Bhagya

By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 6 Institutes Supporting Business students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 6 Institutes Supporting Business

Small Industrial Development Bank of India (SIDBI)-

1. Established on 2nd 1990.
2. Initially subsidiary of Industrial Development Bank of India (IDBI)
3. Ownership is held by 34 public sector institutes
4. Focuses on Micro, Small and Medium Enterprises (MSM,s)
5. Head office Lucknow
   • 15 regional offices
   • 84 branches all over India

Features of SIDBI-

(1) Sustainable Development:

• Creation of economic wealth.
• Enhance awareness of benefits of climate control.
• To promote investment in clean production and energy efficient technologies.
• To reduce the emission of greenhouse gases.

(2) Nodal / Implementing Agency:
helps in implementing various subsidy schemes for upgradation, modernisation and expansion of business.

(3) Financial Institute for promotion of MSMEs (Micro, Small and Medium Enterprises:):

• To provide short and long term finance to MSMEs.
• It provides refinance to banking and Non-Banking Financial Companies (NBFC).
• To cater the specific needs of Indian MSMEs.

(4) Advisory Function:

• To expand marketing channels at domestic and international markets.
• Steps for modernization and technological upgradation.

(5) Forms of finance:

• Direct Finance
• Indirect Finance
• Micro Finance

(6) Digital initiatives:

• SIDBI Startup Mitra
• Udyami Mitra

(7) Achievements of National Goals:

• Helps in poverty alleviation and employment generation
• Promotes entrepreneurship and fosters competitiveness as well as for women and economically weaker section.
• Provides finance to industries in semi-urban areas

(8) Services to MSMEs:

• SIDBI Venture Capital Ltd. (SVCL)
• Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE)
• SME Rating Agency of India Ltd. (SMERA)
• India SME Technology Services Limited (ISTSL)
• India SME Asset Reconstruction Company Ltd. (ISARC)
• Micro Units Development and Refinance Agency (MUDRA)

National Bank for Agriculture and Rural Development (NABARD)-

• Established on July 12,1982
• An apex institution for agricultural finance

Objectives:

• Providing and regulating credit and other facilities
• Promotion and development of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and allied economic activities

Features of NABARD-

Financing Rural Industries:

• To refinance small scale industries and other village and cottage industries
• To promote rural employment by providing loan to commercial and co-operative banks
• To organize skill and entrepreneurship development programmes

(2) Assistance to Financial Institutes:

• To assist in preparing, developing, implementing, action plans for Co-operative Banks and Regional Rural Banks.
• To provide financial assistance to improve Management Information System (MIS), Computerization of operations and development of human resources.

(3) Refinancing Facilities:

To provide refinance facilities to –

• State Co-operative Banks (SCBs)
• Land Development Banks (LDBs)
• Regional Rural Banks (RRBs)

To provide – short term credit

• Medium term credit
• Long term credit

To help during natural calamities

(4) Credit for Rural development.

• To provide funds to State government in development and promotion of different activities
• To uplift weaker section by refinancing them.
• To provide finance for promoting non-farm activities and generating employment

(5) Apex Bank:

• To meet credit needs of all types of financial institution in field of agricultural and rural development
• To frame policies and guidelines for rural financial institution
• To monitor the flow of rural credit in India.

(6) Recommendations to Reserve Bank of India:
on issue of licenses to Co-operative Banks, opening new branches by State Co-operative Banks and Regional Rural Banks (RRBs)

(7) Development of Nation:

• To promote warehousing facilities to improve storage facilities for agricultural commodities.
• To promote export of agricultural commodities
• To help in sustainable development of the country through Green, Blue and White Revolution.

(8) Supervision of Financial Institutes engaged in Agricultural Finance.
To inspect Regional Rural Banks and Co-operative Banks, State Co-operative Agriculture and Rural Development Banks (SCARDBs) on voluntary basis

Khadi and Village Industries Commission (KVIC):

• Under the Khadi and Village Industries Commission Act, 1956
• Established on April, 1957
• An Apex organization under the Ministry of Micro, Small and Medium Enterprises
• Head office: Mumbai

Objectives of KVIC-

• Social Objective
  providing employment
• Economic Objective
  providing saleable articles
• Wider Objective
  • creating self reliance among poor
  • build strong rural community spirit

Features of KVIC-

Research and Development.

• To give training to sales staff for effective marketing of khadi products.
• To provide design support services.
• To bring technological improvements in products so as to reduce the cost of production and increase incomes.
• To promote use of non-conventional energy and electric power for sustainable development.

Other Functions:

• To plan, promote, organize and implement the programmes with relation to Khadi and other village industries.
• To organise training programme for artisans.

Marketing and Promotion:

• To hold exhibitions, seminars and lectures in Universities and Colleges.
• To generate interest, awareness and attraction among people.
• To improve the quality of products, packaging and marketing skills.

Financial Assistance:

• To finance rural industrialization projects and provide for margin money through subsidy.
• To provide higher subsidies in case of weaker sections, tribal areas and backward regions.
• To provide financial assistance for development and operation of Khadi and Village Industries.

Rural Development:

• To utilise natural resources properly in generating income for rural people
• To promote development of tiny, cottage and small scale enterprises

Employment Generation:

• To create employment opportunities with low per capital investment, promote non-farm employment opportunities.
• To focus on betterment of rural artisans and socio-economic weaker section.

Entrepreneurship Development:

• To generate self employment and help to provide additional livelihood revenue.
• To prevent migration by increasing earning capacity of rural people.
• To participate in international trade exhibitions.

Women’s Self Help Groups (Mahila Bachat Gat)-

Objectives:

1. To eradicate poverty and empower the women
2. Fundamental principle

• “helping each other”
• “Unity is strength”

Features Women’s Self Help Groups-

(1) Formation:

• It is an informal small group of homogeneous individuals generally formed by NGOs.
• Registration under any act is not mandatory.

Membership:

• It is through a process of self selection based upon the affinity (harmony) of its members.
• At least 5 members are required. One member from one family is allowed.

Empowerment of Women:

• It is a tool for socio-economic development of women.
• To promote women entrepreneurship.
• To provide financial and non financial assistance.

Collateral Free Loan:

• To provide small loans to the poor individual to start self employment projects.
• To encourage poor individuals to participate in banking activities.
• To ensure timely repayment of loans and responsible for collecting repayment amount who borrowed the loan.

Democratic Setup.

• It is responsible for organizing themselves independently.
• To hold regular meetings, maintaining records and accounts of the group.
• To work on principle of collective leadership and mutual discussions.

Entrepreneurship Development.

• To provide capital at low interest rate to promote micro enterprise.
• To provide timely financial support and managerial skills.
• To provide skill development trainings and marketing and technical support.

Saving Habit.

• To encourage small saving habits at regular intervals.
• To generate common fund to be used to lend the members in time of need.

Mutual Trust.

• To overcome individual shortcomings and weakness with collective efforts.
• To help poor and marginalized individuals builds their lives, families and their society.

World Bank-

(1) International
‘ Bank for Reconstruction and Development (IBRD).
provides debt financing to government

(2) International Development Association (IDA)
Gives interest free loans to the governments of poor countries

(3) International Finance Corporation (IFC)
Focuses on private sector and provides developing countries with investment financing and financial advisory services

(4) Multilateral Investment Guarantee Agency (MIGA).
Promotes Foreign Direct Investments in developing countries

(5) International Centre for Settlement of Investment Disputes.
Provides arbitration on international investment disputes

Features of World Bank-

Goals-

2 goals by 2030
To end extreme poverty
To promote shared prospering by fostering the

• income growth of bottom 40% for every country.
• World Bank group consists of 5 institutions which are managed by their member countries.

(3) Financial Products and Services.
Provides low-interest loans, zero to low interest credits and grants to developing countries in area of education, health, public administration, infrastructure, financial and private sector development, etc.

(4) Innovative Knowledge Sharing.

• To support in policy advice, research and analysis and technical assistance
• To sponsor host or participate in conferences and forums on issues of development
• To provide best global expertise to developing countries

(5) Innovation and Entrepreneurship:

• higher productivity leading to increased economic growth
• enhancing competitiveness and productivity by introducing new products, novel business models, new markets, etc.
• facilitates global experience, knowledge, research and-investments to develop effective innovations

(6) Social Development:L

• promotes economic growth and leads to higher quality life
• solves the problems of poor and vulnerable into development process
• undertakes social risk analysis, including poverty and social impact analyses

Word Meaning:

hurdles – difficulties; vibrant – energetic; emerge – comes out; dedicated – committed; infusing – to fill; ecosystem – interconnection of organism and environment; channels – means/medium; co-ordinate – bring together; refinance – giving loans with low rate of interest; traditional – regular; sustainable – able to maintained; creation – formation; ecological – relation of organism and surrounding; emission – to release; upgradation – to improve; associates – connected; subsidiaries – subordinate/secondary; comprehensive – complete; micro – small; semi-urban – in between rural and urban; assistance – to help; extensive – large scale; incubators – company that helps to start up new companies; mentors – guide; portal – website; accessibility – able to reach; track – path; handbolding – to support; nodal agency – a direct office which is assigned for implementing; allied along with – executing new project; review – to check; eye opener – unexpected event; plunge – to jump; apex – at top; regulating – to control; cottage – business carried on by home; guidelines – instruction; monitors – to look after; tideover – to help at difficult; computerization – use of computer in doing work; upliftment – to raise; voluntary – not compulsory; recommendations – to advice; revolution – to bring change in society; boycott – to refuse; key – important; potential – possibility; emphasis – importance; strengthen – to power; functions – activities; self reliance – self sufficient; community spirit – feeling of togetherness of one community/group; premier – main/leading; generating – to produce; masses – people; massive – huge; per capita – by each head; avenues – direction; migration – movement of people from one place to another; formulated – to prepare; schemes – plan; subsidy – a sum pf money granted by government to support; beneficiaries – recipient/receiver; cater – to provide; publicity – to make famous; disseminating – to distribute; derive – to get; organizes – to arrange; agencies – a business firm; eradicate – to remove; refused – to say no; empower – to allow; inspired – to encourage; homogeneous – same group; collateral – security; alternative – different; voluntary association – group of individuals forming a body having same goals; reasonable – fair price; enhances – increase; collective – together; out reach – influence; affinity – harmony; inculcates – to fix; thrift – budgeting; overcome – to solve; philosophy – study of particular system; marginalized – system insignificant; grassroot – basic level; scarcity – shortage; untapped – resource not used; tool – device; clutches – holds; artisans – individual with/good proficient in particular art; vested – given/ to give; fostering – to promote; unique – special; vital – important; analysis – to evaluate.

