Qualities of Good Teachers

We can see list of great teachers in history of every great person of the world who contributed for making them. If you are also a teacher, you should know the qualities of good teachers. If you will develop these qualities, you can get better performance from your students. It is sure, one day these students will become great personalities of the world. So, know these qualities :

1. Quick Sound Judgement 

One of qualities of good teachers is to take quick sound judgement. We all take decisions. But, some decisions are good and other may be wrong. But teacher's one wrong decision may effect the whole life of a student. Delay of teacher's decision is also not for sorry because it is the question of future of students.

2. Kind Feelings

Kind feelings is also part of the quality of good teachers. If a teacher sees any orphaned student, he should not take fees from him. If a teacher sees any student who has no book, he should give free books to him. If a teacher sees that his student has not eaten the food, he has to make food for him. I think, it will be quality of good teacher, if he behaves his student like his own son. He should be strong of voice but kind from heart.

3.  Common Sense

Teachers should read more and more books for increasing common sense. Teachers should read more and more educational website for increasing common sense. It will be the quality of a good teacher, if he has store of treasure of knowledge. This quality can get only regular and daily pray of God. He should demand knowledge from God.

4. Patience 

Patience is an other quality of great teachers. Great teachers keep patience in their every work. They do not demand of quick result of their teaching. They do not demand that their students have become expert but they live their life in positive thinking. They take their steps of teaching more patiently. They already know that they have to carry students to 25th  floor. But they do not motivate them to jump from 25th floor ( it is common sense, no one jump on 25th floor from ground floor). They teach them to climb on first floor by taking 10 to 20 or whatever steps. Patiently, they teach everything.

5. Impartiality 

Today, we are seeing everybody is doing partiality with others. For example, I take the example of Govt. employees. Their salaries are Rs. 40,000 to Rs. 50,000. It is very easy for them to buy the fruits of Rs. 200 per kg. But a private person whose salary is just Rs. 4000 to Rs. 5000, how can he buy these fruits. Fruits are very necessary product for both rich and poor. When Govt. employees buy fruits at Rs. 200 per kg, at that time, fruits seller will not decrease the rate for poor person. It is clear that fruits vendor is partiality with poor community on the basis of money.

But teacher is teacher. You have to become good teacher. Yes, only good teacher. You will see one student of poor community and one student of rich community. You will see one black student and other will be white. You will see one student of your religion and other student of your anti-religion. But, you have to teach same. You have to see them with your one eye. It will be the quality of good teachers, if they make same standards and measurements for all type of students.

6. Sincerity 
 
You see the Ads on TV Channel. What do you see in TV ads, do you get? No, because, all TV advertisers are cheaters. They give big amount to Film and other celebrities. All these celebrities speak white lie just for earning Rs. 15 to Rs. 20 Crores per 15 second TV Ads. Is it the example of sincerity of social responsible celebrities. But, we all are teachers. We have to bring sincerity quality in our life. I am also teacher. I always take care of this great quality in my personal life also. Because my personal life will effect on my professional teaching life. When I give time to other to meet, I try to reach on this time. If I do not reach on that time. It is not my sincerity. So, I always call to the that person. First of all, I say that I am very sorry, I will not come on the time for meeting with you. But, it give me power to speak truth.

7. Ability to Teacher Better Way

 Teaching is not writing, teaching is not speaking, teaching is not discussing, teaching is not giving punishment, teaching is not explaining, teaching is not taking the exam. Teaching is the big mixture of all these activities by using right activities at right time. You can not get this quality outside. You have to find your ability inside you. One hero lives always in you. Search it! { Reference : Thanks to Dosti Film's one scene where I found these qualities}

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How to Calculate Cash Conversion Cycle

Cash conversion cycle tells the period in which we collect our cash if we invest our money in inventory and then we sell it on credit. If cash conversion cycle is positive, it means, we have more time for collecting money  from inventory and credit sales than payment to creditors. At that time, we have to maintain other sources of cash for our operation of business. If cash conversion cycle is negative, it means, we can collect money more quickly  from our inventory and credit sales than payment to our creditors. At that time, we can take decision to invest this money in other projects.

Following is the simple formula for calculation of  cash conversion cycle or period


= Inventory conversion period + Receivables conversion period – Payables conversion period

or

= 365 / inventory turnover ratio + 365 / debtors turnover ratio - 365/ creditors turnover ratio


Following is example which explain this concept 

Actually cash conversion period is nothing but it is the part of whole cycle which is created with inventory, debtor and creditor conversion cycle.

Both days payable outstanding and days sales outstanding will tell you the exact position of cash conversion period. Our aim of studying cash conversion cycle and its calculation is to change the policies relating to credit purchase and credit sales. We can change our standard of payment of credit purchase or getting cash from our debtors on the basis of reports of cash conversion cycle. If it tells good cash liquidity position, we can maintain our past credit policies.  Its also aim is to study cash flow of business. Cash flow statement and cash conversion cycle study will be helpful for cash flow analysis. 

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Average Payment Period

This ratio will tell us the numbers of days or months for making the payments of trade payable. It is propinquity  between no. of working days and creditor turnover ratio. Its formula is given below:

= No. of  Working Days or Months  / Creditor Turnover Ratio

or   Account payable / Net Credit Purchase / 365 or 360

For example, if creditor turnover ratio is 60 times of net credit purchase, then average payment period will be

= 365 / 60 =  6 days

For this instance, we can understand that company will take 6 days to pay its creditors and account payable.

Interpretation of Average Payment Period

If this period will be low, it will be good for our liquidity because more smartly, we will pay our creditors, more amount of credit purchase, we can get.


If this period will be high, it will create the risk for our liquidity position because some creditor can demand and in long period, we can forget to pay. One month or two month is best time period of our creditors. So, our average payment period should be between 30 to 60 days.

 
We can also use this ratio in cash conversion cycle. Cash conversion cycle ratio is
inventory conversion period + average collection period - average payment period. Only calculate this period, we can adjust average payment period for minimum affecting the balance of  normal flow of our cash. 

