Fundamentals Of Accunting For CA-CAPT : Common Proficiency Test

Cover
Copyright
Contents
Preface
About the Authors
Part 1: Accounting—An Introduction
	Unit 1.1 Meaning and Scope of Accounting
		Learning Objectives
		Introduction
		Accounting History and Development
		Importance of Accounting
		Transaction and Event
			Definitions of Accounting
		Accounting Process
		Objectives of Accounting
		Functions of Accounting
		Users of Accounting Information
		Sub-fields of Accounting
		Limitations of Accounting
		Book-keeping, Accounting and Accountancy
		Distinction between book-keeping and Accounting
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 1.2 Accounting Concepts, Principles and Conventions
		Learning Objectives
		Introduction
		Accounting Principles
		Characteristics of Accounting Principles
		Classification of Accounting Principles
		Accounting Concepts
		Money Measurement Concept
		Going Concern Concept
		Periodicity Concept
		Cost Concept
		Realization Concept (Revenue Recognition Concept)
		Exception to the Rrule of Revenue Recognition Concept
			Accounting conventions
		Financial Statements
		Qualitative Characteristics of Financial Statements
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 1.3 Accounting Standards
		LearningObjectives
		Meaning and Definition of Accounting Standards
		Need and Development of Accounting Standards
		Objectives of Accounting Standards
		Advantages of Accounting Standards
		Limitations of Accounting Standards
		Overview of Accounting Standards in India
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 1.4 Accounting Policies
		LearningObjectives
		Meaning
		Considerations in the Selection of Accounting Policies
		Change in Accounting Policy
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 1.5 Accounting as a Measurement Discipline,Valuation Principles, Accounting Estimates
		LearningObjectives
		Measurement
		Elements of Measurement Principle
		Accounting as a Measurement Discipline
		Valuation Principle
		Historical Cost
		Current Cost
		Realisable Value
		Present Value
		Measurement and Valuation
		Accounting Estimates
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
Part 2: Accounting Process
	Unit 2.1 Journal Entries
	Learning Objectives
	Meaning of Double Entry System of Book-Keeping
	Definition of Double Entry System of Book-Keeping
	Advantages of Double Entry System
	Modern/Accounting Equation Approach
	Classification of Accounts According to the Accounting Equation Approach
	Debit/Credit Rules in Accounting Equation Approach
	Classification of Accounts According to the Traditional Approach
		Important Points:
	Rules For Debit & Credit as Per Traditional Approach
		In nutshell
		Illustration 1
		Solution:
	According to Accounting Equation Approach
		Illustration 2
		Solution
	Meaning of Journal
	Features of Journal
	Advantages of Journal
	Limitations of Journal
	Format and the Information in Journal
	Steps in Journalizing
		Illustration -2
		Solution:
	SUMMARY
	MULTIPLE CHOICE QUESTIONS
	ANSWERS KEY
	EXPLANATION
	Unit 2.2 Ledgers
		Learning Objectives
		Meaning & Definition of Ledger
		Format of Ledger
		Posting and the Rules for Posting
		Rules of Posting
		Steps in Ledger Posting
		Ledger Balancing
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 2.3 Trial Balance
		Learning Objectives
		Meaning and Definition of Trial Balance
		Features or Characteristics of a Trial Balance
		Objectives of Preparing Trial Balance
		Preparation of Trial Balance
			Illustration 1
			Solution
			Total Amount Method
			Illustration 2
			Solution
		Suspense Account
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 2.4 Subsidiary Books
		Learning Objectives
		Introduction
		Meaning
		Objectives
		Advantages
		Purchase Book
		Format of Purchase Book
		Trade Discount
		Posting and Balancing in the Purchase Book
			Illustration 1
			Solution
		Sales Book
		Format of Sales Book
		Posting and Balancing in Sales Book
			Illustration 2
			Solution
		Purchase Returns Book
		Debit Note
		Debit Note
		Posting and Balancing
		Format of Purchase Returns Book
			Illustration 3
		Sales Returns Book
		Credit Note
		Credit Note
		Posting and Balancing
