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I M.

CORE - 1


HRS/WK - 6

Learning of Company Accounting & Procedure to prepare the different types of accounts.
Unit 1
[18 Hrs]
Issue of equity shares Issue of shares at Premium Issue of shares at discount Calls in arrears and
calls in advance Under Subscription and Over Subscription Forfeiture of shares Reissue of Forfeited
shares Issue of Debentures.
Unit 2
[18 Hrs]
Redemption of preference shares-Introduction-provision of the companies Act-companies amendment Act1988 and companies Act-1996. Implication of sections 80 and A of companies Act- minimum fresh issue of
shares only.
Unit 3
[18 Hrs]
Profit prior to incorporation Treatment of profit or loss to incorporation Relevance of Date of certificate
to commence. Business Methods of ascertaining profit or loss to incorporations-Basis of Apportionment
of Expenses-steps involved in ascertaining pre and post incorporation profits.
Unit 4
[18 Hrs]
Accounts of banking companies Rebate on bills discounted Preparations of profits and loss Account and
Balance sheet. new format (Simple Problems).
Unit 5
[18 Hrs]
Accounts of holding Companies Two companies holding only Including Inter-companies holdings
Minority Interest cost of control-Eliminations of common Transition-Unrealized profits Consolidated
Balance sheet. (Simple Problems)
Text Books:
1.R.L.Gupta & Radhaswamy. 2004. Advanced Accounting. New Delhi: Sultan Chand Sons.
2. T.S. Reddy & Moorthy. 2008. Corporate Accounting. Chennai 17: Margham Publications.
3.M.C.Shukla and T.S.Grewal, S.Chand & Co Ltd., 2008. Advanced Accounting. S.Chand Company.
4.R.S. Pillai, Baghavathi, S.Uma. 2007. Advanced Accounting Vol II. New Delhi:
S.Chand & Company Ltd.
5.S.P.Jaina, K.L.Narang, 2002. Corporate Accounting, New Delhi. Kalyani Publications.
Reference Books:
1. Oxford University Press. 2002. Advanced Accounting. New Delhi: Hrishikesh Chakrabarthy.
2.Dr.S.N. Maheshwari & Dr.S.K. Maheshwari. 2008. Advanced Accounting. Vikas Publishing House Pvt.
3.A. Mukherjee & M. Hanif. 2007. Modern Accounting Vol. II. New Delhi: Tata McGraw Hill Publishing

Question Paper Pattern

Time: 3 Hours

Part-A: (10x2=20 marks)
All the Ten are theory questions. No Choice
Part-B (5x5=25Marks)
Five out of seven
Two- Theory questions
Part-C (3x10=30marks)
Three out of five
Four- Problems
One-Theory Questions

Note: Questions should be asked from All five units,with a maximum of Two questions from each unit.

Question Paper 01

1Define share
A unit of ownership that represents an equal proportion of a company's capital. It
entitles its holder (the shareholder) to an equal claim on the company's profits and
an equal obligation for the company's debts and losses.
2) Define pro rata allotment of shares
Used to describe a proportionate allocation. A method of assigning an amount to a
fraction, according to its share of the whole.
3) Define Capital redemption reserve
A statutory, non-distributable reserve into which amounts are transferred following
the redemption or purchase of a company's own shares. The provisions relating to
the capital redemption reserve are set out in section 733 of the Companies Act
4) Define Issued shares
The number of authorized shares that is sold to and held by the shareholders of a
company, regardless of whether they are insiders, institutional investors or the
general public. Also known as "issued stock."
5) Define Profit prior to incorporation
Profit prior to incorporation is that profit which a company gets between the period
of date of buying and date of incorporation.
6) What is Incorporation?
The process of legally declaring a corporate entity as separate from its owners.
7) What is statutory reserve?
statutory reserves are those liabilities an insurance company is legally required to
maintain on its balance sheet with respect to the unmatured obligations
8) What is a non performing asset
A Non-performing asset (NPA) is defined as a credit facility in respect of which
the interest and/or installment of Bond finance principal has remained past due for
a specified period of time.
9) What is a subsidiary company?
A company whose voting stock is more than 50% controlled by another company,
usually referred to as the parent company or holding company.

10) What is a holding company?

A parent corporation, limited liability company or limited partnership that owns
enough voting stock in another company to control its policies and management.

Question Paper 02
1) What are calls in arrears?
When any shareholder does not pay its call money to company on its due date. At
that time, company will deduct that calls in arrears from total called up capital for
showing net paid up capital in balance sheet.
2) What is forfeiture of shares?
A share in a company that the owner loses (forfeits) by failing to meet the purchase
requirements. Requirements may include paying any allotment or call money owed,
or avoiding selling or transferring shares during a restricted period.
3) What are redeemable preference shares?
Redeemable preference shares. Shares issued on the terms that they may be
redeemed by the company at a later date, either by payment out of profits which
would otherwise be available for dividends or out of proceeds of a fresh issue of
4) What is a debenture?
In corporate finance, a debenture is a medium- to long-term debt instrument used
by large companies to borrow money, at a fixed rate of interest.
5) What is time ratio?
Time ratio is a measure of a company's ability to honor its debt payments. It may
be calculated as either EBIT divided by the total interest payable. Interest Charges
= Traditionally "charges" refers to interest expense found on the income statement.
6) Define Business?
An organization or economic system where goods and services are exchanged for
one another or for money
7) What is rebate on bills discounted?

Rebate on Bills Discounted is also known as Discount Received in Advance, or, Unexpired
Discount or, Discount Received but not earned. Its treatment is same as we do in the case of
Interest Received in Advance.
8) What is banking company?
As per Section 5(c) of the Banking Regulation Act, 1949 a "Banking Company"
means any company which transacts the business of banking in India.
9) What is cost of control?

The practice of managing and/or reducing business expenses. Cost controls starts
by the businesses identifying what their costs are and evaluate whether those
costs are reasonable and affordable.
10) What is minority interest?
minority interest (or non-controlling interest) is the portion of a subsidiary
corporation's stock that is not owned by the parent corporation.