Commerce Practical Work: Record Book, Project and Viva
Commerce Practical Work assesses the record book, project report and viva rather than only a written paper. It tests whether you can collect business data, maintain a voucher and ledger record, analyse statements and explain your method orally.
Core rules
- A complete record normally includes a title page, index, objectives, methodology, source documents (invoice, voucher, receipt, bank statement), computations, findings and conclusion.
- Keep the accounting equation and double entry consistent between the voucher, the ledger and the trial balance.
- Ratio analysis: current ratio = current assets ÷ current liabilities; gross profit ratio = gross profit ÷ net sales × 100; debt-equity ratio = long-term debt ÷ shareholders' funds.
- A project must state its period, sample or firm, data source and limitations. Viva questions usually begin with why a method was chosen and what the result means.
- Acknowledge GST, TDS or bank charges only where they actually appear in the documents; do not invent them.
Worked example
A firm reports current assets of ₹3,00,000 (inventory ₹1,20,000, debtors ₹1,00,000, cash ₹80,000) and current liabilities of ₹1,50,000. Current ratio = 3,00,000 ÷ 1,50,000 = 2:1. Quick ratio = (3,00,000 − 1,20,000) ÷ 1,50,000 = 1.2:1. The reasoning is that the current ratio includes inventory, which may be slow to convert into cash, so the quick ratio tests immediate liquidity. A 2:1 current ratio with a 1.2:1 quick ratio suggests adequate but not excessive liquidity.
Traps
Presenting a readymade project without the source documents; mixing opening and closing balances; using sales instead of net sales; drawing conclusions unsupported by the calculation; and being unable to explain a formula in the viva.