Corporate Accounting Gurukpo Notes

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Jul 29, 2015 — Corporate Accounting. Section-A 1. Accounting principles, Conventions and concepts. 2. Accounting Standards : Procedure of framing...

Jan 27, 2000 — Corporate Accounting. 3. For free study notes log on www.gurukpo.com. Preface. I am glad to present this book, especially designed to serve...

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Feb 5, 2016 — Corporate & Financial Accounting(Model Papers). 0 people like this. B.Com(Hons) (Model Paper), B.Com(Hons) I(Model Paper) · guru kpo.

Jan 27, 2000 — Corporate Accounting. 3. For free study notes log on www.gurukpo.com. Preface. I am glad to present this book, especially designed to serve...

Menu top-menu not defined. Free Study Notes for MBA MCA BBA BCA BA BSc BCOM MCOM MSc · Biyani college admission open · Biyani counseling cell.

In joint underwriting, unmarked applications are generally distributed among underwriters in the ratio of their gross underwriting liability (unless the question specifies another basis).

Flow (write): Unmarked apps → Allocate in gross ratio → Reduce each underwriter’s liability

Reconstruction A/c is used to write off/adjust (any three):

Debit balance of P&L A/c (accumulated losses)
Fictitious assets (preliminary expenses, discount on issue)
write down overvalued assets (goodwill, fixed assets, inventory)
create provision for doubtful debts, etc.

It “uses” the sacrifice amount to clean the balance sheet.

Bonus issue means issuing additional shares free to existing shareholders by capitalising reserves.

Objectives

capitalisation of profits
reward shareholders without cash outflow
improve marketability/wider distribution

Accounting entries

Reserve A/c Dr → To Bonus Issue A/c
Bonus Issue A/c Dr → To Share Capital A/c

Point	Keyword
Nature	capitalisation
Cash flow	no cash inflow

Conclusion

Bonus issue strengthens paid-up capital by converting reserves into share capital without raising fresh funds.

In joint underwriting, unmarked applications are generally distributed among underwriters in the ratio of their gross underwriting liability (unless the question specifies another basis).

Flow (write): Unmarked apps → Allocate in gross ratio → Reduce each underwriter’s liability

Reconstruction A/c is used to write off/adjust (any three):

Debit balance of P&L A/c (accumulated losses)
Fictitious assets (preliminary expenses, discount on issue)
write down overvalued assets (goodwill, fixed assets, inventory)
create provision for doubtful debts, etc.

It “uses” the sacrifice amount to clean the balance sheet.

Bonus issue means issuing additional shares free to existing shareholders by capitalising reserves.

Objectives

capitalisation of profits
reward shareholders without cash outflow
improve marketability/wider distribution

Accounting entries

Reserve A/c Dr → To Bonus Issue A/c
Bonus Issue A/c Dr → To Share Capital A/c

Point	Keyword
Nature	capitalisation
Cash flow	no cash inflow

Conclusion

Bonus issue strengthens paid-up capital by converting reserves into share capital without raising fresh funds.

Corporate Accounting Gurukpo notes

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Exam Questions (3 & 5 marks)

Objectives

Accounting entries

Conclusion

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Exam Questions (3 & 5 marks)

Objectives

Accounting entries

Conclusion