chapter - 4 research methodologyshodhganga.inflibnet.ac.in/bitstream/10603/7289/12/13_chapter...

159

CHAPTER - 4

RESEARCH METHODOLOGY

Sr. No. Topics in the Chapter

4.1 The Problem Area

4.2 Significances of the Study

4.3 Objectives of the Study

4.4 Universe of the Study and Sample Design

4.5 Research Instrument

4.6 Collection of Data

4.7 Hypotheses

4.8 Limitation of the Study

4.9 Data Analysis and Presentation

4.10 Outline of the Chapter Plan

160

4.1 The Problem Area:

At present many business is cope up with competitive

environment and with it the cost of business is going up. Because of high

competition and rising cost of business transactions, the margin available to

the owners of business becomes very thin. Therefore, the businessmen have

to improve the financial performance of business by monitoring and

measuring the results of business regularly.

But most businessmen give little attention towards accounting of their

business transaction. They regularly concentrate more on selling and buying

of their products and this has been more in the case of wholesale and retail

business. Further, the transactions have increased enormously over a period

of time in number and value and therefore chance of profit – making have

also risen. A worthy business enterprise looks at profit, not as a transaction

wise proposition but looks as it as an annual result of business efforts. If

businessmen are not maintain their account properly than it is very difficult

for them to keep track of each and every event and transaction of the business

during a particular period.

4.2 Significances of the Study:

At present, the business world is very competitive and the cost of

businesses is going up. Because of high competition and rising cost of

business transactions, the margin available to the owners of business becomes

very thin. Therefore, the businessmen have to improve the financial

performance of the business by monitoring and measuring the results of

business regularly. This study will be useful to know the awareness of the

wholesaler and retailer regarding the accounting practices. The wholesalers

and retailers can get accounting information whenever required, by

maintaining accounts

161

1) Profit or loss of the business and financial position of the business can

be known at the end of the accounting period.

2) This study helps the owners of the business to exercise control based

on the information of the assets and liabilities of the business.

3) This study is also necessary to determine the taxes payable to the

government, and it is also useful in planning about the taxes e.g.

Income tax, Sales Tax etc.,

4.3 Objectives of the Study:

1) To know that how they are doing the accounting practices in

their business organisation.

2) To know the business structure of wholesale and retail business

organisation.

3) To know the knowledge of wholesale and retail businessmen

regarding accounting.

4) To know which accounting system adopted by wholesale and

retail businessmen

5) To know that they are prepare budget for their business .Through

that control can be exercised over various activities of the

business.

6) To evaluate the profitability or earning capacity of the business

and to provide accounting information during the accounting

period.

7) To examine that how many wholesalers and retailers are audit

their accounts.

8) To give useful suggestion to wholesale and retail businessmen for

effective accounting practices in their business.

162

4.4 Universe of the Study and Sample Design:

Keeping in view the limitation of time, efforts and cost, it is not

possible to study all wholesalers and Retailers of Gujarat state. I have

gone for sampling to complete the study within stipulated time with

minimum cost. From Gujarat state leading cities like Ahmedabad,

Vadodara, Rajkot, Surat and Mehsana are selected and from each city 50

Wholesalers and 50 Retailers have taken. Sample sizes are 500 and

method of sampling is Simple random sampling.

The sample is selected through considering the following factors.

1) The wholesalers and retailers are selected whose products are more

consumable like edible goods and their yearly income

2) The wholesalers and retailers whose shop situated at market or Gunj

area.

4.5 Research Instrument:

A structured questionnaire is used for data collection from the

Wholesale and Retail business organizations in leading cities of Gujarat

like...Ahmedabad, Vadodara, Rajkot, Surat and Mehsana cities.

4.6 Collection of Data:

Primary Data

The Primary data is collected through questionnaires from 500

businessmen select from Ahmedabad, Vadodara, Rajkot, Surat and

Mehsana city.

163

Further equal importance has been given both to the Wholesale and

Retail Businessmen by selecting 250 businessmen of Wholesale business

and 250 businessmen of Retail business.

The questionnaires is prepared and present personally to 250

wholesale and 250 retail businessmen to collect the require information.

Secondary Data

The secondary data is collected from various sources like.

Websites : - Relating to accounting

Periodicals : - Indian Journal of Accounting, The Accounting World,

The Chartered Accountant, The Indian Journal of Commerce,

Books : - Accounting and Financial Management Books

4.7 Hypotheses:

Hypothesis testing is predictive statement capable of being

tested by scientific methods that revels and independent variable to

some dependent. Some hypotheses of study are mention as under

H0 = There is no significant relationship between Wholesaler and

Retailer regarding accounting knowledge

H1 = There is significant relationship between Wholesaler and



Retailer regarding the reason for employing personal for

accounting


Retailer regarding the reason for employing personal for

accounting

164


Retailer regarding stock verification




Retailer regarding checking financial position of the

organisation


Retailer regarding checking financial position of the

organisation


Retailer regarding Auditing of Account




Retailer regarding preparation of budget


Retailer regarding preparation of budget


Retailer regarding taking insurance of Shop.


Retailer regarding taking insurance of Shop.

165

4.8 Limitation of the Study:

Every social science research study has its own limitation because the

researcher has to work with in many constraints and assumptions. Further

the selection of samples and collection of data poses many problems

which are beyond the control of the researcher. The tools used in the

analysis of the data have also got many limitations and no perfect

conclusions could be drawn regarding the problem under study. The major

drawbacks of the study are as under:

1. Lacks of proper response from respondents.

2. Higher cost in data collection

3. The research study is conducted only at Ahmadabad, Vadodara,

Rajkot, Surat and Mehsana cities.

4. Generally, the questionnaire consists most of the points regarding

accounting practices but some of the points regarding accounting

practices may be remained.

5. The sample sizes prefixed for the research study are 250 Wholesalers

and 250 Retailers which are limited.

4.9 Data Analysis and Presentation:

Data analysis is done by using Microsoft excel as one of the

tools

Statistical packages are also used whenever needed

Data are presented through using tables and charts.

166

4.10 Outline of Chapter Plan:

Chapter

No.

Chapter Name

1 Introduction

2 Focus on Accounting Concepts

3 Review of Literature

4 Research Methodology

5 Analysis and Interpretation of Wholesale and Retail Business

Organisation

6 Conclusions - Findings and Suggestions

Bibliography

Appendix

167

Accounting practices adopted by the wholesale and retail businessmen have

analyzed from different angles of accounting. It has started from the ownership

structure of business and incorporated various practical aspects of accounting like

accounting knowledge, Basis of Accounting, Mode of accounting etc.

Generally the ownership structure of firms may be Sole proprietorship,

Partnership firm, Private and Public companies. But the present study is limited to

the wholesale and retail business. Therefore, the firm may be either a sole

proprietorship or a partnership. In the case of sole proprietorship firm, an individual

promotes, finance, controls and manages the business enterprise. But partnership is

an association of two or more individuals to carry on as co-owners of the business

and share profit or losses as per the agreement. The ownership structure of sample

respondents in the study area is depicted in the table – 5.1

168

Table .5.1: Classification of Businessmen base on Business Structures

in different cities

City

Business Structure

Wholesale

Retail

Total

Ahmedabad

Sole proprietorship 38(45.78) (76.00)

45(54.22) (90.00)

83(100.00) (83.00)

Partnership

12(70.59) (24.00)

5(29.41) (10.00)

17(100.00) (17.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Vadodara

Sole proprietorship

41(47.13) (82.00)

46(52.87) (92.00)

87(100.00) ( 87.00)

Partnership 9(69.23) (18.00)

4(30.77) (8.00)

13(100.00) (13.00)

50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00) Total

Rajkot


48(56.47) (96.00)

85(100.00) (85.00)

Partnership

13(86.67) (26.00)

2(13.33) (4.00)

15(100.00) (15.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Surat


44(53.01) (88.00)

83(100.00) ( 83.00)

Partnership 11(64.71) (22.00)

6(35.29) (12.00)

17(100.00) ( 17.00)

50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00) Total

Mehsana


47(55.29) (94.00)

85(100.00) ( 85.00)

Partnership

12(80.00) (24.00)

3(20.00) (6.00)

15(100.00) (15.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Overall


230(54.37) (92.00)

423(100.00) (84.60)

Partnership 57(74.03) (22.80)

20(25.97) (8.00)

77(100.00) (15.40)

Total 250(50.00) (100.00)

250(50.00) (100.00)

500(100.00) (100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the

respective row and column totals.

Source: Field Survey

169

Graph 5.1: Classification of Businessmen base on Business Structures

in different cities

Chart 5.1: Classification of Wholesale, Retail and Overall Businessmen

base on Business Structures

38

12

41

9

37

13

39

11

38

12

45

5

46

4

48

2

44

6

47

3

0

10

20

30

40

50

60 S

ole

pro

rite

r

Par

tner

ship

So

lep

rori

ter

Par

tner

ship

So

lep

rori

ter

Par

tner

ship

So

lep

rori

ter

Par

tner

ship

So

lep

rori

ter

Par

tner

ship

Ahmedabad Baroda Rajkot Surat Mehsana

No

o

f R

esp

on

den

ts

Ownership Structue in different cities

Wholesale Retail

77%

23%

Wholesale

Soleproriter Partnership

92%

8%

Retail


85%

15%

Overall


Vadodara

170

It is revealed from the table – 5.1 that in Ahmedabad out of the total

respondents 83.00% of the firms are sole proprietorship and 17.00% of the firms

are partnership. In that retailer prefer sole proprietorship more compare to

wholesaler (54.22%) and wholesaler prefer partnership more compare to retailer

(70.59%).

In Vadodara out of the total respondents, 87.00% of the firms are sole

proprietorship and 13.00% of the firms are partnership. In that retailer prefer sole

proprietorship more compare to wholesaler (52.87%) and wholesaler prefer

partnership more compare to Retailer (69.23%).

In Rajkot out of the total respondents, 85.00% of the firms are sole

proprietorship and only 15.00% of the firms are partnership. In that retailer prefer

sole proprietorship more compare to wholesaler (56.47%) and wholesaler prefer


In Surat out of the total respondents, 83.00% of the firms are sole




In Mehsana out of the total respondents, 85.00% of the firms are sole




Out of total wholesaler 77.20% prefer sole proprietorship and 22.80% prefer

partnership, and in that Vadodara wholesaler prefer sole proprietorship more

(82.00% )compare to other cities and Rajkot wholesaler prefer partnership more

(26.00% )compare to other cities .

Out of total retailer 92.00% prefer sole proprietorship and 8.00% prefer

partnership, and in that Rajkot retailer prefer sole proprietorship more (96.00%)

compare to other cities and Surat retailer prefer partnership more (12.00%)

compare to other cities.

Out of the total respondents 84.60% of the firms are sole proprietorship and

15.40% of the firms are partnership in that retailer prefer sole proprietorship more

171

compare to wholesaler (54.37%) and wholesaler prefer partnership business

structure more compare to Retailer (74.03%).Further, Rajkot respondents prefer

sole proprietorship more 85.00% compare to other cities and Surat respondents

prefer partnership more 17.00% compare to other cities

This means that the majority of the businessmen preferred individual

ownership to partnership. Out of the total partnerships the percentage of partnership

business structure is high in wholesale business as compared to retail business. This

indicates that the wholesale business prefer partnership form of structure as

compared to the retail business. It may be happen due to huge invest in business

and also, it is their ancestor‘s business structure.

Basic knowledge of accounting like type of accounts, debit and credit,

methods of entry, posting entries to ledger, preparation of trading, profit and loss

account and balance sheet is essential to the owners to improve the financial

position of business. However many owners of business lack basic manual and

computer accounting knowledge. The opinion of owners of business regarding the

basic knowledge of accounting presented in Table –5.2.

172

Table 5.2: Opinion of Businessmen regarding Accounting Knowledge in

different cities

City Opinion Wholesale Retail Total

Ahmedabad

Yes 39(57.35)

(78.00)

29(42.65)

( 58.00)

68(100.00)

(68.00)

No 11(34.38)

(22.00)

21(65.63)

(42.00)

32(100.00)

(32.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Yes

37(58.73)

(74.00)

26(41.27)

( 52.00)

63(100.00)

(63.00)

No 13(35.14)

(26.00)

24(64.86)

( 48.00)

37(100.00)

(37.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Yes

38(58.46)

(76.00)

27(41.54)

( 54.00)

65(100.00)

(65.00)

12(34.29)

(24.00)

23(65.71)

(46.00)

35(100.00)

(35.00) No

Total 50(50.00)

(100.00)

50 (50.00)

(100.00)

100(100.00)

(100.00)

Surat

Yes

35(57.38)

(70.00)

26(42.62)

(52.00)

61(100.00)

(61.00)

No 15(38.46)

(30.00)

24(61.54)

( 48.00)

39(100.00)

(39.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Yes

38(57.58)

(76.00)

28(42.42)

( 56.00)

66(100.00)

(66.00)

No 12(35.29)

(24.00)

22(64.71)

( 44.00)

34(100.00)

(34.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Yes

187(57.89)

(74.80)

136(42.11)

(54.40)

323(100.00)

(64.60)

No 63(35.59)

(25.20)

114(64.41)

(45.60)

177(100.00)

(35.40)

Total 250(50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates

percentage to the respective row and column totals.


