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BWEE-008: Credit and Finance

BWEE-008: Credit and Finance

IGNOU Solved Assignment Solution for 2021-22

If you are looking for BWEE-008 IGNOU Solved Assignment solution for the subject Credit and Finance, you have come to the right place. BWEE-008 solution on this page applies to 2021-22 session students studying in BAGS, DWED courses of IGNOU.

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BWEE-008 Solved Assignment Solution by Gyaniversity

Assignment Solution

Assignment Code: BWEE-008/TMA-1/2021-22

Course Code: BWEE-008

Assignment Name: Credit and Finance

Year: 2021-2022

Verification Status: Verified by Professor

Marks = 100

All questions have to be attempted.

Q1. Write yours answers in this section in five hundred words.

a. What is microfinance?

Ans) Microfinance is the provision of a wide range of financial services to poor and low-income households and their microenterprises, including deposits, loans, payment services, money transfers, and insurance. Three sorts of sources supply microfinance services:

  1. Formal institutions, such as rural banks and cooperatives;

  2. Semi-formal institutions, such as non-governmental organizations; and

  3. Informal sources such as money lenders and shopkeepers.

Microfinance services supplied by both formal and semi-formal institutions are referred to as institutional microfinance. Microfinance institutions are characterised as businesses that specialise in providing microcredit services.

Microfinance has grown in popularity over the last two decades, with lending institutions, donor agencies, governments in developing and developed countries, and non-governmental organisations (NGOs) all supporting its growth. In recent years, a number of private banking institutions have joined this group. As a result, microfinance services have exploded in popularity over the last decade, propelling them to the forefront of poverty reduction discourse.

Microfinance services have been utilised to alleviate poverty in developing countries. Microfinance services have a favourable impact on various socioeconomic variables such as children's schooling, household nutrition, and women's empowerment, according to the studies. Microfinance institutions (MFIs) have also helped the poor, particularly women, enter the official financial system by allowing them to obtain credit and save small amounts of money in financial assets, thereby lowering household poverty.

However, scholars and practitioners believe that in most countries, the poorest of the poor have yet to profit from microfinance programmes, owing to the fact that most MFIs do not offer products and services that are appealing to this group. To boost the total impact of microfinance on poverty reduction, it is necessary to continue to provide a wide range of services to the poor who are still unable to profit from microfinance.

Institutional microfinance, which was once almost entirely the realm of donors and experimental loan initiatives, has matured over the last decade into a financially viable industry with a greater range of services and tremendous expansion potential. The phrase "financial viability" refers to an institution's or company's ability to generate sufficient profits to make it valuable. The potential for financial sustainability are revolutionising the microfinance field, implying that institutional microfinance can be made available to a considerable part of the world's poor. In other words, we may anticipate that microfinance organisations will continue to exist and that this will benefit disadvantaged people for a long time.

The majority of rural poor people work as labourers or small-scale farmers in agricultural or related occupations. Many of them also run a variety of microbusinesses. Many of these microenterprises are run by women, who make up a large share of the poor and suffer disproportionately from poverty in many countries.

Because of perceived high risks, high expenses associated with tiny transactions, perceived low relative profitability, and the poor's inability to furnish the physical collateral typically demanded by such institutions, most formal financial institutions do not serve the poor. These organisations' corporate cultures are likewise not suited toward serving poor and low-income households. Most poor and low-income households continue to rely on meagre self-finance or informal forms of microfinance due to a lack of access to institutional sources of financing.

These sources, on the other hand, limit their ability to participate in and benefit from the development process. As a result, a part of the poor population with plausible investment options remains impoverished due to a lack of affordable finance. The poor also have limited access to institutional credit for budgeting and other services including payments, money transfers, and insurance. Most poor households also find it difficult to save money since they do not have easy access to safe deposit-taking facilities.

b. What are the achievements of microfinance? Give examples?

Ans) MFIs and OFIs that mobilise voluntary savings have debunked the idea that poor people can't or won't save, demonstrating that savings can be successfully raised from them. This may be a more significant achievement of microfinance in the Region than the increased reach of loans.

MFIs, OFIs, and their clients have demonstrated that the poor (particularly poor women) are creditworthy, and that financial services may be supplied to and accessed by the poor at low transaction costs without relying on physical collateral (such as their labour pledged or promised to the money lender).

