CORPORATE ACCOUNTING

Paper Code: 
AAF 314
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:

CO95: Assess knowledge about companies, Shares, and regulations of companies.

CO96: Discriminate between issue and redemption of shares and debentures.

CO97: Prepare P&L, Balance Sheet as per the Schedule and ascertain profit for remuneration purpose.

CO98: Gain knowledge about underwriting of shares and debentures.

CO99: Evaluate the methods of valuation of goodwill and shares.

Interactive Lectures, Discussion, Tutorials, assignments, Self-learning assignments, Effective questions,  Giving tasks, Solving numerical problems

 

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

 

10.00
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: 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

8.00
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

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 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: 

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

References: 

• Accounting Theory-L.S. Porwal (Tata,McGraw Hill)
• Advanced Accounts-Shukla, Grewal, Gupta (S.Chand)
• Advanced Accountancy-S.N Maheshwari (Vikas Publishing House Pvt Ltd)
• Advanced Accountancy- S.P Jain& K.L Narang , (Kalyani Publishers)
• Corporate Accounting - Anil, Rajesh Mariyappa ( Himalaya Publishing House)
e- RESOURCES:
• https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/a...
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
• Oorja
• The Chartered Accountant
• The ICFAI reader
• The Indian Journal of Commerce
• Vikalpa: Journal for Decision Makers

Academic Year: 
2023-2024
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