		Format of Sales Returns Book
			Illustration 4
			Solution
		Purchase Returns Book
		Debit Note
		Debit Note
		Posting and Balancing
		Format of Purchase Returns Book
			Illustration 5
			Purchase Returns Book of RR Ltd.,
		Bills Receivable Book
			Illustration 6
		Bills Payable Book
		Journal Proper
			Journal Entries
		Entries on Dishonor of Bills
		Miscellaneous Entries or Entries of General Nature
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 2.5 Cash Book
		Learning Objectives
		Introduction
			Cash Book
		Single Column Cash Book
			Illustration 1
		Double Column Cash Book
		Format
		Triple Column Cash Book
		Contra Entries
		Contra Entries are Passed when
		Format
			Illustration 3
		Petty cash book
		Advantages of Petty Cash Book
		Imprest Cash System
			Illustration 4
		Non Imprest System of Petty Cash Book
		Balancing a Petty Cash Book
		Non Imprest System of Petty Cash Book
		Balancing a Petty Cash Book
		Posting of Entries in the Petty Cash Account
			Nature of accounts/columns
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 2.6 Capital and Revenue Expenditure
		Learning Objectives
		Introduction
		Basic Considerations In Determining Capital and Revenue Expenditures
		Capital Expenditure
		Revenue Expenditure
		Deferred Revenue Expenditure
		Classification of Income
		Revenue Receipt
			Solution
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 2.7 Contingent Asset and Contingent Liability
		Learning Objectives
		Contingency
		Contingent Asset
		Contingent Liability
		Distinction Between Liability and Contingent Liability
		Distinction between Contingent Liability and Provisions
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 2.8 Rectification of Errors
		Learning Objectives
		Introduction
		Types of Errors
		Classification of Errors
			Broadly, errors can be classified as errors of principle and clerical errors
		Stages of Detecting Error
		Rules for rectifying errors in each stage
		Stage 1 - One sided errors
			Illustration 1 [Rectification of errors of partial omission]
		Stage 1 - Two sided error
			Illustration 2 [Rectification of errors of principle]
		Stage 2– One sided error
			Illustration 3 [Rectification of one-sided errors of posting]
			Illustration 4 [Rectification of errors of partial omission at stage 2]
		Stage 2 – Two sided error
			Illustration 5 [Rectification of errors of recording]
			Illustration 6 [Rectification of two sided errors of posting]
			Illustration 7 [Rectification of errors of omission]
		Stage 3 – One sided and Two sided Errors
			Illustration 8
		In Nutshell
		Effect on Net Profit
			Illustration 9
		Errors in Nutshell
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
Part 3: Bank Reconciliation Statement (BRS)
	Learning Objectives
	Meaning of Bank Reconciliation Statement
	Need or Importance of Bank Reconciliation Statement
	Features of Bank Reconciliation Statement
	Bank Pass Book
	Kinds of Balances
	Timing Differences
	Unfavourable Balances / Bank Overdraft
		Illustration 1
		Solution:
		Difference due to:
		Illustration 2
		Illustration 3
	Preparation of BRS with Adjusted Cash Book Balances
		Illustration 4
		Solution:
	SUMMARY
	MULTIPLE CHOICE QUESTIONS
	ANSWERS KEY
	EXPLANATION
Part 4: Valuation of Inventories
	Learning Objectives
	Meaning of Inventories
	Objectives of Inventory Valuation
		Determination of Income:
	Importance of Inventory Valuation
	Basis of Inventory Valuation
	Historical Cost
	Exclusion from Cost of Inventory
	Inventory Record Systems
		Periodic inventory system
		Perpetual inventory system
	Techniques of Inventory Valuation
	Specific Identification Method
	Historical Cost Methods
		First-in-first-out-method (FIFO)
		Illustration 1
		Solution: (a)
		Last-in-first-out method (LIFO)
		Solution: (a)
	Simple Average Price Method
		Illustration 3
		Solution:
	Weighted Average Price Method
		Illustration 4
		Solution: (a)
	Non-historical Cost Methods
		Illustration 5
		Solution:
	Important Equations Related to Final Accounts
		Format:
		Illustration : 6
		Illustration 7
	Stock as Per Books and Stock as Per Physical Verification
		Illustration 8
			From the above details:
	SUMMARY