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Mutual Funds Accounting ( Simplified )

Mutual fund accounting is  that an accountancy practice which is helpful for making correct financial reporting for mutual funds. In this accounting practice, there are two main parties who maintain the accounts of mutual funds.

(A) One is investor who invests his money in different mutual funds for reducing his risk from direct investment in share market. So, for seeing the return and total investment, he needs to record all his mutual fund investment transactions.

 (B) Second party is asset management company or Trustees of Mutual Funds. This company gets money from investors under different capital units schemes. So, this is liability for this company. For showing exact position of this liability and for showing return on this money, it has to maintain its accounts. So, we try to simplify mutual funds accounting from Asset management company or trustee Point of View.

1. Record the All Transactions relating to Mutual Funds

(A) Recording of Issue of Units of Mutual Fund :  When person buys the units of mutual funds, it will be the duty of Mutual fund company to record it in its books. For example, any person buys 10 units of Reliance Capital Asset Management Co. Ltd. It will become the capital of this mutual fund. So, it should be record like the recording of capital. Bank account will be debit and unit capital will be credit in this transaction. Every person who will get unit will be  Mutual Fund unit holder like any shareholder.

(B)  Recording of Investments of Mutual Fund Money : If Mutual fund company invests his money in shares or, its record will be done like purchasing of any other asset. But we have to mention that specific shares. Suppose, Reliance capital Asset Management Co. Ltd has invested money in  equity share capital. At that time, Investment in equity share capital account will be debit and bank account will be credit.

(C) Recording of Fixed Assets, Current Assets and Other Assets: In this world, every businessman or service provider need office. Mutual fund company is just service provider. It has expert who are interested to increase the capital of unit holder. So, they need different fixed assets. When they buy, it is the duty of its accountant to record all the transactions relating to fixed assets, current assets and other assets.

(D) Recording of Incomes : Mutual fund company gets earning from dividend, interest, derivative transactions and other sources. All incomes should be recorded like recording of incomes of any other normal businesses.

(E) Recording of Expenses : Main expenses of mutual fund company are the management fees. Company pays  the big salary to experts. Company also pays money for advertising and marketing. We have to record it.

(F) Recording of Other Transactions : Except above, all the transactions relating to mutual funds will be recorded on the basis of accounting rules.

2. Calculation of NAV 

NAV means net asset valuation. At any time or daily basis, NAV is calculated. It is very helpful to calculate the market value of each mutual fund unit. Both mutual fund company and its investors are interested to know NAV. We can calculate NAV with following simple formula.


NAV or Market Value of a Mutual Fund Unit

 = Total Investment at Market rate - Total Outside Liabilities /  Total No. of Units

For Example

3. Financial Reporting for Mutual Funds

SEBI has made regulation 54 under SEBI (Mutual Fund) Regulation 1996. This has given some guidelines for financial reporting for mutual funds. Following are main reports and financial statements of mutual fund company

(a) Report of the board of trustees on the operations

(b) Balance Sheet and Revenue Account

Following is its example :

Related Resources 

Hedge Fund  Accounting

Hedge Accounting

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Appraisal of a Project

Following given problem is good project. We can do appraisal of this project through NPV. So, to calculate correct NPV is important for us. During the time of reading of question and its solution, you will learn many good points of appraisal of any project.

( Sorry dear friends, you can not read this question and solution because it has become confidential problem and solution on the request )

We love our all users and we are fully responsible to take care their privacy relating to their problems. If you also want that your problem should not be published on the web. Please tell your published problem's title at my email address vinod@svtuition.org 

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Think Positive

Yesterday, I went to a school for providing free gift to poor students where I saw some quotes relating to Think Positive. I liked these think positive quotes and today, I am thinking on these points more deeply. I hope, you will read these points. It will surely increase your energy and power.

Today is Going to be a Great Day! 

Everyday, when you get up early in the morning. You should think that this today will be great. This day, I will do all great work. Today, I will help to orphan children. Today, I will help the patient. Today, I will help poor and needy people. Today, I will bring happiness in the world by my new invention. Today, I will  contribute to remove sadness of someone. Today, I will contribute for world peace. Today, I will solve the problem of others. Today  is very important for me. I will do today what I could not do past days. I am full confident that today is a great day for me because I donate everything what I can donate. I will obey my parent's order. I will obey my teacher's order. Today is going to be a great day because today, I will become more powerful. I will become more healthy. Today, I will make friendship of great friends who will support  in my whole life. Today, I will all my work myself. Today, I will sacrifice of all my bad habits. I am very happy. There is no limit of my happiness because today is going to be a great day in my whole life.

I can Handle More than I think I can!

This is very good positive thinking. I think that I can handle more than I think I can! I am repeating it 10 times. Please wait for repeating me this 10 times....

Wow, I am feeling  great power inside me. I am  feeling  great resources inside me. I am  feeling that I am  richest person of the world. Today, I can sit 10 times more on chair because today, I am thinking that God has given me more power to solve more and more accounting problems. Normally, I think that I can solve maximum 5 problems in a day but today, I am thinking that I can handle 50 problems in a day. What is happening to my thinking. It is magic. Please wait, I again cry 10 times ," I can handle more than I think I can!

Wow, I am feeling endless great power inside me. I am feeling endless resources inside me. I am feeling that I have endless money. Now, I can help endless orphan children. I can fight endless problems of the world. I can provide endless resources to poor students. Thanks God, you have selected me from billions of people. You have given me the power to handle more than I think I can.





 Things don't Get Better by Worrying about Them!

I taught same thing to the father who want to collect Rs. 15 Lakh for his child's Thalassemia (Major) treatment. I told him, if you worrying about this, you will not collect same donation. With this worry, your health will be affected. It may be possible that a dangerous disease may attack on you if you take this deep tension. Like this, I want to tell that we all should think positive. Never expect risk of future just shortage of financial resources.

Think when we born what was with us. We got all things from God. God is real source of all our financial resources. So, why do you waste your time and energy in worrying. Same time, you can pray of God. God is also our real mother. When we cry in the foot of our God mother. It is sure, we will get all our financial resources.

