Business and tricks

Export Promotion Bureau

2020-06-05T11:34:00.003+05:00

The export promotion bureau was set up in 1963 to help the business community to find out and capture foreign markets and earn the country precious foreign markets and earn the country precious foreign exchange that would be ploughed back in the industrialization country.

The bureau provides the exporters with the latest marketing information and offers them all necessary guidance about the export procedure, rules, regulations and tariffs.

The EPB has been successful in setting up permanent displays of exportable products not only within the country but also many selected centers abroad.

The world trade organization (WTO) which is one of the organs of the United Nations and whose decisions are binding to all UNO members has evolved a policy of trade liberalization that means all countries will have to open up their borders for foreign goods with the minimum possible custom duties.

This policy has created not only opportunities for exporters but also honed competition to maximum extent.

ORGANIZATIONS

The Export Promotion Bureau is headed by a chairman who must be minister of state.

Under him work vice chairman who supervises directors who are posted at the head various area offices.

The area offices are all over major cites of a country EPB is an attached department of the ministry of commerce.

THE OBJECTIVES

The main objective of bureau is,

1 It explore foreign market

2 It conducts trade fairs and exhibition locally and abroad.

3 It sends delegation abroad

4 The bureau conducts market surveys and studies

5 It works out strategies for promotion of export of both traditional and especially non traditional items.

SERVICES TO THE GOVERNMENT

1 The Export Promotions Bureau helps government to fix export targets keeping in view the local capability and potentials, competition and the import policies of foreign countries.

2 The bureau helps in formulating regulations for export trade.

3 It monitors and analyzes the export performance.

4 it arranges for trade negotiations.

5 It advice the government how to simplify export procedure.

Thanks for visiting here ❤️

Learning process never stop for more information and guide follow me here.

Visit

Knowledge PoinT

What is invoice (definition, process) proforma invoice

2020-06-02T13:09:00.003+05:00

It is the document issued by the seller to the buyer stating goods or services, quality, rate, terms of sales, any taxation if any, etc.

Terms of sales included trade, cash, and quality discounts offered to the buyer.

What an invoice is ?

Invoice is a document used in business transactions.

It is issued from the seller to the buyer. The following are the contents of the invoice.

1 seller's company name and address

2 date of dispatch or shipment of the goods.

3 Receiver's (buyer's) company name and address

4 Details of goods as brands, quality, or units, size, packing

5 price, rate, total amount

Commission or discount and its type, e.g trade discount, cash discount, or quality discount. All types of discounts are deducted from the gross amount of the invoice.

6 In case of foreign trade, the name of the bank through which the payment is to be made.

7 Mode of payment

8 Terms of sales

9 Mode of delivery (railway, Air, road)

10 Port of receipt

Proforma Invoice

The word 'proforma' refers to 'for from' s sake'. This types of invoice is issued to the buyer before the delivery is made to him.

It contains such information as price, amount, packing, mail expenses, and discount.

It the amount of the order is less than the standard order of the company, additional surcharge is added and separately shown on the invoice.

Objectives of proforma Invoice:

Proforma invoice is used under the following situations:

1 The amount mentioned in the invoice is the one which the buyer has to pay in advance if the delivery. Or the invoice may be sent along with the shipment. In the case the invoice amount is to be paid at the time of delivery.

2 when the seller decides that he must get the payment in advance he uses it.

In the case of export the proforma invoice is presented to the custom authorities to enable them to assess the value of goods. On the ground of it the import or export duty is imposed.

3 When the sellers hands over the goods to his agent, the agent does not pay until the goods are sold. In this case the seller issue proforma invoice to the agent.

4 The seller may use it as a quotation form.

5 The proforma invoice may be issued along with the goods sent on approval. If they are accepted, the buyer will have ti make payment in accordance with the proforma invoice.

CONSULAR INVOICE

Consular invoice is used import process. When ad duty is imposed, the importer, or his agent gets the exporter's invoice confirmed by his (importer's) country's consul general, who is posted in the exporter's Country.

This conformation is related to the invoice price, which is expressed in FOB.

The duty is imposed on the basis of confirmed price. Hence, this confirmed invoice is known as "Consular Invoice"

Learning process is continue....

Thanks for visiting here and for more information follow and subscribe my blog.

Visit

Knowledge PoinT

FOREIGN TRADE- Trading economics

2020-05-31T10:18:00.004+05:00

No country in this world is self sufficient.

Every country is dependent on other country.