	MULTIPLE CHOICE QUESTIONS
	ANSWERS KEY
	EXPLANATION
Part 5: Depreciation Accounting
	Learning Objectives
	Introduction
	Definition
	Meaning
	Objectives for Providing Depreciation
	Factors Affecting the Amount of Depreciation
	Methods of Charging Depreciation
		Journal entries
		Journal entries
		Illustration 1
	Methods of Providing Depreciation
		Straight line method of depreciation (SLM)
		Suitability
		Illustration 2
		Calculation of the rate of depreciation
	Reducing Balance Method of Depreciation
	Method of Calculation of Depreciation
		Illustration 4
		Solution:
	Sum of Years of Digit Method
	Annuity Method
		Features
		Advantages
		Disadvantages
		Suitability
		Journal Entries
		Illustration 7
		Solution:
	Sinking Fund Method
		Advantages
		Disadvantages
	Method of Calculation of Depreciation
		Accounting treatment
		Illustration 8
		Working Notes:
	Machine Hour Method
	Method of Calculation of Depreciation
	Depletion Method
		Illustration 11
		Solution:
		Working Notes:
	Provision for Repairs and Renewals Method
		Method of Calculation
		Accounting Treatment
		Illustration 12
		Solution:
	Change in Method of Depreciation
		Illustration 13
	Revision of Estimated Useful Life of Depreciable Asset
	Disclosure Requirements as per Accounting Standard 6
	SUMMARY
	MULTIPLE CHOICE QUESTIONS
	ANSWERS KEY
	EXPLANATION
Part 6: Final Accounts
	LearningObjectives
	Introduction
	Meaning of Financial Statements
	Importance of Financial Statements
	Financial Statements Include
	Purpose of Financial Statements
	Preparation of Final Accounts
	Trading Account
	Various Items to be Shown in Trading Account
		Opening stock
		Purchases
		Direct expenses
		Sales
		Closing stock
		Adjusted purchases
	Preparation of Trading Account
	Closing the Trading Account
		Proforma of Trading Account
	Cost of Goods Sold (COGS)
		Illustration 1 [Preparation of Trading Account]
		Illustration 2 (Calculation of COGS)
	Profit and Loss Account
	Preparation of Profit and Loss Account Steps
	Closing Profit and Loss Account
	Proforma of Profit and Loss Account
	Matching Principle
		Illustration 3
	Adjustment Entries
	Outstanding Expenses
		Impact on financial statements
	Prepaid Expenses
		Impact on financial statements
	Income Receivable / Accrued Income
		Impact on financial statements
			The following journal entry is passed:
	Prepaid Expenses
		Impact on financial statements
			The following journal entry is passed:
	Incomes Received in Advance
		Impact on financial statements
	Depreciation
		Impact on financial statements
	Trade Discount
	Cash Discount
	Provision and Reserve:
	Provisions
		Impact on financial statements
	Reserve
		Impact on financial statements
	Provision for Doubtful Debts
		Illustration 4
		Illustration 6
	Provision for Discount on Debtors
		Illustration 7
	Other Adjustments and Their Treatment
	Loss of stock
		If the amount of loss is fully insured
		Journal Entries
		If amount of loss is partly insured
		Journal Entries
		Journal Entries
		Illustration 8
	Goods Sent on Approval Basis
	Goods Used Other Than for Sale
	Sales Tax
		Journal Entries
	Commission Based on Profit
		Illustration 9
	Balance Sheet
	Characteristics of Balance Sheet
	Need for Preparation of Balance Sheet
	Contents of Balance Sheet
	Items to be Shown on the Asset Side
	Items to be Shown on the Liabilities Side
	Marshalling
	Arrangements of Assets
	Arrangement of Liabilities
	Treatment of Items Appearing in the Trial Balance
	Limitations of Financial Statements
	Manufacturing Entities
		Introduction
		Uses of manufacturing account
		Classification of manufacturing costs
		Items to be shown on the debit side of Manufacturing Account
	Items to be Credited
		Illustration 10
		Solution
		Illustration 11
		Illustration 12
			Other Information:
	SUMMARY
	MULTIPLE CHOICE QUESTIONS
	ANSWERS KEY
	EXPLANATION
Part 7 Accounting for Special Transactions
	Unit 7.1 Accounting for Consignment Transactions
		Learning Objectives
		Introduction
		Features
		Thumb Rule
		Distinction between Consignment and Sales
		Pro-Forma Invoice
		Account Sales
		Invoice Price and Loading
			Thumb Rule
		Important Rules to be Followed while Solving the Practical Problems
			Illustration 1