 I can be Satisfied if I try to do My Best 

This is also good think positive quote. You should always try to do best. Result is not in your hand. Your best try should be your food of satisfaction. When you eat food what you feel. You feel satisfaction. You should fight best. You should struggle best. You have to try best for winning in the play ground. You have to try to do best for writing your examination. In my case, I am not God to solve all the problems. But, I feel satisfied, if I do my best. This is also real way of living life.

There is always Something to be Happy about! 

In this world, there is always a good source of happiness but it is your duty to find it. If you will see birds, they live in present and feel enjoy. There is no basic pay of Rs. 50,000 or Rs. 1,00,000 p.m. any of them but they enjoy of their life. Why are you feel sad, if your pay is just Rs. 2,000 p.m.. If they can feel enjoy, you can also feel enjoy.

 It is not Good to be Down!

Never feel negative. If you feel negative, it means you are down. You are young and it is not good to be down.

 Life is Great, Make the Most of it!

Yes, life is great because this life will not get next time if we die. If I will die, I will not get Vinod's body again. So, we all have to take maximum benefits of it. I want to help all the orphaned children of the world. So, for this, I have to struggle from today. I have to educate whole world, for this, I have to do hard work for this. I have limited time. I know the great personalities of the world. One great scientist has developed computer. I am thankful that person because he had made my source of earning. One scientist had made fan. I am thankful that scientist  because it is very useful for me in the summer. All other scientists have contributed great in their great life. I am so inspired from all of them. Today, I promised that I will also get maximum benefit of my  life for bringing happiness in your life.  

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Accounting of Bribe

Dear Prof. Vinod,

Regards! I am a regular visitor and reader of your articles on web and have learnt many accounting concepts from these. Presently I am working as an Accountant with a construction contractor. My problem is that sometimes we have to withdraw money from company's bank account and then have to give that money as bribe to government officials or any other person. Another problem is that we can't change or modify the bank statement, so how and where to show these entries in accounts? Should we create some fake expenses account and transfer this cash transaction into that or if there is any other solution please guide and help me.

An early response in this matter shall be highly appreciated.

Thanking you in anticipation.

Yours sincerely

Ajay Singh from India

Ajay Singh! If you are honest, you can do three things for accounting of bribe.

1. Resign immediately

This is simplest way. You will not do the duty; you are not responsible for this type of corrupted activities. Start an educational institute in your city because accounting is science, it is not technique to cheat others. Bribe is poison. We should not mix poison in this great science.

2. Record Correct

It may be possible that you can not leave your this work. At that time, you can record correct. It means, you have to create the account of Bribe to Govt. Officer and pass the voucher entry.

Bribe to Govt. Officer (Name of That Govt. Officer) Account Dr.

To Bank Account or Cash Account

With this, you will give the hand to truth. This truth will give hand to you. Face this truth. Never use to record wrong expenses in your books because this is lie. With this, you will be responsible for this crime.

3. Change the System

Real accounting of bribe is to change system. In this way, record the list of all corrupt officers. Fight against them by starting anti- corruption movement. You will see that these type of movement are working in every city. With this way, your this contribution will be example for others new accountants. 

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Donation for Thalassemia (Major) Child

Today, we met child who is getting benefit from our Student Welfare Council. He is patient due to happening of Thalassemia (Major) disease. His name is Master Chakshu Sindhi. His father name is Devki Nandan and Mother name is Anshu Rani. Due to this Thalassemia disease, he uses new blood after every 12 to 15 days. His operation cost is Rs. 15 Lakh approximately. So, I donated some amount in this great welfare activities from Accounting Education Social Welfare Fund because Accounting Education's main aim is to help needy and helpless.  Some other organisations and persons can contribute their donation in following form.

1st Donation in Money

Close your eyes and feel that child who affected from Thalassemia, is your own child. What will you do? You will do everything what you can do for saving your child's life. Rs. 15 Lakh is very little amount. We all indians are about 120 Crores. If its 1% will donation just Rs. 1. We are ready to save more than 10 children who are affected from Thalassemia by paying Rs. 15 Lakh for each. You can save Chakshu by donating your money directly to Christian Medical College Ludhiana Society. That child’s hospital unit no. C-7331089. You can donate via cheque or online bank transfer. He has a complete HLA matched Brother Mukul as donor.  Its official website is http://cmcludhiana.in/ . Its official address is

Dr. M. Joseph John (Associate Professor and Doctor)

Christian Medical College and Hospital
Brown Road, Ludhiana, INDIA.
Phone:- 91-161-2229011-21

Phone : 0161-5037957

Fax :- 91-161-2228416
Email :- care@cmcludhiana.in

2nd Donation of  Bone Marrow Transplant

Treatment of Thalassemia by Bone Marrow  Transplant. So, you can register for this at http://www.mdrindia.org/

3rd Donation of Blood

Every 3 to 6 month, you can bring smile on such Thalassemia Children by donating your blood. These type of children's bodies can not make blood, but you can donate and save their life.

4th Donation by Praying of God

Today, I prayed to God that Take my life and saved the life of all such children. Dear God, you are so powerful. There is not any word of impossible in your dictionary. So, accept my pray and give happiness to their families. You can also such pray to God, I hope, God are very near of us and he will give light or way. This will also be your best donation.

5th Donation by Sharing  this Webpage with Your Friends

One of last and good way donation for Thalassemia children is to share this webpage with your friends. Suppose, you have 1000 friends in facebook or you have 1000 friends in your email account. Send following link to all your friends by just copy and paste.

Dear Friend, Please Read  this  Donation for Thalassemia Children Request . If you can do something for him, do fastly.

You can also share it in your page automatically by just  like to +1  this on Accounting Education at Our Google Plus Page or Like button on Facebook.

What will happen, if you will share this webpage with your friend.

 Suppose, you can not donate money or anything above  for that Thalassemia child. But you friend have money or anything above and he donate directly to the organisation. Because this donation went from your request. So, you will also get God's blessing.

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How to Implement Inventory System in Tally.ERP 9

Sir.

