? Te cre$i' n!'e (ener%ll- %re prin'e$ in in8, '!$i'in(#i 'e& "r!& in2!ice
Re$
3 +en 'e (!!$ &%- n!' .e #p '! 'e %&ple !r%cc!r$in( '! 'e !r$er, !r 'e- &%- %2e .een en' in err!r, !r&%- .e #.ec' '! !&e !'er $e"ec' inc#rre$
Re'#rn !" (!!$
3 +en 9Re'#rn9 %re .ein( %ccep'e$ 'e recei2er !" 'e(!!$ ##%ll-, en$ %
Cre$i' N!'e
36= Te peri!$ic%l '!'%l !" 'e P#rc%e B!!8, i $e.i'e$ '!
P#rc%eG!!$ Acc!#n'
36) Te #. $i2ii!n !" 'e J!#rn%l %re $e2ie$ 0i' % 2ie0'! %2e
Cleric%l L%.!r
363 A"'er 'e Bill !" E:c%n(e i %ccep'e$, %n$ re'#rne$ '!
'e $r%0er, i' i 8n!0n %Accep'%nce
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36 +en % Bill, %ccep'e$ .- % $r%0ee (i2e i %en',0i'!#' %n- c!n$i'i!n '! 'e !r$er !" 'e $r%0er i 8n!0n %Gener%l Accep'%nce
366 +en 'e Bill !" E:c%n(e, en$!re$ p#''in( i(n%'#re
!" 'e en$!rer !nl-, 'e 0%- !" en$!re&en' i c%lle$
En$!re&en' in Bl%n8
36> +en 'e Bill !" E:c%n(e, en$!re$ p#''in( i(n%'#re!" 'e en$!rer &en'i!nin( i ri(', !n 'e .ill %re'r%n"erre$, i c%lle$
Speci%l En$!re&en'
36 +en 'e Bill !" E:c%n(e i en$!re$, in "%2!#r !" %$e"ini'e per!n !nl-* Te 0%- !" en$!re&en' i c%lle$
Re'ric'i2e En$!re&en'
36? +en en$!re&en' i '%8in( pl%ce, 'e en$!rer relie2ei&el", "r!& li%.ili'- '! %ll #.e;#en' en$!ree, 'e 0%- !"en$!re&en' i c%lle$En$!re&en' S%n Rec!#re
36 +en en$!re&en' i '%8in( pl%ce, 'e en$!rer 0%i2e,!&e ri(' '! 0ic e i en'i'le$, 'e 0%- !" en$!re&en' ic%lle$
F%c#l'%'i2e En$!re&en'36 I" % p#rc%er !" % .ill, $e$#c' !&e %&!#n' "r!& 'e"%ce 2%l#e, %n$ p%- 'e %&!#n' '! 'e !l$er %"'er $e$#c'i!n,'e 0%- i %i$ '! .e
Dic!#n'in( Bill
3>= I" 'e %ccep'!r !" % .ill, i re%$- '! p%- 'e %&!#n', !" i%ccep'%nce, .e"!re 'e $#e $%'e, pr!2i$e$ i %ll!0e$ !&ere.%'e %n$ 'e pr!ce i %i$ '! .e
Re'irin( % .ill #n$er Dic!#n'
3>) Te Bill !" E:c%n(e, "!r 0ic n! c!ni$er%'i!n % .eenp%e$ .- 'e $r%0er '! %ccep'!r, #c .ill %re c%lle$
Acc!&&!$%'i!n Bill
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3>3 Openin( En'rie, Tr%n"er "r!& !ne %cc!#n' '! %n!'er,%$#'in( %n$ cl!in( en'rie %n$ rec'i"ic%'i!n en'rie %re "ir'rec!r$in( in
J!#rn%l Pr!per
3> Te!re'ic%ll- %n- .#ine 'r%n%c'i!n c%n .e rec!r$e$ in'e
J!#rn%l
3>6 Err!r !" O&ii!n, 0r!n( en'rie in %n- !ri(in%l rec!r$,Err!r !" principle, c!&pen%'in( err!r %n$ p!'in( '! 0r!n(e%$ !" %cc!#n' %re err!r '!e %re n!' %""ec'e$ '! 'e
Tri%l B%l%nce
3>> O&ii!n '! p!' %n en'r- "r!& #.i$i%r- .!!8, p!'in(% 0r!n( %&!#n' '! % le$(er Ac, p!'in( 0r!n( i$e !" %le$(er Ac, Err!r in c%'in( le$(er !r #.i$i%r- .!!8, 0r!n(.%l%ncin( in le$(er Ac %n$ O&ii!n !" % .%l%nce in le$(er Ac %re $icl!e$ .-
Tri%l B%l%nce
3> Te n#&.er !" Per!n%l Ac 0ic 0ill %2e '! .e!pene$, in % 'r%$er le$(er $epen$ #p!n 'e n#&.er !" %n$ n#&.er !" 0i' i&
Cre$i'!r %n$ De.'!r
3>? Te l%r(er 'e n#&.er !" Re%l %n$ N!&in%l Ac !pene$,'e &!re 0!#l$ .e $eri2e$ "r!& .!!8 !" %cc!#n'*
De'%ile$ %n$ An%l-'ic%l in"!r&%'i!n
3> Te .!!8 2%l#e !" 'e %e' 0!#l$ .e incre%e$, .-$e.i'in( e:pen$i'#re !n i'
C%pi'%l E:pen$i'#re
3> Te e:pene inc#rre$ "!r 'e #p 8eepin( %n$&%in'en%nce !" per&%nen' pr!per'ie, !" 'e .#ine i c%lle$
Re2en#e E:pen$i'#re
3= A' 'e en$ !" 'e "in%nci%l peri!$, %ll re2en#e e:pen$i'#re
0!#l$ .e 'r%n"erre$ '!