By going through these Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 5 Forms of Business Organisation – II students can recall all the concepts quickly.

Maharashtra State Board Organisation of Commerce and Management 11th Notes Chapter 5 Forms of Business Organisation – II

Public Sector Organizations-

Definition of Public Sector Organizations

1. Britannica Encyclopedia
“An undertaking that is owned by a central, state or local government, supplies services or goods at a price and is operated on more or less self-supporting basis is called as Public Sector Organisation.”

2. Prof. Hansen
“Public Enterprise means state ownership and operation of industrial, agricultural, financial and commercial undertaking.”

Classification of Public Sector Organizations-

1. Departmental Oranization
2. Statutory Corporation
3. Government Company

Department Organisation-

• Meaning : Organization which is owned, managed, controlled and financed by government is known as “Departmental Organisation”.
• Example : Post Office, Railways, Defence Industries, Radio, Public Utility Services, etc.

Features of Departmental Oraganisation-

• Delegation of Authority
• Organizational Structure
• Government Employees
• Financed by the Government
• Useful for Secret
• No Legal Status
• Government Sanction for Expansion
• Examples of Departmental Organization
• Run by Government
• Managed by Government
• Accounting Control
• Accountability

Merits of Departmental Organization-

1. Qualified Staff
2. Proper use of Funds
3. Social Welfare
4. Public Accountability
5. Maintain secrecy
6. Easy Formation
7. Direct control
8. Direct revenue to Government
9. Less Overheads
10. Easy Finance
11. Development of Public Utilities

Demerits Of Departmental Organisation-

1. Delay in Action
2. Inefficiency and Corruption
3. Less Scope for Initiative
4. Instability
5. Delayed
6. Lack of Flexibility
7. Incurring Losses/Huge Losses
8. Absence of professionalism
9. Political Interference
10. Red Tapism and Bureaucracy
11. Insensitive to Consumer Needs
12. Lack of Autonomy

Statutory Corporation-

Meaning : A Statutory Corporation is an autonomous corporate body created by the Special Act of the parliament or state legislature with defined powers, functions and duties. State helps statutory corporation by subscribing to its capital.
Example : Reserve Bank of India, LIC, etc.

Features of Statutory Corporation

1. No political Interference
2. Own Staffing System
3. No Political Interference
4. Financial Autonomy
5. Independent Identity
6. Special Act
7. Corporate Body
8. Answerable to the Legislature
9. Legal Status
10. Independent Accounting System
11. Public Accountability
12. Objective

Merits of Statutory Corporations-

1. Professional Management,
2. Rapid Decisions
3. Efficient Staff
4. Motivated Staff
5. Service Motive
6. Easy to Raise Capital
7. Administrative Autonomy
8. Public Accountability
9. Initiative and Flexibility
10. Enjoys Economies of Scale
11. Creates Employment Opportunities
12. Enjoy Monopoly

Demerits of Statutory Corporations-

1. Clashes Amongst Interests
2. Autonomy on Paper Only
3. Rigid Structure
4. Lack of Initiative
5. Unfair Practices

Government Company-

Meaning : “The company which is registered under Companies Act, 2013 having minimum 51% of paid- up share capital held by the central government or any state government or partly by central government and partly by one or more state governments is known as Government Company.”

Example :

• National Thermal Power Corporation (NTPC)
• Bharat Heavy Electricals Limited (BHEL)
• Hindustan Machines Tools (HMT)

Features of Government Company-

1. Free from Procedural Controls
2. Majority of Government Directors
3. Public Accountability
4. Registration under the Companies Act
5. Own Staff
6. Promotes Social Welfare
7. Objective
8. Separate Legal Entity
9. Exemptions
10. Suitability

Merits of Government Company-

1. Profitability and Accountability
2. Internal Autonomy
3. Government Ownership
4. Foreign Capital and Technical Know how
5. Acquisition of Sick Units
6. Concessions and Privileges
7. Efficiency
8. Professional Management
9. Easy Formation
10. Flexibility
11. Easy to Alter
12. Enjoys Private and Public Objective

Demerits of Government Company-

• (1) Inefficiency and Corruption
• (2) Lack of Professional view
• (3) Domination of Ministers and Politicians
• (4) Red Tapism and Delay
• (5) Autonomy only in Name
• Weak Public Accountability
• Fear of Expoaure
• Lack of Expertise
• Ineffective Control of Parliament
• Poor Labour Management Relation

Multinational Corporations (MNC)-

Meaning : “A multinational corporation is a business organisation that operates in many different countries at the same time.
In other words, “It’s a Company that has business activities in more than one country.”

Example : Indian Multinationals

• Bata India
• Infosys
• Tata Motors

Features Multinational Corporation-

Features of Multinational Corporation-

1. Advanced and Sophisticated Technology
2. Legal Existence
3. Government
4. Origin
5. Research & Development
6. International Operations
7. Target Profitoriented
8. Huge Assets and Turnover
9. Mighty economic power
10. Centralized Control
11. Area of Operation
12. Professional management

Merits Multinational Corporation-

1. Proper Use of Idle Resources
2. Inflow of foreign Capital
3. Promotion of International 1 Brotherhood and Culture
4. End of Local Monopolies
5. technical Development
6. Improvement in Standard) of Living
7. Managerial Development
8. Employment Generation

Demerits Multinational Corporation

1. Danger for Domestic Industries
2. Create Problem for Environment
3. Outsourcing of Job
4. Misuse of Mighty Status
5. Multinational Corporations Import Skilled Labour
6. Interference
7. Take away Profits to Home Country
8. Encourage Political Corruption
9. Repatriation of Profiles

Word Meaning:

co-existence – to exist in same time; criticism – disapproval; reliable – genuine / good; supervision – to look after; annual budget – yearly estimated income and expenditure; sanctioning – to approve; autonomous – to manage its work independently; legislature – Government body; subscribing – to enroll / to be a member; revenues – income; statutory – as per the law; government treasury – funds available with the government; interfere – to check / disturb; budgeting – to allocate; recruited – to appoint; integral – essential; remunerated
– to pay salary; centralisation – concentration of control; operations – working; red tapism – process of excessive paper work and rigid formalities; nominated – to be selected; floating – to fluctuate / change; bureaucracy – a government system where important decisions are taken by the officials; trustworthiness – truthful; initiative – to do independently; guided – to show; smooth – without any problems; hampered – to suffer; characters – nature; indulge – to involve; demoralized – to lose hope; inefficiency – not achieving maximum productivity; innovative – new ideas; comptroller – controller; expertise – skill to do best; auditor general – government officer charged with accounts auditing; bounded – to restrict; professional – person qualified in particular profession; affiliates – connected with; productivity – output; modifications – to change; framework – a structure; acquire – to get; entities – independent organizations; deputation – to give charge; host – a place or person who holds the event; budgetary – to allocate the fund; sophisticated – highly developed; undertakings – agreements; intensive – concentrated / focused; executive – administrative; boost – to encourage; relatively – in comparison; inflow – movement of large thing; active – energetic; monopolies – control of trade; personnel – human resource; exploitative – treating others unfairly; debated – discuss; brotherhood – friendship; peace – freedom from disturbance; repatriation – to send money; prosperity – being success; implicit – indirect; chronic – for a long time; challenges – problems; wipe off – clean off; wind up – to end; depletion – reduction; non renewable – resources which cannot be produced again; threat – warning; alien – foreign; synthetic – chemical substance; setback – in reverse of; injurious – harmful; concentration – at centre; enrich – improve the quality, legal entity – legal rights and obligation, overheads – expenses, of business, interference – the illegal obstruction.

By going through these Maharashtra State Board Book Keeping & Accountancy Notes 12th Chapter 4 Reconstitution of Partnership (Retirement of Partner) students can recall all the concepts quickly.

Maharashtra State Board 12th Accounts Notes Chapter 4 Reconstitution of Partnership (Retirement of Partner)

Introduction, Meaning and Reasons-

To retire means to give up or to cause a person to give up his work, especially reaching superannuation age. Accordingly, retirement of partner refers to a process in which a partner leaves the firm or severs his connection or relationship with other partners on account of old age or continued ill health or loss of interest in the firm, misunderstanding amongst the partners, loss in the business or any other similar reasons. On retirement, retired partner ceases to be a partner of the firm. A partner who leaves the firm or goes away from the business is called “retiring partner” and partners who continue (or remain) in the partnership firm are called “continuing partners”. On retirement of partner, it is just necessary to ascertain or compute the amount payable to him. It is ascertained by considering net balance in Capital Account and Current Account, his share in accumulated profit, Reserve fund, part losses, goodwill, revaluation profit or loss, etc.

A partner may retire from the firm due to : (1) old age, or continued sickness (2) loss incurred in the business (3) loss of interest in the firm on account of any reason (4) partner intends to start another or new business (5) differences of opinion or misunderstanding with the other partners, etc.
The partner may retire from the firm by undertaking one of the following steps or procedures : (i) As per the terms mentioned in the partnership agreement or Deed (ii) By taking consent of other partners, (iii) By giving notice of retirement in writing to other partners.

