MBA notes

November 15 2025

What is Bank Reconciliation Statement (BRS) and its Preparation?

LU Notes Admin ACCOUNTING SEM 1 BBA Accounting, Bank Reconciliation, Bank Reconciliation Statement, BBA Notes, BRS, BRS Format, Cash Book, How to Prepare BRS, lucknow university, MBA notes, Pass Book 0

What is a Bank Reconciliation Statement (BRS)?

A Bank Reconciliation Statement (BRS) is a statement prepared to match (reconcile) the bank balance as per the company’s Cash Book with the balance as per the Pass Book (or bank statement) on a specific date.

Here’s a simple breakdown:

Cash Book (Bank Column): This is the company’s own record. The business records all its bank transactions (deposits and payments) here. A debit balance (Dr.) is favorable (money in the bank).
Pass Book (Bank Statement): This is the bank’s record of the company’s account. It’s a copy of the customer’s account in the bank’s books. A credit balance (Cr.) is favorable.

In a perfect world, the Cash Book balance and the Pass Book balance would be identical. However, due to timing and errors, they often do not match. The BRS is the tool used to identify and explain these differences.

Why is a BRS Prepared? (Purpose & Importance)

A BRS is a vital financial control tool. Its main purposes are:

To Find Errors: The reconciliation process helps in discovering errors made either by the business (in the Cash Book) or by the bank (in the Pass Book).
To Detect Fraud: It can uncover fraudulent activities. For example, if a cashier records a deposit in the Cash Book but never actually deposits the cash into the bank, the BRS will highlight this.
To Identify Delays: A BRS shows any undue delays in the clearance of cheques, helping the business manage its cash flow.
To Verify Accuracy: It confirms the accuracy of the entries in both sets of books.

9 Common Causes of Difference

The balances in the Cash Book and Pass Book may differ for several reasons, which fall into two main categories:

A. Timing Differences (Transactions recorded at different times):

Cheques issued but not yet presented: The business credits its Cash Book (balance down) as soon as it issues a cheque. However, the bank only debits the Pass Book (balance down) when the cheque is actually cashed by the recipient, which could be days or weeks later.
Cheques deposited but not yet collected: The business debits its Cash Book (balance up) as soon as it deposits a cheque. The bank, however, only credits the Pass Book (balance up) after the cheque has been cleared (collected), which can take a few days.

B. Transactions Known to One Party (But not the other):

Amount directly deposited by customers: A customer pays directly into the bank. The bank credits the Pass Book (balance up), but the business won’t know until it sees the statement.
Bank Charges: The bank debits the Pass Book (balance down) for services like fees, overdraft interest, or commission. The business only finds out after seeing the statement.
Direct Receipts by the bank: The bank collects dividends or interest on behalf of the business. The Pass Book is credited (balance up), but the business doesn’t know yet.
Direct Payments by the bank: The bank pays expenses (like rent or insurance) on the company’s behalf as per standing instructions. The Pass Book is debited (balance down), but the business hasn’t recorded it yet.
Dishonour of Cheques/Bills: A cheque you deposited bounces. The bank debits your Pass Book (balance down), but you may not know until you receive the intimation.

C. Errors:

Errors committed by the Firm: The business might make a mistake in its own Cash Book (e.g., wrong amount, forgetting to record a transaction).
Errors committed by the Bank: The bank might make a mistake in the Pass Book (e.g., debiting the wrong account, wrong amount).

How to Prepare a Bank Reconciliation Statement (Examples)

A BRS is simply a statement that starts with one balance, adds and subtracts the “causes of difference,” and arrives at the other balance.

Example 1: Starting with a Favorable Cash Book Balance

Illustration: XYZ Ltd. has a Cash Book (Dr.) balance of ₹1,54,300 on 31st March 2004. The Pass Book shows a different balance for these reasons:

(i) Cheques deposited but not yet credited: ₹75,450
(ii) Cheques issued but not yet presented: ₹80,760
(iii) Bank charges not in Cash Book: ₹1,135
(iv) Cheques received by bank directly: ₹1,35,200
(v) Insurance premium paid by bank (not in Cash Book): ₹15,400

Solution:

Bank Reconciliation Statement

as on 31st March, 2004

Particulars	Amount (₹)	Amount (₹)
Bank balance as per the Cash Book (Dr.)		1,54,300
Add:
Cheques issued but not yet presented	80,760
Cheques received by the bank directly	1,35,200	2,15,960
		3,70,260
Less:
Cheques deposited but not yet credited	75,450
Bank charges not yet recorded in Cash Book	1,135
Insurance premium paid by the bank	15,400	91,985
Balance as per the Pass Book (Cr.)		2,78,275

Example 2: Starting with a Favorable Pass Book Balance

Illustration: Prepare a BRS as on March 31, 2007, from the following:

(a) Bank balance as per Pass Book: ₹9,800 (Cr.)
(b) Cheque deposited but not credited: ₹5,000
(c) Cheque issued but not presented: ₹7,000
(d) Cheque deposited dishonored (not in Cash Book): ₹2,000
(f) Cheque deposited and credited, but omitted in Cash Book: ₹4,000
(g) Cheque received and entered in Cash Book, but not sent to bank: ₹5,000
(j) Bank charges in Pass Book only: ₹100
(m) Direct payments by customers in Pass Book only: ₹8,000

Solution

Bank Reconciliation Statement

as on March 31, 2007

Particulars	Amount (₹)	Amount (₹)
Bank balance as per Pass Book (Cr.)		9,800
Add:
(b) Cheque deposited but not yet credited	5,000
(d) Cheque deposited dishonored (not in Cash Book)	2,000
(g) Cheque received but not sent to bank	5,000
(j) Bank charges in Pass Book only	100	12,100
		21,900
Less:
(c) Cheque issued but not presented for payment	7,000
(f) Cheque deposited, omitted in Cash Book	4,000
(m) Direct payments by customers in Pass Book only	8,000	19,000
Bank balance as per Cash Book (Dr.)		2,900

The Adjusted Cash Book Method (A More Practical Approach)

The method above is used to reconcile, but a more practical approach for businesses is to first correct their own Cash Book for all the items they didn’t know about.

This is called the Adjusted Cash Book Method.

Step 1: Open the Cash Book (Bank Column) and record all the items that were only in the Pass Book (e.g., bank charges, direct deposits, dishonored cheques, interest).
Step 2: Calculate the new, “Adjusted Cash Book Balance.”
Step 3: Prepare a BRS using only the timing differences and bank errors.

Example: Adjusted Cash Book Method

Illustration: From the following, prepare an Adjusted Cash Book and then a BRS as on 31st March 2004.

Cash Book Balance (Dr.): ₹1,24,250
(i) Cheques deposited but not credited: ₹1,74,020
(ii) Cheques issued but not presented: ₹1,06,240
(iii) Error in Cash Book: carried forward as ₹45,720 instead of ₹45,270 (excess debit of ₹450)
(iv) Bank charges not recorded: ₹1,045
(v) Cheque from customer wrongly entered in cash column instead of bank column: ₹26,740

Solution:

Here is your properly structured and neatly formatted Step 1 (Adjusted Cash Book) and Step 2 (Bank Reconciliation Statement) exactly as required:

Step 1: Adjusted Cash Book (Bank Column Only)

Dr. Cr.

Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
Mar 31	To Balance b/d	1,24,250	Mar 31	By C/F Error (Overcast)	450
Mar 31	To Cash A/c (Omitted)	26,740	Mar 31	By Bank Charges	1,045
			Mar 31	By Balance c/d (Adjusted)	1,49,495
	Total	1,50,990		Total	1,50,990
Apr 1	To Balance b/d	1,49,495

Step 2: Bank Reconciliation Statement

as on 31st March, 2004

Particulars	Amount (₹)	Amount (₹)
Adjusted Bank balance as per Cash Book (Dr.)		1,49,495
Add:
Cheques issued but not yet presented	1,06,240	1,06,240
		2,55,735
Less:
Cheques deposited but not yet credited	1,74,020	1,74,020
Balance as per the Pass Book (Cr.)		81,715

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November 15 2025

Depreciation in-depth : SLM vs. WDV explained fully

LU Notes Admin ACCOUNTING SEM 1 BBA Accounting for Depreciation, AS-6, BBA Notes, Depreciation, Fixed Assets, lucknow university, MBA notes, SLM, Straight Line Method, WDV, Written Down Value Method 1

What is Depreciation? (AS-6)

Depreciation is the gradual, permanent, and continuous fall or decrease in the value of a fixed asset. It’s a non-cash business expense that is “charged” against the profit of a company over the asset’s useful life.

According to Accounting Standard (AS) 6, depreciation is:

“A measure of the wearing out, consumption or other loss of value of a depreciable asset, arising from use, affluxion of time or obsolescence through technology and market changes.”

Simply put, you buy a machine for ₹1,00,000, and you plan to use it for 10 years. You can’t call the entire ₹1,00,000 an expense in Year 1. Instead, you spread that cost over the 10 years you use it. This process of spreading the cost is called depreciation.

What is a “Depreciable Asset”?

As per AS-6, an asset is depreciable only if it meets three conditions:

It is expected to be used for more than one accounting period.
It has a limited useful life. (This is why land is generally not depreciated).
It is held by the business for use in production, supply of services, or for administrative purposes (i.e., it is not held for the purpose of resale).

Why is Depreciation Necessary? (Significance)

To Ascertain Correct Profit: Depreciation is a cost of earning revenue. To find the true profit for a period, you must deduct all costs (including depreciation) from the revenues of that period.
To Show a True Financial Position: If you don’t charge depreciation, your assets will be shown at their original cost in the Balance Sheet, which is misleading. Depreciation ensures assets are shown at their “true and fair” value.
To Fund Asset Replacement: It creates a fund by setting aside a portion of profits each year, so you have money available to buy a new asset when the old one wears out.
To Account for Wear and Tear: Assets (like machinery) lose value simply from being used.
To Account for Obsolescence: An asset may become outdated due to new technology (e.g., an old typewriter is replaced by a computer) long before it physically breaks down.

recording” depreciation” (the” two” ways)

There are two main ways to record depreciation in the books:

When Provision for Depreciation Account is NOT Maintained:
- Depreciation is debited, and the Asset Account is credited.
- Journal Entry: Depreciation A/c Dr. / To Asset A/c
- In this method, the Asset Account in the Balance Sheet is always shown at its Written Down Value (Cost – Depreciation).
When Provision for Depreciation Account IS Maintained:
- Depreciation is debited, and a new account called “Provision for Depreciation” (or “Accumulated Depreciation”) is credited.
- Journal Entry: Depreciation A/c Dr. / To Provision for Depreciation A/c
- In this method, the Asset Account in the Balance Sheet is always shown at its Original Cost. The “Provision” is shown as a deduction from it.

Methods of Providing Depreciation

While there are many methods, the two most common methods required for BBA/MBA students are the Straight Line Method (SLM) and the Written Down Value (WDV) Method.

1. Straight Line Method (SLM)

This method is also known as the “Fixed Installment Method.”

What it is: A method where the depreciation is calculated on the Original Cost of the asset.
Key Feature: The amount of depreciation remains constant (fixed) every single year throughout the asset’s life.
Formula:
$Depreciation = \frac{(Original\;Cost - Estimated\;Scrap\;Value)}{Estimated\;Useful\;Life\;(in\;Years)}$

✅ Merits of SLM

It is very simple and easy to calculate.
The asset’s value can be completely written off to zero (or its scrap value) at the end of its life.

❌ Demerits of SLM

It is unrealistic. The burden on the Profit & Loss account increases over the years (as repair costs go up, but the depreciation charge stays the same).
It is not recognized by income tax authorities in India for most assets.

Example: Straight Line Method (SLM)

Illustration: Mr. Ramesh purchased a second-hand machine for ₹24,000 on 1st April 2006. He spent ₹10,000 on its overhaul and installation. Depreciation is written off at 10% p.a. on the original cost. On 30th June 2008, the machine was sold for ₹19,000. Prepare the Machine Account (assuming accounts close on 31st Dec).

Solution:

Working Note:

Original Cost of Machine = Purchase Price + Installation = ₹24,000 + ₹10,000 = ₹34,000
Annual Depreciation (10% of Cost) = 10% of ₹34,000 = ₹3,400 per year

Machinery Account

Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2006			2006
Apr 1	To Cash A/c (Cost + Install)	34,000	Dec 31	By Depreciation A/c (9 months)	2,550
			Dec 31	By Balance c/d	31,450
	Total	34,000		Total	34,000
2007			2007
Jan 1	To Balance b/d	31,450	Dec 31	By Depreciation A/c (Full Year)	3,400
			Dec 31	By Balance c/d	28,050
	Total	31,450		Total	31,450
2008			2008
Jan 1	To Balance b/d	28,050	June 30	By Depreciation A/c (6 months)	1,700
			June 30	By Cash A/c (Sale)	19,000
			June 30	By P&L A/c (Loss on Sale)	7,350
	Total	28,050		Total	28,050

2. Written Down Value (WDV) Method

This method is also known as the “Diminishing Balance Method” or “Reducing Balance Method.”

What it is: A method where depreciation is calculated on the Written Down Value (Book Value) of the asset, which is the (Original Cost – All Previous Depreciation).
Key Feature: The rate of depreciation is constant (e.g., 10%), but the amount of depreciation decreases every year.
Result: The value of the asset can never become zero under this method.

✅ Merits of WDV

It is more logical. The depreciation is high in the early years (when the asset is most efficient) and low in the later years (when repair costs are high).
It is recognized by income tax rules in India.

❌ Demerits of WDV

The asset can never be fully written off to zero.
Calculating the rate (if not given) is complex.

Example: Written Down Value (WDV) Method

Illustration: Lakshmi Narain Co. Ltd. purchased machinery on 1st April 2006 for ₹45,000. It purchased another machine on 1st Oct 2006 for ₹30,000. Depreciation is charged at 10% p.a. on the WDV method. Accounts close on 31st Dec. Show the Machinery Account for 2006 and 2007.

Solution:

Machinery Account

Dr. Cr.

Date	Particulars	Amount (₹)	Date	Particulars	Amount (₹)
2006			2006
Apr 1	To Cash A/c (M1)	45,000	Dec 31	By Depreciation A/c (W.N. 1)	4,125
Oct 1	To Cash A/c (M2)	30,000	Dec 31	By Balance c/d	70,875
	Total	75,000		Total	75,000
2007			2007
Jan 1	To Balance b/d	70,875	Dec 31	By Depreciation A/c (W.N. 2)	7,087.50
			Dec 31	By Balance c/d	63,787.50
	Total	70,875		Total	70,875
2008
Jan 1	To Balance b/d	63,787.50

Working Notes (W.N.)