International banks, such as the Asian Development Bank, have learned the following lessons over the last 11 years:

  1. The financial system development method must be adopted in order to achieve long-term results and maximise development impact. This strategy emphasises the creation of an enabling policy environment, financial infrastructure, and financial intermediaries committed to achieving financial viability and sustainability within a reasonable time frame and capable of providing a variety of financial services to the poor, not just credit.

  2. Access to services that are suitable with their needs is more important to microfinance clients than the cost of the services.

  3. Given the wide spectrum of financial services demand, a diverse range of institutional types is essential to broaden the reach.

  4. To broaden the permanent reach of financial services and have a major influence on poverty reduction, strong retail institutions devoted to outreach and sustainability are required. Banks are larger than retail institutions. They borrow money from banks and lend it to others, i.e. they are in the lending business. As a result, strengthening the capacity of institutions committed to reaching the disadvantaged is critical.

  5. Financial institutions that are committed to providing microfinance need a lot of technical help to enhance their capacity. This is especially true for organisations that seek clients in resource-poor locations and among the lowest of the poor.

  6. The demand for savings services by poor households and microenterprises is on par with, if not higher than, that for credit. The expansion of savings services' reach has the potential to have a substantial influence on both institutional sustainability and poverty alleviation.

  7. Because microfinance is primarily aimed at disadvantaged poor people, social mobilisation is required to introduce them to a formal or semiformal market-oriented institutional context. This is especially true for the poorest of the poor, especially women. However, while developing support programmes, it's critical to distinguish between financial and social intermediation. The role of a self-help group in lending to its members and collecting their savings is referred to as social intermediation.

Other Agencies’ Microfinance Experience

Many financial institutions have supported microfinance operations as a result of the spike in interest in microfinance development over the previous two decades. Microfinance can play a major part in poverty reduction, and the economic and social benefits of microfinance can be substantial, according to the aggregate experience of these organisations. The aim is to embed best practises in microfinance operations and expand outreach to the impoverished on a long-term basis. The agencies agree on the following:

  1. Policy framework and the development of retail institutions that can provide a wide range of services, not only credit, require more attention.

  2. The commercialization trend must be encouraged.

Their experience also shows how important it is to integrate microfinance operations with the broader financial system in order to maintain outreach. There is also agreement among financing agencies that their involvement should primarily be catalytic.

c. Specify the role of NABARD in facilitating micro financial schemes.

Ans) The National Bank for Agriculture and Rural Development (NABARD) in India has been a key player in increasing loans for women's self-help groups. Creating and maintaining small, homogeneous, and participatory impoverished self-help groups (SHGs) has become a powerful tool for human development.

This approach helps the poor, particularly women from impoverished households, to identify and analyse problems in the context of their social and economic surroundings as a group. It enables them to combine their limited human and financial resources and prioritise their application to solving their own challenges. The emphasis on frequent thrift collection and its application to current consumption and production difficulties not only helps them fulfil their most pressing requirements, but it also prepares them to manage greater financial resources more skilfully, responsibly, and with a longer-term impact. SHGs have also been a focal point for a variety of social sector initiatives.

The availability of bank loans to organisations aids in meeting their production and consumption needs. Banks, NGOs, and several government ministries have all endorsed the SHG-Bank Linkage Program as a key supplementary credit delivery channel.

In a country with a population of 1.1 billion people, 320 million people live in abysmal poverty. They couldn't get any form of help from a financial or banking organisation because they didn't have any assets. They are India's most serious problem. They are battling to overcome the limitations of a credit-delivery system that exists but is mainly ineffectual for them.

There is only one weapon that can be used to combat this hopelessness. There is only one approach to increase one's sense of self-worth. We need to adopt custom-made efforts that improve living conditions while remaining sustainable and user-friendly. That is the foundation of NABARD's one-of-a-kind, tailored effort, which has helped over 24 million impoverished families get access to sustainable economic and social growth. In 1992, a trial operation called Self Help Groups (SHGs) was launched. But that is no longer the case.

Today, over 1,597,804 credit-linked SHGs are rapidly altering society's bottom echelons. Women's groups account for 90% of these SHGs. A total of Rs. 68.66 billion has been disbursed in the form of loans. This is arguably the world's largest microfinance initiative. The initial step has been made by NABARD. Women are being taught the ins and outs of saving, credit, and making decisions that will help them assist themselves. What have disadvantaged women learned from this experience? It has aided in "empowering them with asset-affecting abilities, allowing them to step up and broaden their horizons; instilling confidence in them while applying for a bank loan."

