CORPORATE ACCOUNTING

Paper Code: 
COM 201
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Outcomes (COs):

Course Outcomes

 

Learning and teaching strategies

Assessment Strategies

 
 

On completion of this course, the students will be able to:

CO42: Develop the basic knowledge of Companies and its Shares and skill to prepare the final accounts of the company.

CO43: Understand the methods of valuation of goodwill and shares.

CO44: Distinguish between Profit and Loss of Prior period of Incorporation and Post period Incorporation in case of Company.

CO45: Analyze comprehensive understanding of the advanced issues in accounting for assets, liabilities and owner’s equity.

CO46: Evaluate the ability to prepare consolidated accounts for a corporate group. Understand and analyze the principles of accounting for investments.

Interactive Lectures, Discussion, Tutorials, assignments.

 

 

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments,  Individual projects

 

 

10.00
Unit I: 
Accounting for shares:

Unit I: Accounting for shares:

  • Demat Shares, Right Issue, Issue of Shares to Vendor, Issue of Shares to Promoters, Issue of Sweat Equity Shares, Employees Stock Option Scheme(ESOS), Bonus Issue.

Redemption of Preference Shares and Buy Back of Shares:

  • Introduction, Redemption of Preference Shares,
  • Accounting Treatment, Calculation of Minimum Fresh issue of shares to comply with section 80 of the Act,
  • Minimum Fresh Issue to Provide Funds for Redemption, Partly Called up Preference Shares and Redemption of Preference Shares,
  • Fully Called up but partly paid up Shares and Redemption of Preference Shares, Buy Back of Equity Shares

 

 

 

  

 

7.00
Unit II: 
Accounting for Debentures

Unit II: Accounting for Debentures

  • Introduction, Meaning and Types of Debentures, Difference between Shares and Debentures,
  • Accounting for Issue of Debentures, Treatment of Discount on issue of Debentures, Interest on Debentures,
  • Meaning of Redemption of Debentures, Sources of Redemption of Debentures, Methods for Redemption of Debentures

07 hrs.

 

  

 

8.00
Unit III: 
Preparation of Financial Statements

 

Unit III: Preparation of Financial Statements

  • Profit and Loss Account, Balance Sheet as per Schedule VI
  • Managerial Remuneration: Ascertaining Profit for Managerial Remuneration,
  •  Remuneration to Directors, Remuneration to Managers
  • Disposal of Profits: Transfer to Reserve,
  • Dividends, Corporate Dividend Tax, Unpaid Dividend Account

08 hrs.

 

 

  

Unit III: Preparation of Financial Statements

  • Profit and Loss Account, Balance Sheet as per Schedule VI
  • Managerial Remuneration: Ascertaining Profit for Managerial Remuneration,
  •  Remuneration to Directors, Remuneration to Managers
  • Disposal of Profits: Transfer to Reserve,
  • Dividends, Corporate Dividend Tax, Unpaid Dividend Account

08 hrs.

 

Unit IV: Acquisition of Business, Pre Incorporation Profit/Loss

               Underwriting of Shares and Debentures

  • Meaning of Underwriting, Sub Underwriters,
  • Firm Underwriting, Underwriting Commission,
  • Marked Applications, Calculation of Liability of Underwriters,

10 hrs.

 

Unit V: Valuation of Goodwill

  • Features of Goodwill, Elements of Goodwill,
  • Types of Goodwill, Accounting for Goodwill,
  • Valuation of Non Purchased Goodwill Average Profit Method, Super Profit Method, Capitalization of Average Method, Capitalization of Super Profit Method, Annuity Method
  • Valuation of Shares: Need for Valuation,
  • Factors Affecting Valuation of Shares,
  • Methods of Valuation Assets Backing Method, Yield Valuation Method

10 Hrs.

 

10.00
Unit IV: 
Acquisition of Business, Pre Incorporation Profit/Loss Underwriting of Shares and Debentures

Unit IV: Acquisition of Business, Pre Incorporation Profit/Loss

               Underwriting of Shares and Debentures

  • Meaning of Underwriting, Sub Underwriters,
  • Firm Underwriting, Underwriting Commission,
  • Marked Applications, Calculation of Liability of Underwriters,

 

 

 

  

 

10.00
Unit V: 
Valuation of Goodwill

nit V: Valuation of Goodwill

  • Features of Goodwill, Elements of Goodwill,
  • Types of Goodwill, Accounting for Goodwill,
  • Valuation of Non Purchased Goodwill Average Profit Method, Super Profit Method, Capitalization of Average Method, Capitalization of Super Profit Method, Annuity Method
  • Valuation of Shares: Need for Valuation,
  • Factors Affecting Valuation of Shares,
  • Methods of Valuation Assets Backing Method, Yield Valuation Method

10 Hrs.

 

Essential Readings: 

ESSENTIAL READINGS:

  • Agarwal, Jain, Sharma, Shah , Mangal  Corporate Accounting Ramesh Book Depot
  • Mukherjee A.  & Hanif M.  Modern Accountancy  Tata McGraw Hill 
  • Jain & Khandelwal Accounting, Pareek Ajmera Book Company 

 

References: 

SUGGESTED READINGS:

  •  Porwal L.S., Accounting Theory Tata,McGraw Hill
  • Shukla, Grewal, &Gupta  Advanced Accounts S.Chand 
  •  Maheshwari S.N , Advanced Accountancy Vikas Publishing House Pvt Ltd
  • Jain S.P & Narang K.L  ,Advanced Accountancy  , Kalyani Publishers 
  • Anil, Rajesh Mariyappa   Corporate Accounting   Himalaya Publishing House 

E RESOURCES:

JOURNALS:

  • Business Perspectives and Research
  • FIIB Business Review
  • Harvard Business Review
  • IUP Journal of Accounting Research
  • Jindal Journal of Business Research
  • Nirma University Journal of Business & Management Studies

 

Note:  The candidate shall be permitted to use battery operated pocket calculator that should not have more than 12 digits, 6 functions and 2 memories and should be noiseless

 

 

Academic Year: 
2022-2023
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