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Re2en#e Ac !r Pr!"i' %n$ L! Ac
3) Te 'r%$in( %cc!#n' i 'e re#l' !" .#-in( %n$ ellin( !"G!!$
3 Te (re%' i&p!r'%nce !" pr!per 2%l#%'i!n !" Cl!in( S'!c8,lie in 'e "%c' '%', 'i i'e& $irec'l- %""ec',Te Gr! Pr!"i'
36 Frei(', C%rri%(e %n$ C%r'%(e %re c!' !" (!!$p#rc%e$, 'ere"!re, een in 'e Tr%$in( Acc!#n'
A$$i'i!n%l
3> Tree c%r(e 0ic %re inc#rre$ !n P#rc%e % 0ell %!n S%le
D!c8 D#e, Cle%rin( C%r(e %n$ C#'!& D#'-
3 Pre&i#& p%i$ in repec' !" 'e Li"e In#r%nce P!lic- !" 'epr!prie'!r i 're%'e$ %
Dr%0in( Acc!#n'
3? C!&p%r%'i2e '%'e&en', R%'i! An%l-i, C% Fl!0S'%'e&en', Bre%8 E2en P!in' An%l-i, Tren$ An%l-i %n$ BEP%n%l-i %re 2%ri!# '!!l "!rFin%nci%l S'%'e&en' An%l-i
3 c!&p%re, "in%nci%l $%'% %' '0! p!in' !" 'i&e %n$ elpin $eri2in(, 'e c%n(e in Fin%nci%l P!i'i!n, %n$ !per%'in(re#l'
C!&p%r%'i2e Fin%nci%l P!i'i!n
3 C!&p%r%'i2e B%l%nce See', Inc!&e S'%'e&en', C!&&!nSi1e S'%'e&en' %n$ Tren$ An%l-i %re 'e '!!l "!r
C!&p%ri!n !" Fin%nci%l S'%'e&en'
3?= P%' R%'i!, R%'i! !" R%'i! !" Si&il%r Fir&, In$#'r-A2er%(e %n$ R#le !" T#&. &%- .e 'e .enc&%r8 in 'e
Fin%nci%l An%l-i
3?) Li;#i$i'-, S!l2enc-, Ac'i2i'- %n$ Pr!"i'%.ili'- r%'i! %re(r!#p !"
Fin%nci%l R%'i!
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3?3 On %le !" !l$ e;#ip&en', !0ner9 e;#i'- 0ill
Re&%in Unc%n(e$
3? +i'$r%0%l .- 'e pr!prie'!r 0!#l$ re$#ce .!'
Ae' %n$ O0ner E;#i'-
3?6 P#rc%e !" 'e G!2ern&en' Sec#ri'ie "!r c% 0!#l$8eep 'e Ae'
Unc%n(e$
3?> B!' Ae' %n$ !0ner e;#i'- 0!#l$ .e incre%e$ .-
Re'%ine$ E%rnin(
3? Un$er 'e c!n2en'i!n !" C!ner2%'i&, pr!"i' %re%n'icip%'e$ %n$ %ll %re pr!2i$e$ "!r
P!i.le L!
3? Te c!n'in(en' Li%.ili'ie !0n in 'e B%l%nce See'%riin( !#' !" %cc!#n'in( c!n2en'i!n !"
Dicl!#re
3?6 Te c!ncep' per'%inin( '! cl%i"ic%'i!n !" Ae' %C#rren' %n$ Fi:e$
G!in( C!ncern
3?> Te c!ncep' per'%inin( '! 'e Fin%nci%l S'%'e&en'
F#ll Dicl!#re Principle
3? Te c!ncep' per'%inin( '! "!ll!0 'e +DV &e'!$ !"$epreci%'i!n !n % p%r'ic#l%r Ae' -e%r %"'er -e%r
C!ni'enc- Principle
3?? Te c!ncep' per'%inin( '! &%8e pr!2ii!n "!r .%$ %n$$!#.'"#l $e.'
C!ner2%'i& Principle
3? V%l#%'i!n !" Cr!p %' M%r8e' V%l#e, 'e principle %$!p'e$i
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In$#'r- Pr%c'ice
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3? C!ner2%'i& Principle i %n e:cep'i!n '! 'e
C!ni'enc- Principle
3= Acc!#n'in( pr%c'ice, !#l$ .e "!ll!0e$ !n !ri1!n'%l.%i "r!& !ne %cc!#n'in( peri!$ '! %n!'er in %cc!r$%nce0i' 'e
C!ni'enc- Principle
3) An incre%e in !0ner e;#i'- %' 'e en$ !" % peri!$ i 'ere#l' !" &%$e .- 'e .#ine
Ne' Pr!"i'
33 A cre$i' '! E;#i'- %cc!#n' 'e Acc!#n' i'el"
Incre%e
3 Inc!&e incre%e 'e !" 'e .#ine
Ne' 0!r'
36 Inc!&e c%n .e &%nip#l%'e$ .- !2er 2%l#%'i!n !r !"Ae'
Un$er2%l#%'i!n
3> Tr%$e $ic!#n' i %ll!0e$ .- %n$ c% $ic!#n' i%ll!0e$ .-
+!le%ler, Cre$i'!r
3 Te !.ec' !" c% $ic!#n' i '! in$#ce $e.'!r, '! &%8e p%-&en'
Pr!&p'
3? De.i' n!'e i prep%re$ !n 'e .%i !" .!!8
P#rc%e Re'#rn
3 Re%l %cc!#n' c%n .e !" '0! '-pe %n$
T%n(i.le, In'%n(i.le
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3 A B%l%nce See' i % '%'e&en' !" 0%' %n !r(%ni1%'i!n %n$ 0%' i' O0n %n$ O0e
3= E:pen$i'#re inc#rre$ in %c;#irin( n!n 2ii.le Ae', %re
cl%i"ie$ % Ae'
In'%n(i.le
3) S%re!l$er F#n$ c!&prie !" %n$
C%pi'%l, Re'%ine$ E%rnin(
33 One 0%- '! 2%l#e Ae' i '! c!&p#'e 'e preen' 2%l#e!" #c
Ae'
F#'#re E%rnin(
3 Li;#i$i'- i 'e %.ili'- !" %n !r(%ni1%'i!n '! &ee'li%.ili'ie !#' !!" i' Ae'
C#rren'
