Category: Commerce Notes PPT

Why is Delegation Needed in an Organization?

Delegation is the basic function of an organization. With the loads of activities to be done by the organization’s people, they delegate their work to other people in ambit of their authority. Delegation function is the core concept of management leadership which allows the people of the organization to equally distribute duties throughout the work force of the organization.

In this context, we will discuss the importance of delegation in an organization’s sphere. We will discuss more about elements of delegation, its importance, etc. in this article. 

What is Meant by Delegation?

Delegation is defined as the shifting of authority and responsibility for organizational functions, decisions from one person to another. To be more precise about the term ‘delegation’ the following pints are to be kept in note –

• Delegation is not about imposing personal responsibility on others. This is about spreading it over the organizational level to gain the best advances of the organization on the basis of short-term and long-term goals. 

• Delegation does not involve directing people what to do, rather this is involved about the outcomes and result that are associated by working together.

• Delegation is not about leadership abdication, rather it takes some time, planning and effort to complete properly. 

 

Each member of the organization can be called a delegate. Thus, a delegation of doctors to a hospital may want to make sure about the rights and needs of patients are not ignored, just as a delegation of people who attends a religious conference to express their concerns and conduct prayer.

 

Delegation is the act of assigning the authority to another person, this normally happens from a manager to a subordinate staff to carry out specific managerial activities. Delegation is the process of distributing the work to another person. Delegation is the core concepts that include managerial leadership. 

 

Delegation makes the manager fix their own work and delegate responsibility to other people at the same level. From a management point of view, delegation is the shifting of project responsibility to others in the team, making them responsible to finalise the work product effectively.

 

Elements of Delegation

The elements of delegation are as follows-

1. Authority can be delegated –

As a leader, in the formal authority reign another teammate is assigned a task. In this essence, the teammate takes action on behalf of the leader.

The Authority comes from the power of position. More the authority, more is the ability to delegate the responsibilities. 

2. Responsibility is to be delegated, not assigned –

Responsibility is to be delegated to another team mate. However, the leader cannot assign the responsibility to the team mate.  

3. Delegating Accountability Means Obligation –

Delegation of work and expecting accountability is the moral compulsion that is required to be felt by a teammate to meet the goals and objectives of an assigned task. 

Importance of Delegation

The importance of delegation can be justified in following points:

For an effective work of the leader, they need to be very balanced about their time and work. When leaders delegate tasks to others, they become free and thereby focus on higher-value activities. 

Delegation starts with deciding which tasks can be delegated and which is not to be delegated. Prioritizing tasks helps the leaders to delegate the high priority work to efficient employees and rest to others. 

Delegation enables the employees to demonstrate their capability to take new work. This will give them confidence to work on challenging activities, delegation gives them exposure to do new activities.  

Delegation encourages new skills among the team. While the leaders too can take up new activities to focus on hence delegation allows both the leaders and the subordinates to work on a whole new creation.

Bookkeeping is an essential part of all financial transactions. Regular updates of financial transitions taking place in a business, company or even household is quite essential to keep an idea about the expenses, loss and profits on a day-to-day basis. This helps to plan your future financial transactions accordingly. This updated record of transactions gives a clear idea about the performance and progress of a company or business and can determine the future plan of action for improvement. This is also essential for tax audit at the end of the financial year. Accounting is related to bookkeeping in the fact that they both are related to reporting of financial transactions but accounting has the capability of giving a whole idea about the financial health of the business or company whose book keeping has been done. They both are in fact interdependent on each other. Separately appointing a bookkeeper and an accountant is also necessary in big companies to get a better and clear insight about the financial condition of a company or business. This helps in implementing proper measures to increase the revenue generation and better profit of the company or business.

 

On that note, both bookkeeping and accountancy are vital for a business firm and play an important role in financial management. Though it may appear to be the same for some individuals, both practices follow a different set of rules and benefit an organisation in different ways.

 

That being said, let’s now move on to find out what exactly is booking and accounting and their purpose. While at it, we will also make our way to find out points which set them apart from one another. 

