Key Notes IPCC Advanced Accounting Opt Opt

PREFACE
There is no dearth of textbooks on accounting. So it may be pertinent to ask why we need another book.
This is not a book that is written as a book. This book is evolved from the notes prepared for satisfying the
needs of students. The only motivation was to explain accounting in a logical manner, whereby one could
master the methodology based on a deeper insight into the basic structure of accounting. The emphasis
here is not so much on the mechanical practice but on the conceptual understanding of the methodology.
The objective is to ensure that the study of this book enables the reader to understand accounting numbers
in a clearer and better perspective.
Various aids have been included in the book to facilitate learning and make it interesting.
Case Studies: They not only make the concept clearer, the presentation leaves a vivid visual impact,
which has good recall value.
Pictures & Clipart: Uniformity in highlighting the important points and making reading interesting.
Concept Questions: Makes your concepts very clear and strengthen the base.
Class Work: It help students to recall and test their knowledge and, going a step further, their
power to analyse and derive. Class work need students to seek out what is not
obvious from the information provided
If this approach builds confidence in the minds of students about accounting methodology & if it makes it
possible to understand & apply it logically, I believe, I have achieved my goal.
DEDICATION
Dedicated to Her, My Infinite Happiness, My Wife Hemlata Bhangariya
I am Feeling the tranquillity and happiness when I come to lay this book in your lap.
Say youre surprised? Say you like it? Say its just what you wanted? Because its yours
because I love you.
CHAPTER
NAME OF THE CHAPTER PAGE NO
NO.
1 CONCEPTUAL FRAMEWORK
iy a
1.1 1.7
a r
2 UNDERWRITING OF SHARES 2.1 2.8
n g
3 LIQUIDATION OF COMPANIES 3.1 3.19
a
4 BANKING COMPANIES 4.1 4.11
5 INSURANCE COMPANIES
B h 5.1 5.16
6 ELECTRICITY COMPANIES
n d 6.1 6.9
n a
DISSOLUTION OF PARTNERSHIP ACCOUNTS 8.1 8. 19
A
9 AMALGAMATION & SALE OF FIRM TO A COMPANY 9.1 9.11
C A
10
12
DEPARTMENTAL ACCOUNTS
ESOP, BUYBACK, EQUITY SHARES WITH DIFFERENTIAL
RIGHTS
10.1 10. 6
12.1 12.11
CA Anand R. Bhangariya 94220 26740 www.cavidya.com 1.1

iy a
a r
n g
h a
d B
a n
A n
C A
preparation of Financial Statements in compliance with AS.
a
Deal with the topics not covered by AS.
iy
Development & review of AS
a
Promoting harmonisation of regulations, AS and procedures.
g
Interpretation of financial statements.
a n
B h
Applicable to all general purpose financial statements prepared annually by all commercial,
industrial and business enterprises (Public or private)
d
Special purpose financial reports like prospectus, Tax computations are outside the scope.
n
Framework cant override Accounting Standards.
n a
A
A
There are three fundamental accounting assumption:
C
1) Going Concern
2) Consistency
3) Accrual

iy a
Financial position Financial Cash flows
a r Other relevant
g
performance information
a n
Balance
B
Profit and loss
account h Cash Flow
Notes to
d
Sheet Statement
(P & L A/C) accounts
n
Balance sheet
a
Profit and Loss A/c Cash flow statement Notes to accounts
n
Liabilities Rs. Assets Rs. Debit Rs. Credit Rs. Particulars Rs m
A
.
n
n
C A In India, FS means B/s, P&L A/c, notes to Accounts & cash flow statement.
k

Whether to buy, sell / hold investment.
a
Investors Ability of organisation to survive.
iy
Ability of organisation to pay dividend.
a
Stability, continuity and growth of company.
Employees
g
Ability to provide remuneration, retirement and other
benefits.
a n
h
Lenders Interested in repayment of Interest and Loan principal.
d B
n
Ability to pay the dues
Suppliers Decide credit policy
n a
A
They want to know because they
Govt. Regulate the functioning of business for public good.
A
agencies Charge excise duties and taxes.
Control the prices.
C Customers

Employment
Contribution to the local economy

Understandability Reliability Comparability
iy a
True and Fair View
r
Relevance
g a Application of the
n
Free from
Useful to a wide Within the entity principal qualitative
a
Relevant for material error
range of users in over time and characteristics & of
h
decision-making and bias and can
making economic also between appropriate
be depended
B
needs of users accounting
decisions different entities
upon by users
standards
n d
n a
Primarily transactions and events are measured in terms of money.
A
The three elements of measurement are:
A
1) Identification of objects and events to be measured;
2) Selection of standard or scale to be used;
C
3) Evaluation of dimension of measurement standard or scale.
Money as a scale of measurement is not stable. Thus information of one year measured in money
terms may not be comparable with that of another year.