NABARD has made notable achievements:

  1. A total of Rs. 68.66 billion has been loaned to 1,597,804 credit-linked SHGs.

  2. NABARD has refinanced Rs. 30.92 billion in microfinance in total.

  3. In just one year, Rs. 29.72 billion was disbursed to 518,713 new SHGs.

  4. The world's largest microfinance programme involves over 3000 NGOs and 35,294 bank branches in 563 districts across the country.

d. Describe various characteristics of SHGs and their relationship with microfinance. (20)

Ans) SHGs are "an association or group of women who come together for their mutual economic or other well-being." SHGs are, in essence, small groups of 5 to 20 people. The group should ideally consist of 10-15 people who are socially and economically similar.

SHGs' major goal is to create a new system for delivering credit to the poorest of the poor and the weakest members of society. SHGs would cover women, craftsmen, small and marginal farmers, landless agricultural labourers, SCs and STs with limited access to formal institutions. Credit should be delivered directly to them without the use of intermediaries, and the processes should be leak-proof. The term "leakage" refers to advantages that do not reach the intended recipients. This can arise as a result of bribery or poor targeting.

SHGs instil the values of frugality, savings, and banking. Banking transactions are conducted in a very informal manner. It also aids in the implementation of a participatory process in economic and developmental operations. It also encourages group entrepreneurship. SHGs help the disadvantaged achieve credit eligibility by substituting social collateral for economic collateral. Recovery is aided by peer group pressure. Simple paperwork and straightforward procedures lower transaction costs.

The following are the features of SHGs:

  1. They've gathered for a shared goal.

  2. There is a wilful participation.

  3. Members gather on a regular basis to share ideas and information.

  4. Leadership has been identified.

  5. The members function as a group and carry out the ideas that have been agreed upon.

  6. For being together and working together, there are some rules and processes to follow.

  7. The members of the group share a common interest.

  8. They have reached an agreement.

Linkage Between SHGs and Banks

Two institutional linking models for SHGs are being tested. The Self-Help Promoting Institution (SHPI) may serve as the Bank's advisor. SHPI will also provide technical help and extension services to SHGs, particularly in terms of identifying and developing productive and income-generating enterprises. SHGs will deposit their Group Savings directly with the bank under the second linkage model, however the loan will be handled through the Self Help Group Promoting Institution (SHPI). SHPI will operate as a financial middleman in this case, in addition to the promotional role already indicated.

Bank branches can play a critical part in the development of this alternative credit delivery system in order to reach out to the poor who are unable to access traditional banking services. Some suggestions for bank branches are as follows:

  1. Identify and create rapport with existing groups/NGOs in the command area.

  2. Whether there are no existing Groups, see if the bank can help NGOs/VOs form new ones.

  3. For at least six months, work closely with groups. Encourage the Groups to save by motivating and educating them.

  4. Train the groups to act democratically, either through VOs or directly, and to meet on a regular basis, either weekly, fortnightly, or at least once a month.

  5. Encourage them to start lending money within the Group once they have accumulated a significant amount of savings.

  6. Train the group on how to keep track of their savings, loan, and repaying accounts, among other things.

  7. When the Groups require more cash to meet the demands of its members for economic activities, banks should enter the field, interact with the Groups, assess their funding requirements, determine the Group's reliability, and provide small loans to the SHGs (Not exceeding four times that of their savings).

Q2. Write an essay on the formation, function, and role of Self-Help Groups in improving the life of poor women in India. (20)

Ans) Self-Help Groups (SHGs), also known as Thrift and Credit Groups, are primarily informal organisations in which members pool their savings and re-lend within the group on a rotating or need basis. These groups share a common sense of need and a desire to take action as a group. Because SHGs were able to mobilise savings from the poor, who were not expected to have any, and effectively recycle the pooled savings among members, they were able to perform/provide banking services to their members, albeit in a primitive manner, but in a way that was cost effective, simple, flexible, and above all, without any defaults in repayment by borrowers.

Formation of SHGs

A self-help group is formed when a group of people comes together to deliberate on the group's mission and values, goals and objectives, and rules and conventions. It takes time for the members to put all of this together and learn to operate under these guidelines.