I have gone through your tutorial in youtube and learnt a lot about tally erp 9.
i have tally erp 9 version 1.1.
I have business of ladies suits manufacturing in new Delhi. I have proprietorship firm. I want to implement tally myself for accounts as well as inventory purpose.
my business process is like this
we purchase cloth from Mumbai and surat in rolls of 100 mtrs of different colour of different variety and we cut piece of cloth in mtrs and gave to contractor for embroidery work and stitching. and we receive our processed work in pieces.. e.g. we gave 20 suit pieces at a time of 1 design he gave back 6 at a time , 8 at a time and 6 at a time.. we have problem of maintaining the record of pieces of different design and payment we made to contractor.. as we are maintaining physical record.. we want to maintain records in tally erp 9.. is it possible? we want to maintain records of physical inventory placed at our store house with tally erp.. so that we can easily know what our physical stock is there so we can order raw material in single click with help of erp.. i don't have knowledge of inventory in erp.. for my business.. pls help me to implement tally erp in my business...
is this software is helpful for my business inventory and accounts problem.. I did b.com so i have basic accounts knowledge of journal and entries and balance sheet... please help me regarding implementation of process..
and also. help me side by side.. in inventory basically how to maintain such stock
of raw material .. work in process and finished good..
thank you... waiting for ur reply.. and u are doing great job...

take care

Sachin Taneja from India

First of all, you did not provide me all the information. For example, in 100 meters how much will you get the pieces of suit. What is the price of your buying of raw material and What is the amount of payment you pay to contractor. Ok, it may be due to your business privacy. So, I took some estimations of all these questions. On these estimations, I am trying to solve your problem through following video. I hope, you will see it and it will solve your problem.

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Cost Management

Cost management is the set of different decisions which are taken by manager for controlling the cost. To control the cost is the aim of cost management. Cost accounting and management accounting helps to manage cost because both branches of accounting provide useful information. On these information, we can manage our cost proper way. Except cost accounting and management accounting, we are writing some new points which can also help to control cost.

Cycle Time 

In this busy world, time is money. If we waste our time, we have to pay for this. Minimum cycle time can save our cost. For example, we have developed good production techniques. With this, we can fastly produce our goods. It will decrease raw material holding cost and idle labor cost because we will not leave our big production resources free. Like this, if manager has developed low time for cash conversion cycle. It will decrease cost of loan because we can convert our cash more fastly from our sales. For this, we have to concentrate on following points:

a) To reduce production processing time : There may 100 of process for completing our production. If we save one second in each process, we can save 100 seconds. This time can be used for other good purposes which may reduce the product cost.

b) To bring co-ordination between production and sales : When manager will do work for bringing co-ordination between production and sales, it will reduce both production and sales cost. For this, we have to open our eyes and find what is happening in this world. We have to take decisions according to this.

Benchmarking 

This is new and wonderful way to manage cost. It means to see our business processes and other companies' business processes in our industry. After this compare both. Follow the best practices of each business process. I can explain it with my simple personal example. I was two plastic chairs for my computer work. But due to sitting 8 to 12 hours on chairs, I feel discomfort. So, I went to market for buying relax chairs. Each relax chair price was Rs. 5000. It means, I had to pay Rs. 10000. But when I went to market for buying towel, I saw that a businessman is using same type of plastic chairs with throne. He was feeling very good. I took the idea from him and I bought 4 relax thrones and its cost was just Rs. 400. I also bought two big white towel whose cost was Rs. 300. Same way, I converted my hard plastic chairs in relax chairs. Now, I am feeling comfort within Rs. 700. I saved Rs. 9300 just for sake of Benchmarking. If we use benchmarking in every type of decision, you can use your resources better way and manage your cost.

Employees Empowerment 

You know that our employees are our big business assets. If we make them just slave, we can not manage cost better way because they will also feel just like slave and they leave our business. With this, our cost of HR will increase and its effect will also on other department because there will be big time to train new employee. So, for better future planning, we need to empower our employees. We have to give freedom to them to take their own decisions. We have to contribute their ideas and knowledge for our business. We talk with them in our business's conferences. With this, they will open and share their knowledge for our business.

Value Chain

As cost manager, we will have to study value chain. Every product is made and distributed with different activities. Each activity increases the value of that product. We have to make a good plan for each part of chain. For example, we have to make plan of our supply chain, then we have to plan for our product development, then to plan for product selling. These planning will reduce our cost and give more value.

Impact of ERP

ERP means to record each data of company and spread each department and branches and divisions. If we use online system of ERP, we can see its impact of our cost reduction. We can take also its other benefits. 

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Creditor Turnover Ratio

A business organisation has to pay creditors if it buys goods on credit. Any new creditor will give us the goods on credit if he knows that we pay our creditors' bill within short period of time. So, for knowing this time period, both parties calculate creditor turnover ratio. We will calculate this because if our time period is more than normally standard period, we will try to decrease it. On the other side, new creditor will take the decision on this ratio whether goods on credit will be given to us or not.

We calculate creditor turnover ratio just like calculating of debtor turnover ratio but we show net credit annual purchase and average trade creditors instead of net credit annual sales and average trade debtors. If we have not the information of net credit purchase, we can take total purchase as numerator. Like this, if we have no information of opening balance of creditors, we can take closing balance of creditors. We can calculate average trade creditors by taking the average of opening balance and closing balance of creditors. Following is the formula

Creditor or Payable Turnover Ratio

= Net Credit Annual Purchase / Average Trade Creditors

This ratio can be used for calculating Average Payment period.

Example

Total purchases =  Rs. 400,000

Cash purchases =  Rs. 50000

purchase return =  Rs. 20000

Creditors at end =  Rs. 60000

Bills payable at end =  Rs. 20000

Reserve for discount on creditors =  Rs. 5000


Creditor Turnover Ratio = Annual Net Credit Purchase / Average Trade Creditors

= 400000 - 50000 - 20000 / 60000+20000 = 330000 / 80000 = 4.13 times

Interpretation of Creditor Turnover Ratio

Higher creditor turnover ratio is good because it will decrease the average payment period.

In the question, if we have given the information of creditor turnover ratio and other information, we can calculate one missing information. For example, in following video, we can find opening balance of creditors, if all other information is given.

