Corporate Accounting

Paper Code: 
24AAF314
Credits: 
3
Contact Hours: 
45.00
Max. Marks: 
100.00
Objective: 

Course Objective:

 

This course will enable the students to gain expert knowledge of principle and procedure of corporate accounting and their application in different practical situations.

 

Course Outcomes (COs):

Course

Course Outcomes

Learning and teaching strategies

Assessment Strategies

Course Code

Course title

24AAF314

 

Corporate Accounting

(Theory)

CO103: Assess knowledge about companies, shares, and regulations of companies and discriminate between issue and redemption of shares and debentures.

CO104: Justify the method of issue and redemption of debentures.

CO105: Prepare financial statements to determine profit for remuneration, and explain methods of profit disposal.

CO106: Gain knowledge about underwriting of shares and debentures and assess the method of acquisition of business.

CO107: Evaluate and assess the methods of valuation of goodwill and shares.

CO108: Contribute effectively in course-specific   interaction.

Approach in teaching: Interactive Lectures, Discussion, Tutorials, assignments, Self-learning assignments,

 

Learning activities for the students:

Solving numerical problems

 

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

 

9.00
Unit I: 
Accounting for Shares:

• 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

9.00
Unit II: 
Accounting for Debentures:

• 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

9.00
Unit III: 
Financial Statements and Disposal of Profits:

• 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

9.00
Unit IV: 
Acquisition of Business, Pre-Incorporation Profit/Loss, Underwriting of Shares and Debentures:

• 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

9.00
Unit V: 
Valuation of Goodwill and Shares:

• 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: 

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

References: 

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

E-Content:
1. https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/a...
 

Reference Journals:
1. Business Perspectives and Research
2. FIIB Business Review
3. Harvard Business Review
4. IUP Journal of Accounting Research
5. Jindal Journal of Business Research
6. Nirma University Journal of Business & Management Studies
7. Oorja
8. The Chartered Accountant
9. The ICFAI reader

Academic Year: 
2024-2025
  • Printer-friendly version
  • PDF version