This book gives a clear and crisp explanation on the principle and practices of the corporate accounting. It is written to address the syllabi requirements of all UG students of Commerce.
Cover
Halftitle Page
Title Page
Copyright Page
Contents
Preface
Chapter 1 Share Capital: Issue, Forfeiture and Reissue of Shares
1.1 Meaning and Definition
1.2 Characteristics of a Company
1.3 Differences between a Partnership and a Company
1.4 Kinds of Companies
1.4.1 On the Basis of Formation
1.4.2 On the Basis of Liability
1.4.3 On the Basis of Involvement of Public Money
1.4.4 On the Basis of Share Holding Pattern
1.4.5 Other Companies
1.5 Differences between a Private Company and a Public Company
1.6 Share Capital and Shares
1.6.1 Types of Share Capital
1.7 Shares
1.7.1 Preference Shares
1.7.2 Equity Shares (Section 43)
1.7.3 Equity Shares with Differential Rights
1.8 Stock
1.9 Differences between Shares and Stocks
1.10 Differences between Reserve Capital and Capital Reserve
1.11 Prospectus
1.12 List of Statutory Books (Section 128
1.13 Mode of Applying for Shares
1.13.1 ASBA - Application Supported by Blocked Amount
1.13.2 Advantages of ASBA
1.14 Issue of Shares
1.14.1 Classification of Issue of Shares Based on Price Point of View
1.14.2 Classification of Issue of Shares Based on Consideration
1.15 Stages in Receiving Sharecapital Money
1.15.1 Share Application Money
1.15.2 Share Allotment Money
1.15.3 Calls-on-Shares
1.15.4 Calls-in-Arrears
1.15.5 Calls-in-Advance
1.16 Forfeiture of Shares
1.17 Surrender of Shares
1.18 Reissue of Forfeited Shares
1.19 Lien on Shares
1.20 Rights Issue (Section 62(1)(a))
1.21 Bonus Issue (Section 63)
1.21.1 Guidelines for Issue of Bonus Shares (Section 63)
1.21.2 Reserves Not Available for Issue of Bonus Shares
11.4.5 Some Special Points for Preparing Liquidator Final Account
11.4.6 Receiver for Debenture Holders
11.4.7 List ‘B’ Contributories
Illustrations
Review Questions
Exercises
Chapter 12 Banking Company Accounts
12.1 Introduction
12.1.1 Functions of Commercial Banks
12.1.2 Important Legal Requirements
12.2 Main Books of Accounts Maintained in a Bank
12.2.1 Main Features of a Bank’s Book Keeping System
12.2.2 Profit and Loss Account
12.2.3 Guidelines of Reserve Bank of India for Profit and Loss Account
12.2.4 Balance Sheet
12.2.5 Guidelines of Reserve Bank of India for Balance Sheet
12.3 Classification of Assets and Income Recognition
12.3.1 RBI Guidelines for Classifying an Asset as Non-Performing
12.3.2 Income Recognition
12.3.3 Interest Suspense Method
12.4 Classification of Advances and Provision for Doubtful Debts
12.4.1 Provisioning for Advances Covered by ECGC/DICGC Guarantee
12.5 Classification of Investments and their Valuation
12.6 Rebate on Bills Discounted/ Unexpired Discount
Illustrations
Review Questions
Exercises
Chapter 13 Accounts of Insurance Companies
13.1 Introduction
13.1.1 Basic Principles of Insurance
13.1.2 Types of Insurance
13.1.3 Differences between Life Insurance and General Insurance
13.1.4 Book of Insurance Company
13.1.5 Regulation of Insurance Business in India
13.2 Financial Statements of LIFE Insurance Companies
13.2.1 Schedule A – Life Insurance
13.2.2 Forms of Financial Statements
13.3 Financial Statement of General Insurance
13.3.1 Schedule B - General Insurance Business
13.3.2 Form of Financial Statements
13.4 Schedule C – Auditor’s Report
Illustrations
Review Questions
Exercises
Chapter 14 Accounts of Holding Companies
14.1 Introduction
14.2 Definition
14.3 Effect on the Financial Statements of Holding Company
14.3.1 Investment in Subsidiary Companies
14.3.2 Consolidation of Financial Statements
14.3.3 Advantages of Consolidation
14.3.4 Consolidation of Balance Sheet
14.3.5 Steps Involved in Preparing Consolidated Balance Sheet
14.4 Other Factors Involved in the Consolidation of Financial Statements
14.4.1 Pre and Post Acquisition Reserves and Profits (Capital Profit and Revenue Profit)
14.4.2 Pre-Acquisition Loss – Capital Loss