173

Graph 5.2: Opinion of Businessmen regarding Accounting Knowledge in different cities

Chart 5.2: Opinion of Wholesale, Retail and Overall Businessmen

regarding Accounting Knowledge by

39

11

37

13

38

12

35

15

38

12

29

21

26 24

27

23

26 24

28

22

0

5

10

15

20

25

30

35

40

45

Yes No Yes No Yes No Yes No Yes No


NO

o

f R

esp

on

den

ts

Opinion of Respondents regading Accounting knowledge in differen cities

Wholesale Retail

75%

25%

Wholesale

Yes No

54%

46%

Retail

Yes No

65%

35%

Overall

Yes No

Vadodara

174

It is evident from the Table – 5.2 that in Ahmedabad 68.00% of owners of

business have basic knowledge of accounting while 32.00% of them have no

knowledge of accounting. Further, it is also revealed from the study that the

wholesale businessmen are in high percentage (57.35%) as compare to the retail

businessmen among those who have basic knowledge of accounting and retail

businessmen percentages is high (65.63%) compare to wholesale businessmen

among those who have no knowledge of accounting

In Vadodara 63.00% of owners of business have basic knowledge of

accounting while 37.00% of them have no knowledge of accounting. Further, it is

also revealed from the study that the wholesale businessmen are in high percentage

(58.73%) as compare to the retail businessmen among those who have basic

knowledge of accounting and retail businessmen percentages is high (64.86%)

compare to wholesale businessmen among those who have no knowledge of

accounting

In Rajkot 65.00% of owners of business have basic knowledge of accounting

while 35.00% of them have no knowledge of accounting. Further, it is also revealed

from the study that the wholesale businessmen are in high percentage (58.46%) as

compare to the retail businessmen among those who have basic knowledge of

accounting and retail businessmen percentages is high (65.71%) compare to

wholesale businessmen among those who have no knowledge of accounting

In Surat 61.00% of owners of business have basic knowledge of accounting

while 39.00% of them have no knowledge of accounting. Further, it is also revealed

from the study that the wholesale businessmen are in high percentage (57.38%) as

compare to the retail businessmen among those who have basic knowledge of

accounting and retail businessmen percentages is high (61.54%) compare to

wholesale businessmen among those who have no knowledge of accounting

In Mehsana 66.00% of owners of business have basic knowledge of

accounting while 34.00% of them have no knowledge of accounting. Further, it is

also revealed from the study that the wholesale businessmen are in high percentage

(57.58%) as compare to the retail businessmen among those who have basic

knowledge of accounting and retail businessmen percentages is high (64.71%)

175

compare to wholesale businessmen among those who have no knowledge of

accounting

Out of total wholesaler 74.80% have basic knowledge of accounting while

25.20% have no knowledge of accounting and in that Ahmedabad wholesaler

percentage is highest (78.00%) who have knowledge of accounting and Surat

wholesaler percentage is highest (30.00%) who have no knowledge of accounting.

Out of total retailer 54.40% have knowledge of accounting while 45.60%

have no knowledge of accounting, and in that Ahmedabad retailer percentage is

highest (58.00%) who have knowledge of accounting and Vadodara and Surat

retailer percentage is highest (48.00%) who have no knowledge of accounting.

Out of the total respondents 64.60% of owners of business have basic

knowledge of accounting while 35.40 % of them have no knowledge of accounting.

Further, it is also revealed from the study that the wholesale businessmen are in

high percentage (57.89%) as compared to the retail businessmen among those who

have basic knowledge of accounting and retail businessmen percentage are high

(64.41%) compare to wholesale businessmen among those who have no knowledge

of accounting . Further, Ahmedabad respondents percentage is highest 68.00% who

have basic knowledge of accounting and Surat respondents percentages is highest

39.00% who have no knowledge of accounting

This means that more than half businessmen have basic knowledge of

accounting in these wholesale businessmen are in high percentage compare to retail

businessmen who have basic knowledge of accounting. It is indicate that wholesale

businessmen have more knowledge of accounting compare to retailer

Hypothesis: H0 = There is no significant relationship between Wholesaler and




176

Hypothesis Result: Level of Significance = 5%

Degree of Freedom = (r -1) (c -1) it means (2-1) (2-1) = 1

Therefore χ ² c = 22.746

χ ² t = 3.84

Interpretation of Result:

The table value of χ ² for 1 degree of freedom at 5% level of significance is

3.84. The calculated value of χ ² is 22.746 which is higher than the table value,

hence the result of the experiment does not support the hypothesis. So null

hypothesis is rejected and alternative hypothesis is accepted. It means there is

significant relationship between wholesaler and retailer regarding accounting

knowledge.

Accounting of business may be done either manually or through computers.

Today there is a trend towards computerization of accounts in all business activities

due to its overall advantage as compared to manual process. Therefore, the owners

of wholesale and retail business are moving from manual accounting to

computerized accounting to minimize the problems and to maximize the benefits to

the business. The accounting systems adopted by the wholesale and retail

businessmen are presented in Table – 5.3

177

Table 5.3: Classification of Businessmen base on Accounting System in

different cities.

City Basis of Accounting

System Wholesale Retail Total

Ahmedabad

Manual 10(32.26)

(20.00)

21(67.74)

(42.00)

31(100.00)

(31.00)

Computer 40(57.97)

(80.00)

29(42.03)

(58.00)

69(100.00)

(69.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Manual 11(37.93)

(22.00)

18(62.07)

(36.00)

29(100.00)

(29.00)

Computer 39(54.93)

(78.00)

32(45.07)

(64.00)

71(100.00)

(71.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Manual 10(31.25)

(20.00)

22(68.75)

(44.00)

32(100.00)

(32.00)

Computer 40(58.82)

(80.00)

28(41.18)

(56.00)

68(100.00)

(68.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Manual 9(32.14)

(18.00)

19(67.86)

(38.00)

28(100.00)

(28.00)

Computer 41(56.94)

(82.00)

31(43.06)

86.11

72(100.00)

(72.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Manual 11(32.35)

(22.00)

23(67.65)

(46.00)

34(100.00)

(34.00)

Computer 39(59.09)

(78.00)

27(40.91)

(54.00)

66(100.00)

(66.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Manual 51(33.12)

(20.40)

103(66.88)

(41.20)

154(100.00)

(30.80)

Computer 199(57.52)

(79.60)

147(42.48)

(58.80)

346(100.00)

(69.20)

Total 250(50.00)

(100.00)

250(50.0)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to

the respective row and column totals.


178

Graph 5.3: Classification of Businessmen base on Accounting System in

different cities.

Chart 5.3: Classification of Wholesale, Retail and Overall Businessmen

base on Accounting System

10

40

11

39

10

40

9

41

11

39

21

29

18

32

22

28

19

31

23

27

0

5

10

15

20

25

30

35

40

45

Manual Computer Manual Computer Manual Computer Manual Computer Manual Computer


No

o

f R

esp

on

den

ts

Basis of Accounting in different cities

Wholesale Retail

20%

80%

Wholesale

Manual Computer

41%

59%

Retail

Manual Computer

31%

69%

Overall

Manual Computer

Vadodara

179

It is evident from the Table – 5.3 that in Ahmedabad out of the total

respondents 69.00% of the respondents computerized their accounts while 31.00%

of them are maintain their account manually. Further, out of total sample

businessmen who have computerized their accounts, wholesalers percentage is

highest 57.97% and retailer percentage is highest 67.74% who are maintain their

account manually.

In Vadodara out of the total respondents 71.00% of the respondents

computerized their accounts while 29.00% of them are maintain their account

manually. Further, out of total sample businessmen who have computerized their

accounts, wholesalers percentage is highest 54.93% and retailer percentage is

highest 62.07% who are maintain their account manually.

In Rajkot out of the total respondents 68.00% of the respondents





In Surat out of the total respondents 72.00% of the respondents





In Mehsana out of the total respondents 66.00% of the respondents





Out of total wholesaler 79.60% maintain their account computerized while

20.40% maintain their account manually, and in that Surat wholesaler percentage

is highest 82.00% who maintain their account computerized and Vadodara and

Mehsana wholesaler percentage are highest 22.00% who maintaining their account

manually.

180

Out of total retailer 58.80% maintain their account computerized while

41.20% maintain their account manually, and in that Vadodara retailer percentage

is highest 64.00% who maintain their account computerized and Mehsana retailer

percentage is highest 46.00% who maintain their account manually.

Out of the total respondents, 69.20% of the respondents computerized their

accounts while 30.80% of the respondents maintain their account manually.

Further, out of total sample businessmen who have computerized their accounts,

wholesalers percentage is highest 57.52% and retailer percentage is highest 66.88%

who are maintaining their accounting manually. And, Surat respondents percentage

is highest (72.00%) who computerized their accounts and Mehsana respondents

percentages is highest (34.00%) who maintain their account manually.

It is indicated from the table that the majority of businessmen maintain their

account through computer. Further, wholesalers are maintaining their account

through computers more compare to retailers and retailers are maintaining their

account manually more compare to wholesalers. Now a day it is necessary to

maintain the account through computer so that chances of mistake are very less and

it can save more time and provide immediate information when require.

Computerization of account may be done either by investing in hardware

and software by the owner or by outsourcing from professionals. Those who are

able and ready to invest in hardware and software easily computerized their

business from sections. Classification of business according to the software which

is used by them in business for maintaining their account are presented in table -

5.4

181

Table 5.4: Classification of Businessmen base on Accounting software use by them in different cities

City Accounting Soft ware Wholesale Retail Total

Ahmedabad

Tally 18(60.00)

(45.00)

12(40.00)

(41.38)

30(100.00)

(43.48)

Mehtaji 12(60.00)

(30.00)

8(40.00)

(27.59)

20(100.00)

(28.99)

Shrisava 4(40.00)

(10.00)

6(60.00)

(20.69)

10(100.00)

(14.49)

Other 6(66.67)

(15.00)

3(33.33)

(10.34)

9(100.00)

(13.04)

Total 40(50.00)

(100.00)

29(50.00)

(100.00)

69(100.00)

(100.00)

Vadodara

Tally 15(48.39)

(38.46)

16(51.61)

(50.00)

31(100.00)

(43.66)

Mehtaji 12(63.16)

(30.77)

7(36.84)

(21.88)

19(100.00)

(26.76)

Shrisava 7(53.85)

(17.95)

6(46.15)

(18.75)

13(100.00)

(18.31)

Other 5(62.50)

(12.82)

3(37.50)

(9.38)

8(100.00)

(11.27)

Total 39(50.00)

(100.00)

32(50.00)

(100.00)

71(100.00)

(100.00)

Rajkot

Tally 20(57.14)

(50.00)

15(42.86)

(53.57)

35(100.00)

(51.47)

Mehtaji 8(53.33)

(20.00)

7(46.67)

(25.00)

15(100.00)

(22.06)

Shrisava 6(100.00)

(15.00) -----

6(100.00)

(8.82)

Other 6(50.00)

(15.00)

6(50.00)

(21.43)

12(100.00)

(17.65)

Total 40(50.00)

(100.00)

28(50.00)

(100.00)

68(100.00)

(100.00)

Surat

Tally 19(61.29)

(46.34)

12(38.71)

(38.71)

31(100.00)

(43.06)

Mehtaji 10(55.56)

(24.39)

8(44.44)

(25.81)

18(100.00)

(25.00)

Shrisava 4(57.14)

(9.76)

3(42.86)

(9.68)

7(100.00)

(9.72)

Other 8(50.00)

(19.51)

8(50.00)

(25.80)

16(100.00)

(22.22)

Total 41(50.00)

(100.00)

31(50.00)

(100.00)

72(100.00)

(100.00)

Mehsana

Tally 18(56.25)

(45.00)

14(43.75)

(51.85)

32(100.00)

(48.48)

Mehtaji 7(63.64)

(30.00)

4(36.36)

(14.81)

11(100.00)

(16.67)

Shrisava 6(66.67)

(10.00)

3(33.33)

(11.11)

9(100.00)

(13.64)

Other 8(57.14)

(15.00)

6(42.86)

(22.22)

14(100.00)

(21.21)

Total 39(50.00)

(100.00)

27(50.00)

(100.00)

66(100.00)

(100.00)

Overall

Tally 90(56.60)

(45.23)

69(43.40)

(46.94)

159(100.00)

(46.94)

Mehtaji 49(59.04)

(24.62)

34(40.96)

(23.13)

83(100.00)

(23.13)

Shrisava 27(60.00)

(13.57)

18(40.00)

(12.24)

45(100.00)

(12.24)

Other 33(55.93)

(16.58)

26(44.07)

(17.69)

59(100.00)

(17.69)

Total 199(50.00)

(100.00)

147(50.00)

(100.00)

346(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the respective row and

column totals.