You can provide the values or ask me to compute all depreciation workings (W.N. 1, W.N. 2, etc.), and I will complete this section cleanly.

If you want this in image form, PDF, or T-account style, I can generate that too.

Depreciation for 2006:
- On M1: ₹45,000 x 10% x (9/12) = ₹3,375
- On M2: ₹30,000 x 10% x (3/12) = ₹750
- Total = ₹4,125
Depreciation for 2007 (Calculated on WDV):
- WDV of M1 = (₹45,000 – ₹3,375) = ₹41,625
- WDV of M2 = (₹30,000 – ₹750) = ₹29,250
- Total WDV = ₹41,625 + ₹29,250 = ₹70,875
- Total Depreciation for 2007 = 10% of ₹70,875 = ₹7,087.50

SLM vs. WDV: Key Differences

Basis of Difference	Straight Line Method (SLM)	Written Down Value (WDV) Method
Basis of Calculation	Depreciation is charged on the Original Cost of the asset.	Depreciation is charged on the Book Value (WDV) of the asset.
Amount of Depreciation	The amount is constant (fixed) every single year.	The amount decreases every year.
Asset Value	The asset’s value can become zero at the end of its useful life.	The asset’s value can never become zero.
Burden on P&L A/c	Increases over time (Depreciation is fixed, but repair costs increase).	Remains relatively constant (Depreciation is high when repairs are low, and vice versa).
Tax Recognition	This method is not recognized by income tax rules.	This method is recognized and preferred by income tax rules.
Suitability	Best for assets with a fixed life and low repair costs, like leases or buildings.	Best for assets with high repair costs in later years, like plant and machinery.

📚 Keep Studying!

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November 15 2025

In-depth about The Accounting Equation, Cycle & Classification of Accounts

LU Notes Admin ACCOUNTING SEM 1 BBA Accounting Cycle, Accounting Equation, BBA Notes, Classification of Accounts, Double-Entry System, lucknow university, MBA notes, Nominal Account, Personal Account, Real Account 1

Guide to the Accounting Equation, Cycle, and Classification of Accounts

For BBA and MBA students, understanding the core principles of accounting is essential. This guide breaks down the three most fundamental concepts: the Accounting Equation, the Accounting Cycle, and the Classification of Accounts.

1. The Accounting Equation

The Accounting Equation is the absolute foundation of the double-entry bookkeeping system. It shows that what a business owns (its Assets) must be equal to the claims against those assets—what it owes to outsiders (Liabilities) and what it owes to its owner (Capital).

The equation is:

Assets = Liabilities + Capital (or Owner’s Equity)

This equation is the basis for the Balance Sheet and must always remain in balance. Every single business transaction affects this equation in at least two places.

Understanding the Components

Assets: What the business owns (e.g., cash, land, machinery, inventory, debtors).
Liabilities: What the business owes to outsiders (e.g., bank loans, creditors for goods).
Capital (Equity): What the business owes to its owner. This is the “residual claim”—what is left for the owner after all liabilities are paid.

Equity = Assets – Liabilities

How Transactions Affect the Equation

Owner Invests Cash: Assets (Cash) increase and Capital increases.
Take a Bank Loan: Assets (Cash) increase and Liabilities (Loan) increase.
Repay a Loan: Assets (Cash) decrease and Liabilities (Loan) decrease.
Buy an Asset: One Asset (e.g., Machinery) increases and another Asset (e.g., Cash) decreases.
Earn Revenue (in cash): Assets (Cash) increase and Capital (Revenue) increases.
Pay an Expense: Assets (Cash) decrease and Capital (Expense) decreases.

2. The Accounting Cycle

The Accounting Cycle is the complete, step-by-step process of recording, classifying, and summarizing business transactions. It’s a continuous sequence that begins with a transaction and ends with the preparation of the final financial statements.

The 6 Key Steps of the Accounting Cycle

Analyze Transactions: The first step is to analyze a transaction from its source document (e.g., an invoice, order, or check).
Prepare Journals: The transaction is recorded for the first time in a Journal, also known as the “book of original entry.”
Post to Ledger Accounts: This is the classifying step. All journal entries are transferred (or “posted”) to their respective Ledger Accounts (e.g., all cash transactions go to the Cash A/c).
Prepare a Trial Balance: This is the summarizing step. A Trial Balance is a list of all ledger account balances. It is prepared to check if the total debits equal the total credits, ensuring the books are arithmetically correct.
Post Closing Entries: At the end of the period, all temporary accounts (Revenue and Expense accounts) are “closed” (their balances are transferred) to the Capital account to calculate the final profit or loss.
Prepare Financial Statements: The final step is to prepare the Trading Account, Profit & Loss Account, and Balance Sheet from the adjusted trial balance.

3. Classification of Accounts

To properly record transactions in the Journal and Ledger, you must know what kind of account you are dealing with. There are two main ways to classify accounts: the English Approach (Traditional) and the American Approach (Modern).

English Approach (Traditional)

This approach divides all accounts into three main types.

Account Type	What It Is	Examples
1. Personal Account	Accounts related to all persons, firms, companies, or representative groups.	Ram’s A/c, SBI Bank A/c, ABC Ltd.’s A/c, Outstanding Salary A/c (representative).
2. Real Account	Accounts of all assets and properties of the business.	Land A/c, Machinery A/c, Cash A/c, Goodwill A/c, Patent A/c.
3. Nominal Account	Accounts of all Incomes, Expenses, Losses, and Gains (easily remembered by the acronym “IELG”).	Rent A/c, Salary A/c, Commission Received A/c, Loss by Fire A/c.

American Approach (Modern)

This approach classifies accounts based on the accounting equation (A = L + C).

Assets Accounts: All business assets (e.g., Plant, Machinery, Land, Cash, Debtors).
Liabilities Accounts: All outsider claims (e.g., Loans, Creditors, Bills Payable).
Capital Account: The owner’s investment in the business.
Revenue Accounts: All incomes and gains (e.g., Sales, Interest Received, Commission).
Expenses Accounts: All costs and losses (e.g., Repairs, Rent, Salaries, Insurance).

Keep Studying!

[Link to Principles of Management Notes]
[Link to Personality Development Notes]
[Link to Complete Computer application Notes]

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November 15 2025

IFRS, Ind AS, and AS Explained (Accounting Standards) Indepth

LU Notes Admin ACCOUNTING SEM 1 BBA Accounting Principles, Accounting Standards (AS), AS 1 Disclosure, BBA Notes, Difference between AS and Ind AS, ICAI, IFRS, Indian Accounting Standards (Ind AS), lucknow university, MBA notes, What is IFRS 1

An Introduction to Accounting Standards (IFRS, Ind AS, and AS)

For any business, it is essential that its financial statements are transparent, consistent, and reliable. This builds trust with investors, creditors, and customers. To achieve this, a set of rules and guidelines, known as Accounting Standards, are followed.

As an accounting or management student, you will hear three different terms: IFRS, Ind AS, and AS. Understanding the difference is the first step to mastering Indian accounting.

1. What are IFRS? (The Global Standard)

IFRS stands for International Financial Reporting Standards.
These are a single set of high-quality, global accounting standards issued by the International Accounting Standards Board (IASB) based in London.
The Goal: To create a common “accounting language” that companies around the world can use. This makes it easier to compare the financial statements of a company in India with a company in Germany or the USA.