New Ratio-

New ratio is a ratio or proportion in which continuing partners decide to share profits or losses of the business after retirement of a partner.
Calculation of new profit sharing ratio :

Gain Ratio-

Profit sharing ratio which is acquired by continuing partners on account of retirement or death of a partner is called Gain Ratio. It is generally calculated at the time of retirement or death of a partner. Gain ratio is calcualted by using the following formula :
Gain Ratio = New Ratio – Old Ratio.

Gain ratio is calculated and used to write off the goodwill raised or created to the extent of retiring partner’s share only.

Treatment of Goodwill-

At the time of retirement of a partner for adjustment of goodwill, one of the following courses may be adopted :

(1) When goodwill does not appear in the books of account:
If goodwill account is not shown at all in the books of account on the date of retirement, it may be adjusted in any one of the following five ways :

(a) When goodwill is raised to its full value and retained in the business :

(Note : In this case, the full value of goodwill is shown in the Balance Sheet on Assets side.)

(b) When goodwill is raised to its full value and then written off from the books of account:
(i) When Goodwill is raised :

(ii) When Goodwill is written off:

(Note : In this case, goodwill does not appear in the Balance Sheet.)

(c) When goodwill is raised partially, that is by an amount equal to retiring partners’ share and then retained in the business :

(Being goodwill to the extent of retiring partner’s share raised and credited to his Capital A/c)

(d) When goodwill is raised only to the extent of retiring partner’s share and then written off from the books of account:
(i) When Goodwill is raised :

(Being goodwill to the extent of retiring partner’s share raised and credited to his Capital A/c)

(ii) When goodwill is written off :

(Being goodwill adjusted to continuing partners’ Capital or Current A/cs In their gain ratio)

(e) When goodwill is adjusted through Current A/cs or Capital A/cs of the partners without opening a Goodwill A/c :

(Being continuing Partners’ Current A/cs or Capital A/cs are debited in their gain ratio)

(2) When goodwill is already appearing in the books of account:
(i) If the amount of goodwill appears in the Balance Sheet is less than its actual value of goodwill (undervalued):

(Being increased value of goodwill transferred to all Partners’ Capital A/cs/Current A/cs in their old profit sharing ratio)

(Being increased value of goodwill transferred to Profit and Loss Adjustment A/c or Revaluation A/c)

(ii) If the amount of goodwill appears in the Balance Sheet is greater than the value of goodwill (overvalued) :

(Being decreased value of goodwill adjusted to all Partners’ Capital / Current A/cs in their old profit sharing ratio)
Alternatively, following entry may be passed :

(Being decreased value of goodwill adjusted to Profit and Loss Adjustment A/c or Revaluation A/c)

Transfer of Reserve Fund or General Reserve / Accumulated Profit or Loss-

On retirement of a partner, balance in general reserve, as well as past accumulated undistributed profit are transferred to all partners’ capital accounts or current accounts in their old profit sharing ratio. Similarly accumulated past losses of the firm are also adjusted to all partners’ capital accounts or current accounts in their old profit sharing ratio.

However, sometimes, if continuing partners so desire, only retiring partners’ share in general reserve and accumulated past profits or losses is transferred to his capital account or current account. Following journal entries are passed for transfer of general reserve and accumulated undistributed profits or losses, i.e. balance of Profit and Loss Account:

(1) Transfer of general reserve, accumulated profits, etc. :

(Being general reserve. accumulated profit transferred)

(2) Transfer of accumulated losses :

(Being accumulated losses transferred and debited to all partners’ capital/current A/cs in old ratio)

Revaluation of Assets and Re-assessment of Liabilities-

At the time of retirement of a partner, all the assets and liabilities of the partnership firm are usually revalued and changes in their values are, therefore, effected through a Profit and Loss Adjustment A/c or Revaluation A/c. A reduction in the values of assets and an increase in the values of liabilities are debited to this account while an increase in the values of assets and a reduction in the values of liabilities are credited to this account. The balance of Profit and Loss Adjustment A/c or Revaluation A/c is then transferred to all partners’ capital accounts or current accounts in their old profit sharing ratio.

Adjustment of Capitals-

The continuing partners if they so desire, may make their capitals proportionate to their new profit sharing ratio either through their Current Accounts or Loan Accounts or by actually bringing in or withdrawing cash. In this case, total capital of the new firm is decided and following steps are taken :

• From the total capital of the firm, the amount of capital to be maintained in the new firm by each continuing partner is determined as per new profit sharing ratio.
• New capital balance i.e. balance as per new profit sharing ratio of each partner is compared with the latest balance in its Capital Account to ascertain surplus or deficit.
• Surplus or deficit in each partner’s Capital Account is worked out.
• Such surplus or deficit of each partner is adjusted through withdrawal in cash or bringing in cash. Such surplus or deficit may be transferred to Current Account or Loan Account as per the decision taken by the continuing partners or as per the provisions made in the Partnership deed.

Pro forma journal entries of adjustment, of deficit or surplus :

Ascertainment of retiring partner’s share of profit till retirement:

1. If a partner retires from the firm during the accounting year i.e. on a date other than the Balance Sheet date, the profit or loss for the period for which he was a partner may be calculated on the basis of last year’s profit or the average of the profits for the last two to five years.
2. From the average annual profit of the firm, calculate profit for the proportionate period from the date of last Balance Sheet to the date of retirement of a partner.
3. Calculate retiring partner’s share in that proportionate profit or loss.
4. To record retiring partner’s share in proportionate profit or loss, following accounting entry is to be passed :

(i) For transfer of retiring partner’s share in proportionate profit:

(ii) For adjustment of retiring partner’s share in proportionate loss :

Total payable amount to Retiring Partner-

The total amount payable to retiring partner may be paid as per the terms of partnership deed or otherwise as per the mutual agreement among the partners. The partnership firm may pay either full or part of the amount due to retiring partner at the time of retirement and balance if any, is transferred to his Loan A/c. The various types of repayment of retiring partners’ dues are explained as follows :

(1) Lumpsum : Under this method, entire amount due to the retiring partner is paid in one instalment or at a time. The journal entry is given as follows :
Payment of retiring partner’s dues in one instalment or in lumpsum :

(2) Instalment: Under this method, retiring partner’s dues are paid in several convenient instalments. Journal entries relating to this are shown below :

(3) If the total amount due transferred to Loan A/c :

(4) If part of the total amount due to retiring partner is paid in cash and balance is transferred to his Loan A/c :

Accounting steps to record retirement of a partner : The usual accounting steps for recording
the retirement of a partner are stated below :

• Prepare ledger accounts like Partner’s Capital / Current A/cs, Profit and Loss Adjustment A/c, Cash/Bank A/c, Goodwill A/c, etc.
• Transfer opening balances as given in the last Balance Sheet to the respective ledger accounts mentioned above.
• Transfer the balances of General Reserve, the Profit and Loss A/c and other undistributed profits or unadjusted losses to All Partners’ Capital / Current A/cs in their old profit sharing ratio.
• Give accounting treatment to Goodwill.
• Revalue the assets and liabilities and transfer resulting profit or loss to All Partners’ Capital/ Current A/cs (including retiring partner) in their old profit sharing ratio.
• Pass an entry for payment made to retiring partner.
• Transfer unpaid balance on Retiring Partner’s Capital A/c to his Loan A/c.
• Balance the Capital A/cs of continuing partners and prepare the Balance Sheet of the firm after retirement of a partner.

By going through these Maharashtra State Board Bookkeeping and Accountancy 11th Notes Chapter 5 Subsidiary Books students can recall all the concepts quickly.

Maharashtra State Board 11th Accounts Notes Chapter 5 Subsidiary Books

Introduction-
Journal is the main accounts book in which all types of day to day business transactions are recorded systematically and in chronological order. As in the past, business was small in size and transactions carried on by businessman were less in numbers, the journal as a book of accounts was adequate and convenient to record all transactions. Today, the journal is useful for traders whose business is small and limited in size. Journal as a single book of account is not convenient to those traders whose business is large in size and who carries on unlimited business transactions every day.

If a single journal is kept for an entire large scale business, it will be bulky and difficult to operate and handle and carry from one place to another in the same organisation. Similarly, many clerks simultaneously cannot do office work based on information written in the journal. Similarly, if all transactions are recorded in one journal, it will be time consuming to obtain necessary information. Due to this, need was felt to have subsidiary books.

Meaning: When journal is divided into a number of parts, each of those parts is individually called subsidiary book. Thus, subsidiary book is sub-division of journal. In other words sub-division of journal on the basis of ‘
nature of transactions such as purchases, sales, cash expenses, cash receipts, return of goods, etc. is called subsidiary books. When subsidiary books are prepared and maintained, transactions are first recorded in
the subsidiary books and then conveniently posted to the respective ledger accounts. That is why subsidiary  books are also called books of original entry or prime entry. They are also called as special journals or day books.

Need For Subsidiary Books-
The need for subsidiary books is explained below:

• Division of work: When journal is divided into a number of books, it facilitates division of work among the  staff of the businessman. Many clerks work simultaneously in the office.
• Specialisation: When employees are assigned with same type of work everyday, it will lead to specialisation. Specialisation increases efficiency.
• Time Savings: Due to division of work various accounting processes can be undertaken simultaneously by the employees which in turn helps in saving of time.
• Information available readily: Maintaining separate books for each type of transaction, the information relating to each transactions is easily and readily available to the traders from the books of accounts.
• Facilitates easy internal audit: Division of journal into different sub parts helps in conducting effective internal audit of accounts prepared by the organisation.
• Verification of correctness: Division of journal into different sub parts facilitates the verification of correctness of the books of accounts.
• Helps in preventing frauds: Since entries are passed in the subsidiary books in chronological order, they  help in preventing fraudulent entries in an account.