182

Graph 5.4: Classification of Businessmen base on Accounting software use by

them in different cities

Chart 5.4: Classification of Wholesale, Retail and Overall Businessmen base

on Accounting software used by them

18

12

4

6

15

12

7

5

20

8

6 6

19

10

4

8

18

7 6

8

12

8

6

3

16

7 6

3

15

7 6

12

8

3

6

14

4 3

6

0

5

10

15

20

25 T

ally

Meh

taji

Shri

sava

Oth

er

Tal

ly

Meh

taji

Shri

sava

Oth

er

Tal

ly

Meh

taji

Shri

sava

Oth

er

Tal

ly

Meh

taji

Shri

sava

Oth

er

Tal

ly

Meh

taji

Shri

sava

Oth

er


No

of

Res

po

nd

ents

Accounting software use for writting Account in different cities

Wholesale Retail

45%

25%

13%

17%

Wholesale

Tally Mehtaji

Shrisava Other

47%

23%

12%

18%

Retail

Tally Mehtaji

Shrisava Other

46%

24%

13%

17%

Overall

Tally Mehtaji

Shrisava Other

Vadodara

183

It is evident from the Table – 5.4 that in Ahmedabad out of the total

respondents 43.48% of the respondents use tally software, 28.99% respondents use

mehtaji software, 14.49% respondents use shrisava software and 13.04%

respondents use other software. Further, it is reveal that tally software uses more by

respondents compare to all other software.

In Vadodara out of the total respondents 43.66% of the respondents use

tally software, 26.76% respondents use mehtaji software, 18.31% respondents use

shrisava software and 11.27% respondents use other software. Further, it is reveal

that tally software uses more by respondents compare to all other software.

In Rajkot out of the total respondents 51.47% of the respondents use tally

software, 22.06% respondents use mehtaji software, 8.82% respondents use



In Surat out of the total respondents 43.06% of the respondents use tally




In Mehsana out of the total respondents 48.48% of the respondents use tally




Out of total wholesaler 45.23% use tally, 24.62% use mehtaji, 13.57% use

shrisava and 16.58% use other software for maintaining their account, and in that

Rajkot wholesaler percentage is highest 50.00% who use tally software, Vadodara

wholesaler percentage is highest 30.77%, 17.95% who use mehtaji and shrisava

software respectively, and Surat wholesaler percentage is highest 19.51% who use

other software for maintaining their account.

Out of total retailer 46.94% use tally, 23.13% use mehtaji, 12.24% use

shrisava and 17.69% use other software for maintaining their account, and in that

Rajkot retailer percentage is highest 53.57% who use tally software, Surat retailer

percentage is highest 25.81%, 25.80% who use mehtaji and other software

184

respectively, and Ahmedabad retailer percentage is highest 20.69% who use

shrisava for maintaining their account.

Out of the total respondents, 46.94% of the respondents use tally software,

23.13% respondents use mehtaji software, 12.24% respondents use shrisava

software and 17.69% respondents use other software. And in that Rajkot

respondents use tally software more 51.47%, Ahmedabad respondents use mehtaji

software more 28.99%,Vadodara respondents use shrisava software more 18.31%

and Surat respondent use other software more 22.22%.Further, it is reveal that out

of total respondents who use tally software for maintaining their account is higher

compare to all other software.

It is indicated from the table that the majority of wholesalers and retailers

prefer tally software for maintaining their account because of it is popular among

the businessmen.

Whatever may be the basis for accounting of business transactions, it is very

difficult for businessmen to account their business transactions without the

knowledge and expertise to write, time to spare and the desire. However, many

businessmen lack knowledge, expertise and time. Therefore, they usually hire

professionals to perform the accounting job. The account maintenance practices of

wholesale and retail businessmen are depicted in table – 5.5.

185

Table 5.5: Classification of Businessmen base on the Maintenance of

Account in different cities

City Maintenance

of Account

Wholesale Retail Total

Ahmedabad

Self 7(15.56)

(14.00)

38(84.44)

(76.00)

45(100.00)

(45.00)

Employees 43(78.18)

(86.00)

12(21.82)

(24.00)

55(100.00)

(55.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Self 8(18.18)

(16.00)

36(81.82)

(72.00)

44(100.00)

(44.00)

Employees 42(75.00)

(84.00)

14(25.00)

(28.00)

56(100.00)

(56.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Self 8(18.60)

(16.00)

35(81.40)

(70.00)

43(100.00)

(43.00)

Employees 42(73.68)

(84.00)

15(26.32)

(30.00)

57(100.00)

(57.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Self 5(11.36)

(10.00)

39(88.64)

(78.00)

44(100.00)

(44.00)

Employees 45(80.36)

(90.00)

11(19.64)

(22.00)

56(100.00)

(56.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Self 9(18.37)

(18.00)

40(81.63)

(80.00)

49(100.00)

(49.00)

Employees 41(80.39)

(82.00)

10(19.61)

(20.00)

51(100.00)

(51.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Self 37(16.44)

(14.80)

188(83.56)

(75.20)

225(100.00)

(45.00)

Employees 213(77.45)

(85.20)

62(27.56)

(24.80)

275(100.00)

(55.00)

Total 250(50.00)

(100.00)

250(50.0)

(100.00)

500(100.00)

(100.00)


percentage to the respective row and column totals.


186

Graph 5.5: Classification of Businessmen base on the Maintenance of

Account in different cities


on the Maintenance of Account

7

43

8

42

8

42

5

45

9

41

38

12

36

14

35

15

39

11

40

10

0

5

10

15

20

25

30

35

40

45

50 S

elf

Em

plo

yee

s

Sel

f

Em

plo

yee

s

Sel

f

Em

plo

yee

s

Sel

f

Em

plo

yee

s

Sel

f

Em

plo

yee

s


No

o

f R

esp

on

den

ts

By Whom Account get maintain in different cities

Wholesale Retail

15%

85%

Wholesale

Self Employees

75%

25%

Retail

Self Employees

45%

55%

Overall

Self Employees

Vadodara

187

It is clear from the table - 5.5 that in Ahmedabad out of the total respondents

55.00 % of the respondents have engaged professionals to perform the job of

accounting whereas 45.00% of the respondents done the job of accounting by

themselves. Further, out of the total businessmen who have engaged professionals,

the wholesaler percentage is highest (78.18%) compare to retailers and out of total

businessmen who perform the job of accounting themselves retailer percentage is

highest (84.44%) compare to wholesaler.

In Vadodara out of the total respondents 56.00% of the respondents have

engaged professionals to perform the job of accounting whereas 44.00% of the

respondents done the job of accounting by themselves. Further, out of the total

businessmen who have engaged professionals, the wholesaler percentage is highest

(75.00%) compare to retailers and out of total businessmen who perform the job of

accounting themselves retailer percentage is highest (81.82%) compare to

wholesaler.

In Rajkot out of the total respondents 57.00% of the respondents have

engaged professionals to perform the job of accounting whereas only 43.00% of the





wholesaler.

In Surat out of the total respondents 56.00% of the respondents have






wholesaler.

In Mehsana out of the total respondents 51.00% of the respondents have



188




wholesaler.

Out of total wholesaler 85.20% engaged professionals to perform the job of

accounting while 14.80% done the job of accounting by themselves, and in that

Surat wholesaler percentage is highest 90.00% who engaged professionals to

perform the job of accounting and Mehsana wholesaler percentage is highest

18.00% who maintain the account by themselves.

Out of total retailer 24.80% engaged professionals to perform the job of

accounting while 75.20% done the job of accounting by themselves, and in that

Rajkot retailer percentage is highest 30.00% who engaged professionals to perform

the job of accounting and ,Mehsana retailer percentage is highest 80.00% who

maintaining their account by themselves.

Out of the total respondents 55.00% have engaged professionals to perform

the job of accounting while 45.00% maintaining their account by themselves.

Further, Surat respondents engaged professionals more 45.00% compare to other

cities and Mehsana respondents maintaining their account by themselves more

45.00% compare to other cities Further, also it is reveal that out of total respondents

wholesaler maintain their account by professional 77.45% and retailer maintain

their account by themselves 83.56%.

It is indicated from the overall result that majority of the wholesale

businessmen depends upon professionals for accounting their business transactions

while retailer maintain their account by themselves.

It is very difficult for businessmen to account their business transactions

without expertise, time and skill. Further, generally they are always busy with

purchase and sale of goods. Therefore, they go for hiring professionals for

accounting purpose. The various reasons for engaging professionals are shown in

table – 5.6

189

Table 5.6: Classification of Businessmen base on the reasons for Employing

Personnel for Accounting in different cities

City Reasons Wholesale Retail Total

Ahmedabad

More convenient 10(66.67)

(23.26)

5(33.33)

(41.67)

15(100.00) (27.27)

Lack of time 24(85.71)

(55.81)

4(14.29)

(33.33)

28(100.00) (50.91)

Lace of interest 9(75.00)

(20.93)

3(25.00)

(25.00)

12(100.00) (21.82)

Total 43(50.00)

(100.00)

12(50.00)

(100.00)

55(100.00)

(100.00)

Vadodara


(28.57)

8(40.00)

(57.14)

20(100.00) (35.71)


(38.10)

3(15.79)

(21.43)

19(100.00) (33.93)


(33.33)

3(17.65)

(21.43)

17(100.00) (30.36)

Total 42(50.00)

(100.00)

14(50.00)

(100.00)

56(100.00)

(100.00)

Rajkot


(30.95)

7(35.00)

(46.67)

20(100.00) (35.09)


(50.00)

3(12.50)

(20.00)

24(100.00) (42.11)


(19.05)

5(38.46)

(33.33)

13(100.00) (22.80)

Total 42(50.00)

(100.00)

15(50.00)

(100.00)

57(100.00)

(100.00)

Surat


(26.67)

6(33.33)

(54.55)

18(100.00) (32.14)


(51.11)

3(11.54)

(27.27)

26(100.00) (46.43)


(22.22)

2(16.67)

(18.18)

12(100.00) (21.43)

Total 45(50.00)

(100.00)

11(50.00)

(100.00)

56(100.00)

(100.00)

Mehsana

More convenient 10 (66.67)

(24.39)

5(33.33)

(50.00)

15(100.00) (29.41)


(46.34)

3(13.64)

(30.00)

22(100.00) (43.14)


(29.27)

2(14.29)

(20.00)

14(100.00) (27.45)

Total 41(50.00)

(100.00)

10(50.00)

(100.00)

51(100.00)

(100.00)

Overall


(26.76)

31(35.23)

(50.00)

88(100.00)

(32.00)


(48.36)

16(13.45)

(25.81)

119(100.00)

(43.27)


(24.88)

15(22.06)

(24.19)

68(100.00)

(24.73)

Total

213(50.00)

(100.00)

62(50.00)

(100.00)

275(100.00)

(100.00)


percentage to the respective row and column totals. Source: Field Survey

190

Graph 5.6: Classification of Businessmen base on the reasons for

Employing Personnel for Accounting in different cities


on the reasons for Employing Personnel for Accounting

10

24

9

12

16 14

13

21

8

12

23

10 10

19

12

5 4

3

8

3 3

7

3 5

6

3 2

5 3

2

0

5

10

15

20

25

30 M

ore

co

nven

ient

Lac

k o

f ti

me

Lac

e o

f in

tere

st

Mo

re c

onven

ient

Lac

k o

f ti

me

Lac

e o

f in

tere

st

Mo

re c

onven

ient

Lac

k o

f ti

me

Lac

e o

f in

tere

st

Mo

re c

onven

ient

Lac

k o

f ti

me

Lac

e o

f in

tere

st

Mo

re c

onven

ient

Lac

k o

f ti

me

Lac

e o

f in

tere

st


No

o

f R

esp

on

den

ts

Reasons for Employing Personnel for Accounting in different cities

Wholesale Retail

27%

48%

25%

Wholesale

More convenient

Lack of time

Lace of interest

50%

26%

24%

Retail

More convenient

Lack of time

Lace of interest

32%

43%

25%

Overall

More convenient

Lack of time

Lace of interest

Vadodara

191

The table- 5.6 reveal that in Ahmedabad out of the total respondents who

have employed professionals to account their business transactions, more

convenient is the reason for 27.27%, lack of time is the reason for 50.91% and lack

of interest is the reason for 21.82%. Further, 85.71% of wholesale businessmen

have stated lack of time and 75.00% stated lack of interest is the reason for

employing professionals, and 33.33% of retail businessman has stated more

convenient is the reason for employing professionals

In Vadodara out of the total respondents who have employed professionals

to account their business transactions, more convenient is the reason for 35.71%,

lack of time is the reason for 33.93% and lack of interest is the reason for 30.36%.

Further, 84.21% of wholesale businessmen have stated lack of time and 82.35%

stated lack of interest is the reason for employing professionals, and 40.00% of

retail businessman has stated more convenient is the reason for employing

professionals

In Rajkot out of the total respondents who have employed professionals to

account their business transactions, more convenient is the reason for 35.09%, lack

of time is the reason for 42.11% and lack of interest is the reason for 22.80%.


stated more convenient is the reason for employing professionals, and 38.46% of

retail businessman has stated lack of interest is the reason for employing

professionals

In Surat out of the total respondents who have employed professionals to






professionals

In Mehsana out of the total respondents who have employed professionals to



192




professionals

Out of total wholesaler who employed professionals to account their

business transactions, more convenient is the reason for 26.76% lack of time is the

reason for 48.36% and lack of interest is the reason for 24.88%, and in that Rajkot

wholesaler percentage is highest 30.95% who stated the reason more convenient for

employed professionals, Ahmedabad wholesaler percentage is highest 55.81% who

stated the reason lack of time for employed professionals and Vadodara wholesaler

percentage is highest 33.33% who stated the reason for lack of interest.