To become stable, groups go through a series of stages. Various elements influence the majority process, including the group's age, members' awareness, cohesion, leadership, member engagement, and other activities. Groups progress from utter informality to the formulation and frequent enforcement of rules and bylaws. The leadership emerges, and the majority of the problems are resolved internally. Financial procedures are in place, and the loaning process has been fine-tuned to meet the needs of the members. The organisation collaborates with other organisations in the area as well as other development agencies.

Function of SHGs

  1. Initiate and sustain group savings: All members must save at least a little amount on a regular basis. They can use these savings to obtain future credits for their group.

  2. Providing loans to members: The SHG's savings must be used to make loans to the group's members. Everything pertaining to the loan must be decided by the group as a whole.

  3. Solving common difficulties: SHGs are made up of people who have comparable problems. The grouping should primarily assist the person in overcoming these issues through group discussions and interactions, as well as resolving the challenges and finding a shared and united solution to the issues.

  4. SHGs must seek to establish a collectively assured framework in order to obtain loans from official sources.

  5. They work to improve the functional ability of impoverished and marginalised people in the areas of employment and income generation.

  6. They provide no-collateral loans to customers who would otherwise struggle to secure a loan from a bank.

  7. They also use mutual conversations and collective leadership to settle issues.

  8. They are a major source of impoverished people's microfinance services.

  9. They serve as a conduit for bringing conventional financial services to the poor, particularly in rural areas.

  10. They also encourage poverty-stricken people to save.

Role of SHGs

The SHGs play multiples roles in the developmental process. some of these are as follows:

  1. Members of SHGs have been able to save a portion of their income as a result of their establishment. It has grown in terms of assets, income, and employment prospects.

  2. There has been a major shift away from using loans for personal use and toward using them to generate money.

  3. The members' combined savings had put them in a financially secure position. This has aided them in breaking free from the cycle of poverty and unemployment.

  4. Women's contributions to household income have risen. They had more influence over the decisions that affected their lives as a result of it. It has resulted in a greater participation of women in decision-making.

  5. It has raised their awareness of numerous assistance programmes and organisations, as well as their access to them.

  6. In addition, spending on girl education has increased in member households.

Q3. Write your answers in three hundred words. (20)

a. What is revolving Credit?

Ans) Revolving credit is a type of credit that allows an account holder to borrow money indefinitely up to a defined monetary limit while returning a portion of the current balance due in monthly instalments. Each payment replaces the account holder's available funds, minus the interest and fees charged.

  1. Customers with revolving credit have the ability to access funds up to a predetermined credit limit.

  2. When a consumer pays off an open balance on a revolving credit, the money is made available to them again, minus any interest and fees.

  3. The customer pays interest on the current balance outstanding on a monthly basis.

  4. Secured and unsecured revolving credit lines are available.

Credit cards, home equity lines of credit (HELOCs), and personal and business lines of credit are all forms of revolving credit. The most well-known form of revolving credit is credit cards. A revolving line of credit, on the other hand, differs significantly from a consumer or commercial credit card in a number of ways.

9)     To begin with, unlike a credit card, a line of credit does not require the use of a physical card; instead, lines of credit are commonly accessed through checks provided by the lender.

10)  Second, a customer with a line of credit is not obligated to make a transaction. It enables money to be transferred into a customer's bank account for any reason without the need for that money to be used in a transaction. This is similar to a credit card cash advance, but it usually does not come with the hefty fees and higher interest rates that a cash advance does.

The primary benefit of revolving credit is that it allows borrowers to access funds whenever they need it. Many small and large firms rely on revolving loans to keep their cash flow stable during seasonal swings in costs and revenues. Rates for business lines of credit vary greatly, just as they do for consumers, based on the company's credit history and whether the line of credit is secured with collateral. Businesses, like consumers, can keep their borrowing expenses low by paying down their accounts to zero each month.

b. What is compulsory credit/Thrift?

Ans) Savings are the backbone of every credit programme since they are its lifeblood. This is also true for savings and credit programmes sponsored by non-governmental organisations (SCP). Savings are either received by NGOs as part of internal resource mobilisation for directly funding their credit programmes or by self-help organisations that retain their funds with NGO banks. The saver and borrower are the same person in SCP, which creates a direct tie between them.