Types of Subsidiary Books-
The different types of subsidiary books are:

1. Purchase Book or Bought Day Book,
2. Sales Book or Sales Day Book,
3. Purchase Return Book or Return Outward Book,
4. Sales Return Book or Return Inward Book,
5. Cash Book,
6. Bills Receivable Book,
7. Bills Payable Book and
8. Journal Proper.

Types of subsidiary books on the basis of transactions.

The different types of subsidiary books are explained as follows:

(1) Cash Book :
Cashbook is an important subsidiary book of accounts, which is used by a businessman for recording cash and banking transactions of the business. Credit and barter transactions do not find any place in this book. Purchase of goods and assets on cash, sale of goods and assets on cash, payment of expenses in cash, receipt of income in cash, deposits and issues of cheques etc. are recorded in the cash book. In this book all receipts in cash and deposit of cheques are debited and all payments in cash and issue of cheques are credited. Cashbook is similar to a Cash A/c and hence no separate Cash A/c is opened and maintained in the ledger when the Cash Book is operated by the businessman.

Cash in hand is an asset of the business. Unless a business has cash, it cannot be spent and hence cash book always shows a debit balance. Cashbook is written on the basis of cash receipts and cash vouchers. Like a Ledger A/c, a cash book has two main sides namely receipt side and payment side. On the left-hand side i.e. on the debit side all cash receipts are recorded and on the right-hand side i.e. on the credit side, all cash payments are recorded. The cash book is totalled and balanced periodically. By balancing a cash book, a trader can ascertain the balance of cash and can plan the business activities. When the cash book is operated, no journal entries and ledger posting of cash transactions are required to be passed, in the journal and ledger. It results in saving of labour, time, stationery, and business cost.

Types of Cash Book :

Cash Book is classified under the following heads :

• Simple or Single Column Cash Book.
• Cashbook with cash and bank columns – Two-column cash book.
• Petty Cash Book.
  The types of cash books are explained in detail:

(1) Single Column Cash Book :
(A) Meaning: This cash book is also called simple cash book. It has two sides viz. receipt side and payment side. The debit side of cash book is meant for recording all receipts and the credit side of the cash book is meant for recording all payments. This book is written on the basis of cash receipts received, cash receipts issued, cash memos received, cash memos issued and cash vouchers. The cash book is balanced from time to time and the balance is carried forward. The cash book always shows a debit balance. In this book discount earned or allowed and banking transactions are not recorded.

Specimen of single column cash book :

(B) Explanation of columns of Simple Cash Book: The columns drawn on receipt side (Debit side) are explained below:

• Date: In this column the date on which cash received is recorded. The date of transactions is written in order of year, month and date. In the beginning of each page year, month and date are written and then for each subsequent transactions on the same page only date is written.
• Particulars: In this column name of the other accounts credited is written. The name of the account begins with the word ‘To’.
• Receipt Number: In this column of cash book, the serial number of the receipt and cash memos is recorded.
• Ledger Folio Number: In this column of cash book the page number of the ledger on which concerned account opened is recorded.
• Amount: This column of cash book shows amount received. The amount is written in figures.

The columns drawn on payment (credit) side are explained below:

• Date: In this column, the date on which cash paid is recorded.
• Particulars: In this column name of the other account debited is written. The name of the account begins with the word ‘By’.
• Voucher Number: In this column, the serial number of voucher and cash memo is recorded.
• Ledger Folio: In this column page number of ledger on which concerned account opened is recorded.
• Amount: In this column actual amount paid is recorded in figures.

(C) Recording in Simple Cash Book: The procedure of recording entries for cash transactions in simple cash book is explained as follows:

• Opening balance: Previous month’s balance if any, appears on the debit side (Receipts side) as “To Balance b/d”. Here b/d stands for “brought down”.
• Opening Capital: In the case of new business, capital contributed by the proprietor appears on the Receipts side as “To Capital A/c”.
• Receipts of Cash: When cash is received on any account, it is recorded on the receipts side under the “Particulars” column.
• Cash Payments: When ’cash is paid on any account, it is recorded on the payments side under
  “Particulars” column. ,
• Chronological order: Transactions are always recorded in the cash book in chronological (datewise) order only.

(D) Balancing of Simple Cashbook: Generally, at the end of the month, cash book is balanced to find out balance of cash in hand. First ‘Amount’ column on the debit side of cash book is totalled. Thereafter ‘Amount’ column on the credit side of cash book is totalled in rough. The difference is ascertained by deducting the total of the amount appearing on credit side from the total of the amount appearing on debit side. This difference is recorded on the credit side under “Particular” column as “By Balance c/d”. Here c/d stands for carried down.

Cashbook always shows debit balance. This is because one cannot spend more than what one has. This balance is then recorded on the receipt side as “To Balance b/d” to start next period, as cashbook records only cash transactions and will always have excess of receipts overpayments.

(2) Cash Book with Cash and Bank Columns :

(A) Meaning: This cash book is also called as cash book with cash and bank columns. A businessman who does business transactions through a bank, records his banking transactions along with cash transactions in double column cash book. Banking transactions like receipts and deposit of cheques, issue of cheques, deposit and withdrawal of cash from bank, etc. are recorded in the double column cash book.

By maintaining double column cash book, a businessman gets information of inflow and outflow of cash and details of banking transactions. Exact position of cash in hand and balance of cash at bank can be ascertained quickly by referring to the double column cash book. Double column cash book is useful for a businessman to take quick decisions on the business matters.

This cash book has two columns on receipts side and the payment side viz. Cash column and Bank column. Bank column appearing in two-column cash book represents bank current account.

(B) Specimen of Two Column cash book:

(C) Types of Bank Accounts :
On the basis of nature, characteristics and advantages, bank accounts are classified into the following four types, viz. (i) Current account, (ii) Savings account, (iii) Fixed deposit account and (iv) Recurring deposit account.

The above types of bank accounts are explained in detail as follows:
(i) Current Account: This type of bank account is more useful to businessmen. It is a type of bank account in which there is no restriction on deposits of money into the bank and on withdrawals of money from the bank. The account holder is permitted to deposit money into his account any number of times in a day. Similarly, the account holder is at liberty to withdraw money or issue cheques from the bank any number of times provided he has sufficient balance in his account to honour withdrawals and cheques issued.

The bank pays interest at the lowest rate ranging from 0.5% to 1% p.a. on balance amount remaining in this account, and also gives overdraft facility to account holders. Current account is a running account, as it is operated daily and continuously by the account holder. It should be noted that the bank columns in the cash book implies Current Bank Account.

(ii) Savings Account: This is a type of bank account in which the bank keeps no restrictions on deposits, but imposes restrictions on withdrawals of money from the bank. In this type of account maximum of 2 withdrawals per week and maximum 25 withdrawals per every 3 months, are permitted by the bank. The main intention of savings account is to increase the savings of account holders and to channelise them into investment and thus capital formation of the nation. This account is more useful to non-business community. Bank allows interest at the prescribed rate on balance remaining in the savings account.

(iii) Fixed Deposit Account: Fixed deposit account is a blocked account as money once deposited into the bank by account holders, cannot be withdrawn by them until the period for which it is deposited, is over. It is a type of bank account in which money is deposited for specific period of time.

This account is more useful to retired people or non-business community who are interested in earning regular fixed income. On fixed deposits, a bank pays a higher rate of interest to deposit holders. Payment of interest is made half-yearly or yearly. If interest is not paid periodically, then accumulated interest is paid to deposit holders at the time of maturity along with the principal amount deposited. The minimum period for which deposit is accepted by the bank is upto 30 days and maximum period is 6 years or even more than 6 years. The rate at which interest is paid on deposits is not fixed, but fluctuates with the length of period for which deposits are kept.

The longer the period, higher is the rate of interest payable on deposit by the bank. The rate of interest also depends on the monetary policy of the government. In case of need, an account holder can borrow from the same bank the amount equivalent to 70% of the fixed deposit against the security of the deposit. In such a case, the bank charges 2% interest more than the rate of interest paid on the fixed deposit by the bank.

(iv) Recurring Deposit Account: A bank account in which an account holder is required to deposit a fixed sum of money after every fixed interval for a specific period of time is called a recurring deposit account. In this type of account, the bank accepts the fixed amount daily or once in a month on fixed date upto the maturity date. The deposit holder is not permitted to withdraw money from this account, but in case of need, the bank gives loan to the account holder on the credit balance standing in his account.

On maturity, the bank pays the total amount deposited and interest accrued on that amount in lump sum to the account holder. The main purpose of this account is to increase savings and thereby helps lower-income groups to purchase costly articles with accumulated savings. This account is more useful to the non-business community, specially lower-income groups.

(D) Documents used by the Account Holder:
The following documents are provided by bank, free of charge to account holders. These documents are used by account holders while doing transactions with the bank. These documents are: (i) Bank Pass Book,
(ii) Pay-in-slip Book, (iii) Cheque Book, (iv) Withdrawal Slip.

The documents are explained in detailed:
(i) Bank Pass Book: The bank passbook is a small booklet, given to account holders free of charge to record their transactions with bank. Banking transactions are recorded in the passbook by bankers only. In other words, passbook is a small booklet having a number of pages, used for recording banking transactions. It provides identity giving document of account holder. By referring to the passbook, an account holder comes to know his financial position with the bank. Current account holder is not given the passbook, instead, they are provided with the monthly statement of the transactions with the bank.

(ii) Pay-in-Slip Book: Pay-in-slip book is another document used by account holder for depositing cash and cheque into the bank. Pay-in-slip book consists of either ten slips or hundred slips. Each slip is divided into two parts which can be separated easily from the other.