Out of total retailer who employed professionals to account their business

transactions, more convenient is the reason for 50.00% lack of time is the reason

for 25.81% and lack of interest is the reason for 24.19%, and in that Vadodara

retailer percentage is highest 57.14% who stated the reason more convenient for

employed professionals, Ahmedabad retailer percentage is highest 33.33% who

stated the reason lack of time for employed professionals and Rajkot retailer

percentage is highest 33.33% who stated the reason for lack of interest.

Out of the total respondents, 32.00% of the respondents stated the reason

more convenient, 43.27% stated the reason lack of time and 24.73% stated the

reason lack of interest for employed professionals to account their business

transaction. Further, in Vadodara and Rajkot respondents stated the reason more

convenient is highest compare to other cities, Ahmedabad respondents stated the

reason lack of time is highest compare to other cities and Vadodara respondents

stated the reason lack of interest is highest compare to other cities. Further, also it is

reveal that out of total respondents who stated the reason lack of time and more

convenient is the main reason for employed professionals to account their business

transaction. It is indicated from the overall table that lack of time and more

convenient reason is higher in wholesale business for employing professional for

account and more convenient is the reason is higher for retailer for employing

professional for account.

193

Hypothesis: H0 = There is no significant relationship between

Wholesaler and Retailer regarding the reason for employing

personal for accounting

H1 = There is significant relationship between Wholesaler

and Retailer regarding the reason for employing personal for

accounting

Hypothesis Results: Level of Significance = 5%



χ ² t = 3.84

Interpretation of Results:





significant relationship between wholesaler and retailer regarding the reason for

employing personal for accounting.

Computerization of accounts may be done either by investing in hardware

and software by the owners or by outsourcing from professionals. Those who are

able and ready to invest in hardware and software, easily computerize their

business transactions. However, it is not possible for some businessmen to invest in

computerization of accounts. Such businessmen get the work done by computer

professionals. Table – 5.7 shows the mode of accounting adopted by the surveyed

businessmen.

194

Table 5.7: Classification of Businessmen base on the Mode of Accounting

through computer in different cities.

City Mode of

Accounting Wholesale Retail Total

Ahmedabad

Own 28(63.64)

(70.00)

16(36.36)

(55.17)

44(100.00)

(63.77)

Professionals 12(48.00)

(30.00)

13(52.00)

(44.83)

25(100.00)

(36.23)

Total 40(50.00)

(100.00)

29(50.00)

(100.00)

69(100.00)

(100.00)

Vadodara

Own 27(60.00)

(69.23)

18(40.00)

(56.25)

45(100.00)

(63.38)


(30.77)

14(53.85)

(43.75)

26(100.00)

(36.62)

Total 39(50.00)

(100.00)

32(50.00)

(100.00)

71(100.00)

(100.00)

Rajkot

Own 26(61.90)

(65.00)

16(38.10)

(57.14)

42(100.00)

(61.76)


(35.00)

12(46.15)

(42.86)

26(100.00)

(38.24)

Total 40(50.00)

(100.00)

28(50.00)

(100.00)

68(100.00)

(100.00)

Surat

Own 29(61.70)

(70.73)

18(38.30)

(58.06)

47(100.00)

(65.28)


(29.27)

13(52.00)

(41.94)

25(100.00)

(34.72)

Total 41(50.00)

(100.00)

31(50.00)

(100.00)

72(100.00)

(100.00)

Mehsana

Own 26(63.41)

(66.67)

15(36.59)

(55.56)

41(100.00)

(62.12)


(33.33)

12(48.00)

(44.44)

25(100.00)

(37.88)

Total 39(50.00)

(100.00)

27(50.00)

(100.00)

66(100.00)

(100.00)

Overall

Own 136(62.10)

(68.34)

83(37.90)

(56.46)

219(100.00)

(63.29)


(31.66)

64(50.39)

(43.54)

127(100.00)

(36.71)

Total 199(50.00)

(100.00)

147(50.0)

(100.00)

346(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures

indicates percentage to the respective row and column totals.


195

Graph 5.7: Classification of Businessmen base on the Mode of Accounting

through computer in different cities.

Chart 5.7: Classification of Wholesale, Retail and Overall Businessmen base on the

Mode of Accounting through Computer.

28

12

27

12

26

14

29

12

26

13

16

13

18

14 16

12

18

13 15

12

0

5

10

15

20

25

30

35 O

wn

Pro

fess

ional

s

Ow

n

Pro

fess

ional

s

Ow

n

Pro

fess

ional

s

Ow

n

Pro

fess

ional

s

Ow

n

Pro

fess

ional

s


No

of

Res

po

nd

ents

Mode of Accounting in different cities

Wholesale Retail

68%

32%

Wholesale

Own Professionals

56%

44%

Retail

Own Professionals

63%

37%

Overall

Own Professionals

Vadodara

196

It is evident from the table – 5.7 that in Ahmedabad 63.77% businessmen

have computerized their business accounts by investing in hardware and software,

where as 36.23% use the services of professionals. Further out of the total

respondents the wholesale businessmen percentage is highest 63.64% who

computerized their business accounts by investing in hardware and software and

retail businessmen percentage is highest 52.00% who use the services of

professionals.

In Vadodara 63.38% businessmen have computerized their business

accounts by investing in hardware and software, where as 36.62% use the services

of professionals Further out of the total respondents the wholesale businessmen

percentage is highest 60.00% who computerized their business accounts by

investing in hardware and software and retail businessmen percentage is highest

53.85 % who use the services of professionals.

In Rajkot 61.76% businessmen have computerized their business accounts

by investing in hardware and software, where as 38.24% use the services of

professionals. Further out of the total respondents the wholesale businessmen




In Surat 65.28% businessmen have computerized their business accounts by

investing in hardware and software, where as 34.72% use the services of





In Mehsana 62.12% businessmen have computerized their business accounts

by investing in hardware and software, where as 37.88% use the services of





197

Out of total wholesaler 68.34% businessmen have computerized their

business accounts by investing in hardware and software, where as 31.66% use the

services of professionals, and in that Surat wholesaler percentage is highest 70.73%

who computerized their business accounts by investing in hardware and software

and Rajkot wholesaler percentage is highest 35.00% who use the service of

professionals.

Out of total retailer 56.46% businessmen have computerized their business

accounts by investing in hardware and software, where as 43.54% use the services

of professionals, and in that Surat retailer percentage is highest 58.06% who

computerized their business accounts by investing in hardware and software and

Ahmedabad retailer percentage is highest 44.83% who take the help of

professionals.

Out of total respondents 63.29% businessmen have computerized their

business accounts by investing in hardware and software, where as 36.71% use the

services of professionals. Further, Surat respondent percentages is highest 65.28%

who have computerized their business accounts by investing in hardware and

software and Rajkot respondents percentages is highest 38.24% who use the

services of professionals. Further, it is also reveal that out of total respondents

wholesaler percentages is more (62.10%) who computerized their business

accounts by investing in hardware and software and retailer percentage is more

(50.39%) who use the service of professionals.

Writing accounts everyday will help owners in taking many important

decisions. Therefore, many businessmen are completing the accounting of

transactions on the same day. However, some businessmen are writing the accounts

periodically once in two days, once in a week or even once in a Fortnight. Table –

5.8 shows on the periodically of writing accounts.

198

Table – 5.8: Classification of Businessmen base on Frequency of writing Accounts in different cities

City Frequency Of Writing Accounts Wholesale Retail Total

Ahmedabad

Daily 24(54.55)

(48.00)

20(45.55)

(40.00)

44(100.00)

(44.00)

Once in two days 14(50.00)

(28.00)

14(50.00)

(28.00)

28(100.00)

(28.00)

Weekly 12(48.00)

(24.00)

13 (52.00)

(26.00)

25(100.00)

(25.00)

Fortnight ----- 3(100.00)

(6.00)

3(100.00)

(3.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Daily 25(56.82)

(50.00)

19(43.18)

(38.00)

44(100.00)

(44.00)


(30.00)

15(50.00)

(30.00)

30(100.00)

(30.00)

Weekly 10(45.45)

(20.00)

12(54.55)

(24.00)

22(100.00)

(22.00)

Fortnight ------ 4(100.00)

(8.00)

4(100.00)

(4.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Daily 27(56.25)

(54.00)

21(43.75)

(42.00)

48(100.00)

(48.00)


(30.00)

15(50.00)

(30.00)

30(100.00)

(30.00)

Weekly 8(40.00)

(16.00)

12(60.00)

(24.00)

20(100.00)

(20.00)

Fortnight --- 2(100.00)

(4.00)

2(100.00)

(2.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Daily 28(60.87)

(56.00)

18(39.13)

(36.00)

46(100.00)

(46.00)


(28.00)

14(50.00)

(28.00)

28(100.00)

(28.00)

Weekly 8(40.00)

(16.00)

12(60.00)

(24.00)

20(100.00)

(20.00)

Fortnight ---- 6(100.00)

(12.00)

6(100.00)

(6.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Daily 27(58.70)

(54.00)

19(41.30)

(38.00)

46(100.00)

(46.00)


(26.00)

13(50.00)

(26.00)

26(100.00)

(26.00)

Weekly 8(36.36)

(16.00)

14(63.64)

(28.00)

22(100.00)

(22.00)

Fortnight 2(33.33)

(4.00)

4(66.67)

(8.00)

6(100.00)

(6.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Daily 131(57.46)

(52.40)

97(42.54)

(38.80)

228(100.00)

(45.60)


(28.40)

71(50.00)

(28.40)

142(100.00)

(28.40)

Weekly 46(42.20)

(18.40)

63(57.80)

(25.20)

109(100.00)

(21.80)

Fortnight 2(9.52)

(0.80)

19(90.48)

(7.60)

21(100.00)

(4.20)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the respective row and column totals.


199

Graph – 5.8: Classification of Businessmen base on frequency of writing Accounts

in different cities

Chart 5.8: Classification of Wholesale, Retail and Overall Businessmen base on

Frequency of writing Accounts

It is evident from the table 5.8 that in Ahmedabad 44.00% of respondents

have written their business accounts daily, 28.00% have written once in two days,

25.00% have written once in a week and 3% once in a Fortnight. Further, the

24

14

12

25

15

10

27

15

8

28

14

8

27

13

8

2

20

14 13

3

19

15

12

4

21

15

12

2

18

14

12

6

19

13 14

4

0

5

10

15

20

25

30 D

aily

Once

in t

wo

day

s

Wee

kly

fort

nig

ht

Dai

ly

Once

in t

wo

day

s

Wee

kly

fort

nig

ht

Dai

ly

Once

in t

wo

day

s

Wee

kly

fort

nig

ht

Dai

ly

Once

in t

wo

day

s

Wee

kly

fort

nig

ht

Dai

ly

Once

in t

wo

day

s

Wee

kly

fort

nig

ht


No

of

Res

po

nd

etn

s

Mode of writting account in diffrent cities

Wholesale Retail

53% 28%

18%

1%

Wholesale

Daily

Once in two days

Weekly

fortnight

39%

28%

25%

8%

Retail

Daily

Once in two days

Weekly

fortnight

46%

24%

13%

17%

Overall

Daily

Once in two days

Weekly

fortnight

Vadodara

200

respondents who have written daily 54.55% are wholesalers and 40.00% are

retailers. This signifies that the wholesalers have given more importance to

recording accounting transactions compare to retailers.

In Vadodara 38.00% of respondents have written their business accounts

daily, 30.00% have written once in two days, 24.00% have written once in a week

and 8.00% once in a Fortnight. Further, the respondents who have written daily

56.82% are wholesalers and 43.18% are retailers. This signifies that the wholesalers

have given more importance to recording accounting transactions compare to

retailers.

In Rajkot 48.00% of respondents have written their business accounts daily,

30.00% have written once in two days, 20.00% have written once in a week and

2.00% once in a Fortnight. Further, of the respondents who have written daily



retailers.

In Surat 46.00% of respondents have written their business accounts daily,

28.00% have written once in two days, 20.00% have written once in a week and

6.00% once in a Fortnight. Further, of the respondents who have written daily



retailers.

In Mehsana 46.00% of respondents have written their business accounts

daily, 26.00% have written once in two days, 22.00% have written once in a week

and 6.00% once in a Fortnight. Further, of the respondents who have written daily



retailers.

Out of total wholesaler 52.40% of respondents have written their business

accounts daily, 28.40% have written once in two days, 18.40% have written once in

a week and 0.80% once in a Fortnight, and in that Surat wholesalers percentage is

highest 56.00% compare to other cities who maintain their account daily,

201

Vadodara wholesalers percentages is highest 30.00% compare to other cities who

maintain their account once in two days, Ahmedabad wholesaler percentages is

highest 24.00% compare to other cities who maintain their account weekly and

only Mehsana wholesalers write their account fortnightly.

