PartA: Accounting for Partnership Firm and Companies
Accounting for Partnership Firm
Accounting for Companies
Part B : Final Statement Analysis
Analysis of Final Statement
Cash Flow Statement
PartC: Project Work
PARTA :Accounting for Partnership Firms and Companies
Unit 1 :Accounting for Partnership Firms - Fundamentals
1. Partnership : features, Partnership deed.
2. Provisions ofthe IndianPartnershipAct 1932 in the absence of partnership deed.
3. Fixed v/s fluctuating capital accounts, division of profit among partners, guarantee of profits, past, adjustment(relating to interest on capital, interest on drawing, salary and profit sharing ratio), preparation of P & L
4. Goodwill : nature, factors affecting and methods of valuation - average
profit,super profit, and capitalization.
Unit 2 : Accounting for Partnership firms : Reconstitution and Dissolution
1. Change in theProfit sharing Ratio among the existing partners-sacrificing ratio, gaining ratio. Accounting for revaluation of assets and re-assessment of liabilities and distribution of reserves and accumulated profits.
2. 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.
3. Retirement and death of a partner : effect of retirement/death of a partner
on change in profit sharing ratio, treatment of goodwill, treatment for
revaluation of assets and reassessment of liabilities, adjustment of
accumulated profits and reserves, calculation of deceased partner's share of profit tilldate of death. Preparation ofdeceades partner's capitalaccount,
executors's account and preparation of balance sheet.
4. Dissolution of partnership firms: types of dissolution of firm. Settlement of accounts-preparation of realization account, and other related accounts
(excluding piecemeal distribution, sale to a company and insolvency of partner's firm).
Unit 3: Accounting for Share Capital
1. Share and share capital : nature and types.
2. Accounting forshare capital: issues and allotment of equity shares, private
placement of shares, Public subscription of shares-oversubscription and
undersubscription ofshares; Issue at par and at premium and at discount, calls in advance and arrears, issue of shares for consideration other than
3. Accounting treatment of forfeiture and re-issue of shares.
4. Disclosure of share capital in company's Balance Sheet only.
Unit 4 : Accounting for Debentures
1. Debentures: Issue of debentures at par, at premium and at discount. Issue
of debentures for consideration other than cash, debentures as collateral
security, interest on debentures
2. Redemption of debentures: Lump Sum, draw of lots and conversion
PART B : Financial Statement Analysis
Unit 5 : Analysis of financial Statements
1. Financial statement of a company : balance sheet of company in the
prescribed from with major headings and sub headings(as per schedule
VI to the Companies Act 1956).
2. FinancialStatement Analysis: objectives and limitations.
3. Toolsfor Financial Statement Analysis: comparative statements, common
size statements, cash flow analysis ratio analysis.
4. According ratios: current ratio and quick ratio.
5. Solvency Ratios : Debt of Equity Ratio, Total Asset to Debt Ratio, Proprietary Ratio, Interest Coverage Ratio.