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What is CASA Deposits

Do you know, what is casa deposits? If I give a little clue about this, you can surely tell this term. This term is relating to banking. It means Current and Saving Account Deposits. When any bank calculate the total amount of customers in banks, bank will add current account deposits in saving account deposits. This information can be found in the financial reports of banks by interested parties. For example, we can find PNB's CASA Deposits from its updated financial reports of June 2011. It is   CASA Deposit  Rs. 1,21,260 crore. CASA deposits  increased to  Rs. 1,21,260 crore in June’11 from  Rs. 1,04,385 crore in
June’10, recording a growth of 16.2%.

CASA Deposits Vs CASA Ratio

If you want to calculate ratio, you need to calculate CASA deposits. CASA ratio is relationship between CASA and total deposit in bank. All banks calculate CASA ratio for knowing any improvement in this ratio.

CASA Deposits Vs Fixed Deposits

In casa deposits, depositor will have right to withdraw money any time  without any fine but in fixed deposits, money will be deposited for specific period, it may be 1 year to 10 years.   

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How to Teach Own Children

One of basic duty of father and mother is to teach their own children. We saw in many houses that fathers do not take the responsibility of teaching own children because they are busy in earning for their families. They delegate all teaching responsibilities on their wives. That is totally wrong. If you are responsible father and interested to teach own children, we are providing you some tips for teaching without leaving your work.

1st Tip : Make Good Time Table 

If you make a good time table for your children's study and also for your work, you can find that there will be lots of free time which you can use for teaching your children. If you are doing Govt. service or private service, at that time, you should teach morning time because almost all the organisations' office time starts from 9:00 a.m. You can easily teach your children for one hour from morning 5:00 a.m to 6 : 00 a.m.

2nd Tip : Better Use of Wasting Time 

There may be lots of waste time which you can use for teaching own children. In this list, you can include, time to watching films, chatting on Facebook and chatting and wondering outside aimless. All these time, you can use for teaching your own children.

3rd Tip : Teaching with Motivation 

Some parent use abusing, greed and punishment for teaching to their own children. All are the wrong ways. Best ways is to motivate for studying. You can motivate by following ways :

a) Tell the stories of great personalities of the world.

b) Tell the stories of  Nobel laureates. Wikipedia can help for this. Wikipedia has made the list of all nobel laureates. You should study each and then tell their life struggle in your simple and plain words. With this, your children get direct power.

c) Actually, all text books are taught in school. But you have to motivate him or her for taking decision with more bravery.

d) In childhood, your children's mind will fluctuate, so, you have to make it strong by teaching them meditation and morning exercise. This motivation will concentrate their mind.

e) Tell him motivational stories.

f) You should also teach them good etiquette for eating the food. You should tell the reason of not eating the meat, chicken and other non-veg. With this, your children will eat vegetarian  food and their brain will grow fastly.

Related : How to Get Self Confidence 

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Accounting Protocol

Accounting protocol is the combination of two words. Before explaining its meaning, we should know the meaning of protocol. Protocol is the term of political science. It means set of rules which a political leader has to follow when he goes to other country for any meeting or exchanging his message with other country's leader. For example, if India Prime Minister will go to UK, he has to follow the UK protocol. Now, we explain its meaning from accounting point of view.

Accounting protocol is also set of rules which is made by company. It tells us, what information will be published and what policies will be applied for making of financial statements. In AAA protocol, it is also part of it. When we create our accounting records in computer, we also make some rules or procedure for showing it real time for general public, it will also be accounting protocol. 

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Scholarship for Handicapped Students in India

It is the duty of Govt. of India that it should take big steps for development of handicapped students in India. Scholarship is the best way for helping handicapped students. Recently, The National Handicapped Finance and Development Corporation (NHFDC) announced 1,500 scholarships for handicapped students which is good information for me and all those social activists who want to promote handicapped students in India. But still this numbers should be increased.

As per PDF File Notification of NHFDC,

Under this scholarship, handicapped students can get Rs. 2500 per month for maintenance allowance up to graduation  and Rs. 3000 per month upto post graduation. Rs. 6000 per year, they will get for books upto graduation and Rs. 10000 per year for books upto post graduation. Interested students and parents should apply for scholarship  before 31-8-2011. You can read and download this official pdf file of NHFDC at here.

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Can a Person Get Back Money From Government Account

An applicant paid an amount of Rs.6.00 Lakhs to a govt. office through a Demand draft for a particular permission/license without knowing the actual fee. But actual fee payable by him is Rs.3.00 Lakhs only. After knowing the actual fee he went to govt.office and requested to return the Rs.6.00 Lakhs Demand Draft which was not adjusted into government account.
Can he get back the Rs.6.00 Lakhs Demand Draft(which was not adjusted into govt.account) duly paying the actual fee of Rs.3.00 Lakhs.

Narasimha  Rao from india

Narasimha  Rao! Answer of this question in simple words is no because this is mistake of an applicant. He should check the updated rules relating to  permission or license fees. Only after this, he should deposit money or paid money in govt. account through bank draft. Applicant should apply for refund of excess payment of Rs. 3 Lakh instead of paying actual fees of Rs. 3.00 Lakhs. You should also wait for some time. Govt. check your excess payment. But, still it is the right of Govt. to adjust it with next time license fees.

Written by Guest Writer Shri Om Parkash

Shri Om Parkash 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 ... Read More >>

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Email Notification of Your Written Problems in Our Ask a Question Form

We had made ask a question section in the Google Docs form. When you write  your problem in it, we study it and then we give answer. For this, we visit ask a question database for knowing updates. We also get updates of good docs from different sources. Today we're pleased to announce that we can study more fastly your new written question in ask a question section because Google docs has made new notification tool. As per this, when we activate the setting of notification, we can get your question's notification. For example, if you write 2 minute ago a question by going to our site Accounting Education, we will receive its email notification at same time. So, it will become more benefited for you because we will give you the answer more  fastly. For this tool, we give special thanks to Google Docs Team.

Following is screenshot which is telling us a new person write a new question :

If you have same type of form, you can also activate this email notification by going to Google docs and reaching same database. Following is its screenshot. 