Foreign trade has two parts:

1 Import

2 Export

IMPORT

The import refers to buying from foreign countries. It denotes that the importing country is facing the lack or shortage of goods which is being met by buying from abroad. Import are financed by foreign exchange.

In importing the goods from a foreign country the following steps are taken:

1 Registration

2 Obtaining an Import license

3 Correspondence with the Exporter

4 Proforma Invoice

5 Appointing Indenters

6 Insurance Cover

7 Opening Letter of Credit

8 Exporter's Shipment of Goods

9 Preparation of Bill of Exchange

10 Payment of Bill

11 Clearing the Forwarding Agent

12 Payment of Custom Duty and Sales Tax.

DOCUMENTS USED IN IMPORTING THE GOODS:

1 Import licence

2 Proforma Invoice

3 Insurance cover notes

4 Letter of credit

5 Bill of Exchange

6 Certificate of Origin

7 Certificate of Management and Weight

8 Bill of Lading

9 Mate of Receipt

10 Packing list

11 Registration Certificate as Importer

12 Certificate From the Chambers of Commerce

13 Income Tax Certificate showing GIR.

Import has some advantages and as well as some disadvantages.

ADVANTAGES OF IMPORT

1 Availability of Goods

2 Reduction in Prices

3 Competition and Quality

4 Political Reasons

5 Infusion of New Ideas and Technology etc.

DISADVANTAGES OF IMPORT

1 Setback to Local Industry

2 Consumption of Foreign Exchange

3 Public Taste and Culture

4 Cultural Divide etc.

EXPORT

Export refers to selling locally available goods on foreign markets. It denotes that the country has a surplus of goods and need foreign exchange.

In exporting the goods to a foreign country the following steps are taken:

1 Receiving Inquiries

2 Obtaining Order

3 Obtaining Letter of Credit

4 Determination of Export Quota

5 Obtaining Export License

6 Compliance of Foreign Exchange Rate

7 Fixation of Foreign Exchange Rate

8 Arranging for Goods

9 Packing of Marketing

10 Appointment of Forwarding Agent

11 Obtaining Shipping Order

12 Preparing Invoice

13 Obtaining Consular Invoice

14 Obtaining Custom Permit

15 Payment of Dock Charges

16 Insurance of Goods

17 Obtaining Certificate of Origin

18 Loading the Goods on Board the Ship

19 Issuance of Bill of Lading

20 Bill of Exchange

21 Receiving Export Incentives.

DOCUMENTS USED IN EXPORTING THE GOODS

1 Indent

2 Letter of Credit

3 Bill of Exchange

4 Bill of Lading

5 Shipping Order

6 Proforma Invoice

7 Insurance Receipt

8 Dock Receipt

9 Mate Receipt

10 Export Invoice

11 Consular Invoice

12 Certificate of Origin

13 Shipping Bill

Export has also some advantages and some disadvantage

ADVANTAGES OF EXPORT

1 Foreign Exchange Earnings

2 Economic Development

3 Identity of the Country etc.

DISADVANTAGES OF EXPORT

Exports are heavily on the upside in mostly all respect and in societies. Its downside is very little and limited to only undeveloped countries. The main problem that arises out of export is the scarcity of locally available essential goods.

I hope you like this article and for more information must follow me.

Thanks for visiting here.

Visit

Knowledge PoinT

BANK RECONCILIATION STATEMENT- Accounting secret)

2020-05-28T13:15:00.003+05:00

INTRODUCTION:

Bank reconciliation statement is a statement, containing the cause of disagreement between a "BANK STATEMENT" and a "CASH BOOK" for reconciliation the balance of both. It is usually prepared every month or in the regular intervals.
The need of reconciliation is to test the accuracy of entries recorded in cash book. The statement is prepared to satisfy internal and external auditor about records and balance.

ITEM CAUSING THE DISAGREEMENT:

1 Cheque is issued to various suppliers for payment, but some of them have not been presented for payment, till the date of reconciliation.

2 Cheque of customers deposited into bank, but some of them have not been cleared, till the date of reconciliation.

3 Interest credited by bank, not shown in the cash book.

4 Interest on loan or overdraft charged by bank, but not in recorded in cash book.

5 Bank collection and other charges, not shown in cash book.

6 District deposit by customer in the bank account, but there is no intimation receive from customers, or from the bank.

7 Payment made by bank but not recorded in the cash book.

8 Errors found in bank statement.

9 Errors in cash book.

Bank reconciliation statement:

The statement, showing reconciliation of cash book and bank statement:

Dishonored Cheque:

Cheque returned unpaid by bank due to insufficient fund, incorrect signature etc.

