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ADVANCED ACCOUNTING

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Module 1: Partnership Accounts 1. Admission of a Partner Meaning: When a new partner is admitted into the firm. Adjustments: Revaluation of assets, goodwill treatment, profit-sharing ratio change, capital adjustments. Example: Solved problem with Revaluation A/c, Partners’ Capital A/c, Balance Sheet. 2. Retirement and Death of a Partner Meaning and difference. Adjustments: Goodwill, revaluation, settlement of retiring/deceased partner’s share. Journal entries + solved problem. 3. Dissolution of Partnership Types: Dissolution of partnership vs firm. Settlement of liabilities, realization account. Solved problem with accounts format. --- Module 2: Branch & Departmental Accounts 1. Branch Accounts Meaning and objectives. Types of branches: Dependent, Independent, Foreign. Systems of accounting: Debtors system, Stock and Debtors system. 2. Departmental Accounts Meaning. Basis of apportionment of common expenses. Trading and Profit & Loss account of departments. --- Module 3: Hire Purchase and Instalment System Hire Purchase: Concept, difference from instalment system. Accounting treatment: Journal entries in the books of hire purchaser and hire vendor. Solved illustration. --- Module 4: Company Accounts 1. Issue of Shares and Debentures Meaning, issue at par, premium, discount. Forfeiture and reissue of shares. Journal entries. 2. Redemption of Preference Shares/Debentures Legal provisions, methods of redemption. Problems with solution. --- Module 5: Accounts of Special Institutions 1. Accounts of Banking Companies Final accounts of banks. Profit and Loss A/c, Balance Sheet (form as per Banking Regulation Act). 2. Accounts of Insurance Companies Life insurance vs General insurance. Revenue accounts, Profit and Loss account, Balance Sheet. 3. Insolvency Accounts Statement of affairs vs Deficiency account. Solved problem. ---

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,PROFESSIONAL COMPETENCE COURSE
STUDY MATERIAL



ADVANCED ACCOUNTING

VOLUME : 1

, PAPER 1
ADVANCED ACCOUNTING




BOARD OF STUDIES
THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

, This study material has been prepared by the faculty of the Board of Studies. The
objective of the study material is to provide teaching material to the students to enable
them to obtain knowledge and skills in the subject. Students should also supplement their
study by reference to the recommended text books. In case students need any
clarifications or have any suggestions to make for further improvement of the material
contained herein, they may write to the Director of Studies.
All care has been taken to provide interpretations and discussions in a manner useful for
the students. However, the study material has not been specifically discussed by the
Council of the Institute or any of its Committees and the views expressed herein may not
be taken to necessarily represent the views of the Council or any of its Committees.
Permission of the Institute is essential for reproduction of any portion of this material.


© The Institute of Chartered Accountants of India


All rights reserved. No part of this book may be reproduced, stored in a retrieval system,
or transmitted, in any form, or by any means, electronic, mechanical, photocopying,
recording, or otherwise, without prior permission, in writing, from the publisher.


Website : www.icai.org.


E-mail :


ISBN No. : 978-81-8441-043-3


Published by : The Publication Department on behalf of CA. R. Devarajan,
Additional Director of Studies (SG), The Institute of
Chartered Accountants of India, A-94/4, Sector-58, NOIDA
– 201 301, India.


Printed by : Sahitya Bhawan Publications, Hospital Road, Agra 282 003.
May/2008/25,000 Copies (Reprint)
$7.99
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