			Solution: 1
			Solution: 2
			Solution: 3
			Solution: 4
		Commission
			Points to remember while solving practical problems on commission
			Illustration 2
		Losses and its Valuation
			Normal loss
			Illustration 3
			Solution
			Abnormal loss
		Accounting Treatment of Abnormal Loss
		Valuation of Closing Stock
		Selling and Non-Selling Expenses
		Practical Steps in the Valuation Of Unsold Stock
			Illustration 4
		Case: 1
		Case: 2
		Case: 3
		Accounting Treatment in the Books of the Consignor
			Journal entries in the books of the consignor
		Accounting in the books of the consignee
			Illustration 5
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 7.2 Accounting for Joint Ventures
		Learning Objectives
		Introduction
		Need for Joint Venture
		Features of Joint Venture
		Difference Between Joint Venture and Partnership
		Difference Between Joint Venture and Consignment
		Methods of Recording Joint Venture Transactions
			Illustration 1
		Recording in the Books of One Co-venturer Only
			Journal Entries
			Illustration 2
			Journal Entries
		Memorandum Joint Venture Method
			Journal Entries
			Illustration 3
			Journal of X
			Journal of Y
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 7.3 Bills of Exchange and Promissory Notes
		LearningObjectives
		Introduction
		Bills of Exchange
		In Nutshell,
		Parties to a Bill of Exchange
		Format of Bill of Exchange
		Promissory Notes
		In Nutshell,
		Parties to Promissory Note
		Format of Promissory Note
		Why Bills of Exchange?
		Difference Between Bills of Exchange and Promissory Notes
		Accounting Treatment
		Other Important Terms
		Calculation of Due Date
			Important terms
		Identification of Due Date in Various Cases
		Illustration on Calculation of Due Date and Date of Maturity
		Accounting for Bills of Exchange
			In the books of drawer
		In the Books of Drawee
			Illustration 1
			Journal entries in the books of X
			Journal entries in the books of Y
		If the Bill is Discounted With a Banker
			In the books of drawer
		In the Books of the Drawee
			Illustration 2
			Journal entries in the books of X
			Journal entries in the books of Y
		If the Bill Can be Endorsed to a Creditor
			In the books of the drawer
		In the Books of the Drawee
			In the books of the endorsee
			Illustration 3
			Journal entries in the Books of X
			Journal entries in the books of Y
			Journal entries in the books of Z
		Noting Charges
			Journal entries in the books of the drawer
			In the books of the drawee
			Illustration 4
			In the books of X
			In the books of X
		Renewal of Bill
			In the books of X
			In the books of drawee
			Illustration 5
			Journal entries in the books of X
			Journal entries in the books of Y
		Retirement of a Bill
			In the books of the drawer
				In the books of the drawee
				Illustration 6
				Journal entries in the books of X
				Journal entries in the books of Y
		Insolvency of the Drawee
			In the books of the drawer
			In the books of the drawer
			In the books of the drawee
			Illustration 7
			Journal entries in the books of X
			Journal entries in the books of Y
		Bills Sent for Collection
			Journal entries in the books of X
			In the Books of the Drawee
			Illustration 8
			Journal entries In the books of X
			Accommodation Bills
			Illustration 9
			Journal entries In the books of H
			Illustration 10
			Journal entries In the books of X
			Illustration 11
			Journal entries In the books of Anil
		Foreign Bill
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 7.4 Goods Sent on Approval
		Learning Objectives
		Introduction
		Features
		Ordinary Sale Method
			Illustration 1
			Journal entries
			Illustration 2
			Journal entries
		Multicolumn Journal Method
		Separate Daybook Method
			Illustration 3
			Goods on sale or return, sold and return day book
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
Part 8 Partnership Accounts
	Unit 8.1 Introduction to Partnership Accounts
		Introduction
		Definition
		Essential Elements of Partnership
			Number of Persons
			Agreement
			Business
			Sharing of Profits
			Mutual Agency
		Partnership Deed
			Contents of a Partnership Deed
