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Like every year, this year, also all the students and faculty members of our XYZ School/College had organized a grand program on the occasion of this Republic Day. Everyone was feeling very happy that day because it was a matter of great pride for all of us because on 26 January 1950 the constitution of India came into force and our country, India became a republic. The program started with prayer at 8:00am. After that, parade and flag hoisting took place on the college/school grounds as usual. The Principal of our college/school hoisted the national flag and gave a motivational speech on the topic “Youth Power”. This was followed by some speeches on patriotism and singing the national anthem. Many students also did different types of programs. On that day the campus of our college/school was decorated by the students with charts, models, slogans, poems. Pictures that depict the development of India from independence. All the students were dressed in traditional costumes representing different parts of India. In the end, the program was concluded by distributing sweet boxes to all the students.

MEANING: The process of accounting starts with identifying transactions and events of a financial character and recording them in books of accounts; this will be done in primary books(Journal). After the recording is done, the next step is to classify the same, which will be done in secondary books (Ledger). A point to be noted here is that not every transaction or event in the business is recorded in books of accounts; only the transaction or event with financial character is recorded. E.g., A person visiting the store is not recorded. But, if the same person purchased something upon which the business is earning income, it would be recorded in its books of accounts as sales Income. In Ledger, all the transactions & events are classified based on nature (Income, Expense, Asset & Liability). They are Summarised in the Profit & Loss Account and Balance Sheet.

The numbers/figures summarised in the earlier step will not help anyone unless they are Interpreted and Analysed by establishing the relationship between the Items of P&L and the Balance Sheet. It will enable the stakeholders(Investors, Employees, Lenders, Suppliers, Customers, government etc.,) to make meaningful decisions about the business entity's financial position and performance.

With the changing business conditions and diversification of ownership & management, accounting doesn't end with InterpretingInterpreting. Communicating the accounting results also is gaining importance, and it is considered part of accounting.

Hence procedure of Accounting involves recording, classifying, Summarising, Analysing, Interpreting and communicating.

We understand that every progressive organisation like yours wants their sales team to succeed in sales. To excel in selling, the approach towards it should be very SMArt.

With the availability of information through online, and in their way, customers are entirely aware of your product/service even before you present them. So they are completely updated, interacting with salespeople smartly.

Is your Sales team, also updated, and smart enough to face your customer.

Yes, it is SMArt Selling.

So what is S M Art in selling.

S represents Science. There’s Science in selling. There are principles in selling, which are tested and proved. We need to follow the process, in the same order to ensure better results consistently.

M represents Magic. There are unexpected, surprising things in selling, which is Magic. After they made 15-20 presentations to different prospects and maybe after a month, they suddenly get a call from the prospect to whom they have made a presentation earlier, which is a surprise, a Magic. Most of the professional salespeople experienced this Magic frequently. If they put efforts consistently, they can get an opportunity to experience this Magic in Sales.

Art in SMArt indicates, there’s also an Art form in selling. They need to present your product/service to the prospect in the form of a story. Everyone likes stories, and remembering well even after they leave their place helps them recollect to decide on buying from the salesperson. Storytelling is an Art form.

So let your team follow Science in Selling, 

Experience Magic by consistent efforts, 

and use Storytelling (an Art form) to present your product/service to your prospects to get Wonderful Results. 

Your sales team is a SMArt Team.

If you want your sales team to be SMArt, prepare them with Suitable Learning systems, to enable them to help their prospects better.

HRA is exempted to the least of the following:

1. Actual HRA received
2. 50%of basic salary
3. Rent paid -10% salary

• 30000
• 60000+10000(50%retirement benefits)= 70000×50/100= 35000
• 23000
• Exempt= 30000-23000=7000

INDEX NUMBERS

Definition: Index Numbers are statistical devices designed to measure the relative changes in the level of a specific phenomenon with respect to time, geographical location or other characteristics such as income, profession etc.

EXAMPLE :

If the index number of the wholesale price of spices in 2019 as compared to 2018 in 124, the implication is that the wholesale price of spices in 2019 has increased by 24%.

Here 2019 is the current year, and 2018 is the base year.

Note: 

1. Index numbers are expressed in percentages.
2. The base year index usually equals 100.

USES OF INDEX NUMBERS:

1. They help in framing economic and business policies.
2. They reveal trends and tendencies.
3. They help in simplifying the data, thus facilitating the comparative study.
4. They are used to measure the purchasing power of money.
5. They are useful in deflating.

