Financial Accounting : For University of Mumbai

Description

Cover Financial Accounting and Auditing Copyright Contents Preface Syllabus w.e.f. 2009–2010 Pattern of Question Paper Section – I Shares Meaning Meaning of Company Meaning of Shares Classes of Shares Share Capital Mode of Issue Pricing of Issues Accounting Treatment Relating to Issue of Shares Forfeiture of Shares Re-issue of Forfeited Shares Illustrations Key Terms Redemption of Preference Shares Meaning Company Provisions Methods of Redemption Accounting Treatment Illustrations Key Points Buyback of Shares Meaning Purpose of Buyback of Shares Benefits of Buyback Company Law Provisions for Buyback of Equity Shares Source of Buyback Methods of Buyback Accounting Treatment Illustrations Key Terms Issue of Debentures Nature and Meaning of Debentures Purposes of Issuing Debentures Types of Debentures On the Basis of Transferability On the Basis of Security On the Basis of Performance On the Basis of Convertibility Differences and Similarities Between Shares and Debentures Differences Similarities Issue of Debentures Important Provisions in the Companies Act on Issue of Debentures Accounting Aspects of Issue of Debentures Provision for Redemption of Debentures Sinking Fund Method Disclosure Requirements Illustrations Key Points Key Terms Redemption of Debentures Meaning of Redemption Methods of Redemption Redemption out of Capital Redemption out of Profit Purchase of Own Debentures Purchase for Immediate Cancellation when there is No Sinking Fund Cum-Interest Purchase Ex-Interest Purchase Illustrations Key Points Key Terms Ascertainment and Treatment of Profit Prior to Incorporation Meaning Calculation of Profit or Loss Accounting Treatment Illustrations Key Points Key Terms Preparation of Final Accounts of Companies Meaning of Financial Statements Balance Sheet Income Statement Objectives of Financial Statements Financial Statement—Requirements and Contents Balance Sheet Liability Side Assets Side Profit and Loss Appropriation Account Requirements of Profit and Loss Account and Balance Sheet Profit and Loss Account Balance Sheet Some Particulars Items of Adjustments Illustrations Key Points Amalgamation of Companies (AS 14) Meaning Accounting Standard 14 Issued by Institute of Chartered Accountants of India Types of Amalgamation Amalgamation in the Nature of Merger Amalgamation in the Nature of Purchase Purchase Consideration Methods of Computing Purchase Consideration Accounting Procedure in the Books of Transferor Company and Transferee Company Accounting Procedure in the Books of Transferee Company Illustrations Capital Reduction and Internal Reconstruction Need for Reconstruction Reconstruction of a Company Reorganisation or Alteration Capital Reduction Procedure for Internal Reconstruction Legal aspects to be covered Scheme of Internal Reconstruction Alteration of Share Capital Variation of Rights Compromise and Arrangements Pro Forma of Capital Reduction Account and Balance Sheet After Reconstruction Difference Between External Reconstruction and Internal Reconstruction Illustrations Key Points Key Terms Investment Accounting Meaning and Definition of Investment Purpose of Making Investment Classification of Investments AS 13 Cost of Investments Sale of Investments Closing Balance of Investment Account/Valuation of Investment/Carrying Amount of Investment Return on Investment Accounting Treatment Journal Entries for Fixed Interest Bearing Securities Journal Entries for Transactions of Variable Securities: Equity Shares Investment in Property Disclosure under AS Illustrations Key Points Points to Remember KeyTerms Accounting for Translation of Foreign Currency Transactions (AS 11) Introduction Accounting Standard No. 11 (Revised) Issued by the Institute of Chartered Accountants of India Foreign Currency Transactions Illustrations Section – II University Questions with Solution (2003 to 2008) Redemption of Preference Shares Buyback of Shares Redemption of Debentures Profit Prior to Incorporation Preparation of Final Accounts of Companies Amalgamation of Companies (AS 14) Capital Reduction and Internal Reconstruction Investment Accounting Accounting for Translation of Foreign Currency Transactions (AS 11) Theory Questions