		Rules Applicable in the Absence of an Agreement
		Capital Accounts
			Capital accounts of the partners may be fixed or fluctuating
			Difference between Fixed Capital Account and Fluctuating Capital Account
			Difference between Capital Account and Current Account
		Profit and Loss Appropriation Account
			Difference between Charge against profits and Appropriation of profits
		Interest on Capital
			Illustration 1
		Interest on Drawings
			Steps for Calculating Interest on Drawings under Product Method
			Illustration 2
			Illustration 3
			Computation of interest on drawings
		Interest on Advances
			Illustration 4
		Remuneration to a Partner
			Guarantee of Minimum Profit to a Partner
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 8.2 Treatment of Goodwill
		Learning Objectives
		Meaning and Importance of Goodwill
		Need for Valuation of Goodwill
		Methods of Valuation of Goodwill
		Average Profits Method
		Simple Average Method
			Illustration 1
		Weighted Average Method
		Super Profits Method
			For calculating goodwill
			Illustration 3
		Annuity Method
		Capitalization Method
			Illustration 5
			Illustration 6
		Reconstitution of a Firm
		Treatment of Goodwill During Change in Profit Sharing Ratio Among Partners
			Journal Entry
			Journal Entry
			Illustration 7
			Journal Entry
			Journal Entry
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 8.3 Admission of a Partner
		Learning Objectives
		Introduction
		Computation of New Profit Sharing Ratio and Sacrifice Ratio
			Illustration 1
			Illustration 2
			Illustration 3
		Accounting Treatment of Goodwill
		Recommendation of AS-26
		Accounting Treatment of Goodwill Under Different Situations
		When the New Partner Brings His Share of Goodwill in Cash
			Illustration 4
			When the new partner brings his share of goodwill in kind
			Journal X, Y and Z
			Journal entry for raising goodwill
			Journal entry for writing off existing goodwill
			Illustration 6
			Hidden goodwill
			Illustration 8
		Revaluation of Assets and Liabilities
			Specimen of Revaluation account
		When Revised Values are not Shown in the Balance Sheet
			Illustration 9
		Adjustments of Reserves and Accumulated Profits or Losses
			Illustration 10
			Illustration 11
			In the Books of M/s X, Y and Z
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 8.4 Retirement of a Partner
		LearningObjectives
		Introduction
		Regular Adjustments at the Time Of Retirement of a Partner
		Calculation of New Profit Sharing Ratio
			Illustration - 1
			Illustration - 2
			Illustration - 3
		Treatment of Goodwill
			Illustration – 4
			Illustration - 5
			Illustration – 6
		Revaluation of Assets and Liabilities
			Illustration - 7
			Journal entries
		Treatment of Undistributed Profits and Accumulated Losses
			Illustration - 8
		Final Settlement to Retiring Partner
			Illustration - 9
		Joint Life Policy (Jlp)
		When premium paid is treated as an asset
			Illustration – 10
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 8.5 Death of a Partner
		Learning Objectives
		Introduction
		Accounting Treatment
			Illustrator 1
		Valuation of Goodwill
		Accounting Treatment of Joint Life Policy in Case of Death of a Partner
			Illustration 2
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
Part 9 Company Accounts
	Unit 9.1 Introduction to Company Accounts
		Learning Objectives
		Introduction
		Meaning of Company
		Salient Characteristics of Company
		Separation of Ownership and Management:
		Types of Companies
		Memorandum of Association
		Articles of Association
		Books of Accounts
		Preparation of Financial Statements
			Every Company shall prepare
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 9.2 Issue, Forfeiture and Re-issue of Shares
		Learning Objectives
		Share Capital
			Illustration 1
		Types of Shares
		Equity Shares
		Procedure for Issue of Shares
		Important Points for Issue of Shares
			Illustration 2
			Solution
		Issue of Shares at Premium
			Illustration 3
			Solution
		Issue of Shares at Discount
			Illustration 4
		Calls-in-arrears
		Calls-in-advance
			Illustration 5
		Under Subscription of Shares
		Over Subscription
			Illustration 6
			Journal of A Ltd.