Dividend:

Share of profit distributed by company to its members or co-owner.

External auditor:

A person responsible for examining books of accounts and statements, perform statutory requirement and not responsible to the management.

Internal auditor:

A person responsible for examining books of accounts and statements appointed by the management.

Notes Receivable:

Amount receivable from the customer or debtor against promissory note.

Uncleared cheque:

Customers cheque deposited but amount is not settled or transferred yet.

Unpaid cheque:

A cheque paid to supplier or creditor, but he is not present the cheque.

Comment on this article.
AND

Thanks for visiting here and follow me for more information.

Visit

Knowledge PoinT

Importance of Marketing -Marketing strategy

2020-05-25T12:19:00.003+05:00

Importance of marketing has gone up extremely high honed by speed technology development, increased consumer needs and better education.

Market have greatly expended catering to the needs of a greater number and types of consumers.

One of the reason is the decline in cost which is the fruit of ever increasing production and new scientific methods. Fall in cost has produced two effects.

On one hand, it has raised the margin of profit for manufacturers and on the other hand, products are available to consumers at lower rates.

Lowering price has helped product makers meet grave competition. Since large scale production has produced a severe competition it has necessitated selecting or making a right products.

The importance of Marketing can be judged from the following created utilities.

1 Possession Utility:

Marketing moves goods from one person to another,

this movements creates possession utility.

The seller brings some changes in goods to make the goods suit the customers needs.

For this purpose he names a particular brand.

2 Form Utility:

Form utility is created when raw material are used to make a new product.

Bringing about changes in the existing one also make it a new product.

3 Time Utility:

Marketing creates time utility. goods produce are held back unless they are sold.

The time lag between the production and selling is bridged by creating time utility.

4 Place Utility:

Marketing creates place utility. once goods are produced they must be shifted to the point of sale.and hence place utility is created.

The goods have no utility at the point of production,abundance ,and supply unless shifted to the point of consumption demand.

5 Consumer Satisfaction:

Marketing play an important role in satisfying the human needs and wants producers and sellers bring the products on the market.

Before doing so they make the product attractive and acceptable to customers so that it can best satisfy their needs.

6 Selling:

Selling is a part and real thrust of marketing.

Whether a business is small or large, whether goods are popular or obscure, whether company enjoys high goodwill or little

The whole business will remain incomplete unless goods and services are offered for sale.

Thanks for visiting here and for more information must follow me.

Visit

Knowledge PoinT

How To Set up A Business [essential Of Establishing A Business House]

2020-05-23T11:21:00.003+05:00

"No risk, no business" it is a popular proverb. But risk is not only the problem of a business. A business, whether new or old, continuously faces the variety Of problems.

Most commonly faced problems of establishing a business are as under.

Assessment of Opportunities:

Before starting a new project the businessman must analyze business opportunities in term of expected profit,possibility of success, future tendency, Stage of business cycle etc.

Nature Of Business:

In starting a new business the businessman has to decide the type and nature of business. The selection criteria will be based on availability of capital, scope of business, expertise and experience etc.

Infrastructure:

Infrastructure provide a sound basis for all types of business.

It includes basic installation and facilities such as roads, plants, transportation, communication system etc.

Future Of Business:

This factor should be considered separately. The future of business

must be assessed very precisely. The factor of technology is especial Consideration because it is fast changing and almost daily render old Products outdated and obsolete. Today's technology rejects yesterday's. The business will have to go for tomorrow's technology.

Finance:

Finance is the life blood of business. Business finance includes capital, Loans and retained earnings.

Finance is used in purchasing equipment, land, machinery, plant and raw materials. A business enterprise has to meet other day to day expenses.

Labor Problems:

The business requires labor. The larger the business the greater the number of laborers required.

The business enterprise has to know what type of labor, in what number And at what wages has to be recruited.
1 skilled labor 2 semi-skilled labor 3 unskilled labor

Types of Goods And Services:

It has to be decided what types of goods and services are to be offered to the consumer. And whether they are to be manufactured or bought.

These are important points which will help you to set your business.