INTRODUCTION

Every individual has specific needs, for the satisfaction of which, he/she needs resources. But the resources that a person have, to satisfy his needs are always limited and have alternative uses, and his needs are unlimited. For example, Ram has Rs. 100 (resource) which he can use to satisfy his various requirements such as food, cloth, entertainment (alternative uses) etc. But all needs can not be satisfied with Rs—100 (a limited resource). So, the problem of scarcity of resources in relation to our needs has led to the emergence of Economics as a subject matter of study. 

ECONOMICS

Economics is the study of economic problems or issues that arises due to the scarcity of resources about our needs and alternative uses of those scarce resources. So, it focuses on the rational management of limited resources in such a way that economic welfare is maximized.

Economics is broadly divided into two parts:

1. Microeconomics
2. Macroeconomics

Microeconomics

Microeconomics refers to that part of the economics in which the economic problems are studied at the level of an individual - an individual firm, a particular consumer. The main components of microeconomics are Theory of consumer behaviour, Theory of producer behaviour, Theory of price etc.

Macroeconomics

Macroeconomics refers to that part of economics in which the economic problems are studied at the level of the economy as a whole, i.e. at an aggregate level. The main components of macroeconomics are Theory related to the equilibrium level of output or employment, Fiscal and Monetary Policies, Money supply and Credit creation, National income etc.

It should be noted that while studying microeconomics, macro variables are assumed to be constant, and while exploring macroeconomics, micro variables are assumed to be constant.

Have a beautiful day :)

MANAGERIAL ECONOMICS   

Application of Economics in Managerial Decision Making to optimize resources of the firm and maximize the value of the firm 

 What is economics?

• The best product, wealth, or service you can get through the resources within constraints we have.
• Economics talks about Rational Human beings.

Demand in economics refers to a consumer's desire to purchase goods, or services, and willingness to pay the price for specific products or services.

DEMAND   is an essential concept in  Economics. The three most critical components of need are :

1. Utility
2. Affordability
3. Accessibility

 A Consumer may have elastic or inelastic demand for a good or service. 

 ELASTIC DEMAND: In simple words, If the selling price of a product decreases, there will be an increase in the number of units. Demand elastic when with a small change in price, there is a notable change in quantity demanded eg.: clothing brands when buying online, Shampoo, Soap etc.

 INELASTIC DEMAND: DEMAND is rigid or less elastic when even a significant change in price induces only a slight shift in demand. For eg.: Petrol, Indian railways etc.

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Every Economy is a Keynesian Model right now but not to increase the Aggregate Demand but to control the Pandemic. As the saying goes, the rule of war never changes, it's the weapons that change. So post corona as well the law of economic war will remain the same but the arms of price, product, strategies, etc.. will change.

7 Ts that can happen/ may happen post corona are

1 Transformation from traditional organisational structure to the new WFH model (the business models, especially for IT industry, will employ in this manner as understood concerning the recent directive by the Indian government)

2 Technological takeover in different sectors and industries (rise of ethical consumers, the new way of hygiene maintenance and a need for social distancing will lead to innovation, and new technological advancements will happen.

3 Thrifty Investments by both businesses and households (Businesses many of them are incurring huge losses and covering that up they will be very mindful of their investments, as well as households, will watch their expenses as job loss, income cuts and price rise will play a role)

4 Tenacity of employees as job market will transform (The employees will be motivated, efficient and dedicated due to lay off in organisations or tightened opening of vacancies in the market)

5 Tariffs and Taxes on (the exports/imports and community, more restrictions on imports and an expansionary fiscal policy/ expenditure switching policy will aim at increasing the aggregate demand and protecting the domestic producers, sunset industries etc.)

6 Tick size in the financial market (minimum price change in the financial sector). The investors' interest will be protected with new rules.

7 Third Way Political Economic Model (a hybrid of both the left-wing and right-wing politics, a model "beyond left and right", a model that takes in consideration the social justice, neoliberalism as well as capitalism or in simple words a "New Mixed Economy")

All these Ts will mainly relate to Tiger Economies/ Asian Economies. In the long run, the World will opt India for diversified supply chain and manufacturing channels.