Reference no: EM131153608
CASE STUDY (Process of Accounting).
Rajiv and Rahul were twin brothers. Rajiv was interested in computers and would find time to always work on computers either at college or at his friend's place. His keen interest in subject made him take up computer software for his degree course.
He pleaded with his father Mr. Raghunath and purchased a computer for his use at home.
Rahul was always interested in sitting at his father's shop at the nearby market place selling electrical appliances. He would often go and help his father at the shop after college hours.
Mr. Raghunath was happy that Rahul showed keen interest in his business but was worried about Ram who would always spend time with computers. He felt that if the interest of the two sons be put together they could start a flourishing business of their own. The boom in the IT industry made him find ways to satisfy his son's dream.
After college, the twins were drifting apart due to varied interest. Mr. Raghunath decided that this is the time for him to intervene and make decisions for his sons. He decided to start a computer business for his sons. He asked Rahul, a commerce graduate to draw up a proposal for the same.
Rahul came out with the following ideas:
The area they lived on ad run shop consisted of middle income group families and many of them did not possess computers at home Their shop could provide the following services:
•Computer classes for various age groups.
•Computer using facilities on payment per hourly basis and printing of documents from computers.
• Internet access facility at the prevailing market rates by entering into contract with AIRTEL.
• Computer games corer for children Rajiv jumped at the idea and they made up a common proposal.
Rajiv wanted that they purchase 10 computers and start with first two areas of operation and expand when things go well. The shop they had at the market place was a single storey building. Their father offered to build the first floor and give it to them.
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Case study process of accounting
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