Out of total retailer 38.80% of respondents have written their business


a week and 7.60% once in a Fortnight, and in that Rajkot retailer percentage is

highest 42.00% compare to other cities who maintain their account daily,

Vadodara and Rajkot retailer‘s percentages is highest 30.00% compare to other

cities who maintain their account once in two days, Mehsana retailer percentages is

highest 28.00% compare to other cities who maintain their account weekly and

Surat retailer percentages is highest 12.00% compare to other cities who maintain

their account fortnightly.

Out of total respondents 45.60% of respondents have written their business


a week and 4.20% have written once in a Fortnight, Further, Rajkot respondents

percentages more 48.00% who written their business account daily compare to

other cities, Vadodara and Rajkot respondents percentage is more 30.00% who

written once in two days, Ahmedabad respondents percentage is more 25.00% who

written once in a week and Mehsana respondents percentage is more 6.00% who

have written once in a Fortnight. Further, also it is reveal that out of total

respondents wholesaler percentages is more compare to retailer who maintain their

account daily. And once in two days percentage is same for both types of business.

This signifies that the wholesalers have given more importance to recording

accounting transactions compare to retailers and it may be happen due to less

transaction compare to wholesaler.

These days, huge amount of investment is required to invest in stocks. As a

result, cost of investment in stocks become more if proper care is not taken to

control the stocks. Therefore physical verification of stocks at regular intervals is

necessary to avoid over and under stocking of goods. Based on the frequency of

stock verification, the details of businessmen are depicted in Table 5.9.

202

Table 5.9: Classification of Businessmen base on the Frequency of Stock Verification in different cities

City Frequency of Stock Verification Wholesale Retail Total

Ahmedabad

Fortnightly 1(9.09)

(2.00)

10(90.91)

(20.00)

11(100.00)

(11.00)

Monthly 7(35.00) (14.00)

13(65.00) (26.00)

20(100.00) (20.00)

Quarterly 19(55.88)

(38.00) 15(44.12) (30.00)

34(100.00) (34.00)

Half yearly 18(64.29)

(36.00)

10(35.71)

(20.00)

28(100.00)

(28.00)

Yearly 5(71.43)

(10.00)

2(28.57)

(4.00)

7(100.00)

(7.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Fortnightly ----- 7(100.00)

(14.00)

7(100.00)

(7.00)

Monthly 9(30.00)

(18.00)

21(70.00)

(42.00)

30(100.00)

(30.00)

Quarterly 18(47.37)

(36.00)

20(52.63)

(40.00)

38(100.00)

(38.00)


(32.00)

2(11.11)

(4.00)

18(100.00)

(18.00)

Yearly 7(100.00)

(14.00) -----

7(100.00)

(7.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Fortnightly 2(20.00) (4.00)

8(80.00) (16.00)

10(100.00) (10.00)

Monthly 6(23.08)

(12.00)

20(76.92)

(40.00)

26(100.00)

(26.00)

Quarterly 22(55.00)

(44.00)

18(45.00)

(36.00)

40(100.00)

(40.00)


(30.00)

4(21.05)

(8.00)

19(100.00)

(19.00)

Yearly 5(100.00)

(10.00) -----

5(100.00)

(5.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Fortnightly 2(28.57)

(4.00)

5(71.43)

(10.00)

7(100.00)

(7.00)

Monthly 9(28.13)

(18.00)

23(71.88)

(46.00)

32(100.00)

(32.00)

Quarterly 19(59.38)

(38.00)

13(40.63)

(26.00)

32(100.00)

(32.00)


(30.00)

9(37.50)

(18.00)

24(100.00)

(24.00)

Yearly 5(100.00)

(10.00) -----

5(100.00) (5.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana


(6.00)

4(57.14)

(8.00)

7(100.00)

(7.00)

Monthly 8(24.24)

(16.00)

25(75.76)

(50.00)

33(100.00)

(33.00)

Quarterly 17(56.67)

(34.00)

13(43.33)

26.00

30(100.00)

(30.00)


(32.00)

6(27.27)

(12.00)

22(100.00)

(22.00)

Yearly 6(75.00)

(12.00)

2(25.00)

(4.00)

8(100.00)

(8.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall


(3.20)

34(80.95)

(13.60)

42(100.00)

(8.40)

Monthly 39(27.66)

(15.60)

102(72.34)

(40.80)

141(100.00)

(28.20)

Quarterly 95(54.60)

(38.00)

79(45.40)

(31.60)

174(100.00)

(34.80)


(32.00) 31(27.93) (12.40)

111(100.00) (22.20)

Yearly 28(87.50)

(11.20)

4(12.50)

(1.60)

32(100.00)

(6.40)

Total 250 (50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the respective row and column

totals. Source: Field Survey

203

Graph 5.9: Classification of Businessmen base on the Frequency of Stock

Verification in different cities

Chart 5.9: Classification of Wholesale, Retail and Overall Businessmen base on the

Frequency of Stock Verification

1

7

19 18

5

9

18

16

7

2

6

22

15

5

2

9

19

15

5

3

8

17 16

6

10

13

15

10

2

7

21 20

2

8

20

18

4 5

23

13

9

4

25

13

6

2

0

5

10

15

20

25

30 F

ort

nig

htl

y

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Fo

rtnig

htl

y

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Fo

rtnig

htl

y

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Fo

rtnig

htl

y

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Fo

rtnig

htl

y

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly


No

of

Res

po

nd

ents

Frequency of Stock verification in different cities

Wholesale Retail

3%

16%

38%

32%

11%

Wholesale

Fortnightly Monthly

Quarterly Half yearly

Yearly

13%

41% 32%

12%

2%

Retail

Fortnightly Monthly


Yearly

9%

28%

35%

22%

6%

Overall

Fortnightly Monthly


Yearly

Vadodara

204

It is evident from the table – 5.9 that in Ahmedabad out of total respondents

who verified their business stock,11.00% verify fortnightly, 20.00% monthly,

34.00% quarterly ,28.00% half yearly and 7.00% yearly. Mainly wholesaler verify

their stock quarterly and half yearly more where as retailer verify their stock

fortnightly, monthly and quarterly more.

In Vadodara out of total respondents who verify their business stock, 7.00%

verify fortnightly, 30.00% monthly, 38.00% quarterly, 18.00% half yearly and

7.00% yearly. Mainly wholesaler verify their stock quarterly and half yearly more

where as retailer verify their stock fortnightly, monthly and quarterly more.

In Rajkot out of total respondents who verify their business stock, 10.00%



where as retailer verify their stock monthly and quarterly more.

In Surat out of total respondents who verify their business stock, 7.00%




In Mehsana out of total respondents who verify their business stock, 7.00%




Out of total wholesaler who verify their business stock, 3.20% verify

fortnightly, 15.60% monthly, 38.00% quarterly, 32.00% half yearly and 11.20%

yearly. Most of in all cities wholesaler verify their stock quarterly and half yearly,

Rajkot wholesaler verify their stock quarterly more and Ahmedabad wholesaler

verify their stock half yearly more compare to other cities.

Out of total retailer who verify their business stock, 13.60% verify


yearly. Most of in all cities retailer verify their stock fortnightly, monthly and

quarterly, Ahmedabad retailer verify their stock fortnightly more, Mehsana retailer

205

verify their stock monthly and Vadodara retailer verify their stock quarterly more


Out of total respondents who verify their business stock, 8.40% verify


yearly. Most of the wholesaler verify their stock quarterly and half yearly, Most of

the retailer verify their stock fortnightly, monthly and quarterly. Further, it is reveal

that Ahmedabad respondents verify stock fortnightly more compare to other cities,

Surat respondents verify stock monthly and Half yearly more compare to other

cities and Rajkot respondents verify stock quarterly more compare to other cities.

This signifies that business respondents were worried about maintaining and

managing the stocks and it is also indicated that stock quantity purchase by retailer

is less and turnover is more where as wholesaler purchase quantity more and

turnover is low compare to retailer so frequency for fortnightly and monthly is

more for retail business compare to wholesale business.

Hypothesis: H0 = There is no significant relationship between Wholesaler

and Retailer regarding stock verification






χ ² t = 9.49

206


The table value of χ ² for 4 degree of freedom at 5% level of significance is 9.49

The calculated value of χ ² is 85.258 which is higher than the table value, hence the

result of the experiment does not support the hypothesis. So null hypothesis is

rejected and alternative hypothesis is accepted. It means there is significant

relationship between wholesaler and retailer regarding stock verification

Now a day, huge amount is required to invest in stock. As a result, cost of

investment in stock become more if proper care is not taken to control the stocks

than it will create problem and that is why inventory valuation is necessary. These

are the methods for stock valuation First in First out (FIFO), Last in First out

(LIFO), weighted average method, and base-stock method. Classifications of

method which are used by businessmen for stock valuation are depicted in Table-

5.10

207

Table 5.10: Classification of Businessmen base on Method use for Stock Valuation in different cities

City Method of Stock Valuation Wholesale Retail Total

Ahmedabad

LIFO 4(66.67)

(8.00)

2(33.33)

(4.00)

6(100.00)

(6.00)

FIFO 32(42.11)

(64.00)

44(57.89)

(88.00)

76(100.00)

(76.00)

Weighted Average 11(73.33)

(22.00)

4(26.67)

(8.00)

15(100.00)

(15.00)

Other 3(100.00)

(6.00)

----- 3(100.00)

(3.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

LIFO 2(100.00)

(4.00)

----- 2(100.00)

(2.00)

FIFO 35(43.75)

(70.00)

45(56.25)

(90.00)

80(100.00)

(80.00)


(24.00)

3(20.00)

(6.00)

15(100.00)

(15.00)

Other 1(33.33)

(2.00)

2(66.67)

(4.00)

3(100.00)

(3.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

LIFO 2(100.00)

(4.00)

----- 2(100.00)

(2.00)

FIFO 38(45.78)

(76.00)

45(54.22)

(90.00)

83(100.00)

(83.00)


(12.000

2(25.00)

(4.00)

8(100.00)

(8.00)

Other 4(57.14)

(8.00)

3(42.86)

(6.000

7(100.00)

(7.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

LIFO 3(75.00)

(6.00)

1(25.00)

(2.00)

4(100.00)

(4.00)

FIFO 40(47.62)

(80.00)

44(52.38)

(88.000

84(100.00)

(84.00)


(10.00)

3(37.50)

(6.00)

8(100.00)

(8.00)

Other 2(50.00)

(4.00)

2(50.00)

(4.00)

4 (100.00)

(4.00)

Total 50 (50.00)

(100.00)

50 (50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

LIFO 2(100.00)

(4.00)

----- 2(100.00)

(2.00)

FIFO 37(44.58)

(74.00)

46(55.42)

(92.00)

83(100.00)

(83.00)


(10.00)

3(37.50)

(6.00)

8(100.00)

(8.00)

Other 6(85.71)

(12.00)

1(14.29)

(2.00)

7(100.00)

(7.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

LIFO 13(81.25)

(5.20)

3(18.75)

(1.20)

16(100.00)

(3.20)

FIFO 182(44.83)

(72.80)

224(55.17)

(89.60)

406(100.00)

(81.20)


(15.60)

15(27.78)

(6.00)

54(100.00)

(10.80)

Other 16(66.67)

(6.40)

8(33.33)

(3.20)

24(100.00)

(4.80)

Total 250 (50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the respective row and

column totals. Source: Field Survey

208

Graph 5.10: Classification of Businessmen base on Method use for Stock Valuation

in different cities


Method use for Stock Valuation

4

32

11

3 2

35

12

1 2

38

6 4 3

40

5 2 2

37

5 6

2

44

4

45

3 2

45

2 3 1

44

3 2

46

3 1

0

5

10

15

20

25

30

35

40

45

50 L

IFO

FIF

O

Wei

ghte

d A

ver

age

Oth

er

LIF

O

FIF

O

Wei

ghte

d A

ver

age

Oth

er

LIF

O

FIF

O

Wei

ghte

d A

ver

age

Oth

er

LIF

O

FIF

O

Wei

ghte

d A

ver

age

Oth

er

LIF

O

FIF

O

Wei

ghte

d A

ver

age

Oth

er


No

o

f R

spo

nd

ents

Depreciation Method use in different cities

Wholesale Retail

5%

73%

16%

6%

Wholesale

LIFO

FIFO

Weighted Average

Other

1%

90%

6% 3%

Retail

LIFO

FIFO

Weighted Average

Other

3%

81%

11%

5%

Overall

LIFO

FIFO

Weighted Average

Other

Vadodara

209

It is evident from the table – 5.10 that in Ahmadabad out of total

respondents 6.00% use LIFO,76.00% use FIFO,15.00% use Weighted average and

3.00% use other method for stock valuation. Most of the wholesaler and retailer

use FIFO and Weighted average method more compare to other method for stock

valuation.

In Vadodara out of total respondents 2.00% use LIFO, 80.00% use FIFO,

15.00% use Weighted average and 3.00% use other method for stock valuation.

Most of the wholesaler and retailer use FIFO and Weighted average method more

compare to other method for stock valuation.

In Rajkot out of total respondents 2.00% use LIFO, 83.00% use FIFO,




In Surat out of total respondents 4.00% use LIFO, 84.00% use FIFO, 8.00%

use Weighted average and 4.00% use other method for stock valuation. Most of the

wholesaler and retailer use FIFO and Weighted average method more compare to

other method for stock valuation.

