Reduced Syllabus for ISC Accounts
Admission of a Partner
1.Adjustment of Capitals.
(a) Adjustment of old partner’s Capital Accounts on the basis of the new partner’s capital. (b) Calculation of new partner’s capital on the basis of the old partner’s adjusted capital.
2.Change in Profit Sharing Ratio.
Change in PSR takes place at the time of admission of a partnership firm. Accounting treatment of accumulated profits and losses through one journal entry: (Adjustment of the incoming partner’s share to be done through his current account-similar to the treatment of goodwill not brought in cash.) Gaining partners cap/current A/c Dr. To sacrificing Partners cap/current (in case of profits). Sacrificing partners’ cap/current A/c Dr. To Gaining Partners cap/current (in case of losses) General Reserve/ Reserve fund, Workmen Compensation Reserve/ Fund, Investment Fluctuation Reserve/ Fund, Contingency Reserve, Profit and Loss Account (Debit and Credit Balance) and Advertisement Suspense Account/ Deferred Revenue Expenditure
Memorandum revaluation account, Joint Life Policy, Individual life policy are excluded from the syllabus. – Admission of a partner during an accounting year is excluded from the syllabus.
ALSO READ : Basic Accounting Terms – 23 Important terms
Retirement/ Death of a partner
(i)Adjustment with regard to the share of profits of the retiring or deceased partner from the date of the last Balance Sheet to the date of retirement or death (on the basis of time or turnover). Through P & L Suspense A/c (in case of no change in PSR of remaining partners). Through Gaining Partner’s capital/ current A/c (in case of a change in PSR of remaining partners).
(ii)Adjustment of capitals.
(a) Readjusting the adjusted capital of the continuing partners in the new profit sharing ratio. (b) Adjusting the capitals of the continuing partners on the basis of the total capital of the new firm. (c) When the continuing partners bring in cash to pay off the retiring partners.
(iii)Preparation of retiring partner’s loan accounts and deceased partner’s executor’s loan account (with interest on loan accrued and due and interest on loan accrued but not due). Self-explanatory.
Change in Profit Sharing Ratio. Change in PSR takes place at the time of retirement/death of a partnership firm.
Accounting treatment of accumulated profits and losses through one journal entry
Gaining partners cap/current A/c Dr. To sacrificing Partners cap/current (in case of profits). Sacrificing partners’ cap/current A/c Dr. To Gaining Partners cap/current (in case of losses) General Reserve/ Reserve fund, Workmen Compensation Reserve/ Fund, Investment Fluctuation Reserve/ Fund, Contingency Reserve, Profit and Loss Account (Debit and Credit Balance) and Advertisement Suspense Account/ Deferred Revenue Expenditure.
NOTE: − Preparation of Balance Sheet in Partnership Accounts to be done in Horizontal format only. − Memorandum Revaluation Account, Joint Life Policy, Individual life policy are excluded from the syllabus.
Dissolution of a Partnership firm REDUCED SYLLABUS FOR ISC
NOTE: Preparation of Memorandum Balance Sheet is excluded for the Examination Year 2021.
READ : Partnership Deed
Issue of Shares
Interest on Calls in arrears, calls in advance including the preparation of ledger accounts
Issue of Debentures
Methods of writing off discount/loss on issue of debentures- when debentures are redeemable in a lump sum at the end of a specified period; when debentures are redeemable in installments.
Redemption of debentures
*Redemption of debentures by purchase in the open market.
*Redemption of debentures in annual installments by draw of lots
Earning per share
Price Earning Ratio
Return on Investment
REDUCED SYLLABUS FOR ISC COMMERCE
Consumer Protection Act
Consumer Protection Act, 1986 replaced by Consumer Protection Act, 2019
Sources of finance for joint stock company
Bonus and rights issue, ESOP and Sweat Equity Shares – meaning. Distinction between bonus shares and right shares.
Retained earnings – meaning, merits and demerits.
Sources of short term finance- advantages and disadvantages of various sources of funds.
Principle of Management
Relevance of the principles of Management in today’s business scenario. Comparison of Taylor’s and Fayol’s principles.
functional and divisional; Formal and informal organization) – Meaning, features, merits, demerits and differences between line and line & staff, functional and divisional, formal and informal;
Relationship between Planning and Controlling;
Types of plans; Objectives, policy, procedures, method, role, budget, program –features and differences
Marketing concepts: traditional v/s modern – meaning and features of traditional and modern concepts of marketing.