2. What are Ind AS? (The New Indian Standard)

Ind AS stands for Indian Accounting Standards.
These are India’s own set of standards that are “converged with” IFRS. This means they are almost identical to IFRS, but with a few minor changes (called “carve-outs” and “carve-ins”) to make them more suitable for the Indian economy.
Who uses them? The Ministry of Corporate Affairs (MCA) has made Ind AS mandatory for large, listed companies in India (based on their net worth and turnover) in a phased manner.

3. What are Accounting Standards (AS)? (The Legacy Indian Standard)

AS stands for Accounting Standards.
These are the traditional accounting standards issued by the Accounting Standards Board (ASB) of the Institute of Chartered Accountants of India (ICAI).
Who uses them? Companies that are not required to adopt Ind AS (e.g., smaller, unlisted companies) continue to follow these Accounting Standards (AS).

In short: IFRS is the global standard. Ind AS is the new Indian version of IFRS for large companies. AS is the older, traditional Indian standard for smaller companies.

Understanding Accounting Standards (AS) in Detail

The text you provided is a detailed explanation of the older Accounting Standards (AS), which are still very relevant for all BBA and MBA students.

The Need for Accounting Standards (AS)

The main goal of AS is to remove variations in accounting treatment and bring uniformity. Without standards, two companies could record the same event differently, making their financial statements impossible to compare.

Example 1 (Inventory): If one company uses the LIFO (Last-In, First-Out) method for valuing its stock and another uses FIFO (First-In, First-Out), their profits will be different, even if their sales are the same. AS 2 (Valuation of Inventories) provides rules for this.
Example 2 (Depreciation): If one company uses the Diminishing Balance Method for depreciation and another uses the Fixed Installment Method, their reported profits and asset values will differ.

How Accounting Standards (AS) are Formulated in India

In India, the Accounting Standards are formulated by the Accounting Standard Board (ASB), which was set up by the ICAI in 1977.

The process is as follows:

Identify Area: The ASB identifies a broad area (e.g., “Accounting for Fixed Assets”) that needs a standard.
Form Study Group: A study group is formed with members from ICAI, government, and public sector units.
Create a Draft: The group holds discussions and prepares an Exposure Draft (ED) of the proposed standard.
Public Comment: The ED is circulated to outside bodies (like ICWAI, ICSI, CBDT) and the public for comments.
Finalize: After considering all comments, the ASB finalizes the standard and submits it to the ICAI council.
Issue Standard: The ICAI council approves and issues the final Accounting Standard.

List of Indian Accounting Standards (AS)

The ICAI has issued the following standards. (Note: Some standards like AS 8 and AS 6 have been withdrawn or merged, but this is the comprehensive list).

Standard	Title	Standard	Title
AS 1	Disclosure of Accounting Policies	AS 17	Segment Reporting
AS 2	Valuation of Inventories	AS 18	Related Party Disclosures
AS 3	Cash Flow Statement	AS 19	Leases
AS 4	Contingencies & Events After B/S Date	AS 20	Earnings Per Share
AS 5	Net Profit/Loss, Prior Period Items	AS 21	Consolidated Financial Statements
AS 6	Depreciation Accounting (Withdrawn)	AS 22	Accounting for Taxes on Income
AS 7	Construction Contracts	AS 23	Investments in Associates
AS 8	Research & Development (Withdrawn)	AS 24	Discontinuing Operations
AS 9	Revenue Recognition	AS 25	Interim Financial Reporting
AS 10	Fixed Assets (Property, Plant, Equip.)	AS 26	Intangible Assets
AS 11	Effects of Changes in Foreign Exchange	AS 27	Financial Reporting of Joint Ventures
AS 12	Accounting for Government Grants	AS 28	Impairment of Assets
AS 13	Accounting for Investments	AS 29	Contingent Liabilities & Assets
AS 14	Accounting for Amalgamations	AS 30	Financial Instruments: Recognition
AS 15	Employee Benefits	AS 31	Financial Instruments: Presentation
AS 16	Borrowing Costs	AS 32	Financial Instruments: Disclosures

Deep Dive: AS 1 (Disclosure of Accounting Policies)

AS 1 is the most fundamental standard as it deals with the policies a company follows when preparing its financial statements.

1. Fundamental Accounting Assumptions

AS 1 states that all financial statements are assumed to be prepared based on three key concepts. If they are not followed, a company must disclose it.

Going Concern: The business is assumed to be continuing its operations for the foreseeable future. It has no intention to liquidate or shut down.
Consistency: It is assumed that the accounting policies are consistent from one period to another. (e.g., if you use a depreciation method, you should use it consistently every year).
Accrual: Revenues and costs are recognized as they are earned or incurred, not when cash is received or paid. (e.g., You record a sale when it’s made, even if the customer will pay you next month).

2. Considerations in Selecting Accounting Policies

The goal is to present a true and fair view. To achieve this, management must consider three major principles when selecting a policy:

Prudence: Be cautious. This means you should not anticipate profits, but you should provide for all known liabilities and losses, even if the amount is just an estimate.
Substance over Form: The accounting treatment should be governed by the financial reality (the substance) of a transaction, not just its legal form.
Materiality: Financial statements must disclose all “material” items. An item is material if its knowledge might influence the decisions of the user (e.g., a loss of ₹100 is not material for a large company, but a loss of ₹10 Crore is).

3. Disclosure of Accounting Policies

Rule 1: All significant accounting policies adopted (e.g., “Depreciation is charged using the Straight-Line Method”) must be disclosed in one place.
Rule 2: Any change in an accounting policy that has a material effect must be disclosed. The company must also state the amount by which the change has affected the profit or loss.

📚 Keep Studying!

[Link to Principles of Management Notes]
[Link to Personality Development Notes]
[Link to Complete Computer application Notes]

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November 9 2025

Memo vs. Office Order vs. Press Release

LU Notes Admin BUSINESS COMMUNICATION BBA Notes, Business Communication, External Communication, Internal Communication, lucknow university, MBA notes, Memo, Office Memorandum, Office Order, Press Release, Public Relations 0

In business, using the right communication tool is essential. A message to your team is very different from a formal company directive or an announcement to the media. This guide breaks down three key types of written communication: the Office Memorandum (Memo), the Office Order, and the Press Release.

1. Office Memorandum (Memo)

A memorandum (or “memo”) is a short, informal piece of writing designed for communication within an organization.

Its name comes from “a note to help the memory.” A memo is sent between individuals who work at the same company, often as a reminder, a request, or a quick update.

Key Characteristics

Internal: Used only inside the company.
Informal Tone: It is less formal than a letter and often has a friendly tone. It does not require formal elements like a salutation (“Dear…”) or a complimentary close (“Sincerely…”).
Concise: It is short, clear, concrete, and specific.
No Emotional Appeal: It is a straightforward, functional document.

Common Uses of a Memo

To provide brief information or issue instructions.
To communicate minor policy changes.
To make a request (e.g., asking for a meeting).
To seek tips or ask for help.
To record or confirm an agreement reached on the telephone.
To establish accountability.

When not to use a memo: A memo is not proper for complex, serious, or lengthy conversations.

2. Office Order

An office order is a formal, authoritative communication issued by an employer or a senior authority. It is a form of downward communication that employees are bound to accept.

This document carries the stamp of company authority. It is not a request; it is a directive that must be followed.