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How can You Give Entrance Exam for MBA from IIM

All those who will clear common admission test (CAT) can get MBA degree from IIM. So, for admission for MBA from IIM, you  have to give test online. Three years ago, CAT has become totally online. All the papers are online. You just login and you will find on-screen countdown timer. You will see all questions online. You will have to give answer under limited time. All answers will record in institute's hosting server.

Following are Main Steps for giving test online.

1. Paying of Fees : First of all you have to fees online test in the account of institution.

2. Register Yourself : You have to go to the website and you have to register yourself with your correct email and bank payment voucher no.

3. Get Admit Card from Your Email : You will receive admit card through email before starting of online test in which you will get specific identification code.



4. Give the Test : After entering the login and specific identification code, you can give test online.



For more study, you can read the reference ebook of CAT of IIM at here.

Sample Online Test Paper

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SOS Children's Villages of India - Review

Today, I visited one of SOS Children's Villages of India. Actually, I was invited by this organisation through Our Student  Welfare Council because there was a marriage celebration a daughter of one of house of this village. I went and blessed to that child  for her peaceful and enjoyable marriage life. After coming from  this party, I am concentrated on this content.

Before Reviewing this organisation, I want to introduce this organisation with you and my relationship with this organisation.

Introduction of SOS Children's Villages of India 

Me and Other Members are with the statue of Hermann Gmeiner 

 SOS Children's Villages of India is the part of SOS Children Village International organisation. This organisation has more than total of 233 SOS children's village in 85 countries. Founder of this organisation was Hermann Gmeiner who established this organisation in 1949 with his 40$. The aim of this organisation is to help orphaned and abandoned children. In this organisation, there are four pillars - 


a) A mother who lives with 10 Orphaned and Abandoned children and she loves them and cares their all needs.


b) A house in which these children grow. 


c)  Brothers and sisters - They behave each other like brothers and sisters. 


and


 d) A village - Group of these 25 to 50 houses is a village that is called SOS Children Village. 







My Relationship with SOS Children's Village of India 

I already told you in my profile that my teaching career started from SOS Children's Village. I taught  to the children of SOS Children's Village of India for 4 years. So, I can feel each child's pain personally. I love each child of SOS Children's Village as my own child. During the time of teaching of these children, I came to know the tragic history of each child. After this, I decided to teach all these children not as teacher but their best friend. All my taught children in SOS Children are studying higher education. Some are doing professional courses and some are doing work in companies. All know me as their best friend. So, SOS Children Village is just like my another home where can I love to my children. 


 Review of SOS Children's Villages of India


I am reviewing this organisation because one is this organisation is providing service to our society by providing help to orphaned children  and second, I know this organisation from past 10 years. Moreover, my 
review will  influence the decisions to all the donors who want to donate but they are interested to know its quality of service.

1. Yes, it is true that it is doing very great work for children and for our society. They give each children a mother, a house and brother and sister. But number of these children are very limited. There are large number of children who are still home less, orphaned and without parent. Is it justice to all these children who have no rooms, no food, no parent but there is SOS children village in same city where only limited orphaned children are getting opportunities. This organisation may say the limitation of place, limitation of funds. At that point, I will only say, we all are with you with full support, if you take the full responsibility to save every great soul who is orphaned  in each city of India at any cost. This organisation is the plant of Hermann Gmeiner, we want to see it as big tree.

2. During the time of my 4 years teaching in SOS Children's Village, I realized that SOS Children's Village need not a big numbers of counselors but they need good tutors and teachers. I know the counselors are well educated but if they are not interested to educate these lovely souls of God, I think, they are not full responsible for their duty. Just after appointing as counselor, if you will sit just front of computer without giving proper time to each your children, how can these children grow properly? Your youth house will become just for name. I think, SOS Children Village's authority should make fifth pillar. This should be a father. Counselor should do the duty of father, if they want to develop SOS Children Village in real sense because no mother gives the duty of father. I love my father because he gave me time and support for my development. 

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How to Correct an Accountant's Prior Error

Greeting Sir.....

I am having doubts on how to Account for Expenditure/plant and equipment current year that was recorgnised as an expense to prior year.....

Here goes the ques...Its in compliance to IFRS

In preparing the 20x5 Financial statements of J co Ltd, the accountant discovered that $50,000 of expenditure in august 20x3 has been incorrectly treated as an expense for the financial year ending 30 june 20x4. The expenditure should have been treated as plant and equipment.
Advice, how accountant should correct for this error when preparing thr 20x5 plant and equipment statement...??

My Understanding

-is that expense must be deleted in exp....therefore describing in its notes the reasons for its cancellation due to meeting the nature (not meeting the rev. and capital expenditure))

-Also to INSERT PPE into Non-Current assets of balance sheet......stating the reason in the notes (probable, reliability, economic benefits n stuff....))

-the main confusion is, should i revalue the amount due to a 2 yr gap in between and is there any scientific way to account for the $50,000?

Regards....

Sarnit from Fiji

Sarnit! It is the nature of human being that he or she does mistake because we want to learn by practical. Before telling your problem's solution, I want to tell that today, my elder brother started to repair electric button in our house. He do not know the work of electricity. So, he just guessed for linking of two wires and result was burning of some wire of our house. Power lost. After this, a big bill of expert electrician's service has been paid. From this, I educate  that we can not stop others for doing mistakes. But, we learn a new lesson from other's mistakes. Enjoy this learning of life!

In your case, mistake was done by prior accountant because he did not know the difference between revenue expenditure and capital expenditures. Revenue expenditure decrease our capital but capital expenditure increases our capital. Before rectification of this error, we understand this error's effect.

1. # Due to this error, our profit was shown less in that financial year. It means our capital is showing less because we add less profit with same amount.

2. # Our financial position is showing less from two years with same amount.  

3. # We did not calculated depreciation from 2 years. Due to this, profit and loss account and balance sheet are not showing correct result.

Rectification of Error

In the books of 2005, you will pass following rectification of this error entry

Plant and Machinery Account Dr.

Capital Account  Account or Reserve and Surplus Account Cr.