Historical Cost Current Cost Realisable value Present Value
iy a
r
You have purchased one Car on 01.01.2001 for Rs. 10 Lakhs Historical
a
Cost
n g
Today i.e. on 01.08.2011, if you want to sell this car after 10 years, it will
a
fetch you Rs. 3 Lakhs. Realisable Value
B h
Today same car is available in the market for Rs. 15 Lakhs. Current Cost
n d
Present Value: As per present value, an asset is carried at the present discounted value of the
a
future net cash inflows that the item is expected to generate in the normal course of business.
A n
Your dad invested Rs. 1,00,000 in Fixed deposit with Bank of Baroda for 1 year @ 10% p.a.
A
10000 X 110/100
C
1,00,000
Present Value
1,10,000 X 100/110 1,10,000
Future Value
a
Capital refers to net assets of a business. Since a business uses its assets for its operations, a fall in
iy
net assets will usually mean a fall in its activity level.
r
It is therefore important for any business to maintain its net assets in such way, as to ensure
a
continued operations at least at the same level year after year.
n g
In other words, dividends should not exceed profit after appropriate provisions for replacement of
a
assets consumed in operations. For this reason, the Companies Act does not permit distribution of
h
dividend without providing for depreciation on fixed assets.
P = (CA - CL) (OA OL) C + D
d B
P = Profit
a n OL = Opening Liabilities
n
CA = Closing Assets C = Introduction of Capital
A
CL = Closing Liabilities D = Dividend / Drawings
OA = Opening Assets
C A
iy a
a r
n g
h a
d B
a n
n
Definition: Underwriting is an agreement, with or without conditions,
A
to subscribe to the securities of a body corporate when existing
A
shareholders of the corporate or the public do not subscribe to the
C
securities offered to them.

The underwriter is not eligible for
subscribed for
commission on shares taken by
200 shares.
a
the promoters, employees,
iy
Directors / Promoters directors, their friends and
r
business associates.
subscribed for
g a
n
Company issues 800 shares.
a
1,000 shares of Rs.
h
10 for Rs. 12 each. Public
B
Commission is paid on the
d
Commission = 9,600 X 5% Underwriter
issue price
n
= 480.
i.e. Rs. 12 X 800 = 9,600
n a It may be paid in cash or in fully
A
The maximum amount of commission: paid-up shares or debentures
5% of the issue price of shares
A
or a combination of all these.

2 % of the issue price of debentures
C

rate authorized by the articles
whichever is less.

iy a
r
Underwriter If public do not subscribe the shares,
Company Underwriter will subscribe the same.
g a
issue 1,00,000
n
shares & appointed
a
an underwriter. Public
B h
7 Banks have underwritten 557.14 crores value
of shares TATA Steel.
n d
a
The company may
n
enter into underwriting
A
arrangement with
number of
A
underwriters. This
C
arrangement is called
Joint Underwriting.

Decided to issue 10000 shares and
a
Company issue 10000 shares and
appointed an underwriter
iy
appointed an underwriter
r
With condition that HSBC will take at
a
least 2,000 shares
n g
h a
d B
n
Public
a
Public HSBC will take
n
Public applied for remaining 4,000
Public applied for HSBC will take 2,000
6,000 shares.
A
12,000 shares. shares irrespective of shares.
no. of shares applied
A
by public.
C
underwriter agrees to take up a specified The underwriter agrees to take up agreed
number of shares irrespective of the number proportion of shares, not taken up by the
of shares subscribed for by the public. public.

Issue 1,00,000 shares for which they appointed underwriters with equal underwriting
a
'Marked' applications are those Unmarked' applications are those
iy