Education at Svtuition.org

Basel 3 in India

noreply@blogger.com (Vinod Kumar) — Mon, 26 Mar 2012 11:18:00 +0000

Basel 3 is the new regulation of capital requirements of a bank. These new regulations are issued by Basel committee on banking supervision in 2010. These regulations and recommendations are the the amendment of Basel 2 recommendations.Basel 3's recommendations will improve the banking system by increasing the efficiency to cover the shock of financial crisis. Basel 3 will also reduce the financial risk.

Before recommending Basel 3 in 2010, Basel committee studied the reasons of international world crisis in 2008. By adopting recommendations of this Basel 3, risk of happening same financial crisis will decrease.

Regulatory Capital under Basel 3

1. Tier 1 capital

a) Common equity tier 1 and additional tier 1 capital

2. Tier 2 capital

3. Capital conservation buffer ( CCB)

Overall capital as a % to risk weighted assets.

Every commercial bank which is working in India should have capital as per following % of risk weighted assets.

1. Minimum common equity tier 1 ratio for credit risk + market risk + operational risk

India 5.5 and BCBS recommended 4.5

2. Capital conservation buffer

India 2.5 and BCBS recommended 2.5

3. Minimum common equity tier 1 ratio + capital conservation buffer ( 1+2)

India 8 and BCBS recommended 7

4. Additional Tier 1 capital

India 1.5 and BCBS recommended 1.5

5. Minimum Tier 1 capital ratio
(1+4)

India 7 and BCBS recommended 6

6. Tier 2 Capital

India 2 and BCBS recommended 2

7. Minimum total capital ratio ( 5 + 6)

India 9 and BCBS recommended 8

8. Minimum total cpaital ratio + capital conservation buffer ( 7 +2)

India 11.5 and BCBS recommended 10.5

These recommendations will apply on scheduled commercial banks excluding RRBs and LABs.

Now, question is, whether above recommendations will apply in 2012 or in future. Actually, these recommendations are phase-in- programme of RBI. Following is the chart which will show you the period in which 100% of these recommendations will apply.

Related : Basel Accords

Video Lecture on Income Tax - Part 3

noreply@blogger.com (Vinod Kumar) — Tue, 27 Dec 2011 06:00:00 +0000

This video is the part of teaching of income tax law 1961. In this part, I will teach you to compute net profit which will be taxable.

Video Lecture on Income Tax - Part 1

noreply@blogger.com (Vinod Kumar) — Mon, 26 Dec 2011 10:48:00 +0000

In first part, we will learn different expenses which are allowed by Income tax law for calculating net profit.

Video Lecture on Income Tax - Part 2

noreply@blogger.com (Vinod Kumar) — Mon, 26 Dec 2011 09:34:00 +0000

In second video lecture on income tax, we are covering depreciation rates. I have explained different depreciation rates as per income tax law 1961 for AY - 2011- 2012

Peachtree vs Tally

noreply@blogger.com (Vinod Kumar) — Sat, 17 Dec 2011 12:16:00 +0000

I know that Peachtree is very famous software in the filed of accounting .There are large no. accounting transactions or problems that are solved by peechtree software. Tally software is also accounting based software.

This tally software is on its growing stage and also used in many countries. Both accounting software have own characteristics to solve the accounting problems. It is depend upon you and your department that which software is suitable according to the cost of installation in your department and cover all accounting transactions which are concerned with your business. But today the demand of tally software is very increasing due to its accuracy and easy use.

There are lots of advance work like multi-currency options, cost centers and inventory management system which are wonderful. Except this, tally has its own existence for statutory and taxation. In India, tally is used in almost all the business organisation. So, my personal preference is of using tally. But, Once again advice you that both software are best in accounting. It is depend upon you that which software you adopt easily.

Written by Guest Writer - Davinder

MCA Accounting Notes

noreply@blogger.com (Vinod Kumar) — Sat, 17 Dec 2011 09:23:00 +0000

The Master of Computer Applications (MCA) is a postgraduate degree in computer application streams awarded in India. Full time MCA programmes normally take three academic years. Many universities have added "ACCOUNTING AND FINANCIAL MANAGEMENT" subject in MCA degree. Because my specialize field is Accounting and Finance. So, I can help you to learn this subject. For providing you accounting notes, I am taking "JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA" I YEAR I SEMESTER M.C.A's Accounting syllabus. I hope, all those who are studying MCA, following notes will be helpful for you.

