Class XI
Costing and Taxation (CSTX)
Semester II
COSTING
Cost of Materials
A: Storing of Materials
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i)
Bin Card – Definition and Necessity
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ii)
Stores Ledger – Definition and Necessity
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iii)
Centralized Stores and Decentralized Stores
B: Materials Control
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i)
Necessity of Material Control
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ii)
Fixation of Stock Levels of Materials:
- Re-order Stock Level
- Maximum Stock Level
- Minimum Stock Level
- Average Stock Level
- Danger Stock Level
- (with Simple Practical Problems)
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iii)
Fixation of Economic Order Quantity (EOQ):
- Definition and Advantages of EOQ
- Simple Problems on Determination of EOQ (with the help of formula)
C: Methods of Pricing Materials
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Methods of Pricing Materials issued from Stores and Preparation of Stores Ledger Accounts:
- FIFO Method
- LIFO Method
- Simple Average Method
- Weighted Average Method
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Advantages and Limitations of FIFO Method, LIFO Method, Simple Average Method and Weighted Average Method
TAXATION
Agricultural Income
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Definition of Agricultural Income
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Taxability of Income from sale of tea and coffee grown and manufactured in India
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Very common instances of agricultural income and non-agricultural incomes
Income under the head "Salaries"
A: Basis of Charge and Allowances
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Basis of charge (Section 15)
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Essential norms of salary income
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Allowances:
- Basic Salary
- Dearness Allowance
- City Compensatory Allowance
- House Rent Allowance [Section 10(13A)]
- Medical Allowance
- Bonus
- Children Education Allowance
- Transport Allowance
B: Perquisites [Section 17(2)]
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a)
Valuation of rent free unfurnished accommodation provided to:
- (i) Central and State Government Employee
- (ii) Private Sector Employees [Rule 3(1)]
- Valuation of rent free furnished accommodation
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b)
Valuation of perquisites in respect of:
- (i) Free education to employee's children
- (ii) Payment of school fees by the employer
- (iii) Education facility in employee's institute
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c)
Very common examples of tax free perquisites
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d)
Deduction for professional tax or tax on employment [Section 16(iii)]
PROJECT WORK
Choose any ONE of the following project topics:
Visit any manufacturing firm, collect real data and prepare a detailed Cost Sheet.
Visit any production unit, collect necessary data regarding raw materials of a particular commodity, prepare Bin Card and Stores Ledger.
Visit any production unit, collect necessary data regarding raw materials of a particular commodity, calculate Economic Order Quantity / Re-order Quantity for each and every raw material.
Collect data from any relative, who is a salaried person and compute his / her income from salary [excluding perquisites].
Visit any agricultural farm, collect data and prepare agricultural income and total income.
Meet ten individual persons, collect different information related to staying in India and abroad. Comment on Residential Status and their tax incidence.
📋 Project Submission Guidelines
First Page:
- Name of project
- Name of project maker
- Name of supervisor
- Name of school
- Roll number
- Class
- Month and year of submission
Second Page:
- Acknowledgement – Thank teachers, parents, friends, and reference books
Third Page:
- Table of Contents / Index
Main Content Structure:
- Introduction
- Objectives of the project
- Conceptual Framework
- Collection of data for the Project
- Presentation of data collected
- Discussion and analysis of data
- Conclusion and recommendations
- Limitations
- Future work prospects
