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
• UNFORTUNATE
A BOY OF UR AGE
Doesn’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
Bought peanuts
for rs30
peanut
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
•
thanks
Harry becomes
liable for
Rs 40
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
ONLY
RS 30
How much
Was
With u in the
morning?
the boy still is in
puzzlement
Rs 90
only
HOW MUCH
U
HAVE
NOW?
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 make
Profit
For
Our living
Don’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
with
thrilled
guys
Is this how Harry learned?
Learn
This
format
Clg cap
90
Add drawings
25
Less additional cap 40
Less opg cap
30
Profit earned Rs 45
hai
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
common
sense
Anil Gomez says it is not