{Important Note : Some of these notes will be published in future. So, please bookmark this page for your future learning. }

UNIT I:

Accounting: Generally Accepted Accounting Principles(GAAP) and Accounting standards, Characteristics and limitations of single entry system, double entry system of accounting, introduction of basic books of accounts ledgers..

UNIT II:

Preparation of trial balance - Final accounts - company final accounts. Users of Accounting Information, Role of Accountant in modern Organization.

UNIT III:

Financial Management - meaning and scope, role, objectives of time value of money - over capitalization – under capitalization - profit maximization - wealth maximization - EPS maximization.

UNIT IV:

Ratio Analysis - advantages - limitations - Fund flow analysis - meaning, importance, preparation and interpretation of Funds flow and cash flow statements-statement of changes in working capital.

UNIT V:

Costing - nature and importance and basic principles. Elements of cost, Absorption costing vs. marginal costing - Financial accounting vs. cost accounting vs. management accounting.

UNIT VI:

Marginal costing and Break-even Analysis: nature, scope and importance - practical applications of marginal costing, limitations and importance of cost - volume, profit analysis, Short run decisions.

UNIT VII:

Standard costing and budgeting: nature, scope and computation and analysis - materials variance, labor variance and sales variance -cash budget, sales budget - flexible Budgets, master budgets.

UNIT VIII:

Introduction to computerized accounting system: coding logic and codes, master files, transaction files, introduction documents used for data collection, processing of different files and Outputs obtained.

Is to Register with Any Government Authority Necessary for Issuing Certificate

noreply@blogger.com (Vinod Kumar) — Fri, 09 Dec 2011 10:24:00 +0000

A person started his own computer training institute, upon course completion, he wants to issue certificate to the students. Is he supposed to register with any government authority? If yes, where and how? India.

Karan from India

Dear, there is no need to be register with any govt. authority. If you are perfect in your knowledge. You can issue the certificate to your organisation's certificate. Before giving the certificate, you have to take the test and you should record your student's result in your own database. After this, your given certificate will be valid.

Adjustment of Provision for Bad Debts

noreply@blogger.com (Vinod Kumar) — Fri, 02 Dec 2011 15:35:00 +0000

Sometime ago, I explained the adjustment of provision for bad debts through making of provision for bad debts account. But today, we are very happy, we are teaching you the new and simple way to adjust the amount of provision for bad debts directly in profit and loss account. For this purpose, we have made two video. One video is for Indian students. This video is in simple Hindi. Second video is in English language for international students. I hope both my student community will get benefit from these videos.

Video in Simple Hindi Language

Video in Simple English Language

How to Execute Simple Accounting on Excel

noreply@blogger.com (Vinod Kumar) — Tue, 29 Nov 2011 16:05:00 +0000

Hi sir,
I want to learn how to execute accounting on excel. I am a beginner in accounting and on excel too. Initially I want to do my accounting on EXCEL. Can u please help me with simple concepts how to do simple accounting for a small scale firm. Thank you.

sajjad ali

Accounting in Excel Tips will be helpful for you.

Solution of Goodwill Problem

noreply@blogger.com (Vinod Kumar) — Tue, 29 Nov 2011 15:58:00 +0000

Bill Gladstone has owned and operated Gladstone service station for over 30 year. In 2011, he decided to sell the station and retire from business. His asking price exceeds the fair market valve of its net identifiable assets by nearly 50,000. Gladstone attributes this premium to the above normal return that the service station has always generated .
there are two problems which cause effects on goodwill
1. A well known service station will recently open near the station after just 18 month.
2. One of his underground tank find some leaks.
Muhammad irshad from Pakistan

Dear Muhammad, you need not worry from anything. Now one can get your goodwill. You should sell your station by getting the amount of goodwill. No, new service center will also increase your goodwill. But you can decrease the some value or repair leaks. ok

List of Guest Writers

noreply@blogger.com (supporter) — Fri, 25 Nov 2011 17:38:00 +0000

1. Shri Om Parkash

2. Davinder

Guest Writer - Davinder (MBA)

noreply@blogger.com (supporter) — Fri, 25 Nov 2011 17:35:00 +0000

Davinder is one of my students. His education is MBA. He is doing full time work. After this, he is supporting me in this not-for-profit organisation as per-time employee and Guest Writer. Following are his written contents