36 Te Ne' +!r' !" % Li&i'e$ C!&p%n- i e;#%l '!
S%re!l$er F#n$
3> I" % C!&p%n-9 '%n(i.le Ne' +!r' i % P!i'i2e %&!#n', i'in$ic%'e
Te !l2enc- !" 'e C!&p%n-
3 J!#rn%l i 'e .!!8 !" en'r-, %n$ 'e Le$(er i 'e .!!8!" en'r-
Ori(in%l, Sec!n$%r-
3? A $e.i' .%l%nce i ei'er %n !r
Ae', E:pene
3 A p#rc%e !" Fi:e$ Ae', 9!n %cc!#n'9 i "ir' rec!r$e$ in'e
J!#rn%l Pr!per
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3 i 'e .%i "!r %ll %cc!#n'in( rec!r$
S!#rce D!c#&en'
== +en %le !" (!!$ i n!' rec!r$e$, i' i %n err!r !"
O&ii!n
=) +en ne' re#l' !" %ll err!r i nil, i' i c%lle$
C!&pen%'in( Err!r
=3 Cl%i"ic%'i!n !" Ae', % c#rren' %n$ "i:e$ i .%e$ !n
c!ncep'
G!in( C!ncern
= I" "!ll!0 'e 0ri''en $!0n 2%l#e &e'!$ !" $epreci%'i!n,"!r % p%r'ic#l%r Ae' -e%r %"'er -e%r, 0ill .e .%e$ !n
C!n2en'i!n !" C!ni'enc-
=6 S%re!l$er F#n$ c!&prie
C%pi'%l %n$ Pr!"i'
=> Ne'0!r' le in'%n(i.le %e' i
T%n(i.le Ne'0!r'
= Fin%l Acc!#n' !" % c!&p%n- i prep%re$, %cc!r$in( '! 'e !" C!&p%nie Ac'*
Sce$#le VI, P%r' I
=? I" % c!&p%n-9 T%n(i.le ne'0!r' i p!i'i2e "i(#re, i'in$ic%'e !" 'e C!&p%n-
S!l2enc-
= En'rie in 'e S%le Re'#rn B!!8, %re ##%ll- !n 'e.%i !" i#e$ '! 'e C#'!&er
Cre$i' N!'e
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= T!e entry "assed in a .ournal, "!r .rin(in( 'e .%l%nce !"2%ri!# Ae', Li%.ili'ie %n$ C%pi'%l 0ic %lre%$- %ppe%re$in 'e B%l%nce See' !" pre2i!# -e%r, '! 'e .!!8 !" c#rren'%cc!#n'in( peri!$ i
Openin( En'r-
)= Entries "assed'! .rin(, in'! %cc!#n' cer'%in #nrec!r$e$i'e& li8e Cl!in( S'!c8, Depreci%'i!n, O#''%n$in( I'e& %n$Prep%i$ I'e& e'c*
)) Cre$i' i$e !" 'e per!n%l %cc!#n' !0,
A&!#n' P%-%.le
)3 Te E:ce !" S%le !2er 'e C!' !" G!!$ S!l$ i
Gr! Pr!"i'
) All e:pene 0ic %re n!' per'%inin( '! .#ine %re$e.i'e$ '!
Dr%0in( Acc!#n'
)6 Cl!in( S'!c8 %ppe%re$ in' 'e Tri%l B%l%nce 0ill .e '%8en
in
B%l%nce See'
)> Ae' %ppe%rin( in 'e .!!8 %2in( n! 2%l#e %re 8n!0n%
Fic'i'i!# Ae'
) F!r !0 &%n- prece$in( -e%r !#l$ Acc!#n' B!!8preer2e$ in G!!$ C!n$i'i!n
Ye%r
)? S#&&%ri1e$ '%'e&en' !" 'r%n%c'i!n rel%'in( '! %p%r'ic#l%r i'e& !r per!n "!r % p%r'ic#l%r peri!$ i
Acc!#n'
) T!ings tangible or intangible, %2in( 2%l#e e:pree$ in'er& !" &!ne-, !0ne$ .- 'e .#ine
Ae'
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) An %cc!#n'in( '%'e&en' 0ic pr!2i$e, in"!r&%'i!n%.!#' 'e "in%nci%l p!i'i!n !" 'e .#ine "ir& !n % p%r'ic#l%r$%'e i
B%l%nce See'
3= Te pr!ce 0ic i c!ncerne$ 0i' 'ecni;#e !"rec!r$in(, #&&%ri1in( %n$ prep%r%'i!n !" Fin%nci%lS'%'e&en' i
B!!8 Keepin(
3) An- e:c%n(e !" &!ne- !r &!ne-9 0!r' % (!!$ %n$er2ice .e'0een per!n i
B#ine Tr%n%c'i!n
33 C!' !" %c;#ii'i!n !" Ae' %n$ Ser2ice i
E:pen$i'#re
3 An e'"enditure,'e .ene"i' !" 0ic i "inie$ !r en!-e$0i' i&&e$i%'e e""ec' i
E:pene
36An Assetel$ "!r 'e er2ice, i' -iel$ in 'e pr!$#c'i!n!" !'er (!!$ !r er2ice
Fi:e$ Ae'
3> Te branc! o accountingprep%re$, &%inl- "!r pr!2i$in(in"!r&%'i!n, '! $ecii!n &%8er !#'i$e 'e .#ine i
Fin%nci%l Acc!#n'in(
3 Cl%i& !" e2er-!ne !'er '%n 'e !0ner %(%in' '! i'Ae'
Li%.ili'ie
3? S-'e& !" %cc!#n'in( '%' (i2e c!&ple'e pic'#re !" 'e"in%nci%l 'r%n%c'i!n, !" % .#ine rel%'in( '! %n %cc!#n'in(peri!$
Accr#%l Acc!#n'in(
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? A $!c#&en' .- re"erence '! 0ic % 'r%n%c'i!n irec!r$e$ in 'e .!!8 !" %cc!#n', i c%lle$ %
S!#rce D!c#&en'
Acc!#n' !" Pr!per'ie %n$ Ae'
Re%l Acc!#n'
A !#rn%l en'r- 0i' !ne cre$i' %n$ !ne $e.i'
Si&ple J!#rn%l En'r-
6= A le$(er i #e$ '! rec!r$ %cc!#n' !" per!n %n$in'i'#'i!n
Per!n%l Le$(er
