CORPORATE ACCOUNTING

Paper Code: 
ATG/ BSG/BSR/FSG/FMG/HRG/IBG 211
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: 
Issue, Redemption and Buy Back

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
  • 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

 

8.00
Unit III: 
Financial Statements

          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

 

10.00
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 Shares and Goodwill

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
Essential Readings: 

ESSENTIAL READINGS:

  • Agarwal, Jain, Sharma, Shah ,MangalCorporate Accounting Ramesh Book Depot
  • Mukherjee A.  &Hanif M.  Modern Accountancy  Tata McGraw Hill 
  • Jain &Khandelwal Accounting, PareekAjmera Book Company 

 

SUGGESTED READINGS:

  • Porwal L.S., Accounting TheoryTata,McGraw Hill
  • Shukla, Grewal, &Gupta  Advanced AccountsS.Chand
  • MaheshwariS.N ,Advanced AccountancyVikas Publishing House Pvt Ltd
  • Jain S.P &NarangK.L  ,Advanced Accountancy  , Kalyani Publishers 
  • Anil, Rajesh MariyappaCorporate Accounting   Himalaya Publishing House 

 

References: 

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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