- "Company means a company incorporated under this Act or any previous Company Law." - Section 2(20) of the Companies Act, 2013
- Lord Justice Lindley defines a Company as follows: "It is an association of persons who contribute money or money's worth to a common stock and employ it for some common purpose.''
- "A Company is an artificial person created by law, having separate entity with a perpetual succession and a common seal''. - Prof. Haney
- According to Chief Justice Marshal, "A company is a person, artificial, invisible, intangible and existing only in the eyes of law. Being a mere creation of law, it possesses only those properties which the charter of its creation confers upon it, either expressly or as incidental to its very existence”.
Topics
Accountancy I : Accounting for Partnership Firms and Companies
Overview of Computerised Accounting System
- Computerized Accounting System (CAS)
- Grouping of Accounts
- Codification of Accounts
- Methodology to Develop Coding Structure and Coding
- Using Software of Computerised Accounting System
- Accounting Information System (AIS)
- Accounting Software
- Steps in Installation of CAS (Computerised Accounting System)
- Codification and Hierarchy of Account Heads
- Using Computerized Accounting System - Creation of Accounts
- Using Computerized Accounting System
Accounting for Partnership : Basic Concepts
- Concept of Partnership
- Partnership Deed
- Provisions of the Indian Partnership Act, 1932
- Special Aspects of Partnership Accounts> Partner's Capital Account
- Partner's Capital Account> Fixed Capital Account
- Partner's Capital Account> Fluctuating Capital Account
- Difference Between Fixed Capital Account and Fluctuating Capital Account
- Distribution of Profit Among Partners
- Profit and Loss Appropriation Account
- Interest on Capital and Current Accounts
- Interest on Drawings
- Guarantee of Profit to a Partner
- Past Adjustments
Reconstitution of a Partnership Firm – Admission of a Partner
- Modes of Reconstitution of a Partnership Firm
- Admission of Partner
- New Profit Sharing Ratio
- Sacrificing Ratio
- Concept of Goodwill
- Admission of Partner> Accounting Treatment of Goodwill
- Methods of Valuation of Goodwill
- Admission of Partner> Hidden Goodwill
- Average Profit Method
- Average Profit Method> Simple Average Profit Method
- Average Profit Method> Weighted Average Profit Method
- Super Profit Method
- Capitalisation Method> Capitalisation of Average Profit
- Capitalization Method> Capitalisation of Super Profit
- Admission of Partner> Reserves and Accumulated Profit/Losses
- Admission of Partner> Revaluation of Assets and Liabilities
- Admission of Partner> Adjustment of Capital
- Change in Profit Sharing Ratio Among the Existing Partners
Reconstitution of a Partnership Firm – Retirement/Death of a Partner
- Computation of Amount Due to the Retiring Partner
- Determination of Amount due to the Deceased Partner
- Retirement/Death of a Partner> New Profit Sharing Ratio
- Retirement/Death of a Partner> Gaining Ratio
- Retirement/Death of a Partner> Treatment of Goodwill
- Hidden Goodwill
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Retirement/Death of a Partner> Reserves and Accumulated Profits/Losses
- Retirement During the Accounting Year
- Payment of Amount due to Retiring Partner
- Retirement/Death of a Partner> Adjustment of Capitals
- Death of Partner
Dissolution of Partnership Firm
- Concept of Dissolution of Partnership
- Concept of Dissolution of Partnership Firm
- Difference Between Dissolution of Partnership and Dissolution of Firm
- Accounting at the Time of Dissolution of a Firm
- Process of Dissolution> Realisation Account
- For Closing Assets Accounts
- For Closing Liabilities Accounts
- For Realisation of Assets
- For Payment of Outside Liabilities
- For Payment of Realisation Expenses
- For Closing Realisation Account
Spreadsheet
- Introduction to Spreadsheet
- Basic Concepts of Spreadsheet
- Labels
- Formulas
- Functions
- Useful Functions
- Useful Functions > Date and Time Function
- Useful Functions > Mathematical Function
- Useful Functions > Text Manipulation Function
- Useful Functions > Logical Function
- Useful Functions > Lookup and References Function
- Useful Functions > Financial Functions
- Data Entry, Text Management and Cell Formatting
- Data Entry
- Data Validation
- Data Validation
- Data Formatting
- Output Reports
- Preparation of Reports Using Pivot Table
- Advantages of Pivot Table (Report)
- Common Errors (Messages) in Spreadsheet
- Data Representation - Graphs, Charts and Diagrams
- Concept of Electronic Spreadsheet (ES)
- Features Offered by Electronic Spreadsheet
- Using Computerised Accounting System - Data
Accountancy II : Financial Statement Analysis
Accounting for Share Capital
- Concept of Company
- Kinds of Companies
- Shareholder's Fund> Share Capital of a Company
- Concept of Shares
- Kinds of Shares> Preference Shares
- Kinds of Shares> Equity Shares