Thrift/ Compulsory Credits

  1. The deposits could be for the smallest amount at first, but they should eventually be linked to the loan amount at a fair rate, such as 1% of the loan per year.

  2. The deposits, along with the monthly instalment for principal and interest repayment, shall be collected. Arrears in this regard should not be tolerated in general, and amounts should be collected with penal interest at a later period.

  3. Interest on such deposits could be allowed at rates that are generally 6 to 8% lower than the lending rate used by the NGO/Group.

  4. If no interest is permitted (which is not recommended), the net surplus of interest earned on funds could be credited proportionately to each member's bank account or to a common fund. Surplus accumulation may not be allowed to be withdrawn. It would be preferable if it were utilised to boost the common fund.

  5. Only when the beneficiary has repaid the principal and interest on the loan may withdrawals (say, 50% of the amount) be permitted from the deposit.

  6. Emergency loans could be made from required deposits at a rate of interest applicable to consumption loans, with a maximum loan amount of 50% of the deposit.

  7. When a member cancels her membership or requests to leave the Group/NGO for whatever reason, the deposit and interest may be refunded. If she is allowed to re-join the group, she shall return the full amount of the deposit that was refunded to her. Depositors' practises should be re-examined.

  8. A one-time deposit of Rs. 10 or Rs. 20 per member could be collected and credited to the Cluster Committee's or Federation's account, if one exists.

c. Qualities of well managed savings and Credit group.

Ans) A well-managed savings and credit club has the following characteristics:

  1. Procedures for applying for jobs are made easier: It's pointless to follow complicated procedures. Such methods have no meaning when working with very impoverished and uneducated women, and in fact undermine the usefulness of the help. Such ladies like simple procedures with little or no paperwork and anticipate a prompt response to their request.

  2. Loans are quickly sanctioned: If group members must wait months for their loans to be approved, they become disheartened. They're used to payday lenders that give them cash right away. Credit is routinely extended in less than a month and even within a week in well-managed enterprises. Subsequent loans are disbursed significantly faster.

  3. Does not necessitate the keeping of records or the development of complex business plans: Because only a small number of farmers, traders, and micro-manufacturers retain written records of any type, successful programmes do not ask for records or plans.

  4. Does Not Require Guarantees Groups where members are jointly accountable for loan repayment can successfully replace traditional guarantees. The community's opinion of an individual is more essential than any assurance.

  5. Small, short-term loans should be extended. Primarily for Simplified Terms Working Capital: Small, short-term loans allow clients to not only 'test' their resolve to repay, but also to evaluate if a loan will help their firm expand. These loans should be repaid in equal instalments on a regular basis (weekly, biweekly, or monthly).

  6. Provide larger loans dependent on timely and successful repayment: As the member's confidence grows, she will require greater loans to help her generate more income. Procedures should be in place for the group to encourage such greater loans.

  7. It's possible that you'll be charged a higher interest rate than the market: Quick credit is more significant than a cheap interest rate in the eyes of borrowers. Interest must cover transaction expenses, inflation rates, and the cost of operating the activity from the lender's standpoint.

d. Guidelines of loan repayment provided by SHG’s in their training to their members.

Ans) The three components – savings, borrowing and repayment – are inseparably linked in an SHG. Problems in one automatically lead to problems in others. When a loan is sanctioned, the group decides the period of loan and the instalment amounts. If the repayment is not received as per the schedule, repayment rate of the group goes down, morale of the members is affected and the performance of the group as a whole suffers.

Loans are considered as sticky and under default when any portion of loan is last due, which means that the amount has not been paid even though the due date has passed.

The major reasons for default are:

  1. Unrealistic repayment schedules;

  2. Borrower not being creditworthy;

  3. Lack of credit policy;

  4. Improper use of the loan;

  5. Loan was not sufficient for the project;

  6. High interest rates;

  7. Illness, disease of borrower and failure of business;

  8. Borrower not fully aware of the commitments made;

  9. Inadequate credit monitoring by the group; and

  10. Inadequate loan collection methods.

In this regard, conflict occurs because of non-repayment / default of loan and attempts by the group to recover the default amount

Wilful Default

Wilful default occurs when a member is capable of repaying the loans defaults but does not make the repayment. The members may not have confidence in the group. Hence, she will take a loan equivalent to her savings and will not repay the loan. Wilful default may also occur when a member has some problem with the group and she considers her default as a way of punishing the group. The group should identify the underlying reasons for the default and try to address them with the help of the facilitator. In extreme cases, the defaulting member can be removed from the group.

