Subject Code: 3.2
Contact Hours: 50 Hrs Work load: 4 hrs per week
Objectives: This course enables the students to develop awareness about Corporate Accounting in conformity with the Provision of Companies’ Act
Module – I
Share capital of a Company
Company-Shares-stock-kinds of shares-features-issues of shares-SEBI GuidelinesNew share issue procedure-Shares payable by installments at Par, at premium, at Discount-Calls-in-Arrears, Calls-in-Advances, Forfeiture and Re-issue of Forfeited Shares.
Module – II
Bonus and Rights Shares
Bonus Shares: Meaning –Objects Merits and Demerits of the issue of Bonus shares –SEBI Guidelines for the Issue of Bonus Shares. Rights Issue: Meaning –Difference Rights Issue and Public Issue. Stock Split –Comparison of Bonus Shares and Stock Split (Slimp) numerical problems only.)
(10 Hrs) Module – III
Buyback of Shares:
Introduction –Objectives, Benefits, Size and Sources of Buyback-Conditions and limits of Buyback-Modes of Buyback –Through Tender offer from the open market, from odd lot holders (Journal Entries and B/S only)
Module – IV
VALUATION OF SHARES
Meaning – need for valuation – factors affecting valuation – methods of valuation – Asset Backing or Intrinsic Value Method –Yield Valuation Method – Dividend Yield – Fair Value method – value of right shares – valuation of preference shares.
Module – VI
REDEMPTION OF PREFERENCE SHARES
Meaning – legal provisions – treatment regarding premium on redemption – Creation of Capital. Redemption Reserve Account (CRR) – Fresh issue of shares – Arranging for cash balance for the purpose of redemption – minimum number of shares to be issued for redemption – issue of bonus shares – preparation of Balance Sheet after redemption.
(12 Hrs) Books for References:
- N. Maheswari, Financial Accounting.
- Narayanaswamy, Financial Accounting.
- SP Iyengar, Advanced Accountancy.
- RL Gupta, Advanced Accountancy.
- Jain and Narang, Corporate Accounting.
- Tulsian, Advanced Accounting.
- Corporate Accounting by Dr. S N Maheshwari & Dr. S K Maheshwari.