1. Duties of Account Assistant in Educational Institute
2. Peachtree vs Tally

Duties of Account Assistant in Educational Institute

noreply@blogger.com (supporter) — Fri, 25 Nov 2011 17:32:00 +0000

At present, I am doing work in an educational institute which is famous in Northern India. I am going to discuss about the duties of account assistant. When I was free, I have no knowledge about office work. But know I have experience of one year and three months as account Assistant. I had joined this educational institution on 18 August, 2010. I have learnt many things and gain knowledge from this educational institution within my duty time. When I was fresher or when I was free of this profession I have no knowledge about official environment. When I joined this institution I learnt about official environment and office work. On first day it was learnt to me that how I should talk with office persons and college students. And how I should sit, stand and walk in the office. So, with the help of this work I am able to learn that how I should sit, stand, walk and talk with other persons.

Now, I am going to discuss about my duty which is related accounting profession. I am doing work in this institution as a account assistant. Before joining this college I have no practical knowledge about cash books, ledgers, tally entries and cash counter. When I joined this college, firstly I was introduced with the main cash counter of the account department. On this cash counter the students of the college dealing with cash and bank demand draft transactions. I have to collect cash from students and keep the records in cash book. These cash transactions are related with their semester fee, university fees, examination fee, hostel and transport fee. Each this kind of transaction is dealt on this cash counter. After that I had introduced with ledger posting and tally entries. Some time it is said to me to make bank reconciliation statements to match the bank balance and college books balance. So, like me, these may be your duty as account assistant in educational institute.

Written by Guest Writer Davinder

Answer of Seminar Topic of Management Accounting

noreply@blogger.com (Vinod Kumar) — Sat, 19 Nov 2011 13:45:00 +0000

I need to know the Role of Management Accounting in profit maximization.

Emeka from Nigeria

Emeka! There is big role of management accounting in profit maximization because management accounting provides useful accounting information to management which are helpful for taking better business decisions. For example financial accounting provides the information that our sales in previous year is $ 2 million. We can not get any decision on this basis. But after applying management accounting tool, we find that product J's total sales is 64% of total products sales and it is from our K branch. This management accounting's information is more useful than simple financial accounting's information because we can invest more money for developing our product J and branch K. With this, we can maximize our profits more fastly. This example is just like a sample,we can do more things like cash flow analysis, ratio analysis and working capital management in management accounting. So it is very important for every organisation.

Importance of Finance Resources

noreply@blogger.com (Vinod Kumar) — Sat, 19 Nov 2011 13:26:00 +0000

Financial resource is the most important yet delicate and even crititcal in managing formal organization.

Enoqy Mchomvu from Tanzania

Enoqy Mchomvu! Yes, you say right finance resource is the most important yes delicate because if we do little mistake for getting finance resource, it may be possible that our return will decrease. It may increase our risk of repaying this. For example, if we got loan of $ 1 million, if we took it for very short time at very high rate of interest. At that time, this finance resource will create big liquidity problem for our business. So, we have to take decision relating to this more seriously. It is also critical because if we are unable to repay loan, this finance resource will be the path of liquidation of our company.

Branch Creation in Tally 9

noreply@blogger.com (Vinod Kumar) — Sat, 19 Nov 2011 13:12:00 +0000

Sir,
I am using Tally 9 but facing problems in creating different branches with same depts. in each branch. How can I create different branches with some same types of departments in each branch?

Soumi Kundu from India

Dear, Your problem is little confusing. But, I am telling solution on the basis what I understood your problem.

Suppose, you have two branches one is in Delhi and other is in Mumbai. Now, you have three department in Delhi branch one is accounting, other is marketing and last and third is research. Now, there are two divisions in accounting department. One is A division and second is B division.

You can create same structure in tally by following way:

First go to Tally and then go to accounting features. In accounting features, you have to write yes to maintain cost center feature. Now go to accounting info and create Delhi branch and Mumbai branch under primary. After this, you have to create accounting, marketing and research department under Delhi branch. After this, you can create, A division and B division cost center under Accounting department. On this basis, you will create structure what you want to make.