"learning process never stop"

I hope you like this article and more information and ideas must subscribe this blog.
Thanks for visiting (Business and tricks)

Visit

Knowledge PoinT

Types of business- 4 types of business

2020-05-22T09:15:00.003+05:00

There are four types of business,
1 Sole proprietorship
2 Partnership
3 Company/cooperation
4 Cooperative Society

Sole Proprietorship:

It is the business which is owned by a single owner who is referred as
Sole proprietorship.
It enjoys lots of benefits which other ownership cannot.
It has many advantages just like,
1 Ownership of all profits
2 Ease of Formation
3 Ease of Dissolution
4 Tax Saving
5 Secrecy
6 Freedom of Action
7 Low Cost

It has also some disadvantages just like,
1 Unlimited Liability
2 Difficulties In Management
3 Limited Size
4 Lack Of Opportunities For Employees

Partnership:

It is the business which is owned by two or
more persons.
Features Of Partnership
1 At least two partners
2 There must be an agreement, written or oral.
3 The business must be for profit and etc.

Partnership has some advantages which are following,
1 Large Capital
2 High Credit Standing
3 Combined Judgement And Skills
4 Personal Interest
5 Tax saving etc.

And it has some disadvantage also,
1 Unlimited Liability
2 Divided Control And Management
3 Lack Of Continuity
4 Disagreement among the partners etc.

Company/Cooperation:

A company or cooperation is defined as
"an artificial being, intangible, invisible but existing
in contemplation of law.

Advantages for a company,
1 Limited Liability
2 Transfer of Ownership
3 Large Size
4 Ease of Expansion
5 Long Life
6 Legal Entity etc.

Disadvantage for a company
1 Taxation
2 Organizational Expenses
3 Lack Of Secrecy
4 Lack of Credit Standing
5 Lack of Personal Interest etc.

Cooperative Society:

The cooperative society is the group of
people or Institutions that come into
existence to Offer various services to
its members.

Advantages Of Cooperative Society
1 Continuity
2 Low Prices
3 Loans
4 House Loans

Disadvantages of Cooperative Society

1 Fee Payment
2 Unlimited Liability
3 Payment Of Service Charges
4 Difference Of Opinion

I hope this post will help you to know
More about business and types of business.
For more information follow and subscribe the blog.

Visit

Knowledge PoinT

Trade Marketing Examples

2020-05-20T10:18:00.004+05:00

Marketing:

marketing is defined as,

⦁ Marketing is the process by which goods and services move from point of production to point of consumption.

⦁ Marketing embraces all those activities that start up after the production and end with the consumption.

⦁ Marketing covers all business activities which is neccesary to effect the transfer in the ownership of goods and services to provide for their distribution.

Function of Marketing:

Business Plan:

Things that are important for a business,
1 Production:
Business start with the function of production.
Production means conversion of material from one form to another.

2 Finance:

Finance is the lifeblood of a business.Every activities in business needs for capital and loan without finance no business can take place.

3 Transportation:

It is an important activity as no business can be performed without it.Transportation starts from production.It refers to moving goods from the point of production to the point of consumption.

4 Information:

Business extends on getting information from various sources and media. It require information on every stage. In production, in buying, in selling and in research.
There are two types of information,

1 Primary Information: it is first hand information received through research, study analysis, observation, experimentation and experience.

2 Secondary Information: it is obtained through other sources that includes libraries, books, newspaper and data collected by others.

Trade:

Trade is buying and selling. it exchange of goods and services.it is first part of marketing functions(Function of Exchange).
There are two types of trade,

1 Foreign Trade:

The trade which is take place outside of the country is called "Foreign Trade".
It has two parts,
⦁ Import
⦁ export

2 Home Trade:

The trade which is take place inside of the country is called "Home Trade".
It has also two parts,
⦁ Wholesaling
⦁ Retailing

Hopefully this article will be helpful for you to know for more about the trade and marketing.

Visit

Knowledge PoniT

Introduction to Business

2020-05-19T10:28:00.006+05:00

Business experts and authors describes business in
different way.

some authors says,
"Business is an organization which is occupied in producing goods and services to make a profit".
where as some other authors say,
"human activity towards providing or acquiring wealth through buying and selling goods is called business"

where as some experts says,
"business embraces all those functions involved in the making,buying,selling and transporting of good".

TYPES OF BUSINESS:

There are four types of business,
1 Sole proprietorship
2 Partnership
3 Company
4 Cooperative society.

Difference between business and commerce:

Business and commerce are two different words but they have identical meaning and concept and can be used alternatively.

Economics:

Economics studies all those activities ,which are directly related with wealth.it is source of all financial, industrial, commercial and business activities because all of them are concerned with creating wealth.

