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
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
Module – III
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.
Module – IV
Company Final Accounts
Preparation of Final Accounts of Joint stock company-Profit prior to Incorporation – Holding Company accounts
(15 hrs) Books for reference: