Saturday, 20 July 2019

Types of Partners in a Partnership Firm - PPT

Powerpoint Presentation on Various Types of Partners in a Partnership Firm

This PPT exaplains (in detail) following different types of partners -

Types of the Partners –

-Active Partner

-Sleeping Partner

-Nominal Partner

-Minor Partner

-Partner in Profits only

-Partner By Estoppel

Sunday, 26 May 2019

Accounts - Not for profit -  the features of Receipt and Payment Accoun


What are the features of Receipt and Payment Account?

Answer :

The following are the features of Receipt and Payment Account:

1. Nature: It is a Real Account. It is a summarised version of Cash Book.

2. Nature of Transactions: It records only cash and bank transactions. Transactions other than cash and bank like depreciation, loss/ profit on the sale of assets, etc. are not recorded in this account.

3. No distinction between Capital and Revenue items: It records all cash and bank receipts and payments of both capital and revenue nature.

4. Opening and closing balance: It begins with the opening balance of cash and bank and ends with the closing balance of the cash and bank (balancing figure) at the end of the accounting period.

5. Purpose: It reveals the cash position of an organisation. It helps to ascertain the total amount paid and received during an accounting period.

Thursday, 4 October 2018

Process of availing a home loan

Process of availing a home loan is very easy. You can do it from home. Most private banks provide you door step service.

You need to first decide which bank you want to apply for. You can do a research through internet or call up the call centres of banks or inquire online on their websites. Also you can take advice from any of your friends, relatives or colleagues about their opinion on where you should be applying for the home loan.

Once you have decided where to apply, you can get in touch with that bank for application of home loan. 

You need to submit all the necessary documents (required as per lending policiy of the bank) alongwith the application form to the bank. They will conduct verifications of your current residence and office. They will also do other internal checks like generating your cibil report, verifying whether documents provided by you are genuine or not etc. Post this, they will have a personal discussion/interview with you. 

After doing the personal discussion, if they are ready to sanction your loan, they will issue a sanction letter to you

Post this you need to submit all the required property documents to the bank. They will check whether your property has a clear & marketable title and will also do valuation of the property.

After valuation and title check, you need to sign loan agreement & other disbursement documents and then take the cheque of disbursement.

This is broadly how you can get a home loan. This process flow may differ slightly based on bank where you apply

Thursday, 23 August 2018

Words of Wisdom from Warren Buffet

Warren Buffett is an American billionaire and arguably the world's greatest stock market investor.

Some of his famous quotes which are worth reading-

"Unless you can watch your stock holding decline by 50% without becoming panic striken, you should not be in the stock market."

 "Never invest in a business you can't understand."

"A great investment opportunity occurs when a marvelous business encounters one-time huge, but solvable problem."

"The investor of today does not profit from yesterday's growth."

"Rule No. 1: Never lose money; Rule No. 2: don't forget rule No. 1."

"It's nice to have a lot of money. but you know, you don't want to keep it around forever. I prefer buying things. Otherwise, it's a little like saving sex for your old age.‘

"Price is what you pay. value is what you get."

"I try to buy stock in businesses that are so wonderful that an Idiot can run them. Because sooner or later, one will."

"Whether we are talking about socks or stocks, I like buying quality merchandise when It is marked down."

"In the business world, the rearview mirror is always clearer than the windshield."

Sunday, 6 May 2018

What is a Pre-Approved Home Loan? | What does pre approved home loan mean?

Pre-Approved Home loan and its advantages
Pre-Approved Mortgage

Pre-Approved Home Loan (also called as an in-principle approval/sanction of a home loan) is a home loan sanctioned by the bank to its customer/borrower before the borrower has finalized a residential property to buy. The loan amount is decided purely on the basis of borrower's income documents, creditworthiness, repayment capacity and financial position.

The value of the property is not taken into consideration at all (as the same would have not been finalized by the borrower at the time of application for the home loan). The approval is valid for a limited time period (usually 3 to 6 months). The borrower should identify a property within this limited time period. If he is unable to do so, the validity of the sanction letter will lapse and he will be required to submit his latest financial documents.

The disbursement will be done by the bank only if the property has a clear title and is acceptable to the bank as a security (as per their lending norms). For example, if the property finalized by the customer is found to be structurally weak, the bank may not go ahead with the disbursement of the loan.

Also one must keep in mind that the terms of the loan (interest rate, EMI, and tenure) indicated in the sanction letter may change later. For example, if the rate of interest increases after the bank has given an in-principal sanction letter, the borrower will not get the loan at the rate of interest mentioned in the sanction letter (as always rate of interest applicable to the loan is the rate of interest prevailing at the time of disbursement of the loan).

