It gives us immense pleasure to present the First Edition of Financial Accounting-IV, carefully developed to align with the Second Year B.Com. (Accounting and Finance) curriculum under the University of Mumbai, as per the guidelines of the National Education Policy (NEP) 2020 and is applicable from the academic year 2025–26.
This book has been designed to provide students with a strong foundation in corporate accounting concepts and practices. It covers key areas such as company accounts, redemption of preference shares, redemption of debentures, and buyback of securities. Each module presents essential legal provisions under the Companies Act, 2013, along with their practical applications. The content is supported with systematic explanations, formats, and illustrations for better conceptual clarity. A variety of solved and unsolved problems are included to enhance analytical and problem-solving skills.
This book aims to equip learners with the knowledge required for academic excellence and practical accounting competence. We hope it serves as a valuable resource for classroom learning, examination preparation, and professional growth.
Contents –
1. Introduction to Company Accountant
1.1 Meaning of Company
1.2 Types of Company
1.3 Maintenance of Books of Accounts
1.4 Schedule III of the Companies Act, 2013
1.5 Preparation of Profit and Loss Statement Part II of Schedule III
1.6 Preparation of Balance Sheet Part I of Schedule III
1.7 Preparation of the Final Accounts of the Company
1.8 Practical Problems
2. Redemption of Preference Shares
2.1 Introduction
2.2 Meaning of Shares
2.3 Types of Shares
2.4 Types of Preference Shares
2.5 Meaning of Redemption of Preference Shares
2.6 Types/Methods of Redemption
2.7 Accounting Treatment and Journal Entries
2.8 Practical Questions
2.9 Problems for Practice
3. Redemption of Debentures
3.1 Introduction
3.2 Meaning of Debentures
3.3 Features of Debentures
3.4 Types of Debentures
3.5 Meaning of Redemption of Debentures
3.6 Methods of Redemption of Debentures
3.7 Legal Provisions Regarding Redemption of Debentures
3.8 Advantages of Redemption of Debentures
3.9 Disadvantages of Redemption of Debentures
3.10 Distinction between Shares and Debentures
3.11 Sinking Fund Method
3.12 Practical Problems
3.13 Problems for Practice
4. Buyback of Shares
4.1 Meaning of Buyback of Shares
4.2 Definition of Buyback of Shares
4.3 Buyback under Companies Act, 2013
4.4 Conditions of Buyback
4.5 Legal Requirements of Buyback
4.6 Sources of Buyback of Shares
4.7 Capital Redemption Reserve (CRR)
4.8 Calculation of Maximum Amount of Buyback
4.9 Advantages of Buyback of Shares
4.10 Disadvantages of Buyback of Shares
4.11 Practical Questions
4.12 Problems for Practice