6) Per!n%l %n$ Per&%nen' %cc!#n' 0ic %re n!' cl!e$$#rin( 'e c!#re !" .#ine
Per&%nen' Acc!#n'
63 Rec!r$in( !" 'r%n%c'i!n in 'e .!!8 inc!rrec'l-
Err!r !" C!&&ii!n
6 N!' rec!r$in( !" 'r%n%c'i!n in 'e .!!8 !" !ri(in%len'r-, !r n!' p!'in( "r!& 'e .!!8 !" !ri(in%l en'r- '! 'ele$(er
Err!r !" C!&&ii!n
66 Te state%ents "re"ared '! preen', peri!$ic rep!r' !"re#l' %cie2e$ %n$ "in%nci%l p!i'i!n !" % .#ine c!ncern
Fin%nci%l S'%'e&en'
6> Te !r$er in 0ic Ae' %n$ Li%.ili'ie, %re $epic'e$ in'e B%l%nce See', i 8n!0n %
M%rellin(
6 A i'#%'i!n in 0ic %n e:i'in( %e' &!$el, .ec!&in( !#'!" $%'e !n %cc!#n' !" in2en'i!n !" % .e''er &!$el
6? +roite%rne$ !n %le !" % "i:e$ Ae' !r re$e&p'i!n !" %"i:e$ li%.ili'-
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C%pi'%l Reer2e
6 A reer2e 'e e:i'ence !" 0ic, c%nn!' .e %cer'%ine$,"r!& 'e "%ce !" 'e B%l%nce See'
Secre' Reer2e
6 +ri'in( !"" 'e 2%l#e !" in'%n(i.le Ae' i
A&!r'i1%'i!n
>= Te ter%in 0ic 'e %ll!c%'i!n !" c!' !" Fi:e$ Ae',!2er i' #e"#l li"e i
Depreci%'i!n
>) Un$er %nn#i'- &e'!$, 'e %&!#n' !" $epreci%'i!n i
Fi:e$ "!r %ll -e%r
>3 Te 'er& 9$eple'i!n9 i per'%inin( '! 'e Ae'
+%'in( Ae'
> Re2%l#%'i!n &e'!$ !" $epreci%'i!n i (ener%ll- #e$ in'e c%e !"
L!!e T!!l
>6 O.!lecence &e%n $ecline in 'e 2%l#e $#e '!
Inn!2%'i!n %n$ In2en'i!n
>> +en $epreci%'i!n "#n$ &e'!$ i #e$, %n- pr!"i' !r l!
!n 'e %le !" in2e'&en' i 'r%n"erre$ '!
Depreci%'i!n F#n$ Acc!#n'
> Un$er %nn#i'- &e'!$ 'e %&!#n' !" $epreci%'i!n i$e'er&ine$ .-
Ae' Acc!#n' i $e.i'e$ 0i' in'ere'
>? Te &e'!$ !" $epreci%'i!n %$!p'e$ '! % C!%l Mine %n$ Oil
Fiel$
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Deple'i!n Me'!$
> In in8in( "#n$ &e'!$ !" $epreci%'i!n, 0ic %cc!#n' i$e.i'e$ "!r pr!2i$in( $epreci%'i!n
Pr!"i' %n$ L! Ac
> Te &e'!$ peci%ll- $ei(ne$, '! pr!2i$e "#n$ "!rrepl%ce&en' !" Ae'
Depreci%'i!n F#n$ Me'!$
= Un$er &e'!$ !" Ann#i'-, In#r%nce P!lic-, Sin8in( F#n$%n$ Fi:e$ In'%ll&en' 'e %.!l#'e %&!#n' !" $epreci%'i!nre&%in 'r!#(!#'
Fi:e$
) In'%n(i.le Ae' %2in( li&i'e$ 'er& !" e:i'ence4P%'en', C!p-ri('5 0ill .e %""ec'e$ $epreci%'i!n 'er&e$ .-
A&!r'i1%'i!n
3 Te 'er& #e$, 0en e:pire$ #'ili'- !" % p-ic%l Ae' '!.e rec!r$e$
Depreci%'i!n
Te 'er& #e$, 0en $i%ppe%rin( %n Ae' $#e '!in2en'i!n %n$ c%n(e !" li"e
O.!lecence
6 T0! Ae' '!e 0ic %re n!' (ener%ll- %""ec'e$$epreci%'i!n
L%n$ %n$ An'i;#e
> i n!' 'e pr!ce !" 2%l#%'i!n !" Ae', i' i 'epr!ce !" %ll!c%'i!n !" c!' !" Ae', '! 'e peri!$ !" '!eli"e
T(o inancial "rocedures,"!r en#rin( 'e repl%ce&en' !"Ae' '!e %re %""ec'e$ $epreci%'i!n, $#e '! #e"#lne !"'e %&e "!r e2er%l -e%r
B- Depreci%'i!n F#n$ Me'!$ %n$ In#r%nce P!lic- Me'!$
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? M%in'en%nce !" %n Ae' in '%'e !" e""icienc-, i n!' %#.'i'#'e
Depreci%'i!n Pr!2ii!n
T0! in'ern%l c%#e "!r $epreci%'i!n
+e%r Te%r %n$ Deple'i!n
T0! e:'ern%l c%#e "!r $epreci%'i!n
O.!lecence %n$ E""l#:i!n !" 'i&e
?= Te !#rn%l en'rie rec!r$e$ or not "ro&idingde"reciation%cc!#n' Depreci%'i!n AC Dr
T! Ae' AC
?) Te !#rn%l en'rie rec!r$e$ "!r pr!2i$in( $epreci%'i!n%cc!#n' Depreci%'i!n AC Dr
T! Pr!2ii!n "!r Depreci%'i!n AC
?3 +en %$!p'in( Sin8in( F#n$ &e'!$ !" $epreci%'i!n, 'e$epreci%'i!n %&!#n' i (ener%ll- in2e'e$ in'!Sec#ri'ie !#'i$e 'e .#ine
? Un$er &e'!$ !" $epreci%'i!n 'e c%r(e %re n!' e'%i$e %n$ 'e %&!#n' re&%in in 'e .#ine i'el"
Ann#i'- Me'!$
?6 Un$er &e'!$ !" $epreci%'i!n 'e c%r(e %rein2e'e$ !#'i$e 'e .#ine
Depreci%'i!n F#n$ Me'!$
?> Te .%i 4C!ncep'5 "!r rec!r$in( Ae' %' 'e !ri(in%lc!' !" %c;#ii'i!n i
Hi'!ric%l C!'
