Double Entry Accounting System is Necessary for Anandadhara Group s(wbsrlm)

Transcription

1 Doubl Entry Accing Systm is Ncssary for Anandadhara Group s(wbsrlm) Dr.ANUP MAJI Assistant Profssor in Commrc, Sabang Sajanikanta Mahavidyalaya, Wst Bngal ABSTRACT Th accing systm followd by th SGSY and SHG s nds scintific changs. Maximum Ananadadhara Groups formrly SGSY s and SHG s follow a traditional accing systm which is uniqu. Doubl-ntry kping is an accing tchniqu that rcords a dbit and crdit for ach financial transaction occurring within a company. It is sn clarly through th us of a T-acc or through th accing quation -- assts qual liabilitis plus sharholdrs' quity. Doubl-ntry kping startd in Italy but is now usd globally. It is important in maintaining an accurat financial systm. Companis bnfit gratly from using doubl-ntry kping bcaus it aids in accurat financial rporting and rducs rrors and fraudulnt activity. Wid variation is found in th prparation of six s of accs maintaind by Aanadadhara Groups. This typ of variation must hampr th actual objctivs of th accing aspcts of Ananadadhara Groups. So it is ncssary to incorporat th Doubl Entry Systm in th Accing Sid of th Ananadadhara Groups. KEY WORDS: SGSY, SHG, Uniqu Accing Systm, Doubl-ntry kping. INTRODUCTION Doubl-ntry kping is an accing tchniqu that rcords a dbit and crdit for ach financial transaction occurring within a company. It is sn clarly through th us of a T-acc or through th accing quation -- assts qual liabilitis plus sharholdrs' quity. Doubl-ntry kping startd in Italy but is now usd globally. It is important in maintaining an accurat financial systm. Companis bnfit gratly from using doubl-ntry kping bcaus it aids in accurat financial rporting and rducs rrors and fraudulnt activity. Wid variation is found in th prparation of six s of accs maintaind by Aanadadhara Groups. This typ of variation must hampr th actual objctivs of th accing aspcts of Ananadadhara Groups. So it is ncssary to incorporat th Doubl Entry Systm in th Accing Sid of th Ananadadhara Groups. Th Dpartmnt of Panchayat & Rural Dvlopmnt is th Administrativ Dpartmnt for all th programm of Employmnt Gnration Programm for povrty allviation in th rural aras including Wag Employmnt Programm as wll as Slf Employmnt Programm. Th major Slf Employmnt Programm implmntd by Pag 18

2 th Dpartmnt is Swarnjayanti Gram Swarozgr Yojana (SGSY). Th bnficiaris on this programm ar familis living blow th povrty lin i.., having xpnditur lss than Rs pr capita pr month. Swarnjayanti Gram Swarozgr Yojana (SGSY) has bn launchd from April 1, Th programm rplacs th arlir slf mploymnt and allid programm IRDP, TRYSEM, DWCRA, SITRA, GKY and MWS which ar no longr in opration. SGSY is an innovativ and carfully thought-out Yojana. It taks into acc all th strngth and waknsss of th arlir slf-mploymnt program m. Th main objctiv is to bring th assistd poor familis abov th povrty lin in thr yars by providing thm incom gnrating assts through a mix of Bank Crdit and Govrnmnt subsidy. SGSY is a holistic programm covring various aspct of slf-mploymnt such as organization of th poor into a slf hlp group, training, crdit, tchnology, infrastructur and markting. An accings Practic protct th major objctivs of particular projcts. If th Accing systm maintaind proprly, it rvals th accurat rsult scintifically and also disclos th accurat accing information to its stak holdr by this way th ntrpris or organization can achiv its ultimat goals. OBJECTIVE OF THE STUDY Th study is aimd at fulfilling th following objctivs: (1) To know whthr th SGSY and SHG s follow a uniform pattrn in th prparation of final accs. (2) Evaluation of th actual accing problm facd by th poor popl ngagd in SGSY and SHGs in Wst Bngal. (3) To idntify th major aspcts in th cas of which uniformity is lacking, if so, and Providing of suggstiv approachs to dvlop a scintific accing systm i.. Doubl Entry or Goldn Rul of Accing Systm followd by th SGSY and SHGs ngagd in Purba Mdinipur District, Wst Bngal for th yar CONCEPTS OF ACCOUNTING Accancy is dfind by th Oxford English Dictionary (OED) as "th profssion or dutis of an accant". Accancy is th procss of communicating financial information about a businss ntity to usrs such as sharholdrs and managrs. Th communication is gnrally in th form of financial statmnts that show in mony trms th conomic rsourcs undr th control of managmnt; th art lis in slcting th information that is rlvant to th usr and is rliabl. Th principls of accancy ar applid to businss ntitis in thr divisions of practical art, namd accing, kping, and auditing. THE DOUBLE ENTRY SYSTEM OF ACCOUNTING Th doubl ntry systm of accing or kping mans that vry businss transaction will involv two accs (or mor). For xampl, whn a company Pag 19