The longer part of the slip is called foil and smaller part is called the counterfoil. Before depositing cash or cheque into the bank, an account holder is required to fill up both parts of the pay-in-slip. Information regarding name of account holder, his account number, amount in figures and words, signature etc are required to be filled up on both the parts of the pay-in-slip. The Cashier of the bank accepts cash or cheque along with duly filled in pay-in-slip. The foil of the pay-in-slip remains with the bank for making records in the books of the bank and the counterfoil after stamping and signature of cashier is given back to the account holder.

(iii) Cheque Book: A cheque is a document used by the account holder for withdrawing cash from the bank or for making payments to other persons through the bank. A book which consists of 10 or 20 blank cheques is called a cheque book. A Cheque book is provided by the bank to account holders free of charge, if an account holder agrees to keep minimum balance of? 500/- or more in his account.

In legal language, “a cheque is a written unconditional order of the account holder to his banker to pay a certain sum of money only to himself or to the bearer or to the person named therein.” There are three parties to a cheque i.e. Drawer, Drawee and Payee. The person to whom the amount of cheque is payable is called payee and the bank on whom the cheque is drawn is called drawee bank, and the account holder who issues the cheque is called drawer.

Specimen of cheque is given below:

Types of Cheques-
Cheques used by the account holder are classified into the following three categories viz.

1. Bearer cheque,
2. Order cheque and
3. Cross cheque.

The above types of cheques are explained as below:
1.  Bearer Cheque: Bearer means possessor. In case of bearer cheques, the bank makes immediate cash payment to the possessor of the bearer cheque on its presentation. For immediate withdrawal of cash, a bearer cheque is used by the account holder. A cheque on which instead of writing the name of the payee, the word ‘self ’ is written, is called a bearer cheque.

Bearer of the cheque has to sign on the reverse of the bearer cheque before withdrawing money from the bank. While making cash payment against bearer cheque, the bank never makes inquiry whether payee is a wrong doer or right person. Bearer cheque is dangerous because in case if it is lost the wrong doer who possesses the cheque, can easily obtain cash from the bank. Bearer cheque is as good as cash, because it can be encashed by any one at any time during banking hours.

Specimen of bearer cheque :

2. Order Cheque: A cheque in which an account holder orders the bank to make payment to the person whose name appears on the cheque, is called an order cheque. In this type of cheque, the word ‘bearer’ after the name of payee is struck off and the word ‘order’ is retained. Order cheque is safer than bearer cheque. While making cash payment against order cheques, if bank suspects, it makes inquiry whether possessor of order cheque is the right person or not.

Specimen of order cheque :

3. Crossed Cheque: A crossed cheque is a cheque on which two parallel transverse lines are drawn on the face of the cheque at the left-hand top corner with some words or without any words written between them. When the crossed cheque is presented for payment it is not paid in cash to payee or possessor, but it will be credited to payee’s account in the bank and after three days, the payee i.e. the account holder is permitted to withdraw the amount from the bank, if it is cleared and not dishonoured.

This type of cheque is more safer than any other type of cheque. If a crossed cheque is lost, a wrongdoer cannot obtain payment from the bank. The bank never makes immediate cash payment on counter on presentation of crossed cheque. Crossed cheques are sent to distant place by ordinary post safely.

Specimen of crosscd cheque:

Dealings of Cheque-

The different types of dealings of the cheque are explained below :
1. Honour of cheque,
2. Dishonour of cheque, and
3. Endorsement of cheque.

The dealings of cheque is explained :
1. Honour of Cheque: A cheque is said to be honoured if the drawee bank pays the entire amount of cheque to its holder on presentation of cheque before the bank. The bank always honours a cheque if there is sufficient fund in the account of the drawer.

2. Dishonour of Cheque: A cheque is said to be dishonoured if the drawee bank refuses to make payment to the holder of a cheque on its presentation. The drawee bank never dishonours a cheque but under the following circumstances, the drawee bank is compelled to dishonour the cheque.

• If signature on cheque does not tally with the specimen signature of drawer (i.e. account holder.)
• If amount mentioned on cheque in figures and in words does not agree with each other.
• If funds in the account of the drawer in drawee bank is not sufficient to honour the cheque.
• If a cheque is a stale cheque or post dated cheque. A cheque is valid for a period of three months from the date of its issue.
• A cheque is said to be stale if a period of three months is over from the date of its issue. A stale cheque is always dishonoured by the bank. Post dated cheque is a cheque which bears a future date. Post-dated cheque is always dishonoured by the bank if it is presented before its date of presentation.
• If a cheque is overwritten and if overwriting is not supported by the signature of its drawer.
• If a cheque is torn from anywhere.

(3) Endorsement of Cheque: Endorsement of cheque refers to an act of signing on the reverse of a cheque by its holder to transfer it to another person. Cheque may be endorsed in favour of a creditor to settle his debts or it may be endorsed in favour of debtor to give further loan. A person who endorses a cheque is called endorser and a person in whose favour a cheque is endorsed is called the endorsee. Endorsement is necessary in case of transfer of order and crossed cheque. Endorsement is not necessary for transfer of bearer cheque.

Contra Entry-
The accounting entries which appear on both the sides of the cash book with cash and bank column is called contra entries. Contra entry appears only in cash book with cash and bank column and not in single column cash book. An accounting entry for an amount withdrawn from bank which is posted on the debit side of a two column cash book in the cash column and on the credit side in the bank column or an accounting entry for an amount deposited with the bank which is posted on the debit side of two column cash book in the bank column and on credit side in cash column is called contra entry. Letter ‘C’ which stands for contra is written in“L.F. No.” column to identify, contra entry.

Contra entry is passed in three column cash book under the following circumstances :
1. Cheque received on earlier day and deposited today: Journal entry for this transaction is:

2. Cash deposited into the bank: Journal entry for this transaction is:

(The above entries appear in the bank column on the debit side of the three-column cash book and in the cash column on the credit side).

3. Cash withdrawn from the bank for office use: Journal entry for this transaction is:

(This entry appears in cash column on debit side of the three-column cash book and in bank column on the credit side.)

(A) Journal Entries For Cash And Banking Transactions :

(B) Journal Entries For Dishonour of Cheque-
Dishonour of Cheque: When a bank refuses to make payment on cheque on any justifiable ground, cheque is said to be dishonoured. When a cheque is dishonoured, the value of cheque reduces to zero. On dishonour of cheque, earlier accounting effects given to cheque are required to be cancelled. Accounting effects of cheque are cancelled by passing reverse entry of earlier entry. For example:

Petty Cash Book-
When business develops, a businessman prefers to meet his business payments and receipts through the bank. Due to fast development in banking sectors, most of the businessmen carry on their day to day business activities through the bank. Generally, bank cheques are used for payments and receipts of higher amount. But generally a cheque is not used for payments and receipts of small or minor amount whose payments and receipts are inevitable in the business. For example cheque is not used for payment of taxi fare, coolie charges, sweeping charges, payment of postage etc. and receipt of sale proceeds of old newspapers etc.

In big business house or in industry to manage and pay minor expenses in cash, a separate clerk or cashier is appointed. The cashier or clerk who manages, looks after and makes payment of petty i.e. minor expenses in the organisations is called petty cashier. An account book in which the petty cashier records payments of petty expenses and receipts is called petty cash book.

In other words, a petty cash book is a separate account book in which a businessman keeps records of daily transactions which are minor in nature and whose payments and receipts are made in cash only. The Petty cashier is given lump sum amount of cash at the beginning of every month by the head cashier and he is also permitted to spend that amount on various minor expenses and also permitted to receive minor receipts during a specific period. At the end of the month the petty cashier is required to return the balance amount to the head cashier. This procedure is followed every month.

Types of Petty Cash Book-
Petty cash book is classified into the following three categories viz.
1. Simple petty cash book,
2. Columnar petty cash book,
3. Petty cash book kept on imprest system.

They are explained below.
1. Simple Petty Cash Book: A Simple petty cash book is similar to simple or single column cash book. To record receipts and payments made in cash, this cash book has two main sides viz. receipts side and payments side. In this cash book, columns like date and particulars are common for both receipt and payment side. This cash book is not extensively used in business field.

Specimen of Simple Petty Cash Book :

Importance of Columns:

• Amount received column: In this column the petty cashier records the amount received from head cashier and proceeds received on sale, etc.
• Cash book folio column: In this column the page number of cash book on which entry for payment of lump-sum amount of cash made by head cashier to petty cashier is mentioned for future reference.
• Date column: In this column, the date of transaction is recorded.
• Particulars column: In particulars column, the name of expenses on which the amount is spent and name of receipts from which amount is received are recorded. After entry narration is not written in this column. Entry for receipt is written with word ‘To’ and entry for payment is written with word ‘By’.
• V. No. Column: Voucher number of various minor payments are recorded in V. No. column for future reference.
• L.F. No.: Page number of ledger where entry of expenses and receipts are posted, is recorded in L.F. No. column.
• Amount paid column: In this column, amount paid on various minor expenses is recorded.

2. Columnar Petty Cash Book: As the name indicates, this petty cash book has many sub-columns on payment side to record minor expenses individually. This cash book has two main sides viz. receipts.side and payment side. In comparison to receipt side, the payments side is much longer. The payment side of this cash book has many sub-columns which are not fixed in number.

On. the payment side of this cash book, one sub-column is provided for one similar nature of expenditures. In short, the payment side has as many columns as expenditures on which the business has spent money. In addition to these columns, at the end, two more columns are provided for L.F. No. and ledger account. In ledger account column, entries of personal account and real account are posted. This cash book is more popular and extensively used in the business field.

Specimen of columnar petty cash book :

3. Petty Cash Book kept on Imprest System: In many business houses, Petty Cashbook kept on imprest system is more popular. In this system, at the beginning of every month, the head cashier gives to the petty cashier that much amount of cash or cheque which is equivalent to amount spent in the last month. This makes the opening cash in hand with petty cashier equal in the beginning of every month. In other words, in imprest system, a definite amount of cash is given to the petty cashier at the beginning of a certain period.

