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E1 E1-E2 E2 Management Module Management Module BSNL CORPORATE PRACTICE & ACCOUNTIG For internal circulation of BSNL only

E1--E2 E2 Management Module

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Microsoft PowerPoint - CH13-E1-E2 Management-BSNL CORPORATE PRACTICE & ACCOUNTIG.ppt [Compatibility Mode]WELCOME
• This is a presentation for the E1-E2 Management Module for
the Topic: BSNL Corporate Practice & Accounting
• Eligibility: Those who have got the Upgradation from E1 to
E2.
• This presentation is last updated on 21-3-2011.
• You can also visit the Digital library of BSNL to see this topic.
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Agenda
Hiring of Rented Buildings
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BSNL CORPORATE PRACTICE & ACCOUNTIG
Bank Books
COLLECTION CASH BOOK OPERRATION CASHBOOK
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ACCOUNTS IN ACCOUNTING UNITS
BSNL CORPORATE PRACTICE & ACCOUNTIG
units .
The SSA/PAUS will have to intimate their 10 days requirement
of funds.
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Supply of funds
BSNL CORPORATE PRACTICE & ACCOUNTIG
below:-
method”
WORKS, AND CLAMS SECTION.
accounts.
accounts.
accounts.
BSNL CORPORATE PRACTICE & ACCOUNTIG
Accounts with accumulated depreciation.
supporting schedules
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BSNL CORPORATE PRACTICE & ACCOUNTIG
persons.
One receives the benefit and the other gives the benefit.
The person receiving the benefit is called “Debtor”. The
person giving the benefit is called Creditor.
Thus each and every transaction involves TWO entries.
One for Debit and the other for Credit.
This kind of recording the transactions in TWO places
simultaneously is called Double Entry System.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
rules for making entries into the books of accounts.
Real Account – Debit the A/C which comes in
-Credit the A/C which goes out.
Personal Account - Debit the account who receives
-Credit the account who pays
Nominal Account – Debit all Expenditure & losses
-Credit all Income & gains.
BSNL CORPORATE PRACTICE & ACCOUNTIG
the accounting units.
1. Purchase Journal
2. Sales Journal
BSNL CORPORATE PRACTICE & ACCOUNTIG
& interpreting all financial events with following objectives:
(i) For ascertaining gains or losses during the period
(ii) How Profit & Loss made
(iii) Ascertaining value of Assets & Liabilities as on date of
closure of Accounts.
(vi) Liabilities of taxes.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
and Bank book.
Vouchers (JV).
BSNL CORPORATE PRACTICE & ACCOUNTIG
• The following books of accounts are to be maintained for
making entries of the transactions.
• Operation Cash Book – for recording day to day cash
expenses.
expenses by cheque
BSNL CORPORATE PRACTICE & ACCOUNTIG
collection cash and remittance to bank a/c.
• Collection Bank book – for recording collection by
cheque and transfer to Nodal branch.
• Journal Entry Register – for recording non-cash
transactions
• Separate set of books are to be maintained for each
bank under operation and collection.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
Balance sheet : shows the financial position of the firm
at a given point of time in terms of assets and liabilities.
Profit and loss statement: reflects the performance of
the firm over a period of time.
Cash flow statements: Display the sources & uses of
cash during the period.
these financial statements are interpreted by working out
various Accounting ratios.
BSNL CORPORATE PRACTICE & ACCOUNTIG
Books.
3. Classification & posting in general-ledger
4. Preparation of Trial Balance
5. Profit & Loss Account
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BSNL CORPORATE PRACTICE & ACCOUNTIG
It is a form of associated enterprise.
The company being a corporate form of organization is
the owner of its assets and liabilities.
The liability of the members is limited.
The formation & functions of the company are regulated
by the companies Act 1956.
Companies are playing important roles in the economic
field.
BSNL CORPORATE PRACTICE & ACCOUNTIG
1) It is a voluntary association of persons.
2) It has a separate legal entity.
3) It is an artificial person.
4) It has a common seal.
5) It has a perpetual succession.
6) The liabilities of the members are limited
7) A Board of Directors manages the Company.
8) It must have a registered office.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
Every company shall keep in its registered office proper
books of accounts with respect to ;-
I. All sums of money received and spent by the company
and the matter in respect of which receipts and
payments took place.
III. Assets & liabilities of the company.
Such books may be kept at the other places as decided
by the board of directors under intimation to the
Registrar within seven days of such decision.
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Accounting Records of Company
BSNL CORPORATE PRACTICE & ACCOUNTIG
India and changes in the global economy due to
globalization process, it was decided to separate DOT and
DTS as a precursor of corporation.
DOT - Department of Telecom for policy making.
DTS - Department of telecom Services – for execution of
work.