3 borrows mony from its bank, th company's Cash acc will incras and its liability acc Loans Payabl will incras. If a company pays $2 for an advrtismnt, its Cash acc will dcras and its acc Advrtising Expns will incras. Doubl ntry also allows for th accing quation (assts = liabilitis + ownr's quity) to always b in balanc. In our xampl involving Advrtising Expns, th accing quation rmaind in balanc bcaus xpnss caus ownr's quity to dcras. In that xampl, th asst Cash dcrasd and th ownr's capital acc within ownr's quity also dcrasd. A third aspct of doubl ntry is that th ams ntrd into th gnral ldgr accs as dbits must b qual to th ams ntrd as crdits. FUNDAMENTALS OF GOVERNMENT ACCOUNTING Govrnmnt accing dals with th idntification, masurmnt and communication of information about th financial vnts and phnomna of govrnmntal ntitis. Thr ar thr major subsystm of Govrnmnt accing: union or cntral Govrnmnt accing, stat govrnmnt accing and local govrnmnt accing. Panchayati Raj Institutions (PRI s) and Othr small Govrnmnt or Non-Govrnmntal accing blongs to th last mntiond subsystm. Th accing systm consists of th mthods and rcords stablishd to idntify, assmbl, analyz, classify, rcord, and rport an ntity's transactions and to maintain accability for th rlatd assts and liabilitis. An ffctiv accing systm which contributs to fulfilling an agncy's control rsponsibilitis would giv appropriat considration to stablishing mthods and rcords that will: idntify and rcord all valid transactions; dscrib on a timly basis th transactions in sufficint dtail to prmit th propr classification of transactions for financial rporting; masur th valu of transactions in a mannr that prmits rcording thir propr montary valu in th financial statmnts; dtrmin th tim priod in which transactions occurrd to prmit rcording of transactions in th propr accing priod; and prsnt proprly th transactions and rlatd disclosurs in th financial statmnts. Although govrnmnt accing has many faturs in common with othr branchs of accing, thr ar crtain distinct accing masurmnt and classification issus which ar uniqu to govrnmntal ntitis. It is in viw of this that govrnmnt accing has com to b rcognizd as a sparat branch of accing. Th issus on which attntion is focusd includ th application of th fund concpt, th dtrmination of th basis of accing and th application of th concpt of accability. Th discussion bgins with th idntification of th spcifid faturs of govrnmntal ntitis which ar rsponsibl for crating dmands for spcial accing concpts and principls in govrnmnt accing Pag 11

4 RESEARCH DESIGN AND METHODOLOGY Th prsnt study is basically dscriptiv in natur. But th conclusions drawn and suggstiv masurs offrd for improvmnts is substantiatd by mpirical vidncs collctd by way of administring qustionnairs and prsonal contacts as statd blow. Th study is basd on th Anandadhara WBSRLM (Formr SGSY and SHGs) ngagd in th Purba Mdinipur District, Wst Bngal, lik othrs, th SGSY and SHGs ar guidd by th Dpartmnt of Panchayat & Rural Dvlopmnt Dpartmnt, Govrnmnt of Wst Bngal. Th district may b considrd as rprsntativ on considring various activitis that th SGSY and SHGs ar now bing prformd in changing socio-conomic scnario of Wst Bngal. Th primary sourc of information for th study is fild survy. A st of qustionnair rprsnting financial aspcts of SGSY and SHGs ar to b administrd among th slctd Sarna Jayanti Gram Swarojgar Yojana and Slp-Hlp Groups (Formr) in th Purba Mdinipur District, Wst Bngal for th yar In Purba Mdinipur District, Wst Bngal as on , thr wr 223 Sangha from groups as pr th rcords of district administration. Of this, 15 pr cnt Groups ar slctd as sampl units. Th district consists of four Sub divisions, viz., Tamluk, Haldia, Contai and Egra Sub- Division. Equal rprsntation from th subdivisions is nsurd whil slcting th sampl units. Th sampl distributions ar: Tabl1:Statmnt showing laboratly th slctd Sangha for th Study Sub-Division No. of Panchayat Samity No. of Gram Panchayts i.. Sangha No. of slctd Sangha Tamluk Haldia Contai Egra Total Sourc: Annual Rport from Anandadhara-WBNRLM, Purba Mdinipur. RESULTS AND DISCUSSION Th accs ar maintaind by Anandadhara WBSRLM (Formr SGSY and SHGs groups) according to Community Accs Manual, 215(2nd Edition). Th Anandadhara WBSRLM (Formr SGSY and SHGs groups) ar conductd its functions by fiv formula popularly known as Panchasutra. Ths ar; 1. Rgular mting; Pag 111