In Mehsana out of total respondents 2.00% use LIFO, 83.00% use FIFO,




Out of total wholesaler 5.20% use LIFO, 72.80% use FIFO, 15.60% use

weighted average and 6.40% use other method for stock valuation, and in that

Ahmedabad wholesaler use LIFO method more compare to other cities, Surat

wholesaler use FIFO method more compare to other cities, Rajkot wholesaler use

weighted average method more compare to other cities and Mehsana wholesaler

use other methods more compare to other cities.

Out of total retailer 1.20% use LIFO, 89.60% use FIFO, 6.00% use weighted

average and 3.20% use other method for stock valuation, and in that only

Ahmadabad and Surat retailer use LIFO method, probably FIFO method use in

most of the cities equally, Surat retailer use FIFO method more compare to other

210

cities, Ahmedabad retailer use weighted average method more compare to other

cities and Vadodara retailer use other methods more compare to other cities.

Out of total respondents 3.20% use LIFO, 81.20% use FIFO, 10.80% use

Weighted average and 4.80% use other method for stock valuation. Further,

Ahmedabad respondents use LIFO method more compare to other cities, Surat

respondent use FIFO method more compare to other cities, Ahmedabad and

Vadodara respondents use Weighted average method more compare to other cities

and Rajkot respondents use other method more compare to other cities. Most of the

all wholesaler and retailer use FIFO and weighted average method for stock

valuation. It is signifies from the information that most of the respondent use FIFO

method more due to easily understandable and more convenient to them for stock

valuation.

Depreciation is the reduction in the value of fixed assets due to its use and

passage of time and obsolescence. Depreciation is the apportionment of cost of

asset net estimated scrape value over its estimated useful life. The principle of

consistency required the same methods should be followed from year to year. But

in case of permissible situation on enterprise can change the method. The most

common method for depreciation is Straight Line Method, Written down value

method, Sinking fund method, annuity method, Depletion method, etc.

Classification of methods which used by businessmen for depreciation is presented

in Table -5.11

211

Table 5.11: Classification of Businessmen base on Method use for

Calculation of Depreciation in different cities

Cities Depreciation Method Wholesale Retail Total

Ahmedabad

Straight line Method 31(48.44)

(62.00)

33(51.56)

(66.00)

64(100.00)

(64.00)

Written down value 17(53.12)

(34.00)

15(46.88)

(30.00)

32(100.00)

(32.00)

Other 2(50.00)

(4.00)

2(50.00)

(4.00)

4(100.00)

(4.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara


(64.00)

31(49.21)

(62.00)

63(100.00)

(63.00)


(30.00)

16(51.61)

(32.00)

31(100.00)

(31.00)

Other 3(50.00)

(6.00)

3(50.00)

(6.00)

6(100.00)

(6.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot


(70.00)

32(47.76)

(64.00)

67(100.00)

(67.00)


(26.00)

15(53.57)

(30.00)

28 (100.00)

(28.00)

Other 2(40.00)

(4.00)

3(60.00)

(6.00)

5 (100.00)

(5.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat


(66.00)

35(51.47)

(70.00)

68(100.00)

(68.00)


(28.00)

12(46.15)

(24.00)

26 (100.00)

(26.00)

Other 3(50.00)

(6.00)

3(50.00)

(6.00)

6(100.00)

(6.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana


(64.00)

37(53.62)

(74.00)

69 (100.00)

(69.00)


(28.00)

10(41.67)

(20.00)

24(100.00)

(24.00)

Other 4(57.14)

(8.00)

3(42.86)

(6.00)

7(100.00)

(7.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall


(65.20)

168(50.76)

(67.20)

331(100.00)

(66.20)


(29.20)

68(48.23)

(27.20)

141(100.00)

(28.20)

Other 14(50.00)

(5.60)

14(50.00)

(5.60)

28(100.00)

(5.60)

Total 250(50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)




212

Graph 5.11: Classification Businessmen base on Method use for

Calculation of Depreciation in different cities


Method use for Calculation of Depreciation

31

17

2

32

15

3

35

13

2

33

14

3

32

14

4

33

15

2

31

16

3

32

15

3

35

12

3

37

10

3

0

5

10

15

20

25

30

35

40 S

trai

ght

line

Met

ho

d

Wri

tten

do

wn v

alue

Oth

er

Str

aight

line

Met

ho

d

Wri

tten

do

wn v

alue

Oth

er

Str

aight

line

Met

ho

d

Wri

tten

do

wn v

alue

Oth

er

Str

aight

line

Met

ho

d

Wri

tten

do

wn v

alue

Oth

er

Str

aight

line

Met

ho

d

Wri

tten

do

wn v

alue

Oth

er


No

of

Res

po

nd

ents

Depreciation Method use in different cities

Wholesale Retail

65%

29%

6%

Wholesale

Straight line Method

Written down value

Other

67%

27%

6%

Retail


Written down value

Other

66%

28%

6%

Overall


Written down value

Other

Vadodara

213

It is evident from the table – 5.11 that in Ahmadabad out of total

respondents 64.00% use Straight line method, 32.00% use Written down value

method and 4.00% use Other method for Calculation of Depreciation. Most of the

wholesaler and retailer use Straight line method more compare to Written down

value method and Other method.

In Vadodara out of total respondents 63.00% use Straight line method,

31.00% use Written down value method and 6.00% use Other method for

Calculation of Depreciation. Most of the wholesaler and retailer use Straight line

method more compare to Written down value method and Other method.

In Rajkot out of total respondents 67.00% use Straight line method, 28.00%

use Written down value method and 5.00% use Other method for Calculation of

Depreciation. Most of the wholesaler and retailer use Straight line method more

compare to Written down value method and Other method.

In Surat out of total respondents 68.00% use Straight line method, 26.00%

use Written down value method and 6.00% use Other method for Calculation of

Depreciation. Most of the wholesaler and retailer use Straight line method more

compare to Written down value method and Other method.

In Mehsana out of total respondents 69.00% use Straight line method,

24.00% use Written down value method and 7.00% use Other method for

Calculation of Depreciation. Most of the wholesaler and retailer use Straight line

method more compare to Written down value method and Other method.

Out of total wholesaler 65.20% use Straight line method, 29.20% use

Written down value method and 5.60% use Other method for Calculation of

Depreciation, and in that Rajkot wholesaler use Straight line method more

(70.00%) compare to other cities, Ahmedabad wholesaler use Written down value

method more (34.00%) compare to other cities and Mehsana wholesaler use other

methods more (8.00%) compare to other cities.

Out of total retailer 67.20% use Straight line method, 27.20% use Written

down value method and 5.60% use other method for Calculation of Depreciation,

and in that Mehsana retailer use Straight line method more (74.00%) compare to

other cities, Vadodara retailer use Written down value method more (32.00%)

214

compare to other cities and Ahmedabad retailer use other methods very less

(4.00%) compare to other cities.

Out of total respondents 66.20% use Straight line method, 28.20% use

Written down value method and 5.60% use other method for Calculation of

Depreciation. Further, Mehsana respondents use Straight line method more

(69.00%) compare to other cities, Ahmedabad respondents use Written down value

method more (32.00%) compare to other cities and Mehsana respondents use other

method more (7.00%) compare to other cities. Most of the wholesaler and retailer

use Straight line method more compare to Written down value method and other

method, Further in that wholesaler use Straight line method and Written down

value method more compare to retailer.

Preparations of trial balance at regular intervals is essential to verify the

correctness in passing entries, ledger posting and in totaling. Trial balance is the

basis for preparation of final accounts like trading, profit and loss account and

balance sheet. Computerization of accounts enables the businessmen to prepare

trial balance at any time, but in case of manual accounting it is a difficult and a

time consuming process. Based on the frequencies in preparation of trial balance,

the details are depicted in Table-5.12.

215

Table 5.12: Classification of Businessmen base on Frequency in preparation of

Trial Balance in different cities.

City Frequency of Trial Balance Wholesale Retail Total

Ahmedabad

Monthly ----- ----- -----

Quarterly 14(73.68)

(28.00)

5(26.32)

(10.00)

19(100.00)

(19.00)


(44.00)

16(42.11)

(32.00)

38(100.00)

(38.00)

Yearly 14(32.56)

(28.00)

29(67.44)

(58.000

43(100.00)

(43.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Monthly 2(100.00)

(4.00) -----

2(100.00)

(2.00)

Quarterly 15(83.33)

(30.00)

3(16.67)

(6.00)

18(100.00)

(18.00)


(34.00)

18(51.43)

(36.00)

35(100.00)

(35.00)

Yearly 16(35.56)

(32.00)

29(64.44)

(58.00)

45(100.00)

(45.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Monthly 2(100.00)

(4.00) ----

2(100.00)

(2.00)

Quarterly 15(88.24)

(30.00)

2(11.76)

(4.00)

17(100.00)

(17.00)


(36.00)

17(48.57)

(34.00)

35(100.00)

(35.00)

Yearly 15(32.61)

(30.00)

31(67.39)

(62.00)

46(100.00)

(46.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Monthly 1(100.00)

(2.00) -----

1(100.00)

(1.00)

Quarterly 18(90.00)

(36.00)

2(10.00)

(4.00)

20(100.00)

(20.00)


(30.00)

20(57.14)

(40.00)

35(100.00)

(35.00)

Yearly 16(36.36)

(32.00)

28(63.64)

(56.00)

44(100.00)

(44.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Monthly ----- ----- -----

Quarterly 22(88.00)

(44.00)

3(12.00)

(6.00)

25(100.00)

(25.00)


(34.00)

19(52.78)

(38.00)

36(100.00)

(36.00)

Yearly 11(28.21)

(22.00)

28(71.79)

(56.00)

39(100.00)

(39.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Monthly 5(100.00)

(2.00) -----

5(100.00)

(1.00)

Quarterly 84(84.50)

(33.60)

15(15.15)

(6.00)

99(100.00)

(19.80)


(35.60)

90(50.28)

(36.00)

179(100.00)

(35.80)

Yearly 72(33.18)

(28.80)

145(66.82)

(58.00)

217(100.00)

(43.40)

Total 250(50.00)

(100.00)

250(50.0)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the respective row

and column totals.


216

Graph 5.12: Classification of Businessmen base on Frequency in preparation of

Trial Balance in different cities


on Frequency in preparation of Trial Balance.

14

22

14

2

15

17 16

2

15

18

15

1

18

15 16

22

17

11

5

16

29

3

18

29

2

17

31

2

20

28

3

19

28

0

5

10

15

20

25

30

35 M

onth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly

Mo

nth

ly

Quar

terl

y

Hal

f yea

rly

Yea

rly


No

of

R

esp

on

den

ts

Frequency of prepartion of Trial Balance in different cities

Wholesale Retail

2%

33%

36%

29%

Wholesale

Monthly Quarterly

Half yearly Yearly

6%

36%

58%

Retail

Monthly Quarterly

Half yearly Yearly

1%

20%

36%

43%

Overall

Monthaly Quaterly

Half Yearly Yearly

Vadodara

217

It is clear from the Table – 5.12 that in Ahmedabad out of total respondents

19.00% prepare trial balance quarterly, 38.00% prepare trial balance half yearly and

43.00% prepare trial balance yearly. Further, wholesaler prepare their trial balance

quarterly and half yearly more compare to retailer where as retailer prepare their

trial balance half yearly and yearly.

In Vadodara out of total respondents 2.00% prepare trial balance

monthly,18.00% prepare trial balance quarterly, 35.00% prepare trial balance half

yearly and 45.00% prepare trial balance yearly. Further, wholesaler prepare their

trial balance quarterly and half yearly more compare to retailer where as retailer

prepare their trial balance half yearly and yearly.

In Rajkot out of total respondents 2.00% prepare trial balance

monthly,17.00% prepare trial balance quarterly, 35.00% prepare trial balance half

yearly and 46.00% prepare trial balance yearly. Further, wholesaler prepare their

trial balance quarterly and half yearly more compare to retailer where as retailer

prepare their trial balance half yearly and yearly.

In Surat out of total respondents 1% prepare trial balance monthly, 20.00%

prepare trial balance quarterly, 35.00% prepare trial balance half yearly and 44.00%

prepare trial balance yearly. Further, wholesaler prepare their trial balance quarterly

and half yearly more compare to retailer where as retailer prepare their trial

balance half yearly and yearly.

In Mehsana out of total respondents 25.00% prepare trial balance quarterly,

36.00% prepare trial balance half yearly and 39.00% prepare trial balance yearly.

Further, wholesaler prepare their trial balance quarterly and half yearly more

compare to retailer where as retailer prepare their trial balance half yearly and

yearly.

Out of total wholesaler 2.00% prepare trial balance monthly, 33.60%


prepare trial balance yearly. Further, in that some of the Vadodara, Rajkot and

Surat wholesaler prepare trial balance monthly, Mehsana wholesaler percentage is

highest 44.00% who prepare trial balance quarterly , Ahmedabad wholesaler

218

percentage is highest (44.00%) who prepare trial balance half yearly and usually

yearly trial balance prepare by all.

Out of total retailer 6.00% prepare trial balance quarterly, 36.00% prepare

trial balance half yearly and 58.00% prepare trial balance yearly. Further, in that

Ahmedabad retailer percentage is highest (10.00%) who prepare trial balance

quarterly , Surat wholesaler percentage is highest (40.00%) who prepare trial

balance half yearly and usually yearly trial balance prepare by all.