BSNL CORPORATE PRACTICE & ACCOUNTIG
Financial information of BSNL
rules and policies fixed by Govt., Govt. Departments
grow in shelter of national economy.
But, in a Company structure, Directors headed by a
C.M.D governs the whole administration, Interest and its
policies are being decided by Board of Directors in a
Company .
BSNL CORPORATE PRACTICE & ACCOUNTIG
(ii) Revenue Recognition
taken as revenue.
the accounting period whether received or receivable is
considered as income for the period .
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BSNL CORPORATE PRACTICE & ACCOUNTIG
(iii) Expenditure Recognition
also considered as actual money paid.
But in a company all expenses which have been accrued
during the period whether paid or payable are
considered as expenditure.
BSNL CORPORATE PRACTICE & ACCOUNTIG
(iv) Financing/Fund Allotment
In govt. set up, the sources of funds for department was
mainly from Consolidated Fund of India, and Public
Fund of India.
After formation of BSNL it had started its business with
its own working capital and have to arrange the funds
with its own resources.
BSNL CORPORATE PRACTICE & ACCOUNTIG
(v) Marketing Strategy
DOT was having monopoly in Telecom area and there
was no need to behave on commercial pattern or to think
about obtaining market share of Telecom Services.
In BSNL setup ,it is most important to achieve maximum
market share by adopting good marketing strategy.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
Procedural Difference between Govt. Departments and Limited Company
The term project is used to indicate a goal oriented task which
is complete in itself and includes many components required.
Construction of building, installation of exchange/equipment
are examples of project.
expenditure, i.e. expenditure meant for getting assets those are
utilised to earn revenue for company.
Capital budget is anticipated / planned expenditure to acquire
assets to increase the revenue earning capacity of the
company.
Capital Projects & Capital Budget
BSNL CORPORATE PRACTICE & ACCOUNTIG
according to quantum of expenditure.
1. Statement for projects costing Rs 20 crore and above.
2. Statement for projects costing less than Rs 20 crore
Budgets in our department are to be prepared
keeping in view the spirit of zero base budgeting.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
Capital Projects & Capital Budget
of the project for the ensuing year independently, in
light of present need and market rates and index,
without giving much weightage to past trend of
expenditure.
BSNL CORPORATE PRACTICE & ACCOUNTIG
Capital Projects & Capital Budget
of execution
viability
It is prepared after AOP to assess the more accurate
value of work
BSNL CORPORATE PRACTICE & ACCOUNTIG
(3)Supplementary Estimate
During the course of execution of a project, it may found
necessary for some extension or development of the said
project and if it results in exceeding the original estimate by
more than 10%, then such excess must be covered by
preparation of supplementary estimate.
estimate which also causes the expenses by more than 10%
of original sanctioned estimate. Revised Estimate needs to
be prepared.
BSNL CORPORATE PRACTICE & ACCOUNTIG
viable.
Recurring Expenditure (ARE) and Anticipated receipts &
savings of a project.
BSNL CORPORATE PRACTICE & ACCOUNTIG
received, the respective amount is treated as liability for
the company. Till the time of payment, such amounts are
kept as liability and shown as a single consolidated
figure in Balance sheet at the end of year.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
1.Tenders should be invited in the most open and public
manner.
2. Tenders must be invited for hiring of accommodation on
the basis of carpet area.
3. The building selected must be technically suitable and
justifying rent also.
4. Assessment of rent may be got done by civil wing of the
department.
Assessment Committee).
BSNL CORPORATE PRACTICE & ACCOUNTIG
Hiring of Rented BUILDINGS
2. Hiring should be based on competitive tenders from open
market.
3. No. of vehicles hired should not exceed 75% of the
shortage
periodical maintenance.
5. Hired vehicles should be utilised fully and shortage in
utilising the contractual kms. in any particular month should
be adjusted over a period of subsequent 3 months.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
necessary by CGM ,can be hired for official
works/movement of staff.
8. No privately owned vehicles should be hired
9. Cost of hiring should be booked in Admn. expenses
10.Given monetary limit should be observed
11. SuitableTaxes may be deducted at source
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Hiring of Vehicle
(i) Acquisition through L. A .Act.
(ii) Acquisition from private parties.
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BSNL CORPORATE PRACTICE & ACCOUNTIG
Immediate fencing is to be done.
Display of ownership board.
Site to be inspected at least once in every six months.
Vacant land can be used temporarily.
Land should not be kept unutilized for a long period
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Measures to be taken after acquisition of land
BSNL CORPORATE PRACTICE & ACCOUNTIG
C A.
P&L a/c and Balance sheet should be prepared at circle.
Accounts of all circles are compiled at BSNL Corporate
office
Balance sheet and P&L A/C shall be approved by Board
of Directors.
After audit these accounts can be laid in AGM
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BSNL CORPORATE PRACTICE & ACCOUNTIG
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