5 2. Rgular dposit of Savings; 3. Rgular loan Distribution among th mmbrs; 4. Rgular R-paymnt of loan; 5. Rgular ntry of transactions in th s ; By ths fiv formulas popularly known as Panchasutra th groups ar maintaind th following Books of accs. 1. Savings Rgistr of th mmbrs; 2. Loan Rgistr of th mmbrs; 3. Stock Rgistr; 4. Asst Rgistr; 5. Cash Book; 6. Gnaral Ldgr Book; Savings Rgistr of th mmbrs Nam of th mmbr-- Rama Mondal Mmbr srial no Dat- Pag no. of cash Pag no. of mting Total Savings Withdrawal from Savings Balanc- Signatur of th Trasurr Opning Balanc Sourc: Prpard by th Rsarchr from WBSRLM Community Accs Manual, Loan Rgistr of th mmbrs Nam of th mmbr-aa Fathr/Husbands nam-cc Addrss-RR (i)am of Loan- 25/ (ii) Pag no. of mting -44 (iii) Pag no. of Cash -9 (iv) Purpos of Loan- Purchas of Goat (v) Rpaymnt of Loan by 25 Installmnt and Installmnt Amm-1 (vi) Rat of Intrst 2% pr month (on du loan) Pag 112

6 Dat No. of Installm nt Pag no of cash Loan Rdmabl Loan Rpaymnt of Loan Balanc of Loan Loan Ovrdu Princip al Intrst Prin cipal Intr st Prin cipal Int rst Princi pal Intrs t Opning Bal th O th O th O th o Sourc: Prpard by th Rsarchr from WBSRLM Community Accs Manual, Stock Rgistr Anandadhara Group Nam of Goods Dat - Purchas/procurmn t Sal /Disburs Balanc- NO./Volum Rmarks/Signatur Vouchr Volum Dat NO./Volum no. and Dat Sourc: Prpard by th Rsarchr from WBSRLM Community Accs Manual, Asst Rgistr Anandadhara Group Nam of Asstss Dat - Purchas/procurmn t Vouchr Volum no. and Dat Sal /Disburs Dat NO./Volum Balanc- NO./Volum Rmarks/Signatur Sourc: Prpard by th Rsarchr from WBSRLM Community Accs Manual, Cash Book Pag 113

7 Rcivs Paymnts Signatur Dat Pag no. mting Rcipt no. nam particulars cash Bank Dat Pag no. mting Vouchr no. nam particulars cash Bank Total Rciv Opning Balanc Total- Total Rciv Opning Balanc Total- Sourc: Prpard by th Rsarchr from WBSRLM Community Accs Manual, Gnral Ldgr Book Mmbr----A---Ldgr A/C Dr. Dat Particulars Ammo unt Dat Particulars Amm Opning Balanc Cash Khat 15 Cr. Closing 12 Balanc Total- 135 Total- 135 Mmbr----B---Ldgr A/C Dr. Dat Particulars Amm Cr. Dat Particulars Amm Pag 114

8 Mmbr---C---Ldgr A/C Dr. Dat Particulars Amm Cr. Dat Particulars Amm Sourc: Prpard by th Rsarchr from WBSRLM Community Accs Manual, 215(2nd Edition) CONCLUDING REMARKS Doubl-ntry kping is an accing tchniqu that rcords a dbit and crdit for ach financial transaction occurring within a company. It is sn clarly through th us of a T-acc or through th accing quation -- assts qual liabilitis plus sharholdrs' quity. Doubl-ntry kping startd in Italy but is now usd globally. It is important in maintaining an accurat financial systm. Companis bnfit gratly from using doubl-ntry kping bcaus it aids in accurat financial rporting and rducs rrors and fraudulnt activity. Wid variation is found in th prparation of six s of accs maintaind by Aanadadhara Groups. This typ of variation must hampr th actual objctivs of th accing aspcts of Ananadadhara Groups. So it is ncssary to incorporat th Doubl Entry Systm in th Accing Sid of th Ananadadhara Groups in futur. REFERENCES 1. Annual Rport from Anandadhara-WBNRLM, Dist-Purba Mdinipur Annual Rport from Anandadhara-WBNRLM, Dist-Purba Mdinipur Datta, Abhijit, (1996 ), Strngthning Own Sourcs of th Panchayats, Kurukshtra. Vol. 45, No Datta, Nikunjalata (1989).Villag Panchayats in India, d.1, Mittal Publications, Nw Dlhi. 5. WBSRLM Community Accs Manual, 6. Prof. Amitabha Basu(28), Financial Accing,T D Publications,Kolkata. 7. Rin-Grahitar Hat Khata, SGSY (Part-II). 8.Shaynchaykarir Hat Khata, SGSY(Part-I) Pag 115