QUALITIES OF A SUCCESSFUL BUSINESSMAN:

A businessman must possess certain qualities if he has to stay in the market no matter, how much capital or fund he owns.
Those qualities are,
1 Risk Assuming
2 Goal Oriented
3 Well Informed
4 Performance Oriented
5 Rational, Not Emotional
6 Fair Dealer
7 Experienced.

Hope you like this article must share it with your friends and do follow and subscribe the blog.

Visit

Types of business

Economics and its types

transaction business documentation

Classification of cost

Knowledge PoinT

Special Journals And Ledgers (book of original entry)

2020-05-18T13:07:00.005+05:00

The Book Of Original Entry:

Every transaction is recorded in "special journal", if not than in general journal. The books in which transactions are recorded are called "Book Of Original Entry"
Books Of Original Entry:

1 Cash Book:

Cash book is maintained in most of small medium size business organizations for recording "Cash Receipts And Payments". It object is recording of journal as well as accounts of cash and bank in general ledger.

2 Cash Receipts Journal:

This is the journal for recording of "Cash Receipts" only.

3 Cash Payments Journal:

This is the journal for recording of "Cash Payments" only.

4 Petty Cash Book:

This is the book for recording of "Minor Payments".

5 Purchases Journal:

This is the journal for recording of "Credit Purchases Of Merchandise"

6 Sales journal:

This is the journal for recording of "Credit Sales Of Merchandise".

7 Purchases Returns And Allowances Journal:

sometimes the goods are returned or given allowance to supplier due to inferior quality of any other reason. If cash is not received after such transaction then "goods return and allowance is recorded in this book".

8 Sales Returns And Allowances Journal:

similarly goods are returned or received allowance from customers is not paid to customers. Sales returns and allowance journal is a book for recording such" Sales Returns And Allowances Journal" .

9 General Journal:

Transaction such as purchase or sale of assets on credit except merchandise.

BOOKS OF FINAL ENTRY:

Every record in books of original entry is posted in general ledger except record of customers and suppliers.
Records of customers and suppliers are posted in "Subsidiary Ledgers".

The books of final entry are,
1 Subsidiary Ledger for Account Receivable.
2 Subsidiary Ledger for Account Payable.
3 General Ledger.

THANKS FOR VISITING

FOR MORE INFORMATION GO TO HOME PAGE AND MUST FOLLOW THIS BLOG.

Visit

Knowledge PoinT

Accounting -Basics of accounting (Rules of Accounting)

2020-05-17T11:55:00.006+05:00

Scope of Accounting

Accounting is essential in every field of life, from a small business to a company. Accounting is important for government or semi government institutions as well.

Objectives of Accounting

The main objectives of accounting are following:
1 To maintain proper records of transaction and other activities related to expense in a business.
2 To keep eyes on every business assets.
3 To ascertain the financial position of a business.
4 To help the management to make decision with the help of historical data of accounting.
5 To help in designing business policies for short and long terms.

Account: A record in ledger, regarding increase or decrease of items.

Account payable: Parties from which goods purchased on the basis of credit.

Account Receivable: Parties to whom goods sold on the basis of credit.

Liabilities: Amount have to be paid in future.

purchases: It means purchase of merchandise for purpose of resale.

Revenues: Income from sale of merchandise or services.

Accounting cycle:
The sequence of accounting procedures constitutes a complete accounting process, which is repeated in the same order in each accounting period.
The regular repetition of this standardized set of procedure is referred ta as "Accounting Cycle".

THANKS FOR VISITING

Learning process never stop .
We will meet in the next post.

Do not forget to follow and subscribe the blog.

Visit

Knowledge PoinT

Introduction to Accounting

2020-05-16T13:03:00.007+05:00

Accounting means the language of business.

Gere are some basic of accounting,

1 Transaction:

Transaction means exchange of values.

2 Book Keeping:

A systematic way by which we can record the transaction in a business and can make financial statement.

3 Accounting:

Accounting is the art of recording of data,classifying of data and summarizing of data.

Branches Of Accounting

There are many branches of accounting some of them are mentioned below,

1 Financial Accounting

2 Cost Accounting

3 Managerial Accounting.

Advantages of Accounting

It provides useful information for making economic decisions.
It helps investors and creditors.
It describes the financial position of a business and etc.

Accounting period

A period which is determined for the determined of profit and loss in a business over it whole life.

Accounting equation

Assets=Liabilities+Capital

Book keeping and Accounting

"Thanks for visiting on my blog"

So this is the first basic lesson for Accounting i hope readers like this and for next lesson follow my blog.

Have nice day.

Visit

Knowledge PoinT