Key Characteristics

Internal & Formal: Used inside the company and is highly formal and official.
Binding: It is a directive, not a suggestion. Employees must comply.
Downward: It flows from the top of the organization (management) down to the employees.
Precise: It must be short, to the point, and clearly specify the information to avoid any misinterpretation.
Written: As a formal course of action, it should always be a written document.

Common Uses of an Office Order

Announcing promotions, postings, or transfers.
Detailing a suspension, discharge, or disciplinary proceeding.
Granting privileges or sanctioning annual increments.
Imposing new rules, regulations, or restrictions.
Enforcing a specific course of action.

3. Press Release (News Release)

A press release (or news release) is a short, compelling news story written by a public relations (PR) professional. It is an external communication sent to targeted members of the media (journalists, publications, news channels).

The goal of a press release is not to sell a product, but to “pique the interest” of a journalist so they will decide to write their own story about your company’s news.

Key Characteristics

External: Sent outside the company to the media.
Journalistic Style: It must be written in the third person (e.g., “The company announced…” not “We are announcing…”).
Newsworthy: It must be about something new, interesting, or unique.
Factual, Not a Sales Pitch: It must be factual. If it sounds too promotional, journalists will ignore it and it will lose credibility.
Contains the 5 Ws: It must provide all the essential information: Who, What, Where, When, and Why.

Standard Structure of a Press Release

Contact Information: The name, phone number, and email of the PR contact person.
Headline: The most important part. A short, intriguing title that summarizes the news.
Dateline: The location and date of the release (e.g., “Lucknow, India – November 9, 2025”).
Lede (First Paragraph): The most critical sentence. It summarizes the entire story (the 5 Ws) in 25 words or less.
Body: Provides more details, context, and quotes from key people.
Boilerplate: A short, standard “About Us” paragraph at the very end that describes the company.
Call to Action: Tells the journalist what to do next (e.g., “To find out more, contact…”).

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November 9 2025

How to Write a Business Letter? (Need, Functions, Kinds & Layout)

LU Notes Admin BUSINESS COMMUNICATION BBA Notes, Business Letter Format, Business Letter Layout, Business Letter Writing, Formal Lette, How to Write a Business Letter, lucknow university, MBA notes, Types of Business Letters 0

Business Letter Writing

A business letter is a formal letter from one company to another, or between an organization and its customers, clients, or other external parties. It is a vital tool in business as it produces a permanent written record and is often taken more seriously than other forms of communication.

This guide covers the need, functions, kinds, and proper layout for writing a professional business letter.

1. Why Do We Need Business Letters? (Need & Functions)

In business, letters are a major tool for communication. They act as a representative of the organization and are an inexpensive substitute for a personal visit.

The primary functions of a business letter are:

To Convey Information: The most basic purpose is to share information about business activities with customers, suppliers, banks, or government authorities.
To Serve as Evidence: A business letter is a formal document that can be used as legal evidence for a transaction. It can be preserved for future reference.
To Build Goodwill: A well-written, professional, and courteous letter creates a positive image of the company and promotes goodwill.
To Create Demand: A circular letter (a type of sales letter) can be sent to many people at once to create demand for a new product.
To Expand Business: By creating goodwill and new contacts, letters help to enhance and enlarge a business.
To Place Orders: A very common function is to send a formal Order Letter to a supplier for goods or raw materials.
To Inquire: Businesses use Inquiry Letters to ask for information they need from other parties.
To Solve Problems: Letters are a professional way to handle disputes or misunderstandings in a formal, recorded manner.

2. Kinds & Types of Business Letters

Letters are broadly divided into Formal Letters (which include all business and official letters) and Informal Letters (personal letters to friends or family).

Within business, there are many kinds of letters, each with a specific focus:

Sales Letters: These start with a strong statement to capture the reader’s interest and persuade them to buy a product.
Order Letters: Sent to a supplier to order goods or services. Must be specific (model number, quantity, price).
Complaint Letters: A formal letter outlining a problem. The tone should be direct but tactful and professional.
Adjustment Letters: A reply to a complaint. If you are granting the customer’s request, say so immediately.
Inquiry Letters: Written to ask a question or request information.
Follow-Up Letters: Sent after a meeting or conversation to review what was discussed or to thank a customer.
Letters of Recommendation: A letter from a previous employer or professor describing a job seeker’s qualities.
Cover Letters (Application Letters): Sent with a resume to “cover” it, explaining what’s enclosed and why the sender is a good fit for the job.
Letters of Resignation: A formal letter from an employee to their manager stating their intention to leave the company.
Acknowledgment Letters: A simple receipt to let someone know you have received a prior communication (like an order or application).
Circular Letters: A letter that announces the same information (like a change of address or new management) to a large group of people.
Official Letters: Letters used internally to inform offices, branches, or subordinates about official rules, regulations, or procedures.

3. The Layout: 12 Parts of a Business Letter

A professional business letter is more impressive when you pay attention to every part of its layout.

The Heading / Letterhead: The company’s name, address, contact info, and logo at the top.
Date: Placed on the right-hand side, below the letterhead.
Reference: A code showing which department sent the letter (e.g., “HR/2025/01”).
The Inside Address: The name, title, and full address of the recipient. This goes on the left side.
Subject: A brief, eye-catching line that states the letter’s purpose (e.g., Subject: Inquiry about Model 5 Laptop).
The Greeting (Salutation): The formal greeting (e.g., “Dear Mr. Sharma,” or “Dear Sir/Madam,”).
The Body: The main message, usually 3 paragraphs:
- Opening Part: The introduction and reason for writing.
- Main Part: The clear, concise, and complete message.
- Concluding Part: Any suggestions, a call to action, or expectations.
The Complimentary Close: A humble way of ending (e.g., “Yours faithfully,” “Yours sincerely,” “Thanks & Regards,”).
Signature: The handwritten signature, followed by the typed name and designation of the sender.
Enclosures (Encl.): A note showing what other documents are attached (e.g., “Encl: 1. Cheque, 2. Invoice”).
Copy Circulation (C.C.): A note showing who else is receiving a copy of the letter.
PostScript (P.S.): A small extra note added after the letter is finished (rare in modern business letters).

4. Professional Layout, Tone, and Etiquette

The layout and tone are just as important as the content.

Font and Spacing:
- Use a plain, professional font like Arial or Times New Roman (10pt or 12pt).
- Single-space the text within your paragraphs.
- Leave one blank line between each paragraph.
- Left-justify all text (align it to the left margin).
Etiquette and Tone:
- Salutation: Always use “Dear” followed by the recipient’s title and last name (e.g., “Dear Dr. Gupta”). Avoid casual greetings like “Hi” or “Hello.” If you don’t know the name, use “To Whom It May Concern.”
- Closing: Use conservative closings like “Sincerely,” “Best regards,” or “Respectfully.” Avoid casual closDings like “Cheers” or “Thanks!”
- Language: Use complete sentences and professional word choices. Avoid slang, abbreviations (like “TTYL”), emojis, or text-speak. Always be polite, even in a complaint letter.
- Paper: If mailing a hard copy, use standard white bond paper.
Key Tips for Writing:
1. Identify the Type: Know if you’re writing a formal, informal, or business letter.
2. Be Clear: Get to the point quickly, especially in formal letters.
3. Be Polite: Use courteous language.
4. Be Concise: Formal letters should be to the point. Lengthy letters often lose their effect.