 

What is Bookkeeping?

Bookkeeping can be defined as a process of recording everyday financial transactions of an organisation. To practice bookkeeping effectively, individuals need to follow the fundamental concepts and conventions of accounting. 

Bookkeeping Can be Divided into Two Types –

1. Single-entry Bookkeeping

2. Double-entry Bookkeeping

It is primarily responsible for recording financial transactions which in turn serve as a basis for accounting. Hence, bookkeeping can be credited as an integral component for building a financially sound business venture.

 

Process of Bookkeeping 

The composition of bookkeeping serves as an essential point of difference between bookkeeping and accounting.

 

Let’s check out these pointers below to find out which processes are involved in bookkeeping. 

1. Identifying and recording financial transactions.

2. Posting all debits and credits of a venture accurately.

3. Creating invoices.

4. Preparing and maintaining general ledger accounts.

5. Preparing and managing trial balances. 

Test Your Knowledge: 

What is a bookkeeping journal? Choose the most suitable option from these –

1. Bank documents 

2. Personal diary

3. Books of original entry

Now that we have gained a fair idea about bookkeeping let’s move on to find more about accounting.

 

What is Accounting?

One can simply define accounting as a process that helps firm owners to record, categorise, summarise and even analyse financial transactions of their venture. It uses the information compiled during bookkeeping for preparing various financial reports, which, in turn, prove effective in determining a number of things.

Generally, accounting can be divided into these types –

1. Financial accounting

2. tax accounting

3. Internal auditing

4. Management accounting

Other than these, public accounting, government accounting, etc. form a part of accounting. Notably, as a concept, accounting is broader than bookkeeping and is undoubtedly a point of difference between bookkeeping and accounting. 

 

It not just comes in handy for business owners but also helps stakeholders and investors to gauge the financial standing of an organisation at any given point of time. 

 

Process of Accounting

Go through these following pointers to distinguish between bookkeeping and accounting more accurately –

1. Recording adjusting entries.

2. Formulating and analysing financial statements.

3. Preparing ledger accounts and trial balance.

4. Assessing operational cost.

5. Completing tax returns.

6. Weighing the impact of decisions pertaining to finances. 

Hence, accounting is an indispensable part of any business venture irrespective of the scale and size of its operation. On that note, let’s quickly move along to glance through the basic difference between accounting and bookkeeping.

 

Here some of the major difference between bookkeeping and accountancy in tabular form

 

Difference Between Bookkeeping and Accounting 

 

Check out this pie chart to find out the booking and accounting difference in graphic illustration. 

 

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Did this article help you to understand the basic difference between accounting and bookkeeping? If you want to gain more detailed information about it refer to ’s compact study materials online. Also, you can join our free live classes to learn about these concepts and other related topics more effectively in the most convenient manner.

 

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PERT and CPM are two statistical tools used to schedule and plan tasks or activities within a project. These methods are utilised to control time, resources, output and several other aspects of a project.

What is PERT?

PERT full form is Program Evaluation Review Technique. It is used to plan and identify the time taken to complete a particular activity in a project. Charts created via PERT provide a graphical representation of each task of a project’s timeline.

History

The US Navy Special Projects Office, The Evaluation Office of the Lockheed Missile Systems Division, and the Operations Research Department of Booz-Allen-Hamilton developed PERT back in 1957 during the production of the UGM-27 Polaris missile of the US Navy. 

Later, it was implemented in the 1968 Winter Olympics in Grenoble from 1965 until the completion of the event.

What is CPM?

The full form of CPM is the Critical Path Method. 

It is a project modelling technique that is used for scheduling project activities. It simply finds the maximum time required to complete a specific task. A CPM model includes the following – 

• List of all activities involved in the project.

• Dependence of each activity with one another.

• Estimated time required to complete each activity.

Steps involved in CPM

• The program manager has to list all the tasks involved in finishing the entire project.

• Then he has to determine and note down the order of the events and draw a flowchart or diagram of the events.