14.4.3 Cost of Control or Goodwill
14.4.4 Minority Interest
14.4.5 Elimination of Common Transactions - Inter Company Owings (or) Mutual Owings
14.4.6 Treatment of Unrealised Profit/Stock Reserve
14.4.7 Preference Share Capital in Subsidiary Company
14.4.8 Preference Dividend
14.4.9 Debentures in Subsidiary Company
14.4.10 Revaluation of Assets
14.4.11 Depreciation on Revalued Assets
14.4.12 Bonus Shares
14.4.13 Dividend Received from Subsidiary Company
14.4.14 Proposed Dividend not Given Effect
14.4.15 Interim Dividend Paid by Subsidiary
14.4.16 Uniform Accounting Policies
14.4.17 Contingent Liability
14.4.18 Consolidation of Profit and Loss Account
Illustrations
Review Questions
Exercises
Chapter 15 Double Accounts System
15.1 Introduction
15.1.1 Features of Double Account System
15.1.2 Differences between the Single Account System and the Double Account System
15.1.3 Advantages of Double Account System
15.1.4 Disadvantages of Double Account System
15.1.5 Double Account System and Double Entry System
15.1.6 Final Accounts under the Double Account System
15.2 Final Accounts of Electricity Companies
15.2.1 Revenue Account
15.2.2 Net Revenue Account
15.2.3 Capital Account or Receipts and Expenditure on Capital Account
15.2.4 General Balance Sheet
15.2.5 Calculation of ‘Clear Profit’
15.2.6 Disclosure Requirements of Electricity Companies
Illustrations
Review Questions
Exercises
Index
Prof. R. Palaniappan formerly Head, Department of Commerce, Government Arts College, Salem, has more than 39 years of experience in teaching Financial Accounting, Corporate Accounting and Cost and Management Accounting at undergraduate and postgraduate levels. He is a visiting faculty at Mettur and Salem Chapter of Institute of Cost Accountants of India and Salem Chapter of Institute of Company Secretaries of India. He has wide experience in coaching students for CA, ICWA and CS courses. He has co-authored two textbooks on Cost Accounting.
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Description
This book gives a clear and crisp explanation on the principle and practices of the corporate accounting. It is written to address the syllabi requirements of all UG students of Commerce.
Table of contents
Cover
Halftitle Page
Title Page
Copyright Page
Contents
Preface
Chapter 1 Share Capital: Issue, Forfeiture and Reissue of Shares
1.1 Meaning and Definition
1.2 Characteristics of a Company
1.3 Differences between a Partnership and a Company
1.4 Kinds of Companies
1.4.1 On the Basis of Formation
1.4.2 On the Basis of Liability
1.4.3 On the Basis of Involvement of Public Money
1.4.4 On the Basis of Share Holding Pattern
1.4.5 Other Companies
1.5 Differences between a Private Company and a Public Company
1.6 Share Capital and Shares
1.6.1 Types of Share Capital
1.7 Shares
1.7.1 Preference Shares
1.7.2 Equity Shares (Section 43)
1.7.3 Equity Shares with Differential Rights
1.8 Stock
1.9 Differences between Shares and Stocks
1.10 Differences between Reserve Capital and Capital Reserve
1.11 Prospectus
1.12 List of Statutory Books (Section 128
1.13 Mode of Applying for Shares
1.13.1 ASBA - Application Supported by Blocked Amount
1.13.2 Advantages of ASBA
1.14 Issue of Shares
1.14.1 Classification of Issue of Shares Based on Price Point of View
1.14.2 Classification of Issue of Shares Based on Consideration
1.15 Stages in Receiving Sharecapital Money
1.15.1 Share Application Money
1.15.2 Share Allotment Money
1.15.3 Calls-on-Shares
1.15.4 Calls-in-Arrears
1.15.5 Calls-in-Advance
1.16 Forfeiture of Shares
1.17 Surrender of Shares
1.18 Reissue of Forfeited Shares
1.19 Lien on Shares
1.20 Rights Issue (Section 62(1)(a))
1.21 Bonus Issue (Section 63)
1.21.1 Guidelines for Issue of Bonus Shares (Section 63)
1.21.2 Reserves Not Available for Issue of Bonus Shares
11.4.5 Some Special Points for Preparing Liquidator Final Account
11.4.6 Receiver for Debenture Holders
11.4.7 List ‘B’ Contributories
Illustrations
Review Questions
Exercises