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November 9 2025

How to Write a good Application letter and Resume?

LU Notes Admin BUSINESS COMMUNICATION BBA Notes, Business Writing, Cover Letter, Effective Writing, Employment Communication, Job Application Letter, lucknow university, MBA notes, Resume Writing, Writing Techniques 0

How to Write a Job Application Letter (Cover Letter)

A job application letter, more commonly known as a cover letter, is a formal letter you send with your resume. This letter is your chance to “sell” yourself to an employer. Its purpose is to provide information on your skills and experience and explain why you are the ideal candidate for a specific position.

A professional, well-formatted cover letter is essential. Anything that appears unprofessional can prevent a hiring manager from taking you seriously.

6 Essential Tips for Writing Your Application Letter

Do Not Just Copy Your Resume: Your resume is a general record of your experience. Your cover letter is a sales pitch. It should convince the hiring manager to read your resume by highlighting your most relevant experience.
Tailor Each Letter to the Job: This is the most important rule. You must personalize each letter to fit the company and the position. Match your qualifications to the job posting by highlighting the specific skills and requirements from the job description.
Be Professional: Application letters have a rigid format. Stick to a formal level of professionalism. Always use a proper salutation (e.g., “Dear Mr./Ms. Last Name,”) and avoid casual language.
Carefully Proofread: Employers are likely to ignore an application with a lot of errors. Read through your letter multiple times. Ask a friend or career counselor to read it. Pay special attention to spelling the company’s name and the hiring manager’s name correctly.
Follow Business Letter Format: Always use the standard business letter format. (See the format breakdown below).
Hard Copy vs. Email:
- Email: You must have a clear subject line (e.g., “Graphic Designer—Your Name”). Your contact information goes below your signature.
- Hard Copy: Your contact information and the date go at the top of the letter.

The Correct Job Application Letter Format

Use this structure as your guideline.

1. Contact Information (Your Info)

Your Name Your Address Your City, State, Zip Code Your Phone Number Your Email Address

2. Date

The date you are writing the letter.

3. Employer Contact Information (Their Info)

Name (if you have it) Title (e.g., Human Resources Director) Company Name Company Address Company City, State, Zip Code

4. Salutation (Greeting)

Dear Mr./Ms. Last Name, (Note: Try your best to find the hiring manager’s name. If you cannot, “Dear Hiring Manager,” is an acceptable last resort.)

5. Body of the Letter

This is where you make your case.

First Paragraph: State why you are writing. Mention the exact job you are applying for and where you found the job listing. If you were referred by someone, mention their name here (e.g., “My former colleague, Stephanie Taylor, told me…”).
Middle Paragraph(s): This is the most important section. Describe what you have to offer. Explain how your qualifications match the job description. Do not repeat your resume; interpret it. Use specific examples. If you say you have “team experience,” give an example of a team project you succeeded on. (You can use bullet points here to break up the text if you are listing several key qualifications).
Final Paragraph: Conclude your letter by thanking the employer for their time. State that you are available for an interview and include information on how you will follow up.

6. Complimentary Close

Sincerely,

7. Signature

(For a hard copy, leave space to sign your name by hand) Your Typed Signature

Job Application Letter Example

Theintactone 11 South Street Harbor View, Maine 04005 555-555-5555 theintactone@email.com
March 5, 2020
Jason Rivera Human Resources Director Avery Solutions, Inc. 700 Commerce Way Harbor View, Maine 04005
Dear Mr. Rivera,
I was excited when my former colleague, Stephanie Taylor, told me that you were hiring for a Human Resources Specialist at Avery Solutions.
Stephanie has told me how important teamwork is to your group at Avery, and how much you need an HR Specialist who can fit in with the department and hit the ground running on day one. I believe that I am the ideal candidate for your team.

s> In my current job at Smith Group, I created and run our onboarding program, including organizing background checks and new hire orientation. I also have extensive experience in:

Data reporting/data entry on HRIS software
Recruiting and hiring processes, including creating job descriptions and postings, screening resumes, and scheduling interviews
Producing company events, such as the annual company-wide picnic (100+ employees from across the country)
I’d love to speak with you about my qualifications and what I can do for your team. I’ve attached my resume for your consideration. Please don’t hesitate to contact me on my cell at 555-555-5555 with questions or to arrange an interview.
Sincerely,
Theintactone

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November 9 2025

Why Most Meetings Fail (And How to Fix Them)

LU Notes Admin BUSINESS COMMUNICATION Agenda Items, BBA Notes, Business Communication, Effective Meetings, How to Conduct a Meeting, lucknow university, MBA notes, Meeting Agenda, Meeting Planning 0

Correct way of conducting a meeting

Communicating in a meeting is an essential part of business. However, many meetings are inefficient and fail to accomplish their objective. This is often because:

They are too long or unsystematic.
They lack a clear agenda.
They don’t involve participation from everyone.
They don’t begin on time.
They end without any clear conclusion or decision.

Such meetings lead to agitation and are a sheer waste of time. To be effective, a meeting must be planned, systematic, and rational.

The 4-Step Process for Running an Effective Meeting

Here is a simple process to ensure your meetings are productive and successful.

1. Plan the Meeting

A well-planned meeting is already halfway to success. Planning includes:

Outline the Objective: Why are you having this meeting? What one thing must be accomplished?
Decide the Attendees: Who really needs to be there?
Plan the Agenda: List the topics, the sequence, and the time allotted for each.
Plan the Logistics: Set a clear start time, end time, and any breaks.

2. Announce the Meeting (Issuing the Notice)

After planning, you must formally notify the attendees. This is done by sending a Notice of Meeting.

What is a Notice? A notice is the formal memorandum, letter, or email that officially announces the meeting. It must be sent to all participants with enough time for them to prepare.
What it Includes: A notice must contain the date, time, venue (or link), and the broad purpose of the meeting.
Include the Agenda: The notice must be accompanied by the Agenda. This allows participants to come prepared to discuss the topics.

3. Conduct the Meeting

This is the execution phase.

Be Punctual: Arrive early. Start the meeting exactly on time.
State the Objective: Begin the meeting by reminding everyone of its purpose.
Involve Everyone: Encourage new ideas and ask for feedback from all attendees.
Manage Distractions: Ensure cell phones are silent and people aren’t gossiping or fiddling.
Stick to the Time: Follow the agenda and make sure all issues are discussed within the time frame.
Conclude Clearly: Give a quick review of issues discussed and any decisions made. If you run out of time, ask participants if they can move the remaining items to the next meeting and fix a time for it.

4. Evaluate the Meeting

After the meeting, assess its effectiveness.

Distribute an anonymous evaluation form to all participants.
Ask questions like, “Were the meeting’s objectives met?” or “Which part of the meeting was most/least constructive?”
This honest feedback helps you improve future meetings.

📝 What is a Meeting Agenda?

An agenda is the most critical tool for a successful meeting.

It is a list of meeting activities in the order in which they are to be taken up. It acts as a schedule, docket, or calendar for the meeting, beginning with the “call to order” and ending with “adjournment.” It turns a chaotic discussion into a systematic process.

Where Do Agenda Items Come From?

Meetings take time and effort to arrange, so the agenda must be well-thought-out. Items are typically sourced from:

Previous Minutes: Business that was left unfinished or “matters arising.”
Suggestions: Items submitted by members or participants.
New Events: Actions or issues that have come up since the last meeting.
Correspondence: Topics from letters or emails that the organization needs to address.