• Then he has to pick the tasks that might take more time or critical time to finish and then determine other tasks that are dependent on these tasks

• He has to regularly update the diagram as the project progresses.

History

The earliest concept of critical path was implemented by DuPont between 1940 and 1943 for the Manhattan Project, which was conducted by the US, the UK, and Canada during WWII for the production of the first nuclear weapons.

Later, Morgan R. Walker of DuPont and James E. Kelley Jr. of Remington Rand conceived CPM as a project modelling technique in the late 1950s. The attribution of CPM went to the developers of PERT, which was developed during the same time.

PERT and CPM are commonly used in conjunction with each other during project modelling.

 

Differences between PERT and CPM

How to make a PERT Chart?

1. Identify tasks and milestones in the project.

2. Plan activities sequentially based on milestones.

3. Estimate the time necessary for the completion of each task. PERT Charts consider four different types of time required to accomplish a task –

1. Optimistic Time – Minimum time required.

2. Pessimistic Time – Maximum time required.

3. Expected Time – ‘Guesstimate’ of time required in case issues arise.

4. Most likely Time – Most likely time required in case there are no issues. 

4. Determine the critical path and interpret timelines.

5. Update the chart as the project progresses.

A PERT chart can be generated online through several websites that offer such services. Several software are also available that can create such charts. 

How to Make a CPM Chart? 

1. Identify each activity in the project.

2. Identify the dependencies of each activity with the other.

3. Create the network diagram.

4. Estimate the time required for activity completion.

5. CPM charts consider three different times – 

1. a – Best time.

2. m – Most likely time. 

3. B – Worst likely time.

6. Identify the critical path.

7. Modify the critical path as the project progresses.

Similar to PERT charts, CPM charts can also be generated via websites and dedicated software. 

Advantages and Disadvantages of PERT

Advantages –

• PERT is beneficial for conducting a “what-if analysis”. By analysing the critical path, the likelihoods and different levels of uncertainties can be identified.

• It promotes coordination among various departments of a project. This improves decision-making proficiencies and planning. Through coordination, ample data is also available that makes it easier for project management. 

• PERT networks allow an analysis of all activities, which tell whether the project will be completed within the budget.

• PERT displays the critical path, which identifies activities that cannot be stayed under any condition. 

Disadvantages –

• PERT methodologies are entirely dependent on predictions, which can lead to going overboard on the estimated budget.

• It can be less accurate to implement as there is no data available to model a project since it is only used for non-repetitive jobs.  

• PERT is time-focused, and hence, delays in activities can lead to several issues.

Advantages and Disadvantages of CPM

Advantages –

• CPM identifies dependencies efficiently. 

• It can identify critical activities that are of priority.

• CPM takes into account the resources required for a project in the most effective way.

• Project managers can determine the precise cost and time required to complete a project. 

• CPM offers an efficient technique to assess the procedural and technical changes that might occur.

Disadvantages –

• CPM can be extremely complicated to implement in case of large-scale projects.  

• Critical path identification consumes more time for projects on larger scales.

• Creating a CPM can be time-consuming at times.

• CPM is not effective to comply with sudden changes in the project midway.

hopes that the above information about PERT and CPM is helpful for all commerce students. Make sure to check out our website for more articles and blogs related to different subjects, topics, and more. 

A promissory note is a type of negotiable tool which contains a written promise of full payment. These are duly signed and stamped by its drawers, declaring to pay a certain sum of money to the holder at a specific date or on-demand. Used by debtors to borrow from creditors, promissory notes may not be accepted by a creditor after being drawn by a debtor. They have the following features.

• Written notes promising to repay a creditor.

• Must be signed by drawer or promisor.

• The date of payment is predetermined.

• Agreed upon by both promisor and promisee for payment of an agreed sum of money.

• The legal currency of the relevant country is used for settlement.

It Involves the Following Two Parties:

1. Drawer/Maker: This is the debtor who promises to pay a specific sum to its creditor.

2. Drawee: This is the creditor who is promised a certain sum of money on a specific date.

What is a Bill of Exchange?