Cost Pool System

noreply@blogger.com (Vinod Kumar) — Thu, 10 Nov 2011 08:29:00 +0000

Mott Manufacturing allocates factory overhead using one cost pool with direct labor hours as the allocation base. Mott has two production departments, P1 and P2. The new accountant at Mott estimates that next year, the total factory overhead costs will be $5000000, and approximately 500,000 direct labor hours will be worked. The accountant also estimates that P1 will use 150,000 direct labor hours, and there will be about $3000000 in overhead costs in P1. P2 will use 350,000 direct labor hours, and there will be $2000000 in overhead costs in P2. Mott has two products, A1 and B1. It takes two direct labor hours in P1 and three direct labor hours in P2 to complete one unit of A1. It takes one direct labor hour in P1 and four direct labor hours in P2 to complete one unit of B1.

Which product will be undercosted and which will be overcosted with the one-cost-pool system?

Faye M Bell!

1st Point : There are two products A1 and B1. Its total factory overhead costs is estimated and it is $ 5000000 and total direct labor hours are 500000. It means to per hour direct labor cost is $10. There are two departments P1 and P2.

2nd Point : For producing one unit of A1 total time total labor hours = 2hrs in P1 + 3hrs in P2 = 5hrs, it means total direct labour cost of one unit of A1 = $ 10 X 5 hrs.

For producing one unit of B1 total labor hours = 1 hr in P1 + 4 hrs in P2 = 5hrs, it means total direct labour cost of producing one unit of B2 = $ 10 X 5 hrs = $ 50

3rd Point : P1 per Labor hour cost = $3000000/150000 = $ 20

P2 per Labor hour cost = $ 2000000/350000 = $ 5.71

4th Point : Meaning of Under costing and Overcosting

5th Point : Decision

Product B1 is overcosted

How to Make Driving Licence in India

noreply@blogger.com (Vinod Kumar) — Fri, 04 Nov 2011 17:06:00 +0000

In the age of corruption in India, some people are taking enough money for making driving licence in India. If you are good citizen of India, never capture in the talking of these people. You should make your driving licence directly without any linkman. Following steps will be helpful for making your driving licence in India.

1st Step : Collect the Documents Photo Copy

For making driving licence, you need to collect two proof's photo copy. One is of the proof of your age and second is of your residential place. You can get your age proof from the photo copy of your 10th certificate or from PAN Card's photo copy and second proof is of your residential place which you can get from electricity bill photo copy or your voter card's photo copy. These photocopies should be attested from notary officer.

2nd Step : Apply for Driving Licence

Driving licence is given by Govt. transport officer. In every district, you can find Government Swidha Centre. Where you can get application of driving licence. Its cost will be Rs. 10. Now fill it by yourself. After this, go to medical test. It is just like a drama. Doctor will test your blood group and take Rs. 40 as fees and will issue your medical fitness certificate. Now, you have to deposit same medical certificate and application in Swidha Centre. It will again get Rs. 60 and give your the time of 10 days.

3rd Step : Get Learning Driving Licence

After 10 days, you will get learning driving licence. Now, drive your vehicle more carefully. After 45 days, you will have to pay about Rs. 300 and you will get long period regular driving licence.

Excise Duty Online Return File

noreply@blogger.com (Vinod Kumar) — Mon, 31 Oct 2011 05:08:00 +0000

For New Indian manufacturing Accountants, I have made this video tutorial, with this video tutorial, they will learn the simple steps to file the central excise tax return online without any difficulty. If you want to learn its written text, you can read at http://www.svtuition.org/2011/10/e-filing-of-excise-return.html

Self Confidence PDF File

noreply@blogger.com (Vinod Kumar) — Sun, 30 Oct 2011 15:57:00 +0000

This is my first post in Accounting Education. Today, I am happy to announce its PDF version, which you can see at Google Docs pen web page. You can also download it. In this PDF file, you will read 5 tips of getting self confidence. You can read and download this pdf file at here.

Shri Om Parkash - Guest Writer of Accounting Education

noreply@blogger.com (Vinod Kumar) — Sat, 29 Oct 2011 07:26:00 +0000

Shri Om Parkash

Shri Om Parkash Ji is my Father. He completed his B.Com degree in 1970. He started his Career with office Assistant in Private Company in 1970. In 14 April 1971, he selected for State Govt. service as Account Assistant. After this, he never saw back and he provided his best services in Govt. department with honestly and dedication for 35 years. He retired as Circle Superintendent of Water Supply and Sanitation Department of State Govt ( 30-6- 2006). Now, he spends more time in the devotion of Lord Shri Krishna.