How to Create a Formal Agenda: The Standard Order

An agenda contains routine items as well as special items for discussion. Here is the standard, professional order for listing them.

Apologies from Absent Members: Noting who could not attend.
Condolences (if any): A brief, formal mention if a member has suffered a loss.
Reading and Approval of Minutes: The secretary reads the minutes (summary) of the last meeting, and the group votes to approve them as an accurate record.
Matters Arising: Discussing any unfinished business from the previous meeting’s minutes.
Urgent and Non-Controversial Items: Quick-to-solve issues or announcements.
Matters Requiring Discussion: This is the main body of the meeting. These are the major topics that require debate and decisions.
Any New, On-the-Spot Items: Often called “Any Other Business” (AOB). These can only be brought up with the approval of the chairman.
Date of the Next Meeting: Fixing the time for the next meeting before everyone leaves.

Note: The very last item is usually a “vote of thanks” to the chairman for conducting the meeting, but this is a verbal action and is not typically written on the agenda itself.

How to Write Agenda Items (Examples)

The items can be written briefly or in more detail.

Style 1: Brief (Noun-based)

(i) Appointment of auditors
(ii) Induction of new members
(iii) Felicitating [Name] on their award

Style 2: Action-Oriented (To-Verb)

(i) To read and approve the minutes of the previous meet
(ii) To consider the advertisement draft
(iii) To appoint sub-committees for the sports competition

A Final, Critical Rule

The agenda must be manageable within the time at disposal. Do not create an agenda with 20 items for a 60-minute meeting. A common time limit for a standard meeting is 90 minutes, which automatically dictates how much you can realistically discuss.

✍️ From Notes to Minutes: The Official Record

A meeting’s work is lost if it isn’t documented. This involves two steps: taking notes during the meeting and preparing minutes after the meeting.

What are Meeting Notes?

Meeting notes are the informal, raw record of what is happening during the meeting.

Who takes them? Anyone can take personal notes, but a specific person (usually the secretary or a designated note-taker) is responsible for taking detailed notes.
What’s in them? Notes capture the main points of discussion, debates, ideas, and who said what.
Purpose: Notes are not the final document. They are the raw data used to draft the official minutes.

What are Meeting Minutes?

The minutes are the final, formal, and official record of a meeting. They are distributed to all attendees (and sometimes other stakeholders) after the meeting.

Key Difference: Minutes record what was decided, not what was said. They are a summary of outcomes, not a transcript of the conversation.

A good set of minutes must include:

Logistics: Date, time, and location of the meeting.
Attendees: A list of who was present (and who was absent, noted from the “apologies”).
Decisions: A clear record of every decision made or vote taken.
Action Items: A specific list of what needs to be done, who is responsible for doing it, and the deadline.
Approval: A note that the minutes from the previous meeting were read and approved (this corresponds to item #3 on the agenda).

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November 9 2025

How to Write a Business Report & effective Writing?

LU Notes Admin BUSINESS COMMUNICATION : Report Writing, BBA Notes, Business Communication, Business Report, Chronological Order, Executive Summary, How to Write, How to Write a Report, lucknow university, MBA notes, Metaphor, Report Structure, Simile, Writing Organization, Writing Techniques 0

How to Write a Business Report: 7 Common Mistakes to Avoid

Writing a formal report for senior management can seem overwhelming. Unlike an essay, a report must have a specific, professional language and a clear structure. You must keep to the point and avoid “rambling” with personal stories or figures of speech.

If you understand the rules and avoid these 7 common mistakes, you’ll be able to write an effective report.

Mistake 1: Confusing the Introduction and the Executive Summary

Many writers start with the introduction, but a formal report must begin with an Abstract or Executive Summary.

What it is: The executive summary sums up the entire report. It briefly covers your findings, analysis, and recommendations.
A Simple Trick: Write your executive summary after you have finished the entire report. It’s much easier to summarize something that is already complete.
The Rule: Keep it concise (maximum 150 words) and use clear, informative language.

Mistake 2: Writing Without a Clear Structure

A report is not a wall of text. It must be organized with clear subheadings and chapters. Before you start writing, plan your outline.

Here are two common structures you can use:

Structure A (Analysis Report):

Abstract (Executive Summary)
Introduction
Background
Method
Findings
Strength, Weaknesses, Opportunities, Threats (SWOT)
Conclusions
Recommendations

Structure B (Formal Report):

Title Page
Contents Page
Terms of Reference
Procedure / Methods
Summary
Main Body
Results
Conclusion & Recommendation
You can leave out parts you don’t need (like a ‘Glossary’).

Mistake 3: Weak or Unprofessional Recommendations

The Recommendations section is the most important part of your report. This is your proposal to management. It’s where you show your superiors what changes are needed to make the company run better.

Be Confident: Use “power words” and write with confidence.
Be Professional: This section must be free of all grammar and stylistic mistakes.

Mistake 4: Making the Report Too Short (or Too Long)

Too Short: A very short report proves you didn’t spend enough time on research and analysis.
Too Long: A report that is too long will be boring. Your superiors will not read every word; they will “skim” the main parts.
The Solution: Write a medium-length report that is concise but still explains every point in detail.

Mistake 5: Not Spending Enough Time on Research

You cannot write a good report in one night. You need to collect data, analyze it, find problems, and come up with efficient solutions.

Senior management can easily tell if you spent 3 hours on a report or 3 weeks. A good report requires in-depth research. Don’t rush it.

Mistake 6: Writing in a Literary or Casual Way

A business report is not an essay, a short story, or a piece of fiction.

DON’T: Use metaphors, flowery language, or a storytelling style.
DO: Use highly technical, industry-specific language. If you are writing a report for a bank, use financial terms. Keep it concise and to the point.

Mistake 7: Excessive or Complicated Graphics

Your report is not a drawing competition. While graphs are useful, avoid these mistakes:

Don’t use all the colors of the rainbow. Stick to 1-2 professional colors (e.g., black and red, or black and blue).
Don’t make graphics too complicated. They should be easy and quick to understand.
Do: If one graph is too complex, create several simpler graphs to explain each point.

Writing: Organization & Key Techniques

All writing has a structure. Understanding how to organize your thoughts is the first step to writing a clear and effective essay or report. This guide covers the main ways to structure your writing and the techniques you can use to make your message powerful.

Part 1: How to Organize Your Writing (Organizational Patterns)

There are many ways to structure your writing. The pattern you choose helps the reader understand your message. Here are three of the most common.

1. Chronological Order

This is the easiest pattern to identify. The writing follows the order of time. This means the text sticks to a specific timeline with a clear beginning, middle, and end.

Examples: Novels, short stories, and biographies. A biography almost always begins with a person’s birth, describes their childhood, and continues as they age.

2. Order of Importance

This pattern organizes ideas based on their importance or strength. You start with the most important or strongest idea first, followed by the second most important, the third, and so on.

Example: This is common in persuasive essays. If you are writing about recycling, and your strongest argument is that “it saves trees,” you should explain that idea first.

3. Compare and Contrast

This pattern is used to discuss two objects or ideas.

Compare: This means to describe the similarities between two things.
Contrast: This means to describe the differences between two things.

Part 2: 10 Essential Writing Techniques

These techniques (sometimes called “figures of speech”) can make your writing more creative and memorable.

