Accounting Made Easy


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ACCOUNTING MADE EASY Second Edition About the Authors Rajesh Agrawal Rajesh Agrawal is the Director of Finance at the International Crops Research Institute for the Semi Arid Tropics (ICRISAT), Hyderabad, a leading United Nations research organization. He is a graduate in commerce from St. Xavier’s College, Kolkata and a chartered accountant and cost accountant. He was a faculty member in the Finance & Accounting area at the Indian Institute of Management, Ahmedabad [IIMA] for a five year period starting 1997. He was the Chairman of the Finance & Accounting area at IIMA during the period 1999-2000. Before joining the faculty at IIMA, he was a faculty member at Institute of Rural Management, Anand for over six years. His areas of specialisation and research are financial accounting and financial reporting, strategic cost management and management control systems. He has been a consultant to the industry, government, non-governmental organisations and Food and Agricultural Organisation of the United Nations. R Srinivasan R Srinivasan is Professor, Finance & Control area at the Indian Institute of Management, Bangalore (IIMB). Earlier, he was Dean (Academic) and the Chairperson of the Finance & Control area at IIMB. His areas of interest are corporate finance, project management, management control and microfinance. He has an M.Sc. in Physics from the Indian Institute of Technology, Bombay, and a postgraduate diploma in management & Fellow title (doctorate) from the Indian Institute of Management, Ahmedabad. He was previously a member of the faculty at the Institute of Rural Management, Anand. He has also worked with a commercial bank, and with an engineering & construction company. His consulting experience covers international organisations, the corporate and the development sectors. ACCOUNTING MADE EASY Second Edition Rajesh Agrawal Director of Finance, International Crops Research Institute for the Semi Arid Tropics, Hyderabad (Formerly Associate Professor, Indian Institute of Management, Ahmedabad) R Srinivasan Professor, Finance & Control area Indian Institute of Management, Bangalore Tata McGraw Hill Education Private Limited NEW DELHI McGraw-Hill Offices New Delhi New York St Louis San Francisco Auckland Bogotá Caracas Kuala Lumpur Lisbon London Madrid Mexico City Milan Montreal San Juan Santiago Singapore Sydney Tokyo Toronto Tata McGraw-Hill Published by the Tata McGraw Hill Education Private Limited, 7 West Patel Nagar, New Delhi 110 008. Accounting Made Easy, 2/e Copyright © 2011, by Tata McGraw-Hill Education Private Limited. No part of this publication may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise or stored in a database or retrieval system without the prior written permission of the publishers. The program listings (if any) may be entered, stored and executed in a computer system, but they may not be reproduced for publication. This edition can be exported from India only by the publishers, Tata McGraw Hill Education Private Limited ISBN-13: 978-0-07-070098-7 ISBN-10: 0-07-070098-7 Managing Director: Ajay Shukla Head—Higher Education Publishing and Marketing: Vibha Mahajan Publishing Manager—B&E/HSSL: Tapas K Maji Deputy Manager (Sponsoring): Surabhi Khare Development Editor: Shalini Negi Assistant Manager (Editorial Services): Anubha Srivastava Senior Copy Editor: Sneha Kumari Senior Production Manager: Manohar Lal Production Executive: Atul Gupta Deputy Marketing Manager: Vijay S Jagannathan Senior Product Specialist: Daisy Sachdeva General Manager—Production: Rajender P Ghansela Assistant General Manager—Production: B L Dogra Information contained in this work has been obtained by Tata McGraw-Hill, from sources believed to be reliable. However, neither Tata McGraw-Hill nor its authors guarantee the accuracy
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