Part A: Accounting for Partnership Firms and Companies
- Chapter 1: Accounting for Partnership Firms – Fundamentals Learn the legal and accounting basis of partnerships. Understand the Partnership Deed, the preparation of the Profit & Loss Appropriation Account, and how to maintain Fixed and Fluctuating Capital Accounts.
- Chapter 2: Change in Profit Sharing Ratio Study the internal reconstruction of a firm. This chapter covers the calculation of Gaining and Sacrificing ratios, the accounting treatment of Goodwill, and the distribution of accumulated profits and reserves.
- Chapter 3: Admission of a Partner Focus on the entry of a new member into the firm. Learn how to revalue assets and liabilities, calculate the new profit-sharing ratio, and adjust capitals to reflect the new partnership structure.
- Chapter 4: Retirement and Death of a Partner Understand the process of settling accounts when a partner leaves or passes away. Learn how to calculate the outgoing partner’s share of Goodwill and their profit till the date of departure.
- Chapter 5: Dissolution of a Partnership Firm Learn how to close a business legally. The primary focus here is the Realisation Account, where assets are sold and external liabilities are paid off in a specific order of priority.
- Chapter 6: Accounting for Share Capital A deep dive into corporate finance. Learn about the types of shares, the process of issuing shares at Par or Premium, and the critical accounting for the Forfeiture and Re-issue of Shares due to non-payment of calls.
- Chapter 7: Issue and Redemption of Debentures Understand how companies raise debt. Study the accounting for the issue of debentures and the various conditions under which they are redeemed, including the treatment of “Loss on Issue of Debentures.”
Part B: Analysis of Financial Statements
- Chapter 8: Financial Statements of a Company Master the standardized format of a Company Balance Sheet and Statement of Profit and Loss as per Schedule III of the Companies Act, 2013.
- Chapter 9: Analysis of Financial Statements Learn the tools used by analysts to judge a company’s performance, specifically Comparative Statements (year-on-year) and Common-Size Statements (percentage-based).
- Chapter 10: Accounting Ratios The heart of financial analysis. Learn to calculate Liquidity (Current, Quick), Solvency (Debt-to-Equity), Activity (Turnover), and Profitability ratios to determine if a business is a “good credit risk.”
- Chapter 11: Cash Flow Statement Study how cash moves in and out of a business. Learn to prepare a statement categorized into Operating, Investing, and Financing activities as per Accounting Standard-3 (AS-3).
💡 Pro-Tip for Commerce Students
In Accountancy, the Balance Sheet is your ultimate check-and-balance. If it doesn’t tally, always look at your “Hidden Adjustments”—like interest on drawings or outstanding salary. At Mobotes, we suggest mastering the Journal Entries for Share Forfeiture; it is the most common high-weightage question in every board exam!