? Te p!r'i!n !" 'e ec!n!&ic li"e !" 'e .#ine, "!r 0ic%cc!#n'in( rep!r' %re prep%re$, ##%ll- in )3 &!n'
Peri!$ici'-
?? principle !" %cc!#n'in( rec!(ni1e, 'e $!#.le %pec'!" % .#ine 'r%n%c'i!n
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D#%l Apec' C!ncep'
? S'!c8 in 'r%$e i 2%l#e$ %' c!' price !r &%r8e' price0ice2er i le % per 'e c!n2en'i!n !"
C!ner2%'i&
? Un$er e'i&%'e !" Pr!"i' %n$ Ae' 0ill .e 'e e""ec' .-
C!n2en'i!n !" C!ner2%'i&
+R7N$7+LES O- MANA8EMENT
= An %r' !" (e''in( 'in( $!ne 'r!#( !'er i c%lle$
M%n%(e&en'
) Decii!n &%8in(, Pl%nnin(, Or(%ni1in(, S'%""in(, Direc'in(%n$ C!n'r!llin( "!r 'e %cie2e&en' !" !r(%ni1%'i!n%l!.ec'i2e %re &%in !.ec'i2e !"
M%n%(e&en'
3 Manage%enti 'e "#n$%&en'%l in'e(r%'in( %n$ !per%'in(&ec%ni& #n$erl-in( !r(%ni1e$ e""!r' %i$ .-
D%l'!n E McF%rl%n$
M%n%(e&en' i 'e %r' !" (e''in( 'in( $!ne 'r!#( %n$0i' pe!ple in "!r&%ll- !r(%ni1e$ (r!#p, pr!p!#n$e$ .-
%r!l$ K!!n'1
6 +! 0% c!ni$ere$ '! .e 'e "%'er !" M%n%(e&en'Pr!ce Sc!!l/
Henri F%-!l
> 9T! &%n%(e i '! "!rec%' %n$ pl%n, '! !r(%ni1e, '!c!&&%n$, '! c!!r$in%'e %n$ '! c!n'r!l9, pr!p!#n$e$ .-
Henri F%-!l
A$&ini'r%'i!n i % $e'er&in%'i2e "#nc'i!n 0ileM%n%(e&en' i %n "#nc'i!n
E:ec#'i2e
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? A$&ini'r%'i2e &%n%(e&en' i c!ncerne$ 0i' l%-in($!0n p!licie %n$ $e'er&inin( (!%l, 0ile &%n%(e&en' i '!
I&ple&en' 'e p!licie '! %cie2e (!%l
Te M%n%(er 0! %re i(er #p in ier%rc- 0ill $e2!'e&!re 'i&e !n
A$&ini'r%'i2e F#nc'i!n
A % cience, M%n%(e&en' !#l$ %2e % -'e&%'ic .!$-!" 8n!0le$(e incl#$in(
C!ncep', Principle %n$ Te!rie
= B#$(e'in(, C!' %cc!#n'in(, Pl%nnin( %n$ c!n'r!l 'r!#(Pr!(r%& E2%l#%'i!n %n$ Re2ie0 Tecni;#e 4PERT5 !r Cri'ic%lP%' Me'!$ 4CPM5, R%'e !" re'#rn !n in2e'&en' c!n'r!l %n$&%n%(in( .- !.ec'i2e %re
Tecni;#e !" M%n%(e&en'
) M%n%(e&en' c%nn!' .e c%lle$ %n e:%c' cience .ec%#e i'$e%l 0i' pe!ple %n$ 'eir .e%2i!r i
Unpre$ic'%.le
3 M%n%(e&en' i % cience
Be%2i!r%l Science
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+! c%lle$ 'e M%n%(e&en' i % 9S!"'9 cience/
Erne' D%le
6 A &%n%(er !#l$ %2e 8ep' '!r!#( 8n!0le$(e !2er&!$e !" !per%'i!n %n$ #e 'e 8n!0le$(e '! !l2e 'e
Or(%ni1%'i!n%l Pr!.le&
> Speci%li1e$ .!$- !" 8n!0le$(e, "!r&%l e$#c%'i!n %n$'r%inin(, repreen'%'i2e !r(%ni1%'i!n !r pr!"ei!n%l .!$-,c!$e !" c!n$#c' %n$ !ci%l !.li(%'i!n %re
Een'i%l re;#ire&en' !" Pr!"ei!n
T!e duty o %anager '! pr!'ec' 'e in'ere' !" 2%ri!#(r!#p !" 'e !cie'- li8e O0ner, +!r8er, S#pplier %n$C#'!&er %n$ G!2ern&en', i .%e$ #p!n
E'ic%l S'%n$%r$
? Pl%nnin(, !r(%ni1in(, $irec'in(, '%""in(, c!!r$in%'in(,rep!r'in( %n$ .#$(e'in( 4PODSCORB5 %re 'e &%in "#nc'i!n!"