{ You can not show plant and machinery account Dr. to revenue expenditure account because that revenue account was closed and its affect has absorbed in capital account. This entry is just like your recover your lost capital.  In footnote, you can tell that we deduct plant and machinery account as revenue expenditure and same amount has been deducted from capital. You have to show amount after deducting two years depreciation. }

Important : You have to calculate net effect of income tax of this mistake. Either you have to pay or you have to apply for refund of income tax due to this. 

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Automation of CBSE Examination

CBSE is one of important board for providing secondary education in India. Recently, it updated its system for taking examination. As per new automation system of examination, CBSE is using an educational software for generation and delivery of question papers. Still it is beta. It means, it is being applied for the examination of Class IX and X.

What is Special in this Educational Software

1. Time Saving 

This educational software can be used online. Every school who is affiliated with CBSE can get question paper from this online educational software by providing verification of credentials. So, with this automation, teachers can save their time for creating a question paper.

2. Speed 

This educational software will have the power to save 8000 schools question papers and download online when they need.

3. Update

For updating this automation of examination system, teachers will add new questions and updates in this bank.  Software will mix all these updates for generating new question papers for each subject and each class.

I think state board of India should also use this type of educational software for getting above benefits. In my state, teachers' time is misused for sending them population survey, voting purpose, supervision for foods for students etc. Teachers should be appointed only for teaching. From this vision, CBSE has taken good step.

Related : Strategies for Expansion in Higher Education in India

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How to Calculate Overtime Pay in Excel

Overtime pay is good incentive for employees. It will increase the your organisation's productivity because overtime pay encourages employees to spend more time for organisation's works. Recently, I appointed an employee part time for my Accounting Education. So, I am searching good excel formulas on the net for calculating overtime pay. I found a good excel training channel (name 599CD Computer Training) on the net who provided good formula for calculating overtime pay in excel. I am explaining these formulas stepwise.

 1st Step : To Calculate total Hours of Work in a Week 

Suppose, you have 5 employees who work different time in your organisation. Record their real working hours in a week. On these basis, you can calculate total hours of work in a week. In your case, you can also calculate total hours of work in a month by applying simple sum formula in excel.

=sum(number1,number2........)

2nd Step : To Calculate Normal Hours

By using logical formula, we can calculate normal hours of each employee from total working hours. Following is this formula.

=IF(logical_test;value_if_true;value_if_false)


Following is screenshot in which you see, how it has been used in real problem.

After calculating first value, we will drag this value and we will calculate all the normal hours values.

Condition of screenshot question : Those who work 40 hours or less get normal pay. From 40 to 50 hours will receive time-and-a-half, and over 50 hours earns an employee double-time.

3rd Step : To Calculate Overtime in Hours

We will also use logical formula when we will calculate overtime in hours.  Following is this formula.

=IF(logical_test;value_if_true;value_if_false)

4th Step : To Calculate Overtime Pay

Now, it will become so easy for you to calculate overtime pay. It is just multiplication of overtime hours and rate of salary. Following video will explain it in detail.

Related : Accounting in Excel Tips 

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Strategies for Expansion in Higher Education in India

FICCI called conference on November 11-12 in New Delhi for discusing the issue of "Strategies for Expansion in Higher Education in India." I do not know what they discussed but today, I am thinking to write on this issue. First of all, I want to say that taken title is not good because there is no need for expansion in higher education in India. Actually, this topic's  title should be "Strategies for expansion in higher education from India to the World" because

 We all Indian know what is the real level of higher Education. We have 4 Veda, 18 Upnishad, Gita, Ramyana and all other great resources of higher education. We have great guide like Gautama Buddha who reached top level of higher education just remembering the name of God in a tree. So, there is no need to waste energy for making strategies for expansion in higher education in India. We just change the thinking. For example, we have to think that better institutions or colleges or universities are not be analyzed  from better building but quality education of students. I give simple example of my College. When I cleared B.Com in 2001, fees of total three years plus books were Rs. 10000 ( approximately). Same college has taken loan and now make fashionable building. Now fees plus books cost of B.Com has become more than Rs. 100,000 ( approximately) . When education of three years  B.Com is same, what is the reason of increasing the fees of Rs. 90,000.  It means, college has to pay his loan from students' fees. But, it can say that it is due to inflation. To whom, you are making fool! Is it way of making strategies for expansion in higher education in India. I can estimate that same B.Com. will become of Rs. 10 Lakh in next 10 years. I think, this is not expansion in higher education. This is the product which you are selling in the market.

Now, you have to think like me

1st Planning : Ban on the Fashion of College or institution or University

There is no end of fashion. One car which can use for drive is of Rs. 5 Lakh, same fashionable car cost will be Rs. 1 Crore. So, we have to find our needs not fashion. College or institution room should be simple and it should be made without taking loan of Rs. 1. My upto 10+2 education was in Govt. schools. I am proud of these schools because still these schools are simple. To live simple and think higher is also part of our higher education.

2nd Planning :  Practical and Updated 

If we all Indians want to spread our real higher education from India to whole world, we have to become practical and updated. If we will become lazy, how will we update our knowledge. From time to time, it is need to update every aspect of knowledge. For example, an accountant made accounts in past. At that time, he used pen and copy. But today, he made accounts in computer. In this, there is more need of update. He should give more time to learn online. He should spend more time to Check Multiple ways to reach free hub of all higher education and help others to carry to this hub.

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Debtor Turnover Ratio

Meaning Debtor Turnover ratio

Debtor turnover ratio is the relationship between net sales and average debtors. It is also called account receivable turnover ratio because we debtor and bill receivables' total is used for following formula

= Net Credit Sales / Average Debtors ( sundry debtors + bill receivables)


Average Debtors = Opening balance of debtors + closing balance of debtors / 2


Net Credit Sales = Total sales - sales return - cash sales

If net credit sales is $50000 and average debtors are $ 10000, then debtor turnover ratio is 5 times. It means, net sales is 5 times of total debtors. We issue new stock for sale which is 5 times of its debtors. It means, our average debtors 5 times are converted into cash. We collected cash from our debtors and then we sell the more goods.

