Syllabus

Unit – I: Profit or Loss Prior to Incorporation 

1.1

• Meaning of Pre-Incorporation Profit or Loss
• Meaning of Post-Incorporation Profit or Loss

1.2

• Computation of Profit or Loss Prior to Incorporation
• Basis of Apportionment of Profit/Loss between Pre and Post Incorporation Period

1.3

• Practical Problems on Pre and Post Incorporation Profit or Loss

Unit – II: Amalgamation of Company 

2.1

• Meaning of Amalgamation
• Merits and Demerits of Amalgamation
• Types of Amalgamation

2.2

• Determination of Purchase Consideration
• Methods of Accounting for Amalgamation

2.3

• Necessary Ledger Accounts

2.4

• Practical Problems on Amalgamation

Unit – III: Absorption of Company 

3.1

• Meaning of Absorption
• Objects, Merits, and Demerits of Absorption

3.2

• Methods of Absorption
• Calculation of Goodwill or Capital Reserve

3.3

• Entries in Purchaser Company Books
• Entries in Vendor Company Books

3.4

• Accounts in Vendor Company Books
• Preparation of Balance Sheet in New Company
• Vendor Company Funds Regarding Absorption of Company

3.5

• Practical Problems on Absorption of Company

Unit – IV: Liquidation of Company

4.1

• Meaning of Liquidation
• Voluntary Liquidation
• Winding-Up under Supervision of Court
• Compulsory Liquidation

4.2

• Difference between Liquidation and Insolvency
• Liquidator’s Statement of Account
• Preferential Creditors
• Return of Capital to Shareholders
• Statement of Affairs
• Deficiency Account

4.3

• Rules Regarding Dividend of Preference Shares
• Calculation of Liquidator’s Remuneration and Their Lists

4.5

• Practical Problems on Liquidator’s Statement of Accounts

1. Understand the concept of profit prior to incorporation and its provisions.

2. Analyze the process and accounting treatment for the amalgamation of companies.

3. Examine the accounting procedures and implications of the absorption of a company.

4. Comprehend the liquidation process and prepare the Liquidator’s Final Statement of Accounts.