CORPORATE ACCOUNTING – I

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.

(10 Hrs)

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) 

(8 Hrs)

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.

(10 Hrs)

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:

 

  1. N. Maheswari, Financial Accounting.
  2. Narayanaswamy, Financial Accounting.
  3. SP Iyengar, Advanced Accountancy.
  4. RL Gupta, Advanced Accountancy.
  5. Jain and Narang, Corporate Accounting.
  6. Tulsian, Advanced Accounting.
  7. Corporate Accounting by Dr. S N Maheshwari & Dr. S K Maheshwari.