Accounting (Module-2)

In this course, we see how to maintain books of account of company, learn about statutory books of account of a company, prepare and present the financial statements of a company as per Schedule-III of the Companies Act, 2013, calculate the managerial renumeration and appreciate the tern divisible profits and dividends. We also understand the meaning of pre-incorporation profit or loss, Account for pre-incorporation profit or loss, learn the method for computing profit or loss prior to incorporation. We also understand the provisions relating to issue of bonus shares and right shares, account for bonus shares and right issue in the books of issuing company, understand the meaning of renunciation of right, differentiate between cum-right and ex-right value of share and calculate the value of rights. We understand the meaning of redemption and purpose of issuing redeemable preference shares, learn various provisions of the Companies Act, 2013 regarding preference shares and their redemption, familarise yourself with various methods of redemption of fully paid up preference shares such as by fresh issue of shares or Capitalisation of divisible or undistributed profits, Combo of first two, understand the logic behind the creation of Capital Redemption Reserve, learn the accounting treatment for redemption of fully paid-up preference shares, partly paid-up preference shares, and fully called-up but partly paid-up preference shares. We understand about the redemption of debentures, understand the requirement of creation of a debenture redemption fund (i.e, making investments for purpose of redemption of debentures, understand the accounting treatment of redemption of debentures and solve problem based on redemption of debentures.