CORPORATE ACCOUNTING

Paper Code: 
CATG 213
Credits: 
4
Contact Hours: 
60.00
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:

CO41: Execute accounting for shares and debentures

CO42: Determine managerial remuneration and underwriting commission

CO43: Prepare financial statements of a company

CO44: Prepare Cash flow statement of a company

CO45: Estimate the value of goodwill and shares of a company

Interactive Lectures, Discussion, Tutorials, assignments.

 

 

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

 

12.00
Unit I: 
Accounting for shares:

• Issue of Right and Bonus shares, Buy Back of Shares
Redemption of Preference Shares
• Introduction, Redemption of Preference Shares,Accounting Treatment

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

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

• 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: 

SUGGESTED TEXT BOOKS:
• 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 REFERENCE BOOKS:
• 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 &NarangK.L ,Advanced Accountancy , Kalyani Publishers
• Anil, Rajesh MariyappaCorporate 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: 
2023-2024
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