A bill of exchange is also a negotiable tool, which is a written note legally bound, and duly stamped and signed by its drawer. It instructs payment of a certain sum of money to the holder of this instrument on demand, or within a specific time frame. Requiring to be accepted by a debtor to be valid, these are usually the payment for goods and services. It has these features mentioned below.

• It must be appropriately dated.

• Contains an order of payment.

• The signature of the drawer/maker is mandatory.

• Bill must be accepted by a drawee.

• Order of payment and its amount should be defined.

• It must be delivered to the relevant payee.

• It involves the following three parties:

1. Drawer: An issuer of this instrument who receives the payment.

2. Drawee: An individual who has to pay the relevant amount.

3. Payee: This is an individual who receives payment, and in most circumstances, is the same as the drawer.

How are Promissory Notes Different from Bills of Exchange?

While promissory notes, bill of exchange, and cheque have some similarities among themselves, these are distinctly different from each other. Despite being financial instruments with a written promise for payment, these have different features and purposes, which every commerce student must understand.

Every distinguishing feature about a bill of exchange vs promissory note is listed below in detail.

While this table above describes fundamental differences between promissory notes and bills of exchange, students should also learn their differences to that of a cheque – another financial instrument.

Similar to the difference between promissory notes and bill of exchange, there are numerous crucial topics in the standard 10 + 2 curricula for commerce students. Subsequently, offers detailed study materials on all these topics written by expert teachers to help students in their studies. Additionally, students can also attend live classes offered by to clear any doubt they might have.

Key Differences between Promissory Note and Bill of Exchange

As you know now, there are several differences between bills of exchange and promissory notes. Here are some of the most notable differences between them:

• A bill of exchange is a negotiable instrument that is issued when the debtor is ordered to pay the due amount to the creditor within a certain length of time. A promissory note, on the other hand, is a written agreement between the drawer and the drawee in which the drawer agrees to pay a specific sum within a given time frame.

• Drawer, drawee, and payee are the parties engaged in a Bill of Exchange. Drawer and payee/drawee are the persons involved in a promissory note.

• In the event of a bill of exchange, the debtor must accept it in order for it to be considered valid. There is no requirement for the drawee’s acceptance in the event of a promissory note.

• A notice is sent to all parties concerned if the Bill of Exchange is not respected. In the event of a promissory note, no notice of dishonor is sent to the promissory note’s “maker.”

• There is no asset held as security in the case of a bill of exchange. In some situations, such as with promissory notes, an asset can be held as collateral for a loan.

In business, bills of exchange and promissory notes are just as significant as cheques. However, these concepts, which are essential for commercial transactions and financing reasons, are rarely discussed. When a debtor acquires items on credit, bills of exchange are one of the most important negotiable documents. The creditor sends a bill of exchange to the debtor, instructing him to pay the amount within the specified time frame.

The promissory note is similar, but it is issued by the debtor and states that he will pay the requisite amount within a certain time frame. These principles will help you understand business from a practical standpoint, and you will be able to use them in your own business or employment.

The purpose of a partnership is not limited to a single project or to a single goal. The object of partnership is oriented towards the running of the business for the purpose of a long-term enterprise and for making a profit in the enterprise. Joint ventures, on the other hand, are strategized to accomplish a specified goal. In a JV, each party contributes their share to the agreed-upon task.

A joint venture is a contractual arrangement between the two or more entities which aims to undertake a specific task. A partnership whereas, involves an agreement between the two or more parties where they together agree to share the profits as well as share any loss which might have incurred in a single venture.

What is a Joint Venture and Partnership?

Joint Venture

A joint venture (JV) is a type of business arrangement where two or more parties agree to put together their resources for the purpose of accomplishing a specific task. This is a task for a new project or any other business activity which might be a goal for them. In JV type of business, the partners are responsible for all the profits. 

