Part A: Accounting for Not-for-Profit Organizations, Partnership Firms and Companies

Unit 1: Financial Statements of Not-for-Profit Organizations 

Unit 2: Accounting for Partnership Firms

  • Partnership: features, Partnership Deed.
  • Provisions of the Indian Partnership Act 1932in the absence of partnership deed.
  • Fixed v/s fluctuating capital accounts.Preparation of Profit and Loss Appropriation account-division of profit among partners, guarantee of profits.
  • Past adjustments (relating to interest on capital,
  • interest on drawing, salary and profit sharing ratio).
  • Goodwill: nature, factors affecting and methods of valuation –
  • average profit, super profit and capitalization.Income and Expenditure Account: features,preparation of income and expenditure account and
  • balance sheet from the given receipts and payments account with additional information.
  • Accounting for Partnership firms – Reconstitution and Dissolution.
  • Change in the Profit Sharing Ratio among the existing partners –
  • sacrificing ratio, gaining ratio, accounting for revaluation of assets and
  • reassessment of liabilities and treatment of reserves and accumulated profits.
  • Preparation of revaluation account and balance sheet.
  • Admission of a partner – effect of admission of a
  • partner on change in the profit sharing ratio,
  • treatment of goodwill (as per AS 26),
  • treatment for revaluation of assets and re- assessment of liabilities,
  • treatment of reserves and accumulated profits,
  • adjustment of capital accounts and preparation of balance sheet.
  • Retirement and death of a partner:
  • effect of retirement / death of a partner on change in profit sharing ratio
  • treatment of goodwill (as per AS 26),
  • treatment for revaluation of assets and reassessment of liabilities,
  • adjustment of accumulated profits and reserves,
  • adjustment of capital accounts and preparation of balance sheet.
  • Preparation of loan account of the retiring partner.
  • Calculation of deceased partner’s share of profit till the date of death.
  • Preparation of deceased partner’s capital account and his executor’s account.
  • Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm,
  • types of dissolution of a firm. Settlement of accounts –
  • preparation of realization account,
  • other related accounts: capital accounts of partners
  • cash/bank a/c (excluding piecemeal distribution, sale to a company and insolvency of partner(s)).

Unit-3 Accounting for Companies

  • Accounting for Share Capital
    • Share and share capital: nature and types.
    • Accounting for share capital: issue
    • allotment of equity and preferences shares.
    • Public subscription of shares – over subscription
    •  under subscription of shares
    • issue at par and at premium
    • calls in advance and arrears (excluding interest)
    • issue of shares for consideration other than cash.
    • Concept of Private Placement and Employee Stock Option Plan (ESOP).
    • Accounting treatment of forfeiture and re- issue of shares.
    • Disclosure of share capital in the Balance Sheet of a company.
  • Accounting for Debentures
    • Debentures: Issue of debentures at par, at a premium and at a discount.
    • Issue of debentures for consideration other than cash
    • Issue of debentures with terms of redemption
    • debentures as collateral security- concept
    • interest on debentures. Writing off discount / loss on issue of debentures
    • Redemption of debentures-Methods: Lump sum, draw of lots.
    • Creation of Debenture Redemption Reserve

Part B: Financial Statement Analysis

Unit 4: Analysis of Financial Statements

  • Financial statements of a Company:
    • Statement of Profit and Loss [Video by Dr. Rupa KV Jayant Colliery]
    • Balance Sheet in prescribed form with [Video by Dr. Rupa KV Jayant Colliery]
    • major headings and sub headings (as per Schedule III to the Companies Act, 2013)
    • Financial Statement Analysis: Objectives, importance and limitations.
    • Tools for Financial Statement Analysis:
    • [Comparative statements by Dr. Rupa, KV, Jayant Colliery ], common size statements, cash flow analysis, ratio analysis.
    • Accounting Ratios: Meaning, Objectives, classification and computation.
    • Liquidity Ratios: Current ratio and Quick ratio.
    • Solvency Ratios: Debt to Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio and Interest Coverage Ratio.
    • Activity Ratios: Inventory Turnover Ratio, Trade Receivables Turnover Ratio, Trade
    • Payables Turnover Ratio and Working
    • Capital Turnover Ratio.
    • Profitability Ratios: Gross Profit Ratio,
    • Operating Ratio, Operating Profit Ratio, Net Profit Ratio and Return on Investment.

Unit 5: Cash Flow Statement

  • Meaning,
  • objectives and preparation (as per AS 3 (Revised) (Indirect Method only)
  • Adjustments relating to depreciation and amortization
  • profit or loss on sale of assets including investments
  • dividend (both final and interim) and tax.
  •  Bank overdraft and cash credit to be treated as short term borrowings.
  • Current Investments to be taken as Marketable securities unless otherwise specified.