Out of total respondents only 1.00% prepare trial balance monthly, 19.80%


prepare trial balance yearly. Further, Vadodara respondents prepare trial balance

monthly more compare to other cities, Mehsana respondents prepare trial balance

quarterly more compare to other cities, Ahmedabad respondents prepare trial

balance half yearly more compare to other cities and all respondents prepare trial

balance yearly. Further, no any retailer prepare trial balance monthly, wholesaler

prepare their trial balance quarterly more compare to retailer, half yearly percentage

is mostly similar for wholesaler and retailer. This is indicated from the overall

table that wholesaler prepare their trial balance quarterly, half yearly and yearly

where as retailer prepare their trial balance half yearly and yearly.

Business being an economic entity has to earn profit for survival and growth.

Profitability of business not only depends upon the efficiency in buying and selling

of goods but also depends upon how well accounts are maintained. It is a good

practice of accounting to measure and evaluate the business results at regular

intervals to take immediate corrective actions to improve the financial performance

of a business. The business results are measured by preparing trading, profit and loss

account and balance sheet at regular intervals. The details based on the frequencies in

measuring the business results depicted in Table–5. 13.

219

Table 5.13: Classification of Businessmen base on Frequency of Measuring

Financial Performance in different cities.

City Frequency in Measuring Financial

Performance Wholesale Retail Total

Ahmedabad


(44.00)

13(37.14)

(26.00)

35(100.00)

(35.00)

Yearly 28(43.08)

(56.00)

37(56.92)

(74.00)

65(100.00)

(65.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara


(38.00)

14(42.42)

(28.00)

33(100.00)

(33.00)

Yearly 31(46.27)

(62.00)

36(53.73)

(72.00)

67(100.00)

(67.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot


(36.00)

12(40.0)

(24.00)

30(100.00)

(30.00)

Yearly 32(45.71)

(64.00)

38(54.29)

(76.00)

70(100.00)

(70.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat


(42.00)

13(38.24)

(26.00)

34(100.00)

(34.00)

Yearly 29(43.94)

(58.00)

37(56.06)

(74.00)

66(100.00)

(66.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana


(34.00)

11(39.29)

(22.00)

28(100.00)

(28.00)

Yearly 33(45.83)

(66.00)

39(54.17)

(78.00)

72(100.00)

(72.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall


(38.80)

63(39.37)

(25.20)

160(100.00)

(32.00)

Yearly 153(45.00)

(61.20)

187(55.00)

(74.80)

340(100.00)

(68.00)

Total 250(50.00)

(100.00)

250(50.0)

(100.00)

500(100.00)

(100.00)




220

Graph 5.13: Classification of Businessmen base on Frequency of Measuring

Financial Performance in different cities.


on Frequency of Measuring Financial Performance.

22

28

19

31

18

32

21

29

17

33

13

37

14

36

12

38

13

37

11

39

0

5

10

15

20

25

30

35

40

45

Half

yearly

Yearly Half

yearly

Yearly Half

yearly

Yearly Half

yearly

Yearly Half

yearly

Yearly


No

o

f R

esp

on

dn

ts

Frequency of Measuring Financial Performance

Wholesale Retail

39%

61%

Wholesale

Half yearly Yearly

25%

75%

Retail

Half yearly Yearly

32%

68%

Overall

Half yearly Yearly

Vadodara

221

It is evident from the Table – 5.13 that in Ahmedabad out of total

respondents 35.00% prepare financial statement like trading, profit and loss

accounts and balance sheets half yearly and 65.00% of them prepare financial

statement yearly. Further, in that who prepare financial statement half yearly

wholesaler percentage is highest 62.86% compare to retailer.

In Vadodara out of total respondents 33.00% prepare financial statement like

trading, profit and loss accounts and balance sheets half yearly and 67.00% of them

prepare financial statement yearly. Further, in that who prepare financial statement

half yearly wholesaler percentage is highest 57.58% compare to retailer.

In Rajkot out of total respondents 30.00% prepare financial statement like




In Surat out of total respondents 34.00% prepare financial statement like




In Mehsana out of total respondents 28.00% prepare financial statement like




Out of total wholesaler 38.80% prepare financial statement half yearly and

61.20% prepare financial statement yearly. Further, in that Ahmedabad wholesaler

percentage is higher 44.00% who are prepare financial statement half yearly more


Out of total retailer 25.20% prepare financial statement half yearly and

74.80% prepare financial statement yearly. Further, in that Vadodara retailer

percentage is higher 28.00% who are prepare financial statement half yearly more


222

Out of total respondents 32.00% prepare financial statement like trading,

profit and loss accounts and balance sheets half yearly and 68.00% prepare

financial statement yearly. Further, in that Ahmedabad respondents checking their

financial position half yearly more compare to other cities. Further, also in that who

prepares financial statement half yearly wholesaler percentage is highest 38.80 %

compare to retailer. This indicates that maximum numbers of respondents are less

worried to know their business results at regular intervals. Out of total respondents

who have prepared financial statements half yearly wholesaler is more so it is

indicated that they are more interested to know financial position of the business

compare to retailer.


Wholesaler and Retailer regarding checking financial position

of the organisation


and Retailer regarding checking financial position of the

organisation




χ ² t = 3.84


The table value of χ ² for 1 degree of freedom at 5% level of significance is 3.84.

The calculated value of χ ² is 10.626 which is higher than the table value, hence the

result of the experiment does not support the hypothesis. So null hypothesis is

rejected and alternative hypothesis is accepted. It means there is significant

relationship between wholesaler and retailer regarding checking financial

position of the organisation

As per the Indian Income Tax Act1961, u/s 44AB the dealers whose annual

turnover is Rs. 40 lakhs and above, have to get their accounts audited by chartered

accountants before filing the annual income tax returns to the assessing authority.

223

Further, it is good practice for businessmen to get their accounts audited by

Chartered Accountants as it ensures more transparency. The opinions of

wholesalers and retailers regarding the auditing of their business accounts by

chartered accountants are depicted in Table 5.14.

Table – 5.14: Opinion of Businessmen regarding Auditing of Accounts in different cities.

City Opinions Wholesale Retail

Total

Ahmedabad

Yes 32(80.00)

(64.00) 8(20.00) (16.00)

40(100.00) (40.00)

No 18(30.00)

(36.00) 42(70.00) (84.00)

60(100.00) (60.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Vadodara

Yes 33(82.50)

(66.00) 7(17.50) (14.00)

40(100.00) (40.00)

No 17(28.33)

(34.00) 43(71.67) (86.00)

60(100.00) (60.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Rajkot

Yes 31(83.78)

(62.00) 6(16.22) (12.00)

37(100.00) (37.00)

No 19(30.16)

(38.00) 44(69.84) (88.00)

63(100.00) (63.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Surat

Yes 33(78.57)

(66.00) 9(21.43) (18.00)

42(100.00) (42.00)

No 17(29.31)

(34.00) 41(70.69) (82.00)

58(100.00) (58.00)

Total 50 (50.00) (100.00)

50 (50.00) (100.00)

100(100.00) (100.00)

Mehsana

Yes 30(83.33)

(60.00) 6(16.67) (12.00)

36(100.00) (36.00)

No 20(31.25)

(40.00) 44(68.75) (88.00)

64(100.00) (64.00)

Total 50(50.00) (100.00)

50(50.00) (100.00)

100(100.00) (100.00)

Overall

Yes

159(81.54) (63.60)

36(18.46) (14.40)

195(100.00) (39.00)

No

91(29.84) (36.40)

214(70.16) (85.60)

305(100.00) (61.00)

Total 250(50.00)

(100.00) 250(50.00) (100.00)

500(100.00) (100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to

the respective row and column totals.


224

Graph 5.14: Opinion of Businessmen regarding Auditing of Accounts in different cities

Chart 5.14: Opinion of Wholesale, Retail and Overall Businessmen

regarding Auditing of Accounts.

32

18

33

17

31

19

33

17

30

20

8

42

7

43

6

44

9

41

6

44

0

5

10

15

20

25

30

35

40

45

50


No

of

Res

po

nd

nts

Opinion regarding auditing of accounts in different cities

Wholesale Retail

64%

36%

Wholesale

Yes No

14%

86%

Retail

Yes No

39%

61%

Overall

Yes No

Vadodara Ahmedabad Rajkot Surat Mehsana

225

It is evident from the table – 5.14 that in Ahmedabad out of the total

respondents 40.00% businessmen audit their business accounts while 60.00%

businessmen not audit their business accounts. Further, out of the total respondents

who audit their business accounts wholesale business percentages is higher 80.00%

and retail business percentage is higher 70.00% who not audit their business

accounts.

In Vadodara out of the total respondents 40.00% businessmen audit their

business accounts while 60.00% businessmen not audit their business accounts.

Further, out of the total respondents who audit their business accounts wholesale

business percentages is higher 82.50% and retail business percentage is higher

71.67 % who not audit their business accounts.

In Rajkot out of the total respondents 37.00% businessmen audit their





In Surat out of the total respondents 42.00% businessmen audit their





In Mehsana out of the total respondents 36.00% businessmen audit their





Out of total wholesaler 63.60% wholesale businessmen audit their business

accounts while 36.40 % businessmen not audit their business accounts. Further, out

of the total businesses who audit their business accounts Vadodara and Surat

wholesaler percentage is highest 66.00% compare to other cities and who not audit

226

their business accounts Mehsana wholesaler percentage is highest 40.00% compare

to other cities.

Out of total retailer 14.40% retail businessmen audit their business accounts

while 85.60 % businessmen not audit their business accounts. Further, out of the

total businesses who audit their business accounts Ahmedabad retailer percentage is

highest 16.00% compare to other cities and who not audit their business accounts

Mehsana and Rajkot retailer percentage is highest 88.00% compare to other cities.

Out of total respondents 39.00% businessmen audit their business accounts

while 61.00% businessmen not audit their business accounts. Further, Surat

respondents percentage is highest 42.00% compare to other cities who audit their

business accounts and Mehsana respondents percentage is highest 64.00% compare

to other cities who not audit their business accounts. Further, also out of the total

businesses who audit their business accounts wholesale businessmen percentage is

highest 81.54% compare to retailer and retail businessmen percentage is highest

70.16% who not audit their business accounts This signifies that retailers are less

interested in auditing their business accounts compare to wholesalers and it may be

possible due to their low annual turnover and income so they think that it is not

necessary for their business.


and Retailer regarding Auditing of Account






χ ² t = 3.84




227



significant relationship between wholesaler and retailer regarding Auditing of

Account

A budget is a financial plan and a list of all planned expenses and revenues.

It is a plan for saving, borrowing and spending. The purpose of budgeting is to

provide a forecast of revenues and expenditures, that is, construct a model of how

our business might perform financially if certain strategies, events and plans are

carried out. Enable the actual financial operation of the business to be measured

against the forecast. The opinion of owners of business regarding the preparation of

budget is presented in table - 5.15.

228

Table 5.15: Opinion of the Businessmen regarding preparation of Budget in

different cities

Cities Opinion Wholesale Retail Total

Ahmedabad

Yes 24(68.57)

(48.00)

11(31.43)

(22.00)

35(100.00)

(35.00)

No 26(40.00)

(52.00)

39(60.00)

(78.00)

65 (100.00)

(65.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Yes 23(62.16)

(46.00)

14(37.84)

(28.00)

37(100.00)

(37.00)

No 27(42.86)

(54.00)

36(57.14)

(72.00)

63(100.00)

(63.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Yes 27(69.23)

(54.00)

12(30.77)

(24.00)

39(100.00)

(39.00)

No 23(37.70)

(46.00)

38(62.30)

(76.00)

61(100.00)

(61.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Yes 21(56.76)

(42.00)

16(43.24)

(32.00)

37(100.00)

(37.00)

No 29(46.03)

(58.00)

34(53.97)

(68.00)

63(100.00)

(63.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Yes 19(63.33)

(38.00)

11(36.67)

(22.00)

30(100.00)

(30.00)

No 31(44.29)

(62.00)

39(55.71)

(78.00)

70(100.00)

(70.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Gujarat

Yes 114(64.04)

(45.60)

64(35.96)

(25.60)

178(100.00)

(35.60)

No 136(42.24)

(54.40)

186(57.76)

(74.40)

322 (100.00)

(64.40)

Total 250(50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage

to the respective row and column totals.


229

Graph 5.15: Opinion of the Businessmen regarding preparation of Budget in

different cities

Chart 5.15: Opinion of the Wholesale, Retail and Overall Businessmen

regarding preparation of Budget

24 26

23

27 27

23 21

29

19

31

11

39

14

36

12

38

16

34

11

39

0

5

10

15

20

25

30

35

40

45



No

o

f R

esp

on

den

ts

Opinion of the businessmen regarding preparation of budget

Wholesale Retail

46%

54%

Wholesale

Yes No

26%

74%

Retail

Yes No

36%

64%

Overall

Yes No

Vadodara

230

It is evident from the table – 5.15 that in Ahmedabad 35.00 % of the

businessmen prepare budget for the business while 65.00% of the businessmen not

prepare budget for the business. Further, out of the total businessmen who prepare

budget for the business wholesale business percentages is higher 68.57% and retail

business percentage is higher 60.00% who not prepare budget for the business.

