Corporate Accounting

Paper Code: 
24CATG213
Credits: 
4
Contact Hours: 
60.00
Max. Marks: 
100.00
Objective: 

Course Objective:

This course will enable students to acquire the conceptual knowledge of corporate accounting and to understand the various techniques of preparing accounting and financial statements

Course Outcomes (COs):

Course

Learning outcome

(at course level)

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

24CATG213

Corporate Accounting (Theory)

 

CO49: Execute accounting for buy back of shares & Redemption of Preference Shares

CO50: Demonstrate various methods relating to issue & redemption of Debentures.

CO51: Preparation of Company’s Financial Statements, develop an understanding of disposal of profits & calculation of Liability of Underwriters.

CO52: Prepare Cash flow statement of a company

CO53: Determine the value of goodwill and shares of a company

CO54: Contribute effectively in course-specific interaction

 

Approach

in

teaching:

Interactive

Lectures,

Discussion,

Tutorials,

Reading

assignments; Solving

Questions.

 

Learning

activities

for the

students:

Self-learning

assignments

, Effective

questions,

Seminar

presentation  

Class test, Semester end examinations, Quiz, Solving problems in tutorials, Assignments, Presentation, Individual and group projects.

 

×

12.00
Unit I: 
Accounting for buy back of shares and Redemption of Preference shares:

● Accounting for Buy Back of Shares
● Redemption of Preference Shares

12.00
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,
● Redemption of Debentures- Meaning, Sources and Methods for Redemption of Debentures

12.00
Unit III: 
Preparation of Financial Statements:

● Profit and Loss Account, Balance Sheet as per Schedule III Part I & II (Division I in detail and Division II only on overview)
● Disposal of Company profits
● Managerial Remuneration: Ascertaining Profit for Managerial Remuneration
● Remuneration to Directors, Remuneration to Managers
Underwriting of Shares and Debentures
● Meaning of Underwriting, Sub Underwriters,
● Firm Underwriting, Underwriting Commission,
● Marked Applications, Calculation of Liability of Underwriters
● Profit and Loss Account, Balance Sheet as per Schedule III Part I & II (Division I in detail and Division II only on overview)
● Disposal of Company profits
● Managerial Remuneration: Ascertaining Profit for Managerial Remuneration
● Remuneration to Directors, Remuneration to Managers
Underwriting of Shares and Debentures
● Meaning of Underwriting, Sub Underwriters,
● Firm Underwriting, Underwriting Commission,
● Marked Applications, Calculation of Liability of Underwriters

12.00
Unit IV: 
Cash Flow Statement:

● Meaning and Usefulness
● Preparation of a cash flow statement in accordance with Accounting Standard 3 (Revised) issued by the Institute of Chartered Accountants of India. (Only indirect method)
● Limitations of cash flow statement

12.00
Unit V: 
Valuation of Goodwill and shares:

● Features and 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 (Simple problems only)
Valuation of Shares:
● Need for Valuation
● Factors Affecting Valuation of Shares
● Methods of Valuation : Assets Backing Method, Yield Valuation Method

Essential Readings: 

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

References: 

Suggested Readings:
● Porwal L.S., Accounting Theory Tata, McGraw Hill
● Shkla, Grewal, & Gupta Advanced Accounts S.Chand
● Maheshwari S.N ,Advanced Accountancy Vikas Publishing House Pvt Ltd
● Jain S.P & NarangK.L ,Advanced Accountancy , Kalyani Publishers
● Anil, Rajesh Mariyappa Corporate Accounting Himalaya Publishing House

E-Resources:
● https://www.khanacademy.org/economics finance domain/ap macroeconomics/ap financial sector/financial assets ap/v/bonds vs stocks
● https://web.s.ebscohost.com/ehost/search/basic?vid=0&sid=0c7f189a 083f 49b2 8d14 1018e9b1d9a8%40redis
● https://www.scopus.com/home.uri
● http://www.e-book.com.au/freebooks.html

Reference 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

Academic Year: 
2024-2025
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