Accountancy and Financial Management - III Notes | B.Com. (Accountancy) Semester 3 | Mumbai University | munotes

Contents

Module I Amalgamation of Firms

1. What Amalgamation of Firms Is, and Why It Happens 1
2. The Two Types: Merger and Purchase 4
3. What AS 14 Does, and Does Not, Govern 8
4. Purchase Consideration: the Methods of Computing It 11
5. Purchase Consideration, Worked Both Ways 15
6. The Pooling of Interest Method 17
7. The Purchase Method 20
8. Pooling and Purchase Compared, on One Set of Figures 23
9. The Realisation Account of the Old Firms 25
10. Partners' Capital Accounts, and the Closing Entries 28
11. Opening the Books of the New Firm 31
12. Goodwill Arising on Amalgamation 34
13. The Balance Sheet of the New Firm 37
14. Adjustment of the Partners' Capitals in the New Firm 40
15. A Complete Amalgamation, Worked 43
16. Practice Questions: Amalgamation of Firms 46

Module II Conversion / Sale of a Partnership Firm into a Ltd. Company

1. Why a Firm Converts, and What Changes 51
2. The Realisation Method, and Why MU Allows Only It 54
3. Calculating the Purchase Consideration on Conversion 57
4. The Realisation Account on Conversion 60
5. Assets and Liabilities Not Taken Over 63
6. Discharge of the Consideration in Shares, Debentures and Cash 66
7. Partners' Capital Accounts on Conversion 69
8. Opening the Books of the New Company 72
9. The Balance Sheet of the New Company 75
10. A Complete Conversion, Worked 78
11. Practice Questions: Conversion of a Firm 80

Module III Ascertainment and Treatment of Profit Prior to Incorporation

1. What Profit Prior to Incorporation Is, and Why It Is Capital 84
2. The Two Periods, and the Time Ratio 87
3. The Sales Ratio, and When It Applies 90
4. The Basis of Apportionment, Item by Item 93
5. Items That Belong Wholly to One Period 96
6. The Columnar Statement of Profit and Loss 99
7. A Complete Computation, Worked 102
8. Treatment of the Pre-incorporation and Post-incorporation Result 104
9. Practice Questions: Profit Prior to Incorporation 107

Module IV Introduction to Company Accounts

1. What a Company Is 111
2. Types of Company 114
3. Books of Account: Section 128 117
4. The Statutory Books and Registers of a Public Company 120
5. Financial Statements: Section 129 125
6. Reopening, Revision, and Periodical Results 128
7. Accounting Standards, and the Board's Report 131
8. Circulation and Filing of the Financial Statements 135
9. Schedule III: the Shape of It 138
10. Current and Non-current: the Classification That Drives the Format 142
11. The Balance Sheet, Part I of Schedule III 145
12. The Statement of Profit and Loss, Part II of Schedule III 150
13. The Notes to Accounts 154
14. Final Accounts of a Company, Worked 158
15. Practice Questions: Company Accounts 163