This amount is known as imprest money. The petty cashier is then allowed to spend money on various petty expenses and when he has spent substantial amount of his imprest amount, he gets reimbursement of the amount he has spent from the head cashier. Thus, he again has the same amount of imprest cash. The reimbursement may be made on a weekly, fortnightly, or monthly basis, depending on the frequency of small payments.

This system renders the following advantages:

• No excess cash is issued to petty cashier than actually required.
• Petty cashier will not have excess or idle cash.
• Misuse of cash is avoided as far as possible.
• Records of petty expenses can be easily checked and compared.

Purchase Book-
A subsidiary book in which only credit purchases of goods are recorded is known as the purchase book. This book is used to record credit purchase of goods in which a trader regularly deals. In this book, cash purchases of goods and assets are not recorded. Similarly, the purchase of asset on credit is also not recorded in this book. The purchase book is written on the basis of inward invoice i.e. a statement received from the supplier.

Trade discount is never recorded in this book. Trade discount is calculated and deducted from invoice price and net price is recorded in the purchase book. If a bookseller purchases books on credit, same will be recorded in his purchase book. Purchase of furniture by the bookseller on credit, will not be recorded in his purchase book. At the end of each month the purchase book is totalled and this total shows the total amount of goods purchased on credit. Purchase Book is also known as Purchase Journal, Purchase Register and Bought Book.

Specimen of Purchase book is given below :

Explanation of Columns :

• Date: This column meant for recording the date of credit purchase of goods.
• Particulars: In this column, the name of the supplier from whom the goods are purchased on credit is recorded. Along with the name of the supplier, his address and description of goods is also written in this column.
• L.F. No. : In this column, the page number of the ledger on which the supplier’s account is prepared is recorded for ready reference.
• Inward Invoice No.: Statement received from supplier along with goods purchased is called inward invoice. In this column, the number of inward invoice is mentioned.
• Amount: This column shows the net amount of credit purchases of goods.

Sales Book-

A subsidiary book in which only credit sales of goods are recorded, is known as sales book. This book is meant for recording credit sales of goods in which the trader regularly deals. In this book sale of goods as well as assets on cash basis are not recorded. Similarly, sale of assets on credit is also not recorded in this book. This book is written on the basis of the outward invoice. Trade discount never appears in this book. Trade discount is simply calculated and deducted from the invoice price and net price is recorded in this book.

If a grocer sells different types of grains to his customers on credit, it will be recorded in his sales book. Cash sales made by the grocer will not be recorded in his sales book. Sales book is also known as sales day book. At the end of each month the sales book is totalled and this total shows the total amount of goods sold on credit, and the net amount receivable from customers. Sales book is also known as Sales Day Book, Sales Journal, Sales Register and Sold Book.

Specimen .of Sales Book is given below :

Explanation of Columns :

• Date: In this column date of credit sale is recorded.
• Particulars: In this column, name of customers to whom the goods has been sold on credit is recorded. Along with name, address of customers and description of goods are also written.
• L.F. No.: In this column, page number of ledger on which the customer’s account is prepared, is mentioned for ready reference.
• Outward Invoice No.: The statement sent along with goods sold is called outward invoice. In this column the outward invoice number is recorded.
• Amount: This column shows net amount receivable from the customers, i.e. net amount of credit.

Purchase Return Book :

A subsidiary book in which return of goods purchased on credit is recorded, is known as the purchase return book. The purchase return book is also known as return outward book or debit note book or purchase return journal. This book is used by the trader for recording the returns of goods purchased on credit to the suppliers. Goods may be returned by trader to supplier on one of the following reasons, viz.
(a) defective goods,
(b) damaged goods,
(c) delayed goods,
(d) inferior goods,
(e) goods which are not as per design, colour or sample sent
(f) excess goods received, etc. This book is written on the basis of debit. Purchase return book is totalled at the end of each month. This total shows value of goods returned to suppliers.

Specimen of Purchase Return Book is given below :

Sales Return Book-
A subsidiary book in which transactions relating to return of goods sold on credit are recorded, is called
the sales return book. This book is used by the trader for recording the goods returned by customers which  were purchased by them on credit. Goods sold to customers on credit, may be returned by them for one of the following reasons, viz. (a) defective goods, (b) damaged goods, (c) delayed goods, (d) inferior quality goods, (e) goods not in accordance with sample, specification, colour, design, (f) over supply of goods, etc. Sales return book is written on the basis of a credit note. This book is also called credit note book or return ’ inward book or sales return journal. At the end of each month sales return book is totalled.

Specimen of Sales Return Book is given below :

Bank Book-
When businessman operates more than one bank account, it is convenient for him to maintain separate account book to record only hanking transactions entered with various banks. The account book in which only banking transactions are recorded is called Bank Book. The bank book is combined with discount columns for recording discount allowed and earned in banking transactions.

This book has two main sides viz left hand side (i.e. Debit / Receipt side) and Right hand side (i.e. Credit
/ Payment side). Cheque received and deposited into the bank, direct deposit received by bank, dividend,
interest and commission collected by the bank, etc. are recorded on the receipt side and cheques issued, bank charges paid, interest on overdraft, payments made by cheques, etc. are recorded on the payments side of Bank Pass Book.

Advantages: Maintaining Bank book is benefited the businessman in different ways such as:

• He get easy reference of banking transactions.
• It saves labour and time of businessman as he is not required to pass entries in subsidiary books and
  ledger.
• It facilitates preparation of Bank Reconciliation Statement.

Journal Proper-
A subsidiary book which is used to record all those business transactions which do not find any place in the purchase book, sales book, return books, cash book, bills receivable book, bills payable book, etc. is called journal proper.

This book is used for recording the following types of the transactions viz.
(1) Purchase and sale of assets on credit.
(2) Opening entries
(3) Transfer entries
(4) Rectification entries
(5) Adjustment entries
(6) Closing entries
(7) Other transactions like bad debts written off, dishonour of the bill, depreciation, interest on capital, loss of goods by fire or theft or goods damaged in transit, distribution of goods as free samples, withdrawal of goods by proprietor, discount received and allowed on cash transactions, etc.

General Information-

The following points should be considered while recording entries in the subsidiary books:

• Cash sale of goods should not be recorded in sales book and cash purchases of goods should not be recorded in purchase book.
• Sale of assets on cash and credit should not be recorded in sales book, and purchase of assets on cash and credit should not be recorded in purchase book.
• Only credit sale of goods should be recorded in sales book and credit purchase of goods should be recorded in purchase hook.
• Cash transactions should be recorded in cash book and non-cash transactions should be recorded in subsidiary books.
• Assets purchased on credit and assets sold on credit should be recorded in journal proper.
• Trade discount is to he calculated and simply deducted from invoice price and net sales or net purchases should be entered in related subsidiary books.

Debit Note And Credit Note-
Sometimes some corrections become necessary in the original documents prepared for business transactions. Such correction cannot be made by cancelling the entry on the original documents or adding new entry in the original documents. Such correction can be done by preparing another new document for the amount of difference in the original document. Such a new document is called as debit note or credit note. Debit note is prepared for debiting the account of the counterpart with the amount by specifying reasons thereon. It is issued:

• When less debit is formerly given.
• When additional debit is to be given and
• When extra credit or wrong credit is to be cancelled.

Credit note is prepared for crediting the account of the counterpart with amount by specifying reasons thereon. It is issued:

• When less credit is formerly given.
• When additional credit is to be given and
• When extra debit or wrong debit is to be cancelled.

In order to avoid the handling of original documents again and again such are prepared.
When a businessman issues debit note to a party, the party receiving debit note should issue a corresponding credit note to give acknowledgement of acceptance and vice versa. The entry of such debit and credit should be passed in the journal proper. If they are recurrent and large in numbers, the separate register called Debit Note Register and Credit Note Register should he maintained.

Usually these are printed and are serially numbered by machine. These are prepared in duplicate. The original copy is issued to the opposite party and second copy is retained by the businessman for office record. These are kept serially and in chronological order in the bound book.

Circumstances under which are issued:

• Difference in the quantity mentioned in the bill and the quantity actually delivered.
• Either higher or lower rates are charged in the bill.
• Wrong calculations made on the bill.
• Goods are rejected and returned.
• Wrong rate of tax, packing, forwarding, transportation, etc. are charged.
• Adjustments in discount and commission are done.
• Difference in the quality descriptions of goods ordered or delivered.
• Dishonour of cheque or bill of exchange.
• Interest is charged on outstanding amount due.

Importance of Notes-

• On the basis of debit note and credit accounting entries are passed in the journal proper.
• On the basis of debit, buyer makes entries in the Purchase Return Book and on the basis of credit seller records entries in the Sale Return Book.
• If due to mistakes invoice is undercharged by the seller, the seller prepares a credit note and the buyer prepares debit note and the parties sent these to each other.
• On the basis of these entries are passed to rectify the mistakes made earlier.
• As these are signed by the responsible authority, they became authentic proofs of goods returned by the buyer or seller.

Contents of: The debit note and credit note contains the following details:

• Name and address of the party or organisation issuing the note.
• Number of the note (Debit/ Credit Note).
• Date of transaction.
• Reasons for debiting or crediting the account.
• Amount in words as well as in figures. .
• Signature of the person preparing note and the person verifying the note.

By going through these Maharashtra State Board 12th Science Biology Notes Chapter 2 Reproduction in Lower and Higher Animals students can recall all the concepts quickly.

Maharashtra State Board 12th Biology Notes Chapter 2 Reproduction in Lower and Higher Animals

Reproduction-

1. Reproduction is defined as the biological process of formation of new life forms from pre-existing similar life.
2. Through reproduction, species can survive over a long period.
3. Reproduction in animals occur mainly by two methods, i.e. asexual and sexual.

