CBSE Accounancy Project Work: Basics

Did you read my earlier post about blind men and the elephant? Now have a look at the CBSE guideline or any other guideline you will find in any of the books. The typical story is this: One man lost his job. He started a business with 0000 money. He took additional loan. Spent on materials and so on and on. This is typical classroom accountancy. You will learn nothing new, nothing more than what you have done last year in the class. What is the use of this exercise? It becomes a copying task and you get some free marks. Unfortunately most of the teachers do not know how accounts are maintained in a business. I am not blaming anyone. I did not know how to open books in the second year, even after teaching company accounts and management accounting in degree classes for four years. This project work should teach you something new. So forget what they tell you in the guidelines. First think of a decent business success story. Then write transactions in correct order. Do it for three months. Make the transactions as you do in a real business and gradually work your way forward. Once you have transactions for three months, 20 per month will do, you can make journal and ledger. The main idea is to make it comprehensive. You must invest money, hire office, buy furniture, buy goods, pay salary, electricity, sell goods, collect money and finally make some decent profit. Imagine you are doing a real business. It is easy and very interesting if you do it this way. I will give you further instructions in the coming days. Keep watching the blog. I will also post sample project work in my website accountsteacher.com. Please do not just copy and submit. I want you to understand what you are doing. In case you have any doubt please post it here. I will answer your questions.