Partnership

A partnership is a formal arrangement between two or more parties who manage and operate the business and they share their own profits in profit sharing ratio. Partners may distribute the losses and profits equally or in a distinct ratio. Some partnership business restricts the liability of the partners to limited liability.

Points of Difference Between Joint Venture and Partnership

1. Who is in the Business?

A partnership is made up of persons, two or more, who is legally recognized for the purpose of operating this business. 

A joint venture, on the other hand, can be individuals or even entities who can come together to form a business organization. 

2. The Purpose of the Business Style

Both the partnerships and joint ventures are different in their style. A partnership’s purpose is not restricted to a single project or goal, rather, partnerships are formed for earning long-term profit. 

Joint ventures are designed to accomplish only a specific goal, which might be a single project.

3. How are Both Structured?

Partnerships are formed with a partnership agreement or a contract between the individuals who make up the partnership. 

Joint ventures, not necessarily have an agreement in the first place. Even, if there is an agreement, it is only for a short-term and it is a very specific contract.

4. How Long Does the Business Exist?

Partnerships are designed to last for eternity while in business. They can run to an infinite term. 

In contrast to this, the joint ventures are meant only for a short-term project lifetime. 

5. How Big is the Size and Scope of the business?

Joint ventures are limited in scope and their accomplishment is also limited. Partnerships, in contrast, can be huge in terms of both scope and size. 

6. Who Remains Accountable?

When a partnership goes wrong and causes a moral hazard, only the party who has committed the wrong faces with fault. 

In the case of a joint venture, both the parties are seen at fault in the case of a moral hazard or criminal wrongdoing. Accountability increases greatly which makes the joint ventures riskier in the short-term. 

Education opens up a world of possibilities for individuals by empowering them with knowledge. It is the cultivation of learning in various ways. One of the most common ways to obtain an education is by going to a formal school and learning from teachers, but it is not limited to that. Education in the bigger picture is the process of encouraging discovery and innovation. From the time we are born, humans keep learning, sometimes consciously and many times subconsciously. Education is an all-encompassing field of acquiring knowledge, values, skills, habits, and beliefs.

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Introduction of Education in India

The importance of education in India has been seen right from ancient times. Human education in India can be traced back to ancient times when the Gurukul system existed. In this Guru-Shishya (teacher-disciple) system, those who wanted to study would go to teachers and request to be accepted as a disciple. If accepted, the disciple had to stay at the teacher’s place, and apart from learning, he also had to help in other household chores. This system fostered a strong tie between the Guru and Shishya, and it also taught the disciple how to run a household. Teachers of that era taught all the subjects in open classrooms, under the sun. Languages like Sanskrit and holy scripture, as well as metaphysics and mathematics, were part of the learning process. Learning was based more on understanding their surroundings and nature, not just memorizing verses or shlokas

This education system got an impetus and flourished with universities like Nalanda, Ujjain, Takshashila, and Vikramshila. 

Education and Development in India

Lord Thomas Babington Macauly brought the modern form of education and the English language to India in the 1830s. The development of education in India was marked by classroom confinement, and modern subjects like science and maths were part of this curriculum. Subjects like metaphysics and philosophy were deemed unnecessary at that time. 

The first education board, the Board of High School and Intermediate Education, was set up in Uttar Pradesh in India in 1921. This board’s jurisdiction included Rajputana, Gwalior, and central India. In 1929 another board for high school was established in Rajputana. Few other boards came up in different states but eventually in 1952 a central board called CBSE (Central Board of Secondary Education) was set up, which included all the schools in Delhi and a few other regions. All the schools affiliated with the CBSE board followed the curriculum, examination system, and textbooks prescribed by the board. In 1958, the ICSE board came into existence. As of today’s date, there are thousands of schools in India that follow the CBSE syllabus. This syllabus is also followed in a few other countries like Zimbabwe, Kuwait, and Afghanistan.

Importance of Education in Modern India

India is now witnessing the era of science and technology. Education in India has now reorganized itself to emphasize how essential technology is in our everyday life. Students are being trained in these spheres as per the need of the time.