M%n%(e&en'
Pl%nnin( i 'e -'e&%'ic 'in8in( %.!#' 'e 0%- %n$&e%n "!r 'e %cc!&pli&en' !" !.ec'i2e
Pre$e'er&ine$
De'er&in%'i!n !" !.ec'i2e, F!rec%'in(, Al'ern%'i2ec!#re !" %c'i!n, Dr%0in( p!licie, pr!(r%&, ce$#le %n$pr!ce$#re %n$ .#$(e'in( %re &%in pr!cee !"
Pl%nnin(
6== Te pl%nnin( in 'e .#ine %re cl%i"ie$ in '0! (r!#p0ic %re
S'%n$in( #e pl%n %n$ Sin(le #e pl%n
6=) T!e class o "lanning, 0ic per'%in '! O.ec'i2e,P!licie, Pr!ce$#re, Me'!$ %n$ R#le
S'%n$in( Ue Pl%n
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6=3 T!e class o "lanning, 0ic per'%in '! B#$(e'in(,Pr!(r%&in(, Pr!ec' %n$ S'r%'e(ie
Sin(le #e pl%n
6= De'er&in%'i!n !" !.ec'i2e, Di2ii!n !" %c'i2i'ie, Fi''in(in$i2i$#%l in'! !. %n$ &%8in( %0%rene !" %#'!ri'ie %n$rep!ni.ili'ie %re &%in pr!ce !"
Or(%ni1in(
6=6 M%n%(in( 'e Or(%ni1%'i!n%l 'r#c'#re, Appr%i%l %n$$e2el!p&en' !" per!nnel %re 'e e""ec'i2e "#nc'i!n !"
S'%""in(
6=> In"l#encin(, G#i$in(, S#per2iin( %n$ M!'i2%'in( 'eS#.!r$in%'e "!r 'e %cc!&pli&en' !" pre$e'er&ine$!.ec'i2e %re &%in "#nc'i!n !"
Direc'in(
6= +%' i 're%'e$ % 9Li"e Sp%r89 !" 'e en'erprie
Direc'in(
6=? C!&nic%'i!n, Le%$erip %n$ M!'i2%'i!n %re 'ree #."#nc'i!n !"
Direc'in(
6= &%- .e $e"ine$, % 'e pr!ce .- 0ic % M%n%(er(#i$e %n$ in"l#ence 'e 0!r8 !" i #.!r$in%'e
Le%$erip
6= Inpirin( '! 'e #.!r$in%'e, 0i' % e%l '! $! 0!r8, "!r'e %cc!&pli&en' !" !r(%ni1%'i!n%l !.ec'i2e i
M!'i2%'i!n
6)= i $e"ine$ % 'e &e%#re&en' %n$ c!rrec'i!n !" 'eper"!r&%nce !" %c'i2i'ie, !" #.!r$in%'e in !r$er '! &%8e#re '%' en'erprie !.ec'i2e %n$ 'e pl%n $e2ie$ '! %''%in'e& %re .ein( %cc!&plie$
C!n'r!llin(
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6)) De'er&in%'i!n !" '%n$%r$, Per"!r&%nce &e%#re&en',C!&p%rin( !" per"!r&%nce 0i' '%n$%r$ %n$ C!rrec'i!n !"$e2i%'i!n '! %cie2e 'e (!%l %re 'e ele&en' !"C!n'r!llin(
6)3 Te Pri&e "#nc'i!n !" Acc!#n'in( i '!
Cl%i"-in( %n$ rec!r$in( .#ine 'r%n%c'i!n
6) Te .%ic "#nc'i!n !" Fin%nci%l Acc!#n'in( i '!
Rec!r$ %ll .#ine 'r%n%c'i!n
6)6 M%n%(e&en' Acc!#n'in( pr!2i$e, in2%l#%.le er2ice '!&%n%(e&en' in per"!r&in(7
All &%n%(e&en' "#nc'i!n
6)> T!e $o%%ittee (!ic! decides, 'e '%n$%r$ '! .e!.er2e$ in 'e preen'%'i!n !" %#$i'e$ "in%nci%l '%'e&en'%n$ '! pr!&!'e 'eir 0!rl$ 0i$e %ccep'%nce
In'ern%'i!n%l Acc!#n'in( S'%n$%r$ C!&&i''ee
6) G!in( C!ncern, C!ni'enc- %n$ Accr#%l %re
F#n$%&en'%l Acc!#n'in( A#&p'i!n
6)? Te 'er& re"er '! 'e &%nner in 0ic 'e'r%n%c'i!n %re rec!r$e$ %n$ pr!cee$ in 'e .!!8 %cc!#n'Dei(n !" Acc!#n'in(
6) Te -'e& !" rec!r$in( 'r%n%c'i!n .%e$ !n $#%l %pec'c!ncep' i c%lle$
D!#.le en'r- -'e&
6) T!e con&entionper'%inin( '! &%8e pr!2ii!n "!r .%$ %n$$!#.'"#l $e.'
C!n2en'i!n !" C!ner2%'i&
63= nderesti%ate o assets,!0n in 'e B%l%nce See', ire#l'e$ 0i' 'e C!n2en'i!n !"
C!n2en'i!n !" C!ner2%'i&
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63) Te %&!#n' .r!#(' in .- 'e pr!prie'!r, in 'e .#ine!#l$ .e cre$i'e$ '!