Asexual Reproduction in animals-

1. Common and primitive method among animals.
2. Meiosis or the gamete formation and fertilization process does not take place in asexual reproduction.
3. Single parent is involved and offspring identical to parent. Also called clone.
4. E.g. Gemmule formation and budding.

5. Gemmule formation :

• Gemmule is an internal bud. In sponges, during unfavourable conditions this method of asexual reproduction is adopted.
• Gemmule is thus an asexually produced mass or aggregation of dormant archcocytes cells. They develop into a new organism.
• Around archaeocytes, amoebocytes secrete a layer of thick resistant membrane.
• Gemmules hatch and develop into new individual when favourable conditions return.
• Seen in Spongilla.

6. Budding :

• Ii is a simple method of asexual reproduction seen in coelenterates (Hydra and corals) and in some colonial ascidians.
• A bud, i.e. small outgrowth is produced towards the basal end of the body, in Hydra.
• Bud grows and forms tentacles and develops into a new individual.
• This newly formed Hydra later detaches from parent and becomes a separate organism.

Sexual Reproduction in animals-

1. Offspring is produced by fusion of gametes or amphimixes in sexual reproduction. For the formation of gametes, both male and female parent undergo meiosis in their gonads.
2. Two main phases in the life of sexually reproducing animals : Juvenile phase/pre- reproductive phase which involves growth and reproductive/maturity phase in which sex organs undergo maturation.
3. Animals are either seasonal breeders like goat, sheep and donkey which breed only in particular season or continuous breeders like human and apes who can breed throughout the year.

4. Human reproduction :

• Sequential steps in the process of human reproduction : gametogenesis, insemination, internal fertilization, zygote formation and embryogenesis, gestation and parturition followed by lactation.
• Primary Sex organs – testes (testis : singular) in male and ovaries (ovary : singular) in female.
• Secondary or accessory Sex organs – Organs other than testis in male and organs other i than ovaries in female.
• Secondary sexual characters in males – Presence of beard, moustache, hair on the chest, muscular body, enlarged larynx (Adam’s apple), etc.
• Secondary sexual characters in females – Developed breast, broader pelvis, high pitched voice, etc.
• Sexual dimorphism : The phenomena by which sexes can be identified externally.

5. Male Reproduction System : Parts of male reproductive system – Testes, accessory ducts, glands
and external genitalia.
(1) Testes

(2) Accessory ducts:

(3) Glands :

(4) External Ganitalia:

Terms associated with external genitalia of male:

• Inguinal canal : The passage through which testes descend into scrotum.
• Gubernaculum : Fibro-muscular band present in the scrotum.
• Cryptorchidism : Failure of testis to descend into scrotum which may cause sterility.
• Three bundles of erectile tissues in penis :
  •  Paired Corpora cavernosa
  • Median corpus spongiosum.

6. Semen : Single ejaculate of semen is 2.5 to 4.00 ml of viscous, alkaline and milky fluid (pH 7.2 to 7.7) containing 400 million sperms and secretions of epididymis, prostate gland, and Cowper’s glands. It is rich in fructose, Ca⁺⁺ , bicarbonates and prostaglandins.

7. Histology of testis :

• External coverings of testis seen in L.S. from outer to inner side tunica vaginalis, tunica albuginea and tunica vasculosa.
• Testicular mass divided into 200-300 testicular lobules by tunica albuginea.
• Each lobule has 1-4 seminiferous tubules.
• In between the seminiferous tubules there are interstitial cells of Leydig or Leydig’s cells. They secrete the male hormone androgen or i testosterone.
• Internal lining of cuboidal germinal epithelial cells or spermatogonia inside the seminiferous l tubules.
• Few large pyramidal cells called Sertoli or sub-tentacular cells (nurse cells) Sertoli cells provide nutrition to the developing sperms,
• Various stages of developing sperms such as spermatogonia, primary spermatocyte, secondary spermatocyte, spermatids and sperms are seen in the seminiferous tubules.

8. Female Reproductive System : The female reproductive system consists of the following parts :

• A pair of ovaries
• A pair of fallopian tubes. (Also called oviducts, but usually this term is used for lower animals)
• Uterus
• Vagina
• External genitalia (vulva)
• A pair of vestibular glands
• A pair of mammary glands

9. Puberty / Sexual maturity in Females :

• Menarche : Onset of menstrual cycle, usually occurs at the age 10-14 years.
• The reproductive system then becomes functional.
• Menopause : End of menstrual cycles in females, usually occurs at the age of 45-50 years.
• Reproductive age of female : The period from menarche to menopause.

10. Structure and development of the ovary : The process of oogenesis starts in ovary much before the birth of the female baby. The various developing follicles and their fate is shown in the following flow chart :

11. Histology of ovary :

• TWo parts in ovary : Central part is medulla while the peripheral part is called cortex.
• Layer of germinal epithelium covers the cortex.
• Germinal epithelial cells form groups of oogonia in the form of cords called egg tubes of Pfluger which project into the cortex. Each cord ends in egg nest, which is group of oogonial cells. The primordial ovarian follicles develop from these cells.
• Different stages of development of oocyte viz. primordial follicle, primary follicle, secondary follicle, Graafian follicle, rupturing Graafian follicle, corpus luteum, corpus albicans are seen in a cortex of mature ovary.
• Medulla has blood vessels, lymph vessels and theca externa.
• Graafian follicle is a mature ovarian follicle with eccentric secondary oocyte in a fluid filled cavity called antrum surrounded by membrane granulosa, theca interna and theca externa.
• The ovum is surrounded by vitelline membrane, zona pellucida and membrana * granulosa.
• In the antrum, ovum is situated on discus proligerus. Ovum along with discus proligerus ; is called cumulus oophorus. Antrum is filled : with liquor folliculi.

Menstrual cycle (Ovarian cycle)-

1. Primates show menstrual cycle. Human female shows cycle with 28 days periodicity.
2. It involves a series of cyclic changes in the ovary and uterus.

3. Menstual cycle:

4. If the ovum is fertilized corpus luteum is retained.
5. A once embryo gets implanted in the endometrium, it starts secretion of human chorionic gonadotropin (hCG) which extends the life of corpus luteum.
6. Presence of hCG in maternal blood and urine is an indicator of pregnancy.
7. If ovum is not fertilized, corpus luteum regresses and forms corpus albicans. Then the next menstrual cycle begins.

Gametogenesis-

1. The process of formation of gametes in sexually reproducing animals is called gametogenesis.
2. Sperm is the male gamete and ovum/egg is the female gamete.
3. The gametes are formed from primordial germ cells of gonads.
4. Spermatogenesis : The process by which sperms are formed is called spermatogenesis.

• In the testis, i.e. male gonads there are seminiferous tubules which are lined by germinal epithelium.
• Cells of germinal epithelium undergo spermatogenesis and form sperms.
• In between the germinal cells there are nurse cells or cells of Sertoli which provide nourishment to the developing sperms.

(1) Phases of spermatogenesis : There are three phases of spermatogenesis, viz. multiplication phase, growth phase and maturation phase. Germinal cells are called primordial germ cells.

• Multiplication phase : Repeated mitotic divisions produce large number of spermatogonia which are diploid (2n).
• Growth phase : The spermatogonium accumulates food and grows in size. This is now called primary spermatocyte.
• Maturation phase : The primary spermatocyte undergoes first meiotic division. At the end of this division two haploid secondary spermatocytes are formed. Secondary spermatocyte
  undergoes second meiotic division and produce spermatid.

Spermatids are non-motile and non-functional. They undergo metamorphosis in the process of spermiogenesis and mature into motile sperms. Each haploid spermatogonium thus forms four haploid spermatids which later transform into the sperms.

(2) Changes occurring during spermiogenesis :

• Increase in sperm length
• Distinction of centrioles into proximal and distal one.
• Formation of axial filament from distal centriole
• Formation of spirally coiled mitochondria.
• Formation of acrosome from Golgi complex.

(3) Structure of the sperm (spermatozoa) :

• Microscopic, elongated haploid motile male gamete measuring about 0.055 mm (60 /;) in length.
• Produced by the process of spermatogenesis.
• Their viability remains viable for seventy- two hours, but can fertilize the ovum in first 12 to 14 hours only.

(4) Parts of sperm:

5. Oogenesis : Oogenesis takes place in ovary by which the secondary oocyte is formed.
(1) Phases of oogenesis :

• Phase of multiplication : In the phase of multiplication, large number of oogonia are formed.
• Phase of growth : In the phase of growth, one of the oogonia becomes large. It is now called primary oocyte.
• Phase of maturation : In this phase the rimary oocyte undergoes meiosis-I and forms large haploid secondary oocyte. There is equal nuclear division but unequal cytoplasmic division during the phase of maturation. Secondary oocyte and polar bodies undergo arrested meiotic-I division. Secondary oocyte completes the meiosis-II if and only if it undergoes fertilization.

(2) Structure of ovum, i.e. secondary oocyte : j

• The ovum discharged by the ovary during ovulation is actually a secondary oocyte.
• Rounded, haploid, non-mo tile. Female gamete is largest cell of the body.
• Measures about 0.1 mm or 100 in diameter.
• It is microlecithal, i.e. almost free of yolk.
• It has abundant cytoplasm or ooplasm having a large eccentric nucleus surrounded by vitelline membrane.
• Centriole is absent in the ovum.
• Ovum shows polarity having two poles.
• Animal pole is the side which shows the presence of polar body and nucleus while the opposite side is termed as vegetal pole.
• The ovum is enclosed by two additional coats inner, thin, transparent and noncellular zona pellucida and outer, thick cellular corona radiata.
• Between the vitelline membrane and zona pellucida there is a narrow perivitelline space.
• The zona pellucida is secreted by ovum j itself while corona radiata is formed of radially elongated follicular cells which are glued together by hyaluronic acid.

