3.3 CORPORATE ACCOUNTING
OBJECTIVE
The objective of this course is to enable the students to have a comprehensive understanding about
the provisions of the Companies Act and Corporate Accounting techniques
Unit 1: UNDERWRITING OF SHARES 8 hrs
Meaning – Underwriting Commission – Underwriter – functions – Advantages of Underwriting,
Types of Underwriting – Marked and Unmarked Applications – Problems (Excluding Journal
entries)
Unit 2: REDEMPTION OF DEBENTURES 10 hrs
Meaning of Debentures, Distinction between Shares and Debentures, Types of Debentures, Issue of
Debentures, Over Subscription, Issue of Debentures for ,Consideration other than Cash, Issue of
Debentures as a Collateral Security, Terms of Issue of Debentures, Interest on Debentures, Writing
off Discount/Loss on Issue of Debentures, Redemption of Debentures, Redemption by Payment in
Lump Sum, Redemption by Purchase in Open Market, Redemption by Conversion, Sinking Fund
Method
Unit 3: VALUATION OF GOODWILL 10 hrs
Meaning – Circumstances of Valuation of Goodwill – Factors influencing the value of Goodwill –
Methods of Valuation of Goodwill – Average Profit Method – Super Profit Method – Capitalization
of Super Profit Method –Annuity Method – Capitalization of Profit Method
Unit 4: VALUATION OF SHARES 8 Hrs
Meaning – Need for Valuation – Factors Affecting Valuation – Methods of Valuation – Asset
Backing or Intrinsic Value Method – Yield Method – Earning Capacity Method – Fair Value
Method – Rights Issue and Valuation of Rights Issue
Unit 5: COMPANY FINAL ACCOUNTS 20 Hrs
Statutory Provisions regarding preparation of Company Final Accounts – Treatment of Special
Items – Managerial Remuneration – Tax deducted at source – Advance payment of Tax – Provision
for Tax –Depreciation – Interest on debentures – Dividends – Rules regarding payment of
dividends ( Theory only) – Transfer to Reserves – Preparation of Profit and Loss Account and
Balance Sheet as per Section 129of companies act 2013
BUSINESS LAB ACTIVITIES
1. Collect a Prospectus of a company and identify the reasons to invest or not to invest in
shares.
2. List the various functions of underwriters.
3. Collect annual report of a Company and List out its assets and Liabilities.
4. Collection of latest final accounts of a company and find out the net Asset value of shares
5. List out the conditions to be fulfilled for redemption of Debenture
BOOKS FOR REFERENCE
1. S. P. Jain and K. L. Narang – Corporate Accounting, Kalyani Publishers.
2. SP Iyengar, Advanced Accountancy, Sultan Chand and Sons, New Delhi.
3. R L Gupta, Advanced Accountancy, Sultan Chand and Sons, New Delhi.
4. M.A.Arunachalam & K.S.Raman: Corporate Accounting – II, HPH.
5. Dr. S.N. Maheswari , Financial Accounting, Jain Book Depot.
6. V.K. Goyal: Corporate Accounting, PHI.
7. Soundrarajan A & K. Venkataramana, Corporate Accounting, SHBP
8. Anil Kumar – Marriappa – Corporate Accounting , HPH
9. Saha et., al., corporate Accounting VBH