Simile A comparison between two different subjects using the words “like” or “as.”
- Example: “Linda looks as thin as a toothpick.”
Metaphor Similar to a simile, but it states that one thing is another. It does not use “like” or “as.”
- Example: “Life is a rollercoaster.”
Rhetorical Question A question that is asked to make a point, not to get an answer. It makes the reader think.
- Example: “How am I supposed to live without you?”
Alliteration Repeating the first consonant sound in a series of words.
- Example: “The waves washed wistfully against the shores.”
Assonance Repeating a vowel sound (a, e, i, o, u) within a series of words.
- Example: “The man with the tan was the meanest in the land.”
Personification Giving human characteristics to something non-human (like an object or animal).
- Example: “The thunder grumbled like an old man.”
Onomatopoeia A word that represents a sound.
- Example: “Beep! Beep! The drivers behind were becoming impatient.” (Other examples: “whack,” “boing,” “thud.”)
Emotive Language Using words (adjectives and adverbs) related to emotions to make the reader feel empathy.
- Example: “Lee was sad after hearing about the death of his grandmother.”
Colloquial Language Informal, conversational language, or “slang.” This is often used in stories to make a character’s dialogue sound realistic.
- Example: “I ain’t going… I’m just gonna stay in.” (Informal) vs. “I am not going… I’m just going to stay in.” (Formal)
Hyperbole Using excessive exaggeration to highlight a point.
- Example: “I’ve been waiting forever.” (The speaker hasn’t literally been waiting forever, but it feels like it.)

By LuNotes – your trusted for Lucknow University Semester exam notes, crafted with love. ❤️

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November 9 2025

Corporate Communication vs. Public Relations

LU Notes Admin BUSINESS COMMUNICATION BBA Notes, Corporate Communication, Crisis Management, Internal Communications, lucknow university, MBA notes, Media Relations, PR vs Corp Comm, Public Relations (PR), What is Corporate Communication, What is PR 0

Part 1: What is Corporate Communication? (The Big Picture)

Corporate Communication is the set of all activities a company uses to manage and coordinate its communications. It is a strategic function that aims to send a cohesive and consistent message to all stakeholders (people who depend on the company).

The main goal is to create a favorable point of view, explain the company’s mission, and build credibility and trust.

This includes two main types of communication:

Internal Communication: How the company communicates with its own employees, executives, and shareholders. This is done through memos, e-mails, and internal newsletters.
External Communication: How the company communicates with the outside world. This includes customers, vendors, government agencies, and the general public, using tools like reports, websites, and press releases.

The Scope of Corporate Communication

The “scope” of corporate communication is what it tries to achieve:

Create an Identity: To build a clear identity for the organization, like the ones Tata or Reliance have as companies for “their people.”
Build a Brand: To balance the pride of internal audiences (like employees) with the needs of external audiences (like customers) to grow the brand.
Manage Reputation: In an age of fast-spreading rumors, a key job is to manage and protect the organization’s reputation and prestige.
Develop a Communication Model: To create a long-run communication strategy so the organization is not isolated and can connect with its people.

The 7 Key Components of Corporate Communication

Corporate Communication is a large function made up of several key parts:

Corporate Branding: This is the visual identity of the company (logo, symbols, colors) and the “brand” that unites all products under a single name.
Internal Communications: Keeping all employees in the loop about new products, policy changes, or company events. This is done through memos, emails, and newsletters.
Customer Communications: This often overlaps with marketing. It includes creating customer-focused materials like brochures, social media posts, and flyers.
Media Relations: This involves all communication with the press (journalists, news outlets). It includes organizing press conferences and sending out press releases.
Investor Relations (IR): A specialized field focused on keeping financial stakeholders (shareholders, angel investors) happy and confident in their investment.
Crisis Communications: This is a plan for handling any unforeseen event that could damage the company’s reputation (e.g., a workplace accident, a product recall).
Corporate Identity & Reputation: “Identity” is the features the company feels are unique to it. “Reputation” is the perception stakeholders have of the company. The communications team works to make sure these two align.

Part 2: What is Public Relations (PR)? (A Key Component)

Public Relations (PR) is a specific function that exists within the larger umbrella of Corporate Communication.

The main goal of PR is to protect and enhance the reputation of a company or individual. It is the practice of maintaining a healthy, two-way relationship between an organization and its “public” (which includes the media, customers, and the community).

8 Types of Public Relations

PR is a specialized field with many different roles:

Media Relations: This is the most well-known part of PR. It involves dealing with the media (press releases, interviews) to generate positive, free coverage for the company.
Community Relations: Working to develop a strong, positive relationship with the local community. This can involve getting local support for a new project or “giving back” to improve the company’s ethical image.
Corporate & Social Responsibility (CSR): A specific type of PR that focuses on improving the company’s reputation for being ethical, environmentally responsible, and a good corporate citizen.
Public Affairs (Lobbying): This is all about getting the government on your side. It involves convincing ministers or regulators to support a change in legislation that benefits the company.
Crisis Management: This is the PR you need when a disaster strikes (a faulty product, an oil spill, a CEO is arrested). The goal is to deal with the situation quickly to protect the company’s reputation.
Social Media: This is a modern form of PR. It’s a place where a company’s interactions with a single customer are visible to the whole world. It can be used for marketing, building a brand “voice,” or making public apologies.
Employee Relations (Internal PR): This is the business of giving employees a positive view of the company they work for. The goal is to keep them satisfied, motivated, and loyal.
Integrated Marketing & Communications (IMC): This is a strategy to ensure that all communications (from advertising to media relations to internal memos) provide a consistent message that serves the company’s overall strategy.

9 Key Tools Used in Public Relations

PR professionals use many tools to get their message out:

Press Releases: A short, compelling news story sent to journalists.
Press Kits: A folder of information (company history, executive bios) given to the media.
Newsletters: Regular publications distributed to a target audience.
Media Tours: Key people from the company travel to different cities to be interviewed and promote a product.
Events & Functions: Organizing parties, gatherings, or press conferences to promote the brand.
Speaking Engagements: Arranging for company executives to speak at seminars and events.
Advertisements & Brochures: Creating paid media to correctly position the brand.
CSR Activities: Using charity or community work to build a positive image.
Loyalty Schemes: Creating membership cards or premium clubs to retain customers.

Part 3: Corporate Communication vs. Public Relations (The Key Difference)

It is very common for BBA and MBA students to be confused by these two terms. They are very similar, and their functions often overlap.

Here is the simplest way to understand the difference:

Corporate Communication is the broad umbrella that manages all of a company’s communications (internal, external, financial, etc.). The Head of Corporate Communication is the top dog who oversees the entire strategy.
Public Relations (PR) is a specific function under that umbrella. The PR team’s primary focus is on the public and the media.

Think of Corporate Communication as the entire orchestra. Public Relations is the violin section—a very important and visible part, but still just one part of the whole. Investor Relations, Internal Comms, and Corporate Branding are the other sections, and the “Head of Corporate Comms” is the conductor making sure they all play in harmony.

Example: A Company Crisis

Imagine a news story breaks that a senior executive was caught harassing an employee. This is a crisis.

The Corporate Communication team and the Public Relations team must be on the same page and craft a common, consistent message.
The Public Relations team will handle the external message. They will field questions from reporters, write the official press release, and manage the company’s social media.
The Corporate Communication team will handle the internal message. They will write a memo to all employees, explaining what happened, that it is being dealt with, and that the company is committed to a safe workplace.

Both functions are crucial, but they are speaking to different audiences.

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