- Terms of Issue of Shares> Issue of Shares at Par
- Terms of Issue of Shares> Issue of Shares at Par
- Calls-In-Arrears
- Interest on Calls-In-Arrears
- Calls-In-Advance
- Interest on Calls-In-Advance
- Over Subscription of Shares
- Under Subscription of Shares
- Terms of Issue of Shares> Issue of Shares at Premium
- Terms of Issue of Shares> Issue Shares at Discount
- Issue of Shares for Consideration other than Cash
- Forfeiture of Shares
- When Shares Were Originally Issued at a Premium
- When Shares Were Originally Issued at Discount
- Reissue of Forfeited Shares
Issue and Redemption of Debentures
- Difference Between Debentures and Shares
- Concept of Debentures
- Types of Debentures
- Issue of Debentures for Cash
- Terms of Issue of Debentures> Issue of Debentures at Par
- Terms of Issue of Debentures> Issue of Debentures at Premium
- Terms of Issue of Debentures> Issue of Debentures at Discount
- Oversubscription of Debentures
- Issue of Debentures for Consideration Other than Cash
- Issue of Debentures as Collateral Security
- Issue of Debentures with Terms of Redemption
- Debentures Issued at Par and are Redeemable at Par
- Debentures Issued at Discount and are Redeemable at Par
- Debentures Issued at Premium and are Redeemable at Par
- Debentures Issued at Par and are Redeemable at Premium
- Debentures Issued at Discount and are Redeemable at Premium
- Debentures Issued at Premium and redeemable at Premium
- Interest on Debentures
- Writing off Discount/Loss on Issue of Debentures
- Concept of Redemption of Debentures
- Methods of Redemption of Debentures> Redemption by Payment in Lump Sum
- Methods of Redemption of Debentures> Redemption by Payment in Instalments by Draw of Lots
- Methods of Redemption of Debentures> Redemption by Purchase in Open Market
- Methods of Redemption of Debentures> Redemption of Debentures by Conversion
Financial Statements of a Company
- Concept of Financial Statements
- Format of Company's Balance Sheet
- Contents of Balance Sheet> Equity and Liabilities
- Shareholder's Fund> Share Capital of a Company
- Shareholders' Fund> Reserves and Surplus
- Shareholders' Fund> Money Received Against Share Warrants
- Equity and Liabilities> Share Application Money Pending Allotment
- Equity and Liabilities> Non-Current Liabilities
- Equity and Liabilities> Current Liabilities
- Contents of Balance Sheet> Assets
- Assets> Non-Current Assets
- Assets> Current Assets
- Statement of Profit and Loss
Analysis of Financial Statements
Accounting Ratios
- Concept of Ratio Analysis
- Classification of Ratios
- Liquidity Ratios
- Current Ratios/Working Capital Ratios
- Quick Ratio/Acid Test Ratio/Liquid Ratio
- Solvency Ratios
- Debt to Equity Ratio
- Debt to Total Assets Ratio
- Proprietary Ratio
- Total Assets to Debt Ratio
- Interest Coverage Ratio
- Activity Ratios
- Inventory Turnover Ratio
- Trade Receivables Turnover Ratio
- Trade Payables Turnover Ratio
- Capital Employed Turnover Ratio
- Profitability Ratios
- Gross Profit Ratio
- Operating Ratio
- Operating Profit Ratio
- Net Profit Ratio
- Return on Investment
- Return on Shareholders’ Funds
- Earnings Per Share
- Book Value Per Share
- Dividend Payout Ratio
- Price Earnings Ratio
Cash Flow Statement
Accounting for Partnership Firms and Companies
Use of Spreadsheet in Business Applications
- Introduction to Use of Spreadsheet in Business Application
- Payroll Accounting
- Payroll Components
- Elements Used in Payroll Calculation
- Template Design
- Asset Accounting
- Introduction to Asset Accounting
- Computerised Asset Accounting
- Straight Line Method
- Written Down Value (WDV) Method
- Schedule Forming Part of the Balance Sheet
- Loan Repayment Schedule
- Application in Generating Accounting Information - Bank Reconciliation Statement
- Application in Generating Accounting Information - Asset Accounting
- Application in Generating Accounting Information - Loan Repayment of Loan Schedule
- Concept of Ratio Analysis
Accounting for Partnership Firms
- Concept of Partnership
- Partnership Deed
- Special Aspects of Partnership Accounts> Partner's Capital Account
- Profit and Loss Appropriation Account
- Distribution of Profit Among Partners
- Guarantee of Profit to a Partner
- Methods of Valuation of Goodwill
- Concept of Goodwill
- Accounting for Partnership Firms - Reconstitution and Dissolution
- Change in the Profit Sharing Ratio Among the Existing Partners
- New Profit Sharing Ratio
- Retirement/Death of a Partner> Reserves and Accumulated Profits/Losses
- Admission of Partner> Accounting Treatment of Goodwill
- Retirement/Death of a Partner> Gaining Ratio
- Admission of Partner> Revaluation of Assets and Liabilities
- Admission of Partner> Adjustment of Capital
- Examples on Admission of Partner
- Retirement/Death of a Partner> Treatment of Goodwill
- Retirement/Death of a Partner> Revaluation of Assets and Liabilities
- Calculation of Deceased Partner's Share of Profit Till the Date of Death