Chapter 12 Banking Company Accounts
12.1 Introduction
12.1.1 Functions of Commercial Banks
12.1.2 Important Legal Requirements
12.2 Main Books of Accounts Maintained in a Bank
12.2.1 Main Features of a Bank’s Book Keeping System
12.2.2 Profit and Loss Account
12.2.3 Guidelines of Reserve Bank of India for Profit and Loss Account
12.2.4 Balance Sheet
12.2.5 Guidelines of Reserve Bank of India for Balance Sheet
12.3 Classification of Assets and Income Recognition
12.3.1 RBI Guidelines for Classifying an Asset as Non-Performing
12.3.2 Income Recognition
12.3.3 Interest Suspense Method
12.4 Classification of Advances and Provision for Doubtful Debts
12.4.1 Provisioning for Advances Covered by ECGC/DICGC Guarantee
12.5 Classification of Investments and their Valuation
12.6 Rebate on Bills Discounted/ Unexpired Discount
Illustrations
Review Questions
Exercises
Chapter 13 Accounts of Insurance Companies
13.1 Introduction
13.1.1 Basic Principles of Insurance
13.1.2 Types of Insurance
13.1.3 Differences between Life Insurance and General Insurance
13.1.4 Book of Insurance Company
13.1.5 Regulation of Insurance Business in India
13.2 Financial Statements of LIFE Insurance Companies
13.2.1 Schedule A – Life Insurance
13.2.2 Forms of Financial Statements
13.3 Financial Statement of General Insurance
13.3.1 Schedule B - General Insurance Business
13.3.2 Form of Financial Statements
13.4 Schedule C – Auditor’s Report
Illustrations
Review Questions
Exercises
Chapter 14 Accounts of Holding Companies
14.1 Introduction
14.2 Definition
14.3 Effect on the Financial Statements of Holding Company
14.3.1 Investment in Subsidiary Companies
14.3.2 Consolidation of Financial Statements
14.3.3 Advantages of Consolidation
14.3.4 Consolidation of Balance Sheet
14.3.5 Steps Involved in Preparing Consolidated Balance Sheet
14.4 Other Factors Involved in the Consolidation of Financial Statements
14.4.1 Pre and Post Acquisition Reserves and Profits (Capital Profit and Revenue Profit)
14.4.2 Pre-Acquisition Loss – Capital Loss
14.4.3 Cost of Control or Goodwill
14.4.4 Minority Interest
14.4.5 Elimination of Common Transactions - Inter Company Owings (or) Mutual Owings
14.4.6 Treatment of Unrealised Profit/Stock Reserve
14.4.7 Preference Share Capital in Subsidiary Company
14.4.8 Preference Dividend
14.4.9 Debentures in Subsidiary Company
14.4.10 Revaluation of Assets
14.4.11 Depreciation on Revalued Assets
14.4.12 Bonus Shares
14.4.13 Dividend Received from Subsidiary Company
14.4.14 Proposed Dividend not Given Effect
14.4.15 Interim Dividend Paid by Subsidiary
14.4.16 Uniform Accounting Policies
14.4.17 Contingent Liability
14.4.18 Consolidation of Profit and Loss Account
Illustrations
Review Questions
Exercises
Chapter 15 Double Accounts System
15.1 Introduction
15.1.1 Features of Double Account System
15.1.2 Differences between the Single Account System and the Double Account System
15.1.3 Advantages of Double Account System
15.1.4 Disadvantages of Double Account System
15.1.5 Double Account System and Double Entry System
15.1.6 Final Accounts under the Double Account System
15.2 Final Accounts of Electricity Companies
15.2.1 Revenue Account
15.2.2 Net Revenue Account
15.2.3 Capital Account or Receipts and Expenditure on Capital Account
15.2.4 General Balance Sheet
15.2.5 Calculation of ‘Clear Profit’
15.2.6 Disclosure Requirements of Electricity Companies
Illustrations
Review Questions
Exercises
Index
Biographical note
Prof. R. Palaniappan formerly Head, Department of Commerce, Government Arts College, Salem, has more than 39 years of experience in teaching Financial Accounting, Corporate Accounting and Cost and Management Accounting at undergraduate and postgraduate levels. He is a visiting faculty at Mettur and Salem Chapter of Institute of Cost Accountants of India and Salem Chapter of Institute of Company Secretaries of India. He has wide experience in coaching students for CA, ICWA and CS courses. He has co-authored two textbooks on Cost Accounting.