Demonstration Effect

Some people do not repay the loan even though they have the money to repay since other members are not paying back their loans. They undertake to repay the loan only when others have repaid. In order to solve such a conflict, the situation of genuine members can be explained. The group can reschedule the loan in genuine cases. The group should, however, penalize the wilful defaulter.

Default due to Genuine Difficulties

Some members are keen to repay but due to reasons beyond their control they may not be able to repay. The reasons could be:

Improper scheduling of loan;

Not earning expected income;

Diverting the loan for emergencies in home, agriculture, etc;

Death of the member; and

Failure of the activity.

Death of the Member

In unforeseen circumstances like the death of the member, the loan has to be recovered from their kith who are using the asset. If the relatives do not undertake the responsibility for repayment, the loan can be recovered by the sale of assets.

Q4. Write short notes on the following topics: (20)

a. Profit and Loss

Ans) Profit and loss are the terms used to identify whether a deal is profitable or not. We use these terms very often in our daily lives. If the selling price is greater than the cost price, then the difference between the selling price and cost price is called profit. If the selling price is less than the cost price, then the difference between the cost price and the selling price is called loss. The price at which a product is purchased is called its cost price. The price at which a product is sold is called its selling price.


When, in a transaction, the selling price is greater than the cost price, it means we earn a profit. Using the above example, the profit that Neil earned is $2. It is calculated with the help of the formula: Profit = Selling price - Cost price. In the above example, the Cost price of the umbrella was $8 and the Selling price of the umbrella was $10, so the profit that he made can be calculated by using the formula: Profit = Selling price - Cost price. Substituting the values, we get, Profit = 10 - 8 = 2. Therefore, he makes a profit of $2.


When, in a transaction, the cost price is greater than the selling price, it means we incur a loss. For example, if a bag is bought for $20 and it is sold for $17, it means we incurred a loss of $3 in this transaction. Loss is calculated with the help of the formula: Loss = Cost price - Selling price. Taking the same example, the Cost price of the bag is $20 and the Selling price is $17, so the loss can be calculated with the formula: Loss = Cost price - Selling price. Substituting the values, we get, Loss = 20 - 17 = 3. Therefore, there is a loss of $3 in the transaction.

b. Wages and Salaries

Ans) Wages and salaries are the compensation for work agreed upon between an employee and his or her employer under a contract of employment in the private sector, contractual agents in the public sector, or civil servant employment.

It includes not only the basic salary (or, in the case of the civil service, an index-linked salary), but also bonuses and allowances, compensation for overtime hours worked, employee savings (mandatory or optional profit-sharing, additional matching contributions), other indemnities and related compensations (residence allowance, family allowance, etc.) and payments in kind.

Wages and salaries are the recompense paid or payable to employees for work or services performed on behalf of an employer. Normally, an employer is not allowed to withhold wages, in whole or in part, unless the law allows or requires it. Employers are obligated by law to withhold income taxes, social contributions, and other amounts from employees' pay checks, which are subsequently paid directly to tax authorities, social security authorities, and other agencies on behalf of the employee. Garnishment is when a court orders a portion of a person's earnings to be withheld in order to pay a debt.

Salary is a type of "price." It allows occupations or work stations of varied durations and working times to be compared by reducing them to a unit of volume of work, which can be an hour or a full-time equivalent.

Wages and salaries paid in cash include amounts paid at regular intervals, such as weekly, monthly, or other intervals, including payments by results and piecework payments; allowances, such as those for working overtime; amounts paid to employees away from work for short periods of time; ad hoc bonuses and similar payments; and commissions, gratuities, and tips received by employees.

Wages and salaries in kind are remuneration in the form of goods or services that are not required for work and can be utilised by employees in their spare time and at their discretion to meet their own or other members of their households' needs or wants.

c . Ledger Account

Ans) A ledger account is a book in which a business keeps track of all of its transactions and financial statements. The balance sheet is arranged under the general ledger with many accounts such as assets, accounts receivable, accounts payable, stockholders, liabilities, equities, revenues, taxes, expenses, profit, loss, funds, loans, bonds, stocks, salaries, wages, and so on. In this article, we'll go through the format and examples of ledger accounts, as well as the many types of ledgers, ledger posting, and ledger account templates in Excel, Google Sheets, and PDF.

