Description

Accountancy & Financial Management – IV

 

SYBCOM Semester IV

 

Syllabus

 

1. Introduction to Company Accounts
Introduction of Basic Terms : Types of companies, nature and formation of companies, Shares, Debentures, Share Capital, Reserves and surplus, types of assets and liabilities, dividen, format of Balance Sheet (Only theory)
Issue of Shares : Different modes IPO, Private Placements, Preferential, Rights, ESO, SWEAT and ESCROW account, Issue of shares at par, premium and discount, Under subscription and Over subscription of shares, forfeiture and reissue of forfeited shares, issue of shares for consideration other than cash. (Only theory)
Issue of Debentures : Types of Debentures, Issue of debentures at par, premium and discount, Issue of Debentures with consideration of Redemption ,Issue of debentures for cash receivable in instalments or at a time Issue of debentures for consideration other than cash. (Only theory)

2. Redemption of Preference Shares
Provision of the Companies Act for redemption of Preference Shares (Sec. 55 of the Companies Act, 2013), Companies (Share and Debentures) Rules.
Methods of Redemption of fully paid up Preference Shares as per Companies Act, 2013 : The proceed of a fresh issue of shares, the capitalisation of undistributed profits and a combination of both, calculation of minimum fresh issue to provide the fund for redemption (Question on entries and/or Balance Sheet)
Note: Companies governed by Section 133 of the Companies Act, 2013 and comply with the accounting standards prescribed for them. Hence, the balance in security premium account not to be utilised for premium payable on redemption of preference shares.

3. Redemption of Debentures
Introduction : Provisions of Section 71 (1) and (4) of the Companies Act, 2013, Creation and investment of DRR including The Companies (Share Capital and Debentures) Rules, 2014, the methods of writing-off discount/loss on issue of debentures; Terms of issue of debentures
Methods of redemption of debentures : By payment in lumpsum and by payment in instalments (excluding from by purchase in open market), Conversion.
(Question on entries. ledgers and/or Balance Sheet and /or redemption of preference shares)

4. Ascertainment and Treatment of Profit Prior to Incorporation
(i) Principles for ascertainment
Preparation of separate combined, columnar Profit and Loss A/c including different basis of allocation of expenses and income

Note : The Law and Standards in force on 1st April immediately preceding the commencement of Academic year will be applicable for ensuing Examinations.