Financial Accounting-I Pune B.Com First Sem

Unit

Title and Contents

No. of Lecture

1

Amalgamation of Partnership Firms:

1.1 Meaning and Need of Amalgamation of Partnership Firms

1.2 Accounting Treatment and Preparation of Ledger Accounts:

1.2.1.1 Accounting Entries in the Books of Old Firms

1.2.1.2 Accounting Entries in the Books of New Firm

1.2.1.3 Preparation of Ledger Accounts in the Books of Old Firms:

Revaluation or Profits and Loss Adjustment Account, Partners Capital Accounts, New Firm’s Account, Cash or Bank Account and necessary Ledger Accounts etc.

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2

Sale of a Firm to a Company:

2.1 Meaning and Need of Conversion of Partnership Firm into Company

2.2 Purchase Consideration

2.3 Accounting Treatment and Preparation of Ledger Accounts:

2.3.1.1 Accounting Entries in the Books of Firm

2.3.1.2 Accounting Entries in the Books of Company

2.3.1.3 Preparation of Ledger Accounts in the Books of Old Firm: Realization

Account, Partners Capital Accounts, Partners Current Account, Company’s Account, Shares in Company Account, Cash or Bank Account and necessary Ledger Accounts etc.

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3

Accounting for Leases and Hire Purchase System:

3.1 AS-19: Accounting for Leases and Ind AS-17:

3.1.1 AS-19: Accounting for Leases and Ind AS-17: Leases

3.1.2 Difference between AS-19 and Ind AS-17

3.1.3 Numerical Illustrations on AS-19

3.2 Hire Purchase System:

3.2.1 Concept of Hire Purchase

3.2.2 Formation of the Purchase Agreement or Contract of Hire Purchase

3.2.3 Ways for Termination of Hire Purchase Agreement and Remedies in case of Breach

3.2.4 System of Accounting Records: When Goods of Substantial Sales Value only:

3.2.4.1 Calculation of Interest:

3.2.4.1.1 When Cash Price, Rate of Interest, Hire Purchase Price and  Number of Instalments are given

3.2.4.1.2 If Rate of Interest is not given

3.2.4.1.3 If Cash Price is not given

3.2.4.2 Accounting Entries and Preparation of Ledger Accounts:

3.2.4.2.1 In the Books of Hire Purchaser when Asset is recorded at Full

Cash Price including Partial or Full Seizure of Goods

3.2.4.2.2 In the Books of Hire Purchaser when Asset is recorded at Cash

Price actually paid including Partial or Full Seizure of Goods

3.2.4.2.3 In the Books of Hire Vendor including Partial or Full Seizure of  Goods

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4

Royalty Accounts:

4.1 Meaning of the term Royalty

4.2 Important Terms: Minimum Rent or Dead Rent, Short Workings, Recoupment of Short Workings

4.3 Types of Problems:

4.3.1 Royalties without any Minimum Rent

4.3.2 Royalties with a Minimum Rent:

4.3.2.1 With the Lessee/Tenant having the right to recoup the Short Workings:

4.3.2.1.1 Without any Limitation of Time

4.3.2.1.2 Within a Limited Time (Limitation of Time may commence either

from the Date of the Agreement or from the Date of Short Workings)

4.3.2.2 Without the Lessee having the right to recoup the Short Workings

4.3.3 Accounting Entries and Preparation of Ledger Accounts without Minimum Rent Account and with Minimum Rent Account:

4.3.3.1 In the Books of Lessee / Tenant

4.3.3.2 In the Books of Lessor / Landlord

4.3.3.3 Sub-Lease: Meaning and Accounting Entries/Treatment

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