In Vadodara 37.00% of the businessmen prepare budget for the business

while 63.00% of the businessmen have not prepare budget for the business. Further,

out of the total businessmen who prepare budget for the business wholesale

business percentage is higher 62.16% and retail business percentage is higher

57.14% who not prepare budget for the business.

In Rajkot 39.00% of the businessmen prepare budget for the business while

61.00% of the businessmen have not prepare budget for the business. Further, out

of the total businessmen who prepare budget for the business wholesale business

percentage is higher 69.23% and retail business percentage is higher 62.30% who

not prepare budget for the business.

In Surat 37.00% of the businessmen prepare budget for the business while

63.00% of the businessmen have not prepare budget for the business. Further, out

of the total businessmen who prepare budget for the business wholesale business

percentages is higher 56.76% and retail business percentage is higher 53.97 % who

not prepare budget for the business.

In Mehsana 30.00% of the businessmen prepare budget for the business

while 70.00% of the businessmen have not prepare budget for the business. Further,

out of the total businessmen who prepare budget for the business wholesale


55.71% who not prepare budget for the business.

Out of total wholesaler 45.60% businessmen prepare budget for the business

while 54.40% businessmen not prepare budget for the business. Further, out of the

total businessmen who prepare budget Rajkot wholesaler percentage is highest

54.00% compare to other cities and who not prepare budget for the business

Mehsana wholesaler percentage is highest 62.00%.

231

Out of total retailer 25.60 % businessmen prepare budget for the business

while 74.40% businessmen not prepare budget for the business. Further, out of the

total businessmen who prepare budget Surat retailer percentage is highest 54.00%

compare to other cities and who not prepare budget Mehsana and Ahmedabad

retailer percentage is highest 62.00% compare to other cities.

Out of total respondents 35.60% businessmen prepare budget for the

business while 64.40% of the businessmen not prepare budget for the business.

Further, Rajkot respondents percentage is highest 39% who prepare budget for the

business compare to other cities whereas Mehsana respondents percentage is

highest 70.00% compare to other cities who not prepare budget for the business.

Further, out of the total businessmen who prepare budget for the business

wholesale businessmen percentage is highest 64.04% compare to retailer and who

not prepare budget for the business retail businessmen percentage is highest

57.16% compare to wholesale businessmen. It is indicated that very less

businessmen prepare budget for the business so they are not showing more interest

for the future prediction in the business and retailers are more who are not prepare

budget for the business.


Wholesaler and Retailer regarding preparation of budget


and Retailer regarding preparation of budget




χ ² t = 3.84




232



significant relationship between wholesaler and retailer regarding preparation of

budget

As per the Indian Income Tax Act, the dealers. Whose advance tax payable

provided it is Rs. 5000 or more. However it will be payable in certain installments.

Further, it is a good practice for businessmen to pay advance tax as it ensures more

fairness. The opinions of wholesalers and retailers regarding payment of advance

tax are depicted in Table 5.16

Table 5.16: Opinion of Businessmen regarding Advance tax payment in different cities.


Ahmedabad

Yes 29(76.32)

(58.00)

9(23.68)

(18.00)

38 (100.00)

(38.00)

No 21(33.87)

(42.00)

41(66.13)

(82.00)

62 (100.00)

(62.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Yes 31(81.58)

(62.00)

7(18.42)

(14.00)

38 (100.00)

(38.00)

No 19(30.65)

(38.00)

43(69.35)

(86.00)

62 (100.00)

(62.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Yes 30(83.33)

(60.00)

6(16.67)

(12.00)

36 (100.00)

(36.00)

No 20(31.25)

(40.00)

44(68.75)

(88.00)

64 (100.00)

(64.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Yes 31(75.61)

(62.00)

10(24.39)

(20.00)

41 (100.00)

(41.00)

No 19(32.20)

(38.00)

40(67.80)

(80.00)

59(100.00)

(59.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Yes 28(80.00)

(56.00)

7(20.00)

(14.00)

35 (100.00)

(35.00)

No 22(33.85)

(44.00)

43(66.15)

(86.00)

65 (100.00)

(65.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Yes 149(79.26)

(59.60)

39(20.74)

(15.60)

188 (100.00)

(37.60)

No 101(32.37)

(40.40)

211(67.63)

(84.40)

312 (100.00)

(62.40)

Total 250(50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures indicates percentage to the respective

row and column totals.


233

Graph 5.16: Opinion of Businessmen regarding Advance tax payment

in different cities.

Chart 5.16: Opinions of Wholesale, Retail and Overall Businessmen

regarding Advance tax payment.

29

21

31

19

30

20

31

19

28

22

9

41

7

43

6

44

10

40

7

43

0

5

10

15

20

25

30

35

40

45

50



No

of

Res

po

nd

ents

Opinion for Payment of Advance tax in differnet cities

Wholesale Retail

60%

40%

Wholesale

Yes No

16%

84%

Retail

Yes No

38%

62%

Overall

Yes No

Vadodara

234

It is evident from the table - 5.16 that in Ahmedabad 38.00% of the

businesses pay advance tax while 62.00% of businesses not pay advance tax.

Further, out of the total businesses who pay advance tax wholesaler percentages is

higher 76.32% compare to retailer and retailer percentage is higher 66.13% who not

pay advance tax.

In Vadodara 38.00% of the businesses pay advance tax while 62.00% of

businesses not pay advance tax. Further, out of the total businesses who pay

advance tax wholesaler percentage is higher 81.58% compare to retailer and retailer

percentage is higher 69.35% who not pay advance tax.

In Rajkot 36.00% of the businesses pay advance tax while 64.00% of




In Surat 41.00% of the businesses pay advance tax while 59.00% of

businesses not pay advance tax. Further, out of the total businesses whose pay



In Mehsana 35.00% of the businesses pay advance tax while 65.00% of




Out of total wholesaler 59.60% businessmen pay advance tax while 40.40%

businessmen not pay advance tax .Further, out of the total businessmen who pay

advance tax Surat and Vadodara wholesaler percentage is highest 62.00% compare

to other cities and who not pay advance tax Mehsana wholesaler percentage is

highest 44.00% compare to other cities.

Out of total retailer 15.60% businessmen pay advance tax while 84.40%

businessmen not pay advance tax .Further, out of the total businessmen who pay

advance tax Surat retailer percentage is highest 20.00% compare to other cities and

who not pay advance tax Rajkot retailer percentage is highest 88.00% compare to

other cities.

235

Out of total respondents 37.60% of businessmen pay advance tax while

62.40% of the businessmen not pay advance tax Further, out of the total

businessmen, who pay advance tax 79.26% are wholesalers and who not pay

advance tax 67.63% are retailers. Further, also out of the total businessmen who

pay advance tax Surat businessmen percentage is highest 41.00% compare to other

cities and who not pay advance tax Mehsana businessmen percentage is highest

65.00% compare to other cities.This signifies that overall wholesaler pay advance

tax more compare to retailer it may be happen due to turn over and income more as

compare to retailer and that is why they are paying advance tax compare to retailer.

Taking of insurance is safety step taken by businessmen because if any

natural calamity like floods earthquake, or if fire or theft will harmful to business.

The opinion of owners of business regarding the taking insurance of shop is

presented in table - 5.17.

236

Table 5.17: Opinions of Businessmen regarding taking Insurance of Shop



Ahmedabad

Yes 43(51.19)

(86.00)

41(48.81)

(82.00)

84(100.00)

(84.00)

No 7(43.75)

(14.00)

9(56.25)

(18.00)

16(100.00)

(16.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Vadodara

Yes 42(51.22)

(84.00)

40(48.78)

(80.00)

82(100.00)

(82.00)

No 8(44.44)

(16.00)

10(55.56)

(20.00)

18(100.00)

(18.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Rajkot

Yes 41(51.25)

(82.00)

39(48.75)

(78.00)

80(100.00)

(80.00)

No 9(45.00)

(18.00)

11(55.00)

(22.00)

20(100.00)

(20.00)

Total 50 (50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Surat

Yes 43(51.19)

(86.00)

41(48.81)

(82.00)

84(100.00)

84.00

No 7(43.75)

(14.00)

9(56.25)

(18.00)

16(100.00)

(16.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Mehsana

Yes 42(50.60)

(84.00)

41(49.40)

(82.00)

83(100.00)

(83.00)

No 8(47.06)

(16.00)

9(52.94)

(18.00)

17(100.00)

(17.00)

Total 50(50.00)

(100.00)

50(50.00)

(100.00)

100(100.00)

(100.00)

Overall

Yes 211(51.09)

(84.40)

202(48.91)

(80.80)

413(100.00)

(82.60)

No 39(44.83)

(15.60)

48(55.17)

(19.20)

87(100.00)

(17.40)

Total 250(50.00)

(100.00)

250(50.00)

(100.00)

500(100.00)

(100.00)

Note: Figures in parentheses on the right and below the figures

indicates percentage to the respective row and column totals.


237

Graph 5.17: Opinions of Businessmen regarding taking of Insurance of Shop


Chart 5.17: Opinions of Wholesale, Retail and Overall Businessmen regarding

taking of Insurance of Shop.

43

7

42

8

41

9

43

7

42

8

41

9

40

10

39

11

41

9

41

9

0

5

10

15

20

25

30

35

40

45

50



No

of

Res

po

nd

nts

Opinion regarding taking insurance of shop in different

Wholesale Retail

84%

16%

Wholesale

Yes No

81%

19%

Retail

Yes No

83%

17%

Overall

Yes No

Vadodara

238

It is evident from the table – 5.17 that in Ahmedabad 84.00% owners of

business have taken insurance of their shop while 16.00% owners of business have

not taken insurance. Further, who have taken insurance of their shop 51.19% are

wholesale businessmen and who have not taken insurance of their shop 56.25% are

retail businessmen. So it is indicated that wholesaler are taking insurance more

compare to retailer it may be happen due to huge investment in business and for

safety purpose.

In Vadodara 82.00% owners of business have taken insurance of their shop

while 18.00% owners of business have not taken insurance. Further, who have

taken insurance of their shop 51.22 % are wholesale businessmen and who have not

taken insurance of their shop 55.56 % are retail businessmen. So it is indicated that

wholesaler are taking insurance more compare to retailer due to huge investment in

business and for safety purpose.

In Rajkot 80.00% owners of business have taken insurance of their shop


taken insurance of their shop 51.25% are wholesale businessmen and who have

not taken insurance of their shop 55.00% are retail businessmen. So it is indicated

that wholesaler are taking insurance more compare to retailer due to huge

investment in business and for safety purpose.

In Surat 84.00% of owners of business have taken insurance of their shop

while 16.00% of owners of business have not taken insurance. Further, who have

taken insurance of their shops 51.19% are wholesale businessmen and who have

not taken insurance of their shop 56.25% are retail businessmen. So it is indicated



In Mehsana 83.00% owners of business have taken insurance of their shop


taken insurance of their shops 50.60% are wholesale businessmen and who have

not taken insurance of their shop 52.94 % are retail businessmen. So it is indicated



239

Out of total wholesaler 84.40% wholesale businessmen have taken

insurance of their shop while 15.60% retail businessmen have not taken insurance.

Further, out of the total businessmen who taken insurance of their shop Ahmedabad

and Surat wholesaler percentage is highest 86.00% compare to other cities and who

have not taken insurance of their shop Rajkot wholesaler percentage is highest

62.00% compare to other cities. Out of total retailer 80.80% retail businessmen

have taken insurance of their shop while 19.20% retail businessmen have not taken

insurance. Further, out of the total businessmen who taken insurance of their shop

Ahmedabad, Surat and Mehsana retailer percentage is highest 82.00% compare to

other cities and who have not taken insurance of their shop Rajkot retailer

percentage is highest 22.00%.

Out of total respondents 82.60% owners of business have taken insurance of

their shop while 17.40% owners of business have not taken insurance of their shop

Further, who have taken insurance of their shops wholesale businessmen

percentage is highest 51.09% compare to retail businessmen and who have not

taken insurance of their shop retail businessmen percentage is highest 55.17%

compare to wholesale businessmen. Further, also out of the total businessmen who

have taken insurance of their shop Ahmedabad and Surat businessmen percentage

is highest 84.00% compare to other cities and who have not taken insurance of their

shop Rajkot businessmen percentage is highest 20.00% compare to other cities.

This signifies that overall businessmen have taken insurance of their shop who have

taken insurance for their shop wholesaler is higher compare to retailer and who not

taken insurance for their shop retailer is higher compare to wholesaler.


and Retailer regarding taking insurance of shop


Retailer regarding taking insurance of shop

240




χ ² t = 3.84

Interpretation of Result:


3.84. The calculated value of χ ² is 1.128 which is higher than the table value, hence

the result of the experiment does support the hypothesis. So null hypothesis is

accepted and alternative hypothesis is rejected. It means there is no significant

relationship between wholesaler and retailer regarding taking insurance of shop.

chapter - 4 research methodologyshodhganga.inflibnet.ac.in/bitstream/10603/7289/12/13_chapter...

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