C%pi'%l Acc!#n'
633 Tr%n%c'i!n rel%'in( '! per!n, pr!per'ie %n$ %e'%n$ inc!&e %n$ e:pene %re cl%e !"
B#ine Tr%n%c'i!n
63 Te 'er&in!l!(ie rel%'e$ '! 'e 'r%n%c'i!n, '! per!n,pr!per'ie %n$ %e' %n$ inc!&e %n$ e:pene %re e%$e$ .- repec'i2el-
Per!n%l, Re%l %n$ N!&in%l
636 J!#rn%l i 'e .!!8 !" en'r- 0ile le$(er i 'e .!!8 !" en'r-
Fir', Sec!n$
63> Te 'ecni;#e !" "in$in( 'e ne' .%l%nce !" %n %cc!#n',%"'er c!ni$erin( 'e '!'%l !" .!' $e.i' %n$ cre$i' %ppe%rin(in 'e %cc!#n' i
B%l%ncin( !" %n Acc!#n'
63 Te '%'e&en' c!n'%inin( 2%ri!# le$(er .%l%nce !n %p%r'ic#l%r $%'e i 8n!0n %
Tri%l B%l%nce
63? I" 'e '0! i$e !" 'e Tr%il B%l%nce '%llie$, i' i %nin$ic%'i!n !" 'e "%c' '%' 'e .!!8 !" %cc!#n' %re %cc#r%'e
Ari'&e'ic%ll-
63 Te 'er& 99 &e%n % J!#rn%l 0ic i &e%n' "!r %peci%l p#rp!e
Speci%l J!#rn%l
63 !#rn%l i #e$ '! rec!r$ Pr!&i!r- N!'e recei2e$ !ri#e$ .- 'e .#ine
Bill J!#rn%l
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6= A$#'&en' en'rie, Tr%n"er en'rie %n$ Rec'i"ic%'i!nen'rie %re p%e$ in 'e !#rn%l
Gener%l J!#rn%l
6) (i2e i'e& 0ie in"!r&%'i!n %.!#' 'e (!!$p#rc%e$, !l$ !r re'#rne$ $#rin( % p%r'ic#l%r peri!$
C!l#&n%r J!#rn%l
63 Te per!n 0! i en'i'le$ '! 'e p!ei!n !" 'eCe;#e i c%lle$
H!l$er
6 Te pr!ce !" 'r%n"errin( !" !0nerip !" 'e in'r#&en'i 'er&e$ %
En$!re&en'
66 Te !l$er !" .ill i %8e$ .- 'e $r%0er, '! preen' 'e.ill '! % ec!n$ p%r'-, in c%e 'e $r%0ee !r %ccep'!r $i!n!r'e .ill, #c ec!n$ p%r'- i 8n!0n %
Dr%0ee in c%e !" Nee$
6> N!n p%-&en' !" 'e %&!#n' !" % Pr!&i!r- n!'e !rCe;#e !n 'e $%'e !" &%'#ri'- i c%lle$
Di!n!#r
6 A or%al certiicate!" $i!n!r !" Ce;#e !r Bill i#e$.- 'e n!'%r- p#.lic
Pr!'e'in(
6? I" %ll p%r'ie %(ree, % .ill &%- .e 0i'$r%0n .e"!re&%'#ri'- '! %2!i$ $i!n!r, 'e .ill i %i$ '! .e
Re'irin( !" % Bill
6 A Bill !" E:c%n(e p%-%.le %"'er % cer'%in peri!$ i 8n!0n% .ill
Ti&e
6 A Bill $r%0n %n$ %ccep'e$ "!r % (en#ine 'r%$e 'r%n%c'i!ni 'er&e$ %
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Tr%$e Bill
66= A per!n n%&e$ in % ne(!'i%.le in'r#&en' '! 0!& !r '!0!e,!r$er 'e &!ne- in 'e in'r#&en' i $irec'e$ '! .e p%i$i c%lle$ %
P%-ee
66) $%- !" (r%ce peri!$ i %ll!0e$ in c%e !" Ti&e Bill "!rc%lc#l%'in( $%'e !" &%'#ri'-
Tree
663 A2!i$%nce !" Ri8, Pre2en'i!n !" "r%#$ %n$&i%ppr!pri%'i!n %n$ Re$#c'i!n in %cc!#n'in( 0!r8 %re 'e
%$2%n'%(e !" 8eepin(
B%n8 Rec!ncili%'i!n S'%'e&en'
66 Err!r, Direc' c!llec'i!n !n .e%l" !" c#'!&er, B%n8C%r(e, Sen' "!r C!llec'i!n ce;#e n!' -e' cle%re$ %n$i#e$ ce;#e n!' -e' preen'e$ %re re%!n "!r $i""erence.e'0een
C% B!!8 %n$ P% B!!8
666 Te 'er& 99 &e%n inc!&e !" rec#rrin( n%'#re, "r!&%n- !#rce i
Re2en#e
66> Te 'er& $en!'e 'e c!' !" er2ice %n$ 'in(#e$ "!r (ener%'in( re2en#e
E:pene
66 In c%e !" G!l$, re2en#e i rec!(ni1e$, in 'e %cc!#n'in(peri!$ in 0ic 'e G!l$ i
Mine$
66? In c%e !" l!n( 'er& c!n'r%c', re2en#e i (ener%ll-rec!(ni1e$,
E2en 0en % p%r' !" c!n'r%c', % .een c!&ple'e$
66 In c%e !" 9Tr%$i'i!n%l Appr!%c9 'e e:pene '! .e&%'ce$ 0i' re2en#e i .%e$ !n
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Ori(in%l C!'