Fertilization/Syngamy-

1. Fertilization : Process of fusion of the haploid male and female gametes into diploid zygote is called fertilization.
2. Fertilization is internal and in the ampulla of the fallopian tube the gametes meet.
3. The sequence of events of fertilization :

• Capacitation of sperms : Movement of sperms towards the secondary oocyte.
• Release of acrosomal enzymes: Enzymes are secreted by sperm head when it touches secondary oocyte.
• Separation of cells of corona radiata : This happens due to acrosomal enzymes like hyaluronidase and corona penetrating enzymes.
• Compatibility reaction/ Fertilizin-anti fertilizin interaction : Fertilizin of egg binds with anti fertilizin of sperm. The zona pellucida of egg has fertilizin receptor proteins (ZP3, ZP2). Also acrosome ruptures releasing enzyme acrosin / zona lysin.
• Acrosome reaction : Acrosin dissolves zona pellucida and vitelline membrane at the point of contact of sperm head.
• Entry of sperm nucleus in ovum : Nucleus and centriole enter the ovum.
• Formation of fertilization membrane/ Cortical reaction : Vitelline membrane of ovum is converted into a fertilization membrane. This prevents polyspermy.
• Activation of ovum : Completion of meiosis- II of secondary oocyte takes place. When ovum receives centriole from sperm, it completes meiosis-II. This releases second polar body.
• Syngamy/Karyogamy : Fusion of male pronucleus and female pronucleus. Synkaryon is formed after fusion of male and female nucleus.
  Formation of diploid zygote conclude the process of fertilization

4. Significance of fertilization :

• Secondary oocyte can complete meiosis only after fertilization.
• Diploid number of chromosomes is restored in the zygote.
• Genetic characters of two parents can be mixed leading to variation and evolution.
• It determines the sex of young one.
• Only through fertilization centrioles are introduced into the ovum which are otherwise absent in ovum.

Embryonic development-

1. After syngamy the zygote that is formed undergoes divisions to form embryo. These mitotic divisions are called cleavages.
2. When the zygote passes through the fallopian tube, the cleavages start.
3. Till morula stage, zona pellucida layer is retained as it prevents the implantation of the blastocyst at an abnormal site.

4. Cleavage :

• Cleavages are rapid mitotic divisions of zygote to form a hollow spherical multicellular blastula. Cleavage converts the zygote first into a mass of cells called morula.
• Cleavage occurs during its passage through the fallopian tube to the uterus.
• In human beings, cleavage is holoblastic, equal and indeterminate.
• Cleavage divisions are rapid with short interphase.
• There is no time for cells to grow in size.
  Thus, cells become progressively smaller. The resulting daughter cells are called blastomeres.
• Cleavage shows faster synthesis of DNA.

5. Blastulation :

• During blastulation hollow and multicellular blastocyst is formed from 16-32 celled stage of morula.
• Blastocyst now reaches uterus and starts absorbing glycogen rich uterine milk.
• The outer layer of cells forms trophoblast layer whereas inner large cells form inner cell mass or embryoblast.
• Size of blastocyst doubles from 0.15 mm to 0. 30 mm.
• Due to the absorption of glycogen rich uterine milk, the trophoblast cells become flat and a cavity called blastocyst cavity is formed.
• Cells of rauber : These are the cells of trophoblast which are in contact with the embryonal knob.
• Blastocyst becomes fully developed by the end of the 7th day.

6. Implantation :

• Implantation is the process of embedding the blastocyst in the uterine endometrium for further gestation.
• On 7th to 10th day after fertilization, implantation takes place. Embryo is completely buried inside the endometrium.
• Trophoblast divides into two layers, viz. cytotrophoblast and syncytiotrophoblast. With processes of synctiotrophoblast the blastocyst is buried in the endometrium layer of uterus.

7. Gastrulation :

(1) Formation of gastrula from the blastocyst is called gastrulation. It starts at about 8 days after fertilization.
(2) Two important events during gastrulation are :

• Differentiation of blastomeres : Three germinal layers are formed by rearrangement of blastomeres.
• Morphogenetic movements : Movements of cells to reach their destined area of differentiation is called morphogenetic movements.

(3) Gastrulation and implantation of blastocyst takes place simultaneously.
(4) Gastrulation involves the following sequential changes :

• Formation of endoderm
• Formation of embryonic disc
• Formation of amniotic cavity
• Formation of ectoderm
• Formation of mesoderm
• Formation of extra-embryonic coelom
• Formation of chorion and amnion

8. Organogenesis : Process of forming organs after the process of gastrulation is called organogenesis.
9. Fate of germinal layers : At the end of gastrulation, embryo develops into three germinal layers.
Different tissues and organs are formed from germinal layers. This process is called histogenensis.

Pregnancy / Gestation-

1. Gestation or pregnancy is the condition of developing foetus in the uterus. It may be one or two as in twins.
2. In human beings, gestation period is about 280 days.

Placenta-

1. Placenta is a flattened, discoidal organ attached to the wall of the uterus and to the baby’s umbilical cord.
2. It facilitates the supply of oxygen and nutrients and also for removal of carbon dioxide and excretory products produced by the foetus.
3. Placenta is the only organ, which is formed of tissues from two different individuals the mother and the foetus.
4. Foetal placenta is the choronic villi while maternal placenta is the highly vascularized uterine wall. So human placenta is called haemochorial.
5. The placenta also acts as an endocrine tissue and produces hormones like hCG, progesterone, estrogen and relaxin.

Parturition-

• Parturition is the birth process which is accompanied with labour pains.
• It is a neuro-endocrine mechanism which involves rise in estrogen : progesterone ratio and increase in oxytocin receptors in myometrium of uterine wall.
• The fully developed foetus gives signals for the uterine contractions by secreting Adrenocorticotropic hormone (ACTH) from pituitary and corticosteroids from adrenal gland.
• This triggers release of oxytocin from mother’s pituitary gland, which acts on uterine muscles of mother and causes vigorous uterine contractions.
• This leads to expulsion of the baby from the uterus.
• Parturition involves three stages, viz. dilation stage, expulsion stage and after birth or placental stage.

Lactation-

• After parturition the new born is given nourishment through milk. The process of secretion of milk is called lactation in which mammary glands of mother become functional.
• The first milk is called colostrum which is rich in proteins, lactose and mother’s antibodies e.g. IgA.
• Lactation is also neuroendocrine process, in which almost all endocrine glands of mother are involved.

Reproductive Health-

• Total wellbeing of a person’s emotional, behavioural, physical and social aspects involving reproduction is called reproductive health.
• In India, Reproductive and Child Health Care (RCH) programmes are undertaken to improve reproductive health.
• One of the objectives of this programme is to control the population growth of India.

Birth Control-

1. For controlling the family size, birth control measures are taken which me called contraceptive measures.
2. Contraceptive methods are of two main types, i.e. temporary and permanent.

Birth control measures:

3. Medical termination of pregnancy (MTP) :

• MTP is induced abortion. This can indirectly control population. MTP is legalized in India since 1971.
• MTP is performed if unwanted pregnancy has to be discontinued or if there are defects in the growing foetus. MTP to abort healthy female embryo is illegal.
• MTP can be safely done only during the first trimester of pregnancy.

4. Amniocentesis :

• Process in which amniotic fluid containing foetal cells is collected using a hollow needle inserted into the uterus under ultrasound guidance.
• This is done for studying the chromosomes to check any possible abnormality in the developing foetus.
• Sex determination by amniocentesis is legally banned in India.

Sexually Transmitted Diseases (STDs)-

1. 1. Disease or infections which are transmitted through sexual intercourse are collectively called Sexually Transmited Diseases (STDs) or Venereal Diseases (VDs) or Reproductive Tract Infections (RTI).
2. The major venereal diseases are syphilis and gonorrhoea.

Infertility-

1. Infertility is defined as the inability to conceive naturally after (one year of) regular unprotected intercourse.
2. Today infertile couples have many options to have a child such as fertility drugs, test tube babies, artificial insemination, IUI, surrogate motherhood, etc.

• In Vitro Fertilization (IVF) : When fertilization process is carried out of the body and the embryo is transferred back into the mother’s body, then it is called IVF technique. (Commonly known as test-tube baby.)
• Zygote Intra Fallopian Transfer (ZIFT) : The embryo is transferred in the fallopian tubes by ZIFT (Zygote Intra Fallopian Transfer) technique.
• Gamete Intra Fallopian Transfer (GIFT) : Transferring the ovum collected from the donor into the fallopian tube of another female who can act as a surrogate mother (a female with suitable environment for fertilization and development) is called GIFT.
• ICSI (Intra Cytoplasmic Sperm Injection) : Single sperm cell is injected directly into cytoplasm of an ovum in the laboratory in this technique.
• Artificial insemination (AI) : The collected sperms are artificially introduced into the
  cervix of female, for the purpose of achieving a pregnancy through in vivo fertilization.
• IUI (Intra Uterine Insemination) : Similar to artificial insemination, but in this technique the sperms are introduced into the uterine cavity instead of cervix.
• Sperm bank / Semen bank : Sperms are collected from donors and stored in a sperm bank or semen bank. These are stored by cryopreservation method and given to needy couples.
• Adoption : A couple or a single parent can legally adopt a child. They also get legal rights, privileges and responsibilities for raising up adopted child.

Know the Institute :

Cord blood bank, Kolkata

• First Government-run cord blood bank at Kolkata, established in 2001.
• Accredited by AABB (American Association of Blood Bank).
• Work carried out Collection of the cord blood, extracting and cryogenically preserving for its stem cells and other cells of the immune system for future potential medical use
• Stem cells are used to treat diseases, e.g. leukaemia, certain cancers, sickle-cell anaemia and some metabolic disorders.