What are the benefits of getting a home loan pre-approved?

1. Once the borrower knows how much loan he is eligible for (based on his income), he will be very clear about his budget. Hence he can focus better on the property search without worrying too much about how he will be able to manage his finances for buying the property. He will not miss out on a good property deal as he will be able to take quick decisions (since he would now have a better picture of his budget and finances).

2. The loan processing will take much less time after the property has been finalized by the borrower (as a lot of loan formalities would have been completed at the time of pre-approval/in-principle sanction of the loan). This will also enable him to make immediate payment to the seller of the property and quickly take the possession of the property (if the property is ready).

3. The borrower will be in a position to negotiate better with sellers. The pre-approval of home loan would increase his bargaining power as he would now have a sanction letter to show to the seller (so that the seller becomes confident about swift payment of the price of the property). The seller may agree to sell the property at a slightly lower rate in such a scenario.

4. Assistance in property search - Sometimes the banks also share with the customers (whose loans have been sanctioned in principle) the list of projects approved by them This would assist the borrower to try to find a deal without the assistance of a broker. Also, if he finalizes a property from that list he can be sure that the property falls within the lending norms of the bank and that title of the property is clear.

Read Further -

Factors that affect home loan eligibility

Reasons for rejection of a home loan

Break up of EMI into interest and principle

Wednesday, 4 April 2018

Types of Economic Activities-Business and its Features/Characteristics

Business is an economic activity. Economic activity refers to any activity which is conducted with an intention to earn money.

Business refers to production and distribution of goods and services with an intention to make profits. The production also involves the production of agricultural goods. For example, growing mangoes, manufacturing of soaps etc. Distribution refers to all the activities involved in the movement of goods and services to the ultimate consumer. For example transport, warehousing etc.

Types of Economic Activities - Business and its features
Business and its features

Following are some of the features or characteristics of Business as an economic activity-

1. Involves Production and Distribution of Goods and Services - Any activity done during the process of making goods and services available to the ultimate consumer for a price will be called as a business.

2. Involves goods and services - Every business transaction involves either goods or services. Services are intangible but are provided for earning money. For example, transport, banking etc.

3. Involves minimum of 2 parties - Any business activity involves a minimum of 2 parties i.e., buyer and seller. One cannot do a business with himself.

4. Involves Exchange - Any business activity involves an exchange of goods and services for money or money's worth. Hence business involves a minimum of 2 parties. Any exchange requires minimum 2 parties. Goods and Services exchanged for money is referred to as a monetary exchange. Exchange of goods or services for some other goods or services is called Barter Exchange. No money is involved in a barter exchange.

5. Aims at a profit - Every business activity has an aim to make a profit. If there is no intention to make a profit, such an activity cannot be considered as business.

6. Risk - Every business involves risk i.e., the risk of making a loss. There is nothing called Risk Free Business.

7. Continuity - Business involves a continuous and regular production of goods and services. Any isolated activity of buying and selling cannot be considered as business. For example, selling off old furniture of your house. Even though it involves money it still can't be considered as a business for you, as you are not doing this on a regular basis.

Related Post - Types of Economic Activities - Employment and its features

Sunday, 25 February 2018

Types of Demand - HSC, Class 12, Micro Economics

Types of Demand in economics

Following are some of the different forms of Demand-

1. Joint Demand - This refers to a kind of demand where products are demanded jointly. For example, Inkpen and ink, car and petrol etc. Such products are demanded jointly. For example, there won't be any demand for ink if ink-pen is not there and vice versa

2. Competitive Demand - This refers to demand of products which are close substitutes of each other. For example, tea and coffee.

3. Derived Demand or Indirect Demand - When the demand of a product is derived from the demand of any other product, such a demand is called derived demand. For example, cement. Cement is demanded not for direct consumption but is demanded as there is demand for housing. Thus cement derives its demand from demand of housing

4. Direct Demand - This refers to demand of products which are directly consumed by people. For example, all consumer electronics. The demand of these products does not depend on the demand of any other product. These products are directly consumed by people. For example, the demand of a washing machine does not depend on the demand of any other product. The washing machine is consumed (used) directly by the people.

5. Composite Demand - This refers to the demand of the products which have multiple uses. For example, electricity, milk etc. These products have multiple usages and can be used for a variety of purposes. For example, electricity is used to run TVs, washing machines, computers, music systems etc.

Related Posts -
Factors affecting elasticity of demand

Related Videos -