Cash, receivables, inventories, fixed assets, accounts payable accrued costs, debt, stockholders' equity, revenue, cost of goods sold, salaries and wages, office expenses, depreciation, and income tax expense are all examples of ledger accounts.

If an accounting software programme is utilised, the ledger account can be an electronic record or a page in a paper ledger if the accounting records are kept by hand.

d. Maintenance of books

Ans) The quantity and categories of books to be kept are usually requested by the NGO or specified in project specifications. It is critical to keep the fundamental books, which will demonstrate the group's good functioning and accountability. The number of meetings attended, the choices made at those meetings, the quantity of savings and loans taken by members should all be traceable. NGOs typically provide training in bookkeeping to literate members of organisations. If the groups only have illiterate members, either NGOs or other literate villagers can keep track of the books on their behalf.

The facilitator must make certain that:

  1. Meeting minutes, proceedings, and attendance are kept on file;

  2. Savings and credit records are kept for each member;

  3. The records are current;

  4. All members are kept up to date on their savings and credit balances on a regular basis.

  5. In the case of illiterate communities, a mechanism is used by group members or non-governmental organisations to verify the records kept by an outsider; and systems have been devised to assure safe currency possession.

Q5. Prepare a plan to help women achieve empowerment. Write about it in a way that it can be used practically. Will you focus on their economic condition or other dimensions of her life that require altering social structures? (20)

Ans) Twice a year, two special U.N. days highlight the importance of women and girls to our world. To recognize International Women’s Day on March 8 and International Day of the Girl on October 11, here are seven easy ways you can make a big difference in the lives of daughters, sisters, and mothers around the world — and right in our own neighbourhoods.

1. Provide the ticket to a better life: clean water.

Did you know that instead of attending class, girls and women around the world spend 200 million hours each day getting water that is often dirty and dangerous to their health. If they had clean water close at hand, there’s so much more they could do: attend school, play, spend time with their families, and start a business — to name a few. You can help provide clean water and open the door to a better life for a girl. Walk the average 6 kilometres they walk for water on Saturday, May 22, 2021, in World Vision’s annual Global 6K for Water.

2. Support girls and women in crisis.

Millions of girls are subjected to abuse, child labour, trafficking, child marriage, and other offenses. Your gift will go where it’s needed most, protecting girls and women by equipping skilled, local staff to offer training, education, counselling, medical care, small business loans, and other programs that reach women and girls as well as boys — helping to end cycles of gender-based violence.

3. Mentor a girl close to home.

Many girls growing up in the United States are held back by poverty, poor-performing schools, and teen violence. Reach out and influence the life of a girl in your own community by volunteering as a tutor or mentor. One way to establish a mentorship is through Big Brothers, Big Sisters.

4. Invest in a small business owner.

Through World Vision microloans, you can connect with hardworking female entrepreneurs who are waiting to realize their dream of building or expanding a successful business. A small loan is all they need. Even better, when the loan is paid off, your donated funds are recycled again and again to help more people and make a bigger impact.

5. Use your voice to help keep girls in school.

When girls stay in school and finish secondary education, a lot of good things happen for them and their families. They enjoy better health and can take care of themselves and their children. They live longer, marry later, earn higher wages, and are more active participants in community life. Yet, 130 million girls ages 6 to 17 are out of school. Your support for the Keeping Girls in School Act can help more adolescent girls around the world to stay in school and receive a high-quality education.

6. Help a new mom.

The first 1,000 days of a child’s life — from conception to age 2 — are the most critical.  You can help save young lives around the world by giving a new mother the essential things like a bassinet, cloth diapers, blankets, a container for clean water, and soap. Your gift also provides life-saving infant care training. Know a new mom near you who might be feeling overwhelmed? Mothers of Preschoolers connects moms of young children all over the world to a community of women in their own neighbourhoods who meet together to embrace the journey of motherhood.

7. Tell the women in your life that you care.

Want to encourage and empower girls and women? Start right in your own home, workplace, and community. Write a note of thanks to that teacher who encouraged you years ago, pick up coffee for that new mom in your office who’s struggling to balance it all, or tell your own sister, daughter, or mother how much you appreciate them

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