8/6/2019 Bba Amity Accounts

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FINANCIAL ACCOUNTING II

Course Code: BBFFN 10201 Credit Units: 04

Course Objective:To provide an understanding of the basics of financial statement analysis and statement of cash flow statement.

To give a detailed understanding of accounting for different types of organizations like partnership and

company, accounting for re-organization of the business in case of Amalgamation, absorption and re-

construction.

Course Contents:

Module I: Financial Statement AnalysisIntroduction, objectives of financial statement analysis, Techniques-Ratio analysis, Comparative analysis and

limitations of financial statement analysis.AS-20(no numerical)

Module II: Statement of Cash FlowsPurpose, use and structure of the Statement of Cash Flows, Preparation of the statement of cash flows,

Reporting cash flows and Interpreting the statement of cash flows.AS-3(no numerical)

Module III: Accounting For PartnershipIntroduction to partnership accounts, partnership deed. Admission of a new partner-Revaluation account,

Computation of new profit sharing ratio and sacrificing ratio, Proportionate capital, Treatment of goodwill in

partnership accounts and its valuation. Retirement and Death of a partner: Determining the gaining ratio,

Revaluation of assets and liabilities, Reserve, Final payment to retiring partner, Treatment and adjustment of

goodwill. Numericals on preparation of various accounts in case of retirement and death of a partner.

Dissolution of the firm: Circumstances leading to dissolution of partnership, Settlement of the accounts,

Capital ratio on insolvency, Insolvency of all partners and Garner Vs Murray decision.

Module IV: Company AccountsCompany Accounts: Characteristics and types of shares. Accounting for issue of shares at par, premium and

discount. Numericals on calls in arrear, calls in advance, forfeiture of shares, reissue of forfeited shares in case

of pro rata allotment and determining the amount to be transferred to capital reserve. Accounting for

debentures: Classification of Debentures. Differentiate Debentures from shares. Numericals on issue of

debentures for cash and for consideration other than cash. Issue of debentures as collateral security.

Redemption of debentures and numericals on the same.

Module V: Amalgamation Absorption and Reconstruction of CompaniesDetermining purchase consideration. Numericals on accounting treatment of amalgamation, absorption, internal

and external reconstruction. Understanding inter company holdings and numericals on the inter company

holdings.AS-14(no numerical)

Examination Scheme:

Components P-1 C-1 CT-1 EE-1

Weightage (%) 10 10 20 60

Text & References:

Text: Maheshwari, S. N. Advanced Accountancy Volume-II Ninth Edition, Vikas Publishing House Pvt. Ltd.

References:

Grewal, T.S., Shukla, M. C., Advanced Accountancy Sixteenth Edition, Sultan Chand and Sons.

Tulsian, P.C., Financial Accounting, Volume II, Pearson Education