Recently virtual international K-12 education in India has been launched. It is in collaboration with iNaCa (International connections academy). K-12 is affiliated with the state board, CBSE, and CISCE (Council for the Indian school certificate examinations). This education aims to let students learn at their own pace with engaging multimedia tools like enhanced videos, game-based learning, social learning, etc. K-12 (K is for kindergarten and 12 is for class 12) focus is to infuse innovation and creativity in children which it strives to achieve by:

• Breaking away from the standard testing methodology and encouraging students to find answers to questions by themselves through observation and judgment.

• Having technology-driven learning where blended teaching (virtual and in-person) happens, improves the primary education standards in India.

• Designing syllabus and curriculum which would prepare students for the workplace of the future.

Status of Current Education in India

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As per the Census done in 2011, the current status of literacy and other parameters in the Indian education system is as follows.

• The overall literacy rate is 74% with males’ literacy at 82.1% and females’ at 65.5%.

• The most literate state in India is Kerala, and the other top rankers are Delhi, Maharashtra, and Tamil Nadu.

• The gender gap in literacy rates has narrowed down since 1991.

• From 2001 to 2011, the male literacy rate has increased by 6%, and female literacy has grown by 12%.

• World literacy, as per UNESCO in 2015, stands at 86.3% and India needs to catch-up with it. The image below represents public education spendings in different countries in the years 2007 and 2016.

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More about Education in India

Let’s get an insight into some ways to make the educational system better. 

In order to create a homeostatic environment, it is crucial that students, teachers, institutions and management work together. Teachers should serve as guides for students and their parents should work in a collaboration to bring better results. If institutions are successful at that, they must be promoted and likewise, if they fail to do so, they must be held accountable for the same. Strategies must be evolved so as to enforce better management, proper usage of resources, increased communication and defined consequences.

In modern society, technology is all the rage. Technological competence is a very necessary skill, especially so in the future. Students must be exposed to upcoming changes in the field and give them the platform to work on them. This will also help students in their other respective fields, like creating scientific simulations, economic awareness, literary knowledge, other resources etc. It also helps them be globally aware of the socio-economic crisis and motivate students to work on them. Information technology in itself is a popular profession with ever-growing employment opportunities. Hence technology is important for the well-rounded development of the subjects. 

There is a constant need to revisit the curriculum and revive it as per the needs of the present. Society is constantly changing these days, with new inventions and discoveries almost every day. Hence, it is important that we must check what goes on to the next working generation. They must be well informed on these changes. There must be ways to control the outpouring of information and methods should be formatted as to how to appropriately pass them on. In general, current affairs must be incorporated into their daily modules as consciousness of societal conventions is just as vital for making students functional members of society.

Consistent, well-planned and uniform assessments, both academic and non-academic are integral in the course of development. This is a good way to identify weak and strong areas, interests etc. They can help in filling possible mental gaps and rectifying shortcomings. Healthy competition should also be introduced to keep students motivated for their purpose. However, this competition should be put in check to ensure that it doesn’t affect a student’s mental health, otherwise, it often ends up doing more harm than good. Stress-free and fair tests can rather boost self-confidence and serve as a tool to instill transparency in the entire system.

Every child has different needs and while some policies and strategies can be standardized, it is also important to personalize the learning experience. Students should be provided with the options to opt for training courses that are set according to their preference, in presence of a mentor. It helps to build their interest in studies and promotes improvement in their chosen field. A proficient educational institution will be flexible and accommodating to changing circumstances of the students. Government must also work with the schools to provide them with the necessary tools to establish this. 

It is equally important to provide teachers with the appropriate training. There is no shortage of dedicated employees who will be willing to work on actually bettering the system. The problem is that they have little or no customized training with respect to the changing methods and curriculum. They must be provided with proper infrastructure and be equipped with proper tools and resources. Doing the same in rural areas is also important. They should be trained in skill-based and vocational subjects so that students have the option to take up those professions after completing their education. Improving the roots is the first step of revamping the system.