Financial Accounting contains the topics of partnership accounts, company accounts, non-profit organizations, ratio analysis, cash flow statement, analysis of financial statements.
ACCOUNTING FOR PARTNERSHIP FIRMS-RECONSTITUTION AND DISSOLUTION
Change in the profit sharing ratio among the existing partners- sacrificing ratio, gaining ratio, accounting for revaluation of assets and reassessment of liabilities and treatment of reserves and accumulated profits, preparation of revaluation account and balance sheet.
Admission of a partner- effect of admission of a partner or change in the profit sharing ratio, treatment of goodwill, treatment for revaluation of assets and reassessment of liabilities, treatment of reserves and accumulates profits, adjustment of capital accounts and preparation of balance sheet.
Retirement and death of a partner: effect of retirement/ death of a partner on change in profit sharing ratio, treatment of goodwill, treatment of revaluation of assets and reassessment of liabilities, adjustment of accumulated profits, adjustment of capital accounts and preparation of balance sheet. Preparation of loss account of retiring partners.
Calculation of deceased partner’s share of profit till the date of death. Preparation of deceased partner’s capital account and his executor’s account.
Dissolution of a partnership firm: meaning of dissolution of partnership and partnership firm, types of dissolution of a firm. Settlement of accounts- preparation of realization account and other related accounts, capital accounts, capital accounts of partners and cash/ bank account.
Share capital meaning, types of share capital, authorized share capital, issued share capital, subscribed share capital, paid up share capital, called up share capital, meaning of company, features of company, advantages of company, limitations of company form of business, accounting treatment of share capital, issue of shares at par, issue of shares at premium, stock vs. shares, forfeiture of shares, prorate allotment, under subscription, over subscription.