Wednesday, 23rd September ’20
Good morning, welcome to TMT Wednesday. Did you get a chance to see “This is Paris”, the documentary on the life of Paris Hilton? The movie portrays Paris as a different person altogether and how her life shaped the way it did due to child abuse and ignorance. 2 important takeaways from the movie which reflected strongly and all TMT readers should give a moment to think about.
- In the pace of the current world, are we being true to ourselves and our purpose.
- Be critical of your thoughts. Don’t blindly think what the media shows us.
Today, Paris is a highly acclaimed entrepreneur with her fragrance line doing $3billion in revenue alone and she is one of the highest-paid DJs in the world.
MARKETS
Markets: Key indices further fell on the 22nd due to the fear of the second wave of Coronavirus. The second wave of infections in Europe and other countries has raised fear of re-imposition of lockdown. In such a scenario, markets will continue to take cues from global peers. Due to this, the market is expected to show negative trends. The S&P 500 and the Nasdaq edged higher on Tuesday, led by a bounce in shares of Amazon.com and Apple, while uncertainty over more U.S. fiscal stimulus kept trading in Dow constituents muted.
TECHNOLOGY & INNOVATION
- Trump says ByteDance can’t keep control of TikTok in Oracle deal. Shortly after Trump’s comments, Global Times tweeted that Beijing would likely reject the deal “because the agreement would endanger China’s national security, interests, and dignity.”
- Amazon India launches four new regional languages on its platform – Tamil, Telugu, Kannada, Malayalam. The move is in line with Amazon’s plan to capture the next 200-300 million online consumers, while also giving existing customers the ability to shop and transact online in their native languages.
- Green Monday Holdings, a manufacturer of plant-based pork substitute products and frozen meals and an operator of a chain of vegetarian-focused retail outlets and cafes, said it has raised $70 million in financing from investors including TPG’s The Rise Fund
WHAT ELSE IS COOKING
- Reliance Jio announces new ‘Postpaid Plus’ plans, starting ₹399: Reliance Jio has announced the JioPostpaid Plus scheme to provide enhanced services across connectivity, entertainment, and experience for its users. Starting at the price of ₹399, the JioPostpaid Plus will provide a slew of services, including free subscription for OTT apps like Netflix, Amazon Prime, Disney+ Hotstar, and data rollover up to 500 GB as well as free international calls to USA and UAE.
- Serum Institute of India starts manufacturing Codagenix’s nasal COVID-19 vaccine: Serum Institute of India has started manufacturing COVID-19 vaccine candidate developed by Codagenix Inc, the US biotech said in a statement. Dubbed as CDX-005, the coronavirus vaccine candidate has completed pre-clinical animal studies. The drugmaker aims to initiate a phase I clinical trial of its COVID-19 vaccine in the United Kingdom by the end of this year.
- Smaaash Entertainment shuts down as pandemic hits business: Popular Indian gaming and entertainment center operator Smaaash Entertainment is shutting down as few choose to hang out in its arcades amid surging coronavirus cases. The company, which has counted cricket legend, Sachin Tendulkar, as its brand ambassador for years, operates in more than 40 locations across 19 cities in India and used to be a popular hangout for urban teens and tweens before coronavirus lockdowns and fears forced them indoors.
BUSINESS LOUNGE
Know your Khata
The market – kiranas, mom & pop stores in tier 2 cities and lower (but not limited to that.) The product – a digital ledger; the competition – a physical ledger (and perhaps an unpaid bookkeeper – the youngest in the house?) Word of mouth has been the strongest driver of the adoption of KhataBook, bringing classic network effects into play.
This customer acquisition strategy worked because shopkeepers are more likely to believe other shopkeepers about the savings and revenue benefits of Khatabook. All the unpaid credit balances sitting in a physical notebook now came to life in KhataBook’s app.
By sending reminders on Whatsapp and through SMS when it’s time for the merchant to collect due payments, KhataBook helped store owners recover half of their receivables in 2019 within weeks of onboarding them. These had been traditionally done through writing in notebooks.
Ravish Naresh, along with his team of college friends, started Kyte.ai, a digital spend manger app. They wanted to help their users understand their expense pattern using their SMS alerts. Kyte did not reach their expected growth scale. They figured that all their users were based out of metropolitan cities.
By this time a small shop keeper’s son, Vaibhav Kalpe had built the original Avatar of Khatabook which had 60k downloads on the Play store already. When Ravish stumbled upon it, he had found his answer. The team of kyte and the idea of Khatabook together was like salt and pepper. And what followed was a remarkable growth, trouncing Ravish’s previous venture by some distance.
TMT VARSITY
Adjusting entries are a crucial part of the accounting process and are usually made on the last day of an accounting period. They are made so that financial statements reflect the revenues earned and expenses incurred during the accounting period.
Adjusting entries impact five main accounts.
1) ACCRUED REVENUES
For any service performed in one month but billed in the next month would have adjusting entry showing the revenue in the month you performed the service.
You make the adjusting entry by debiting accounts receivable and crediting service revenue.
2) ACCRUED EXPENSES
Wages paid to an employee is a common accrued expense.
To make an adjusting entry for wages paid to an employee at the end of an accounting period, an adjusting journal entry will debit wages expense and credit wages payable.
3) UNEARNED REVENUES
Payments for goods to be delivered in the future or services to be performed is considered an unearned revenue.
For example, if you place an online order in September and that item does not arrive until October, the company who you ordered from would record the cost of that item as unearned revenue. The company would make adjusting entry for September (the month you ordered) debiting unearned revenue and crediting revenue.
4) PREPAID EXPENSES
Prepaid expenses refer to assets that are paid for and that are gradually used up during the accounting period. A common example of a prepaid expense is a company buying and paying for office supplies.
Written by Kumar Sourav Mohanty, Akansh Bhatt, and Shashank Dobhal
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