Introduction to Partnership

Features of Partnership

Limited Liability Partnership

Partnership Deed

Provisions Relevant for Accounting in the absence of Partnership Deed

Maintenance of Capital Accounts of Partners

Profit and Loss Appropriation Account

Treatment for Interest on Capital

Treatment for Interest on Partner’s Loan

Treatment for Interest on Drawings

Treatment for Salary or Commission

Guarantee of Profit to a Partner

Single Adjustment Entry

Separate Adjustment Entries

Final Accounts of Partners

Modes of Reconstitution of a Partnership Firm

Profit Sharing Ratio

Sacrificing Ratio and Gaining Ratio

Meaning and Nature of Goodwill

Origin of Goodwill

Classification of Goodwill

Average Profits Method

Super Profits Method

Capitalisation Method

Accounting Treatment of Goodwill when there is change in Profit Sharing Ratio of Existing Partners

Adjustment for Accumulated Profits and Losses

Workmen Compensation Reserve

Investment Fluctuation Reserve

When revised values are to be recorded in the books

When revised values are not to be recorded in the books

Change in Profit Sharing Ratio among the Existing Partners

Admission of a New Partner

New Profit Sharing Ratio

Sacrificing Ratio

Treatment of Goodwill on the Admission of a New Partner

When the New partner brings his share of Goodwill in Cash

When the New Partner brought premium in kind

When Goodwill Already Appears in the Books and New Partner brings his share of Goodwill in Cash

When Goodwill already appears in the Books and New Partner does not bring his share of Goodwill in Cash

When New Partner brings in only a part of his share of Goodwill

Treatment of Hidden Goodwill

Adjustment for Accumulated Profits and Losses

Workmen Compensation Reserve

Investment Fluctuation Reserve

Revaluation of Assets and Reassessment of Liabilities

When the new partner brings in proportionate capital

Adjustment of old partner’s capital accounts on the basis of new partner’s capital

Final Accounts on Admissions of a Partner

Retirement of a Partner

Calculation of New profit Sharing Ratio at the time of Retirement

Calculation of Gaining Ratio at the time of Retirement

Distinction between Sacrificing Ratio and Gaining Ratio

When Goodwill Account is already appearing in the Books

When Goodwill Account is already appearing in the Books

Treatment of Hidden Goodwill at the time of Retirement

Adjustment of Revaluation of Assets and Liabilities at the time of Retirement

Adjustment of Accumulated Profits and Losses

Disposal of Amount Due to Retiring Partner

Adjustment of capitals according to the new profit sharing ratio

Retirement and Settlement of Loan

Final Accounts on Retirement of a Partner

Death of Partner

Accounting Treatment while Death of a Partner

Calculation of Profit on Time Basis

Calculation of Profit on Turnover Basis

Final Accounts on Death of a Partner

Dissolution of a Partnership Firm

Distinction between Dissolution of Partnership and Dissolution of Firm

Settlement of Accounts

Payment of Firms’ Debts and Private Debts

Realisation Account (Closing Assets and Liabilities)

Workmen Compensation Reserve

Realisation of Assets and Expenses

Investment Fluctuation Reserve and Provident Fund

Closing of Realisation Account

Partner’s Loan and Capital Accounts

Payment of Partner’s Loan

Asset taken over by the Partner

Cash or Bank Account

Balance Sheet at the Date of Dissolution not given

Final Accounts on Dissolution

Meaning and Features of a Company

Kinds of Companies

One Person Company

Meaning and Nature of Shares

Classes of Shares – Preference Shares

Classes of Shares – Equity Shares

Share Capital of a Company

Kinds of Share Capital

Subscribed Capital

Presentation of Share Capital in Company’s Balance Sheet

Capital Reserve and Reserve Capital

Issue of Shares

Private Placement of Shares

Employee Stock Option Plan (ESOP)

Public Subscription of Shares

Accounting Treatment on Issue of Shares

Issue of Shares at Par

Issue of Shares at Premium

Use of Cash Book on Issue of Shares

Issue of Shares at Discount

Meaning of Financial Statements

Objectives of Financial Statements

Nature of Financial Statements

Types of Financial Statements

Users of Financial Statements

Use and Importance of Financial Statements

Advantages and Limitations of Financial Statements

Horizontal Form of Income Statement

Vertical Form of Income Statement

Preparation of Income Statement

Balance Sheet

Share Capital (Shareholder’s Funds)

Subscribed Capital (Shareholder’s Funds)

Called-up and Paid-up Capital (Shareholder’s Funds)

Reserves and Surplus (Balance Sheet)

Non-Current Liabilities (Balance Sheet)

Current Liabilities (Balance Sheet)

Non-Current Assets (Balance Sheet)

Current Assets (Balance Sheet)

Some Peculiar Items of Balance Sheet

Meaning of Financial Analysis

Purpose of Financial Analysis

Significance or Importance of Financial Analysis

Uses of Financial Analysis

Types or Methods of Financial Analysis

Limitations of Financial Analysis

Tools of Financial Analysis

Utility of Comparative Statements

Forms of Presenting Comparative Statements

Comparative Statement of Profit and Loss

Specimen of Comparative Statement of Profit and Loss

Preparing Comparative Statement of Profit and Loss

Comparative Balance Sheet

Specimen of Comparative Balance Sheet

Preparing Comparative Balance Sheet

Utility of Common Size Statement

Common Size Statement of Profit and Loss

Specimen of Common Size Statement of Profit and Loss

Preparing Common Size Statement of Profit and Loss

Common Size Balance Sheet

Meaning of Accounting Ratios

Ratio Analysis

Benchmarks of Ratio Analysis

Advantages of Ratio Analysis

Limitations of Ratio Analysis

Traditional Classification of Ratios

Functional Classification of Ratios

Ingredients of Current Ratios

Objectives and Significance of Current Ratio

Computing Current Ratio

Objectives of Quick Ratio

Computing Quick Ratio

Computing Liquidity Ratios

Objectives of Debt Equity Ratio

Computing Debt Equity Ratio

Objectives of Total Assets to Debt Ratio

Computing Total Assets to Debt Ratio

Objectives of Proprietary Ratio

Computing of Proprietary Ratio

Objectives of Interest Coverage Ratio

Objectives of Cash Flow Statement

Uses of Cash Flow Statement

Limitations of Cash-Flow Statement

Nature of Cash Flow Statement

Procedure for Preparing Cash Flow Statement

Cash Flows from Operating Activities

Cash Flows from Investing Activities

Cash Flows from Financing Activities

Special Items of Cash Flow Statement

Cash Inflows and Outflows as per AS-3

Format of Cash Flow Statements

Determination of Net profit before Tax

Adjustment of Non-cash and Non-operating Items

Adjustment in respect of Changes in Current Assets and Current Liabilities

Deduction of Income Tax Paid

Calculating Cash Flow from Operating Activities Part I

Calculating Cash Flow from Operating Activities Part II

Cash Flow from Investing Activities

Preparation of Fixed Asset Account on Written Down Value Basis

Preparation of Fixed Asset Account on Original Cost Basis