Accounts from incomplete records Anil Gomez Technical supports by my kiddies Abey & neha

Accounts from incomplete records

Anil Gomez

• Technical supports • by

• my kiddies

• Abey & neha

A real life illustration

• Let us learn how profit is calculated without the help of the accounting science

• This practice is still popular• You have a lesson but poor Harry

calculating his days profit without the help of a teacher

Harry called it common sense accounting

• Solutions to the accounting problems using one’s commonsense is called commonsense accounting

Harry the lonely & aimless narrates his chronicle

• UNFORTUNATEA BOY OF UR AGEDoesn’t know where to go

HARRY’S GRANDMA

It was all fate harry’s parents were dead while was a plus1 class• A poor boy like you, had all

desires and craves for love, affection, protection, education etc But his fate denied all these and was bound to take the brunt of the family. poor granny is helpless to school him

How pathetic

The little one had no choice but to opt peanut selling

After buying peanuts he walked towards the park

peanut

Bought peanutsfor rs30

He reached the park

• He began selling in front of the park

During the course he took Rs 25 from the cash box

• With this money he had a cup of tea and packed some food for granny

Having tea

Due to crowd his stock got exhausted soon, he further bought nuts for Rs40 by borrowing from his friend

• Harry becomes liable for

Rs 40thanks

HE IS THINKING “HOW CAN I PAY OFF THIS”

WHAT FATE

At sundown he finished his sale and set out homeward

• . When reached home his unfortunate grand mother asked how much you made from ur business

The question of her grandma made him think

How muchWas

With u in the morning?

ONLYRS 30

the boy still is in puzzlementHOW MUCH

UHAVENOW?

Rs 90only

Conversation contd

Grandma: then ur profit is RS 60only(ie 90-30)

• SON: no granny , I borrowed 40 from my friend Don’t I have to pay that back

Grandma: certainly u have to pay ur debt first after that ur profit is 20 only• SON: no granny ,I am still confused • Grandma :what is it now ?

SON:I took Rs 25 for our tea & food etc

• Grandma :Then u are at loss of Rs 5

No granny then every businessman spend a lot for their personal matters

We makeProfitFor

Our livingDon’t we?

Granny baffled

This created granny in a puzzled state

• After a while granny continued You are right my boy The personal exps like spending for tea, food etc really not a loss

Harry: you mean that Rs 25 spent for food is a part of our profit• Granny: my dear then we had not

sustained any loss as I said • Harry: then why did you say with

profit of RS 20 personal expenses should be deducted and u stamped me loss maker of 5rs

granny: you are my grandson You are shrewd business man • Harry: then how much is my profit?

Granny and grand son asks you

• Should the profit be increased or reduced by the personal exps met for my son and me

• FINALLY OUR PRIFIT IS HOW MUCH?

See Harry's friends enjoying their + one life

• Look at that class room

Harry's friends learning formats of capital comparison method

Suffering teacher thrilled

guys

with

Is this how Harry learned?Clg cap 90Add drawings 25Less additional cap 40Less opg cap 30Profit earned Rs 45

LearnThis

formathai

The message

• Let us take the good of Harry who uses brain for application while his friends use brain for mugging up not realizing what he learns

Let us promote the kids to apply

sensecommon

Anil Gomez says it is not