66 Te cl% !" E:pen$i'#re, "!r %c;#irin( c!p-ri(', p%'en'ri(' %n$ (!!$0ill
C%pi'%l E:pen$i'#re
6>= Tr%np!r' c%r(e inc#rre$ "!r ne0 pl%n' %n$ &%ciner-%re '%8en %
C%pi'%l E:pen$i'#re
6>) In'ere' !n c%pi'%l p%i$ $#rin( 'e 'i&e !" c!n'r#c'i!n !"% .#il$in( !r pl%n' %re '%8en %
C%pi'%l E:pen$i'#re
6>3 A$2er'iin( %n$ Preli&in%r- e:pene %re ##%ll- 0ri''en!"" !2er % peri!$ !" -e%r
6 -e%r
6> Te n%'#re !" e:pene 0en c!' !" (!!$ p#rc%e$ "!rre%le
Re2en#e E:pen$i'#re
6>6 R >=== pen' !n "!r 'e repl%ce&en' !" % 0!rn !#' p%r'!" % &%ciner- i
Re2en#e E:pen$i'#re
6>> Dic!#n' %ll!0e$ !n i#e !" %re i %n e:%&ple !" e:pen$i'#re
De"erre$ Re2en#e
6> Te 'er& &e%n (!!$ l%-in( #n!l$ 0i' 'e.#ine&%n %' 'e .e(innin( !" %cc!#n'in( -e%r
Openin( S'!c8
6>? P%c8in( e:pene inc#rre$ "!rseeing attracted'e %l%.le(!!$ i c%r(e$ %(%in'
Pr!"i' %n$ L! Acc!#n'
6> In'ere' !n $r%0in( i
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G%in "!r 'e .#ine
6> G!!$ (i2en % %&ple !#l$ .e cre$i'e$ '!
P#rc%e Acc!#n'
6= S%le '! R%& R* p!'e$ '! i %cc!#n', % 0!#l$e""ec' %cc!#n'*
R%&9 Acc!#n'
6) S%le '! R%& R* >== n!' rec!r$e$, in 'e .!!8 0!#l$e""ec'7
S%le %n$ R%&9 Acc!#n'
63 C%rri%(e c%r(e p%i$ "!r % ne0 pl%n' p#rc%e$, i"$e.i'e$ '! c%rri%(e %cc!#n', 0!#l$ e""ec' %cc!#n'
Pl%n' %n$ C%rri%(e %cc!#n'
6 A %le !" R* )== '! A rec!r$e$ in 'e p#rc%e .!!80!#l$ e""ec' %cc!#n'
P#rc%e, S%le %n$ A9 %cc!#n'
66 An %&!#n' !" R* 3== recei2e$ "r!& P cre$i'e$ '! 0!#l$e""ec'
Acc!#n' !" P %n$
6> A #& !" R* 3== 0ri''en !"" % .%$ $e.' n!0 recei2e$cre$i'e$ '! 'e %cc!#n' !" 'e $e.'!r* Te rec'i"ic%'i!n en'r-0!#l$ e""ec' pr!"i' .- R* 3==
Decre%e 'e
6 G!!$ p#rc%e$ "r!& A "!r R* 3=== p%e$ 'r!#( 'eS%le B!!8* Te rec'i"ic%'i!n !" err!r 0ill re#l' in
Decre%e !" Gr! Pr!"i'
6? R* )== .ein( P#rc%e Re'#rn, 0% p!'e$ 0% p!'e$'! 'e $e.i' !" P#rc%e Acc!#n'* Te rec'i"ic%'i!n en'r- 0illre#l' in
Incre%e !" Pr!"i' in Tr%$in( Acc!#n'
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6 Dic!#n' R* 3== recei2e$, en'ere$ in 'e c% .!!8, 0%n!' p!'e$ '! 'e Le$(er* Te rec'i"ic%'i!n en'r- 0ill re#l'in
Incre%e !" Pr!"i' in PL Acc!#n'
6 F!r 'e p#rp!e !" C!' An%l-i, 0e c%n $i2i$e 'e.#ine c!ncern in'! '0! c%'e(!rie7
Tr%$in( %n$ M%n#"%c'#rin( C!ncern
6?= T!e nature o costper'%inin( '! In'ere' !n C%pi'%l, S%l%r-"!r 'e Pr!prie'!r %n$ 'e Ren' !" 'e .#il$in( !0ne$ .- 'epr!prie'!r %n$ #e$ "!r .#ine p#rp!e iI&p#'e$ C!'
6?) Te %c'#%l inc!&e e%rne$ .- 'e .#ine c%n .e 8n!0n!nl-, 0en 'e .#ine i "in%ll-
Cl!e$ D!0n
6?3 In c%e !" in"l%'i!n%r- c!n$i'i!n, c%n(in( !"$epreci%'i!n !n !ri(in%l c!' !" 'e "i:e$ %e' 0ill re#l' in !" .#ine inc!&e
O2er'%'e&en'
6? i (ener%ll- rec!(ni1e$ %' 'e 'i&e 0en 'e %le !"(!!$ '%8en pl%ce
Re2en#e
6?6 Inc!&e i 'e !#'c!&e !" e:ce !r $e"icienc- !" re2en#e!2er rel%'e$
E:pire c!'
6?> Te 'er& B#ine Inc!&e incl#$e ne' inc!&e
Re%li1e$
6? Te c!ncep' !" c!ner2%'i& en#re '%' 'e rep!r'e$pr!"i' i n!'
O2er '%'e$
6?? Acc!r$in( '! LIFO &e'!$, &%'eri%l p#rc%e$ in 'e l%'%re '%8en '! .e i#e$
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Fir'
6? Acc!r$in( '! FIFO &e'!$, 'e in2en'!r- !" r%0 &%'eri%l0ill c!ni' !" p#rc%e
L%'e'
6? Te .%ic "!r rec!(ni'i!n !" re2en#e, %' 'e 'i&e 'epr!$#c'i!n i c!&ple'e$, i (ener%ll- "!ll!0e$ in 'e c%e !" in$#'rie
E:'r%c'i2e In$#'rie
6= Te principle rec!(ni1in( re2en#e, pr!p!r'i!n%'e !n 'e.%i !" 0!r8 %c'#%ll- $!ne i (ener%ll- "!ll!0e$ in c%e
c!n'r%c'
L!n('er&
6) Te %e'4 Le%e !l$ pr!per'ie, p%'en' %n$ c!p-ri('5(e' $ecre%e$ in 'eir 2%l#e 0i' 'e p%%(e !" 'i&e, c%#e !"#c $epreci%'i!n i
E""l#: !" 'i&e
63 i&plie re&!2%l !" %n %2%il%.le .#' irrepl%ce%.lere!#rce #c % e:'r%c'i
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