			Calculation for Adjustment and Refund
		Forfeiture of Shares
		Forfeiture of Shares which are Issued at Par
			Illustration 7
			Journal Entries in the Books of A Ltd.
		Forfeiture of Shares which are Issued at a Premium
			Illustration 8
			Journal Entries in the Books of A Ltd.
		Forfeiture of Shares which are Issued at a Discount
			Illustration 9
		Reissue of Forfeited Shares
			Illustration 10 (Reissue of Forfeited Shares at a Discount)
			Journal Entries in the Books of A Ltd.
			Illustration 11 (Reissue of Forfeited Shares at a Premium and At Par)
			Case (a) Journal Entries in the Books of A Ltd.
		Issue of Shares for Consideration Other Than Cash
			Illustration 12
			In the Books of A Ltd.
		Right Shares
		Types of Allotment
		Alteration of Share Capital-subdivision and Consolidation of Stock
		Conversion of Fully Paid Share into Stock and Stock into Shares
		Sweat Equity Shares
		Fill in the blanks
		Match the following
		SUMMARY
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 9.3 Redemption of Preference Shares
		Learning Objectives
		Preference Shares
		Provisions of The Companies Act, 1956
		Free Reserve
		Methods of Redemption
			Redemption by Fresh Issue of Shares
			Advantages
			Disadvantages
			Illustration 1
			Journal Entries in the Books of A Ltd.
			Illustration 2
			Journal Entries in the Books of A Ltd.
			Illustration 3
			In the Books of A Ltd.
			Redemption by Capitalization of Undistributed Profits
			Advantages
			Disadvantages
			The journal entry in this method
			Illustration 4
			Journal Entries in the Books of A Ltd.
			Illustration 5
			Journal Entries in the Books of A Ltd.
			Redemption of Partly Called-up Preference Shares
			Redemption of Fully Called-up but Partly Paid-up Preference Shares
		SUMMARY
		Fill in the blanks
		Math the following
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION
	Unit 9.4 Issue of Debentures
		Learning Objectives
		Introduction
		Meaning
		Distinction Between Share and a Debenture
		Types of Debentures
			From the Point of View of Security
			Partly Secured Creditors
			First and Second Mortgage Debentures
			From the Point of View of Mode of Redemption
			From the Point of View of Tenure
			From the Point of View of Registration
			Zero Coupon Bond
			Pari Passu Clause for Debentures
			Issue and Redemption of Debentures
			Issue of Debentures at Par and Redemption at Par
		Issue of Debentures at Premium and Redeemable at Par
			Issue of Debentures at Discount and Redeemable at Par
			Issue of Debentures at Par and Redeemable at Premium
			Issue of Debentures at Discount and Redeemable at Premium
			Issue of Debentures at Premium and Redeemable at Premium
			Master Problem 1
			Case (a): Issue at Par and Redeemable at Par
			Case (b): Issue at Discount and Redeemable at Par
			Case (c): Issue at Premium and Redeemable at Par
			Case (d): Issue at Par and Redeemable at Premium
			Case (e): Issue at Discount and Redeemable at Premium
			Case (f): Issue at Premium and Redeemable at Premium
			Case (g): Issue at Discount and Redeemable at Discount
			Master Problem 2
			In the Books of A Ltd.
			In the Books of C Ltd.
			In the Books of D Ltd.
			In the Books of E Ltd.
			In the Books of F Ltd.
			In the Books of G Ltd.
			Treatment of Discount on Issue of Debentures
			Illustration 1
			Calculation of amount of discount to be amortized
		Issue of Debentures for Consideration other than Cash
			Illustration 2
			Journal Entries in the Books of A Ltd.
		Interest on Debentures
			Illustration 3
			Journal Entries in the books of A Ltd.
		Issue of Debentures as a Collateral Security
			Illustration 4
			Option 1: No entry in the books of A Ltd.
			Balance Sheet Extract of A Ltd. as on
		SUMMARY
		Fill in the blanks
		Match the following
		MULTIPLE CHOICE QUESTIONS
		ANSWERS KEY
		EXPLANATION