We have great pleasure in presenting First edition “Advanced Corporate Accounting” written for students of UG courses. The related matters are written in a simple and easily understandable.
This volume is an attempt to pro vide the students with thorough understanding of Advanced Corporate Accounting. We have presented the subject matter in a systematic manner with liberal use of charts and diagrams where ever necessary so as to make it interesting and sustain students’ interest.
Contents –
Module – 1 Amalgamation of Companies
Introduction
Meaning of Amalgamation
Types of Amalgamation
Amalgamation in the Nature of Merger
Amalgamation in the Nature of Purchase
Relevant Accounting Standards
AS-14 (or Ind AS 103)
Methods of Accounting
Pooling of Interest Method
Purchase Method
Purchase Consideration
Types of PC
Lump Sum
Net Assets
Net Payment
Shares Method
Ledger Accounts in the Books of Transferor
Incorporation Entries in Books of Transferee Company
Preparation of Balance Sheet after Amalgamation
Treatment of Inter-company Transactions
Debts and Unrealized Profits
Review Questions
Practical Problems with Answer
Module – 2 Internal Reconstruction
Introduction
Meaning of Internal Reconstruction
Need for Internal Reconstruction
Methods of Internal Reconstruction
Alteration of Share Capital
Reduction of Share Capital
Accounting Entries for: Writing off Accumulated Losses
Fictitious Assets
Revaluation of Assets and Liabilities
Reorganization of Share Capital
Preparation of Capital Reduction Account
Reconstructed Balance Sheet
Legal Procedures
Compliance Requirements
Review Questions
Practical Problems with Answer
Module – 3 Redemption of Debentures
Introduction
Meaning of Debentures
Types of Debentures
Terms of Redemption: At par
At Premium
or at discount
Redeemable at Fixed Time or by Drawing Lots
Methods of Redemption
Lump Sum Payment
Instalment Basis
Sinking Fund Method
Journal Entries for Redemption
Debenture Redemption Reserve (DRR)
Investment (DRI)
Treatment of Loss on Issue of Debentures
Purchase of Own Debentures for Cancellation
Review Questions
Practical Problems with Answer
Module – 4 Liquidation of Companies
Introduction
Meaning of Liquidation
Types of Liquidation
Compulsory
Voluntary
Creditors’ Voluntary)
Legal Provisions Related to Liquidation under Companies Act
Preparation Liquidator’s Final Statement of Account
Calculation of Liquidator’s Remuneration
Treatment of: Preferential Creditors
Secured Creditors
Calls on Contributories
Order of Payment in Liquidation
Review Questions
Practical Problems with Answer
Module – 5 Holding Company Accounts
Introduction
Concept of Holding
Subsidiary Companies
Legal Requirements under Companies Act, 2013
Need for Consolidation
Objectives of Consolidation
Key Concepts: Cost of Control
Goodwill
Capital Reserve
Minority Interest
Pre- and Post-acquisition Profits
Elimination of Intra-Group Transactions and Unrealized Profits
Consolidated Profit & Loss Statement
Preparation of Consolidated Balance Sheet under AS 21
Review Questions
Practical Problems with Answer