Interpretation of Debtor Turnover Ratio

1. Higher debtor turnover ratio is good because more higher debtor turnover ratio means, more fastly, we are collecting money. Suppose, in above example, we have only one debtor Mr. Alfred. We sold $ 50000 goods 5 times. It means, we are collecting money from Alfred 5 times. More times, we collect money from Mr. Alfred, our liquidity position will become more strong.

2. Lower debtor turnover ratio is not good because it tells us that we have not manage debtors better ways. Money from debtors are not collected fastly.

If we calculate average collection period on the basis of debtor turnover ratio, we can analyze our debtors more deeply.

Related : Working Capital Turnover Ratio

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Inventory Conversion Period

Inventory conversion period reports us about the average time to convert our total inventory into sales. It is relationship between total days in year and inventory turnover ratio. In other words, it measures the length of time on average between the acquisition and sale of merchandise. We can calculate it with following formula.

For example, inventory turnover ratio is 10 times of average stock at cost. Its inventory conversion period will be 

= 365/ 10 = 37 days. It means, the inventory has been disposed off or sold on an average in 37 days. 

Interpretation of Inventory Conversion Period

1. Less inventory conversion period is better because more fastly, we will convert our inventory into sales, there will be less chance of obsolescence and paying of over-stocking cost. 

2. Inventory conversion period is the part of cash conversion cycle. If this period is very high, it will increase the time to complete  the cash conversion cycle. It means, there will be more liquidity risk in that level of inventory. 

3. After adding average collection period and deducting average payment period, we can take good decision relating to inventory level. Following example will explain its importance  in simple way. 

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What is Repo Market

Repo market is the part of money market in which  Govt. or treasury securities are repurchased on a future date. This future period may be one day or overnight. Senior Editor Paddy Hirsch  has explained repo market in his video lecture. He gave the example of SAM and Amy. SAM needs $ 100 and Amy gives $ 100 on the security of CDC Records System. SAM agrees to repurchase same CDC record system by paying $ 101. Next day, SAM repurchases same CDC record system by paying $101. So, this is simple example of Repo market. But a large repo market in which big commercial banks deal with central bank or with each other.

For example, The US Federal Reserve and the European Repo Council (a body of the International Capital Market Association) both try to estimate the size of their respective repo markets. At the end of 2004, the U.S. repo market reached US$5 trillion. The European repo market has experienced consistent growth over the past five years, from €1.9 billion in 2001 to €6.4 trillion by the end of 2006, and is expected to continue significant growth due to Basel II, according to a 2007 Celent report entitled “The European Repo Market link

Senior Editor Paddy Hirsch's following video tutorial will explain this more simple way:

Related : Repo and Reverse Repo

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Repo and Reverse Repo

Meaning of Repo 

Repo means repurchase agreement. When RBI repurchases his issued govt. securities, it is called Repo transaction. With Repo transaction, RBI increases the liquidity in the market. Bank gets money for selling Govt. securities to RBI. These money can be used for loan issues to public. So, this way, liquidity will increase in the market. Always, Repo transaction is carried at repo rate which is changed by RBI from time to time. This repo rate is just like interest rate.  Increase in repo rate, signals that deposit and advance rates of banks are likely to increase. Decrease in repo rate, indicates that deposit and advance rates of banks are likely to decline.

Meaning of Reverse Repo

Reverse Repo means reverse repurchase agreement. Actually, central bank RBI has power to issue the Govt. securities. But these securities are exchanged between bank and RBI from time to time. When RBI sells govt. securities to banks, it is called a reverse repo transaction. RBI will take decision to sell Govt. securities when RBI wants to absorb or decrease the liquidity in the market.

As per Wikipedia 

"A reverse repo is simply the same repurchase agreement from the buyer's viewpoint, not the seller's. Hence, the seller executing the transaction would describe it as a "repo", while the buyer in the same transaction would describe it a "reverse repo". So "repo" and "reverse repo" are exactly the same kind of transaction, just described from opposite viewpoints."

Repo and Reverse Repo Use in USA

Like RBI in India, United States Federal Reserve uses of repos and reverse repo technique for increase or decrease the liquidity in USA market. Under a repurchase agreement ("RP" or "repo"), the Federal Reserve (Fed) buys U.S. Treasury securities, U.S. agency securities, or mortgage-backed securities from a primary dealer who agrees to buy them back, typically within one to seven days; a reverse repo is the opposite. Thus the Fed describes these transactions from the counterparty's viewpoint rather than from their own viewpoint.

Related : Effect of Reverse Repo Rate

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Google+ for Nonprofits Organisation

Few days ago,  Google opens the doors for making profile of company, institute and organisation. Now, if you are operating nonprofits organisation, you can open your page in Google+. You can add your pictures in it and post your updates. If you want to create Google+ profile  for your organisation, you can create at here.

Following is sample of our organisation's Google+, you can add it in your circle.

If you want to get update relating to Google+, you can get from Google's official Google+ platform blog.

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Solution of 4 Educational Problems

1.  Hello,


I have done BCOM from Delhi university in 1999 and have aggregate score of 47%. I want to do now M.COM (preferably from DU) am I eligible for that. What are the formalities that I need to do to get admission in this course?


Thanks!


SA from India 

If you want to do M.Com correspondence from DU, 47% is sufficient. If you want to do regular M.Com, you need B.Com degree with at least 55% marks.

2.  UGC  Net Commerce III Paper Study Material


Jaspal from India

I have just written the answers of old question paper of UGC Net Commerce (just Accounting and Finance Subject). You can study it at here.


3.  I want to know the qualification for being a lecturer in government colleges. What is the recent eligibility fixed. is it that the M.Phil passed until 2009 need not write the SLET, Net Exams.


Richard

You need 55% in post graduation + UGC Net clear

4. Sir/Madam,


I am a practising Chartered Accountant. I completed B.Com. with first class in 1979. I cleared my C.A.Final in 1986. I have also qualified Diploma in Information System Audit Examination of the Institute of Chartered Accountants of India. I want to join a college for Part-time Lectureship.Whether I am Eligible for the lectureship?


With regards,


CA. S.U.Kataria; Satara.

Of course, you are eligible for part time lectureship. For becoming regular lecturer, you have to clear UGC Net.

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