CORPORATE ACCOUNTING –II

Code: 4.2

           Total Hours: 50                                                     Work load 4 Hrs/ week. 

Objectives: This course enables the students to develop awareness about Corporate Accounting in conformity with the Provision of Companies’ Act 

Module – I

          Valuation of Goodwill                                                       

Meaning – Definition – Elements of goodwill – Types of Goodwill – Purchased Goodwill – Non-purchased or inherent Goodwill – Valuation of Non-purchased Goodwill – Average Profit Method –Super Profit Method – Capitalization of Average Profit Method – Capitalization of Super Profit Method – Annuity Method

      (10 hrs)

Module – II

          Amalgamation of Companies                                           

Calculation of Purchase consideration – Take over basis- Net payment basis adopting Accounting Standards 14 and other relevant standards – treatment of fractional shares – liquidation expenses met by Purchasing Company – Passing of Journal Entries – of Ledger Accounts din the books of Vendor - Net Asset Method – Passing of Journal Entries and preparation of ledger accounts – In the books of Purchasing Company – passing incorporating entries – finding out Goodwill or Capital Reserve – treatment of inter- company debts - stock and investment – incorporation expenses – preparation of Balance Sheet 

(15 hrs)

Module – III

           Liquidation                                                                        

Voluntary Liquidation – Preparation of Liquidator’s Statement of affairs – order of payment -calculation of commission on Assets Realized – payment to unsecured creditors – payment to unsecured creditors other than preferential creditors – calculation of pro rata- treatment of uncalled capital – liability of contributors.

(10 hrs)

Module – IV

          Company Final Accounts                                                   

Company Accounts 

Preparation of Final Accounts of Joint stock company-Profit prior to Incorporation – Holding Company accounts 

(15 hrs) Books for reference:

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