ACCOUNTING FOR MANAGERS

Name- Abhinav Verma

SAP ID- 500085481

HISTORY AND INTRODUCTION-

Amul, is an Indian dairy helpful society, based at Anand in the Indian territory of Gujarat. Shaped in
1946, it is a helpful brand overseen by an agreeable body, the Gujarat Co-usable Milk Marketing
Federation Ltd. (GCMMF), which today is together possessed by 36 lakh (3.6 million) milk makers in
Gujarat. Amul prodded India's white upheaval, which made the nation the world's biggest maker of
milk and milk items.

Amul was led by TribhuvanDas Patel under the direction of Sardar vallabhai Patel. Thus, Kaira
District Milk Union Limited was conceived in 1946 (later renamed to Amul). Tribhuvandas turned
into the establishing executive of the association and drove it until his retirement in 70s. He recruited
Dr. Varghese Kurien in 1949. He persuaded Dr. Kurien to remain and help with the mission. Under
the chairmanship of Tribhuvandas, Dr. Kurien was at first the head supervisor and helped control the
specialized and advertising endeavors of Amul. Dr. Kurien was the executive of Amul quickly after
Tribhuvandas Patel passed on in 1994.

PARTICULARS YEAR ENDED YEAR ENDED

MARCH 31,2019 MARCH 31,2019

1. INCOME

Net revenue from operations 696,633.72 6,25,625.62

Other income 1,297.05 1,568.82

 TOTAL INCOME 6,97,930.77 6,27,194.44

2. EXPENSES

Cost of Materials consumed 6,05,188.27 5,66,034.15

Manufacturing Expenses 41,400.87 35,350.65

Decrease/(increase)in Inventories of Finished (2,758.44) (24,415.82)

goods and work in process

Employee Benefit Expenses 13,965.16 13,744.54

Finance costs 9,973.96 6,597

Advertisement, Freight outward and marketing 3,511.94 3,796.88

Expenses

Administrative, Co-operative Development & other 11,790.31 12,081.75

Expenses

TOTAL EXPENSES 6,93,669.58 6,23,260.99

Technique For ACCOUNTING:

1) The association follows gathering arrangement of bookkeeping in the planning of records.

2) The fiscal summaries are set up on the chronicled cost show and as per the proper
accounting rules.

FIXED ASSETS:

Fixed resources are esteemed at cost. The expense of benefits contains price tag

furthermore, any straightforwardly inferable expense in carrying the advantages for its
current condition or

planned use.

Devaluation:

Devaluation on fixed resources is given on Written down Value Method at the

relevant rates endorsed under the Income Tax Act, 1961. On account of AMUL 3

Dairy and KHATRAJ Dairy devaluation has been charged on straight line technique as
per the rates recommended under the organizations Act, 1956. Deterioration has been

accommodated the entire year for the advantages obtained and charged by 30th September

2007 in any case for the half year whenever dispatched between first October 2007 and 31st

Walk 2008 where award has been gotten against any benefits, the devaluation on the

award parcel has been balanced against the award (aside from AMUL 1 and 2 Assets).

INVENTORIES:

1) Raw materials, pressing materials, semi stuffed products and merchandise on the way are

esteemed at cost on FIFO premise.

2) Stores and Spares are esteemed at cost on FIFO premise.

3) Finished products in the event of Anand, KANJARI, MOGAR and KHATRAJ are

esteemed at the Ex-manufacturing plant cost less 5% that is reasonable assessment of the
immediate Costs.

Ventures:

Ventures are essentially intended to be held over a drawn out period as such are

expressed at cost.

RETIREMENT BENEFITS:

Association's commitment towards Gratuity and Superannuating for its workers is

supported with Life Insurance Corporation of India. Leave encashment is represented as

what's more, when due for installment.

Extract DUTY:

The arrangement has been made for the extract obligation appropriate on the completed
products
stock in the extract cost.
 Usage of GST-

Amul has discounted costs of curds, dairy whitener and child food, expanded the cost of ghee
and left cheddar, margarine and frozen yogurt unaltered after the Goods and Services Tax
system commenced. Execution of GST had been typical.

Effect of GST on income and gracefully chain-

It does'nt anticipated significant change in income with usage of GST. The buyer gets the
opportunity to pick up.

Organizations like Amul liable to modify costs on their items because of GST. Because of the
smoother gracefully tie the board concerning covering charge, guaranteeing input credit, and
eliminating CST under the GST system, there will be a cost decrease as far as transportation
and capacity of merchandise.

SUPPLY CHAIN AND GOODS SERVICES-

JOURNAL ENTRIES- (in crore)

S.N PARTICULARS DEBIT CREDIT
O
1. Raw material inventory Dr. 6,05,188.27
To Cash a/c 6,05,188.27
 (being the raw material expense)

2. Manufacturing expense Dr. 41,400.87

To Cash a/c 41,400.87
(Being the manufacturing expense paid)
3. Employee Expense Dr. 13,965.16
To Cash a/c 13,965.16
(Being the employee expenses paid)
4. Depreciation Expense Dr. 10,597.51
To Accumulated depreciation 10,597.51
( Being the depreciation charged)
5. Advertisement Expense Dr. 3,511.94
To Cash a/c 3,511.94
(Being the advertisement expense paid)
Total Total
6,74,663.75 6,74,663.75

LEDGER POSTING-

Cash A/c

Particulars Debit Particulars Credit

By Raw material inventory 6,05,188.27

By Manufacturing Expense 41,400.87

By Employee Expense 13,965.16

By Advertisement Expense 3.511.94

To balance c/d
6,64,066.24 6,64,066.24

Advertisement A/c
Particulars Debit Particulars Credit

To Cash 3,511.94 By balance c/d 3,511.94

 3,511.94 3,511.94

Raw material A/c

Particular Debit Particular Credit

To cash 6,05,188.27 By balance c/d 6,05,188.27

Manufacturing Expense A/c

Particular Debit Particular Credit

To cash 41,400.87 By balance c/d 41,400.87

41,400.87 41,400.87

Depreciation A/c
Particular Debit Particular Credit

To Accumulated depreciation 10,597.51 By balance c/d 10,597.51

10,597.51 10,597.51

Depreciation Accumulated A/c

 Particular debit Particular credit
To balance c/d 10,567.51 By depreciation expense 10,597.51

10,597.51 10,597.51

Employee Expense A/c

Particular Debit particular credit

To cash 13,965.16 By balance c/d 13,965.16

13,965.16 13,965.16