In these 35 years, he gained Following skills and experience :

1. Administration

As circle superintendent, he was responsible for administration. He appointed and transferred lots of districts. With his accurate knowledge of govt. rules and regulations, he managed all the departments in which he was appointed.

2. Management of Accounts Department

Main : Payroll, EPF, Gratuity, Pension management, Other welfare works of employees, Fund management, Cash management, Budget, tender management, Capital Budgeting.

3) Auditing the Other Govt. Departments

Division and Sub- division office.

4) Taxation

He was also responsible to manage taxation through TDS on Salary and payment to Contractors.

5) Solution Provider of the Problem of Govt. letters

Sometime, Govt. ministers demand the urgent information or solution of the problem of their letters. At that time, he worked as a troubleshooter.

6) HR Duty of Accounting Department

For appointment of new workers and employees, he was the member of HR Committee.

7) Central govt. projects

He also handled some big Central Govt. Projects.

8) Meeting with sub-division engineers at division level and meeting executive engineers at circle level.

Time to Time

9) Proper guidance to the sub division offices from division office.

Time to Time

His Strengths

(a) Disciplined (b) harmony among the employees (c) promptness works (d) Observant (e) Caring of govt. property (f) Patience (g) Dedicated to duty (h) Flexible (i) Tactful (j) honesty (k) Religious

His Written Contents at Accounting Education

1. Types of Government Budgets
2. How to Educate Employees of Government Department
3. Can a Person Get Back Money from Government Account

Accounting Education is Looking for Guest Writers

noreply@blogger.com (Vinod Kumar) — Thu, 27 Oct 2011 09:25:00 +0000

We're looking for talented guest writers to join us. If you want to write for Accounting Education and think you might be a good fit, read on.

What makes a great Accounting Education writer can be tough to define, but here are some qualities that could make you a perfect fit (along with knowing how to write a great Accounting Education post):

1. You like finding better ways to do things in accounting field, you should capacity to write all these things for more accounting productivity.

2. You can explain complex concepts of accounting to a beginner with clarity and ease.

3. You can prove you can write (especially if that writing is for any not for profit organisation).

4. Keeping up with the latest and great tips, tricks, hacks, and accounting news is part of your average day.
You have basic photo editing skills and maybe even a knack for screencasts/making videos.

If a few things on this list describe you pretty accurately, you could make a good guest writer for Accounting Education. As a guest writer you'd be tasked with writing a few posts on a given day as a trial. If things work well, there's a possibility of a more permanent, paid position or showing your small profile and mentioning your website and your work. If you'd like to apply, send us an email at vinod@svtuition.org with the subject Accounting Education Guest Writer Application. While we love India and it's always easier if you're somewhere in the India, feel free to apply from anywhere. Here's what to put in your email:

4-5 sentences about yourself, why you'd like to write for Accounting Education, and what would make you a good fit.

A couple of links to something you've written (especially blog posts) and interesting projects you're proud of (especially your any online recommendations).

Your availability.

Do not attach a resume (or anything, for that matter). We get a lot of submissions and can't respond individually to everyone, but we do read every submission and appreciate your interest.

MBA First Semester Syllabus

noreply@blogger.com (Vinod Kumar) — Wed, 26 Oct 2011 10:04:00 +0000

Following is MBA first Semester Syllabus. In this syllabus, we include all subjects of MBA first semester like management practices and organisational, managerial economics, computer fundamentals and computer aided, accounting for management, business environment. This Syllabus, I firstly published in Scribd. Now it is embed in this site.

If you want to study its notes, you can study at here.

MBA First semester syllabus

Analysis of Current Ratio

noreply@blogger.com (Vinod Kumar) — Mon, 17 Oct 2011 10:13:00 +0000

Following video will analyze company's short term position. For analysis, current ratio has been taken. As a rule of thumb, current ratio should be 2:1. Proportion of current assets in current ratio should not be very high or very low than what has been given in the rule of thumb.

Properties of Determinants - part 1 (Lecture)

noreply@blogger.com (Vinod Kumar) — Sat, 15 Oct 2011 15:56:00 +0000

With this lecture, you will learn two first properties of determinants.