- Preparation of Deceased Partner's Capital Account, Executor's Account
- Accounting Entries To Close The Books Of Accounts
- Concept of Dissolution of Partnership Firm
- Types of Firm Dissolution> Simple Dissolution
- Past Adjustments
Accounting for Companies
- Accounting for Companies - Introduction
- Theory on Shares
- Shareholder's Fund> Share Capital of a Company
- Concept of Shares
- Employee Stock Option Plan (ESOP)
- Private Placement of Shares
- Terms of Issue of Shares> Issue of Shares at Par
- Under Subscription of Shares
- Over Subscription of Shares
- Types of Share Issue
- Forfeiture of Shares
- Pro-rata Allotment
- Concept of Private Placement
- Concept of Debentures
- Terms of Issue of Debentures> Issue of Debentures at Par
- Issue of Debentures for Consideration Other than Cash
- Issue of Debentures with Terms of Redemption
- Issue of Debentures as Collateral Security
- Interest on Debentures
- Redemption of Debentures for Immediate Cancellation - Draw of Lots, Lump Sum and Purchase in the Open Market
- Creation of Debenture Redemption Reserve
- Accounting for Debentures - Conversion Method
- Concept of Redemption of Debentures
Financial Statement Analysis
Graphs and Charts for Business Data
- Introduction to Graphs and Charts for Business Data
- Graphs and Charts
- Basics Steps for Graphs/Charts/Diagrams Using Excel
- Elements of a Chart/Graph
- Formatting of Chart
- Change the Chart Type
- Resizing of Chart/Graph
- 2D - 3D Charts/Graphs
- Advantages in Using Graph/Chart
Analysis of Financial Statements
- Concept of Financial Statements
- Statement of Profit and Loss
- Concept of Financial Statement Analysis
- Comparative Financial Statement
- Common-Size Statement
- Concept of Cash Flow Statement
- Concept of Ratio Analysis
- Quick Ratio/Acid Test Ratio/Liquid Ratio
- Debt to Equity Ratio
- Debt to Total Assets Ratio
- Proprietary Ratio
- Interest Coverage Ratio
- Inventory Turnover Ratio
- Trade Receivables Turnover Ratio
- Trade Payables Turnover Ratio
- Working Capital Turnover Ratio
- Classification of Ratios> Income Statement Ratio
- Earnings Per Share
- Price Earnings Ratio
- Classification of Ratios> Combined/Mixed Ratio
Cash Flow Statement
Data Base Management System for Accounting
- Introduction Data Base Management System for Accounting
- Introduction to Database Concepts Using Libre Office Base
- Features of Database Management System (DBMS)
- Understanding and Defining the Database Requirement
- Identification of Data to Be Stored in Tables
- Logical Structuring of Data in Tables
- Creating Database Tables in Microsoft Access
- Creation of Query in Microsoft Access
- Creation of Forms in Microsoft Access
- Creation of Reports in Microsoft Access
Accountancy : Computerised Accounting System
- Introduction
- Definition: Company
- Features
- Partnership vs Joint Stock Company
CBSE: Class 12
CISCE: Class 12
CISCE: Class 12
Definition: Company
CISCE: Class 12
Difference Between Partnership and Joint Stock Company
| Basis | Partnership | Joint Stock Company |
|---|---|---|
| Mode of Formation | Formed by agreement; registration is not mandatory. | Formed by registration under the Companies Act. |
| Regulatory Act | Indian Partnership Act, 1932 | Companies Act, 2013 |
| No. of Members | Min 2, Max 50 | Public: Min 7, no max; Private: 2–200; OPC: only 1 |
| Liability | Unlimited, joint and several | Usually limited to share value or guarantee |
| Profit Distribution | As per the Partnership Deed or equally | Declared by directors, approved by shareholders |
| Management | Managed by partners | Managed by the Board of Directors |
| Transfer of Shares | Cannot transfer without the other partners’ consent | Freely transferable (except in private/unlisted companies) |
| Business Scope | Any business agreed by partners | Only as per the Memorandum of Association |
| Winding Up | By agreement or court order | By legal process under the Companies Act, a court order is needed |
| Stability | Affected by the death/retirement of partners | Not affected by changes in shareholders |
CBSE: Class 12
CISCE: Class 12
CISCE: Class 12
Key Points: Concept of Company
- Need: Introduced to overcome drawbacks of sole proprietorship and partnership, like limited capital and unlimited liability.
- Meaning: A company is a legal business setup formed by people contributing capital to run a business, recognised under the Companies Act, 2013.
- Separate Legal Entity: It exists independently from its members; can own property, sign contracts, and face legal action in its own name.
- Limited Liability: Members are responsible only for the unpaid value of their shares; personal assets are protected.
- Perpetual Existence: The company continues even if owners or members change or pass away.
- Transferability & Management: Public company shares can be transferred freely; managed by a Board of Directors, not by all shareholders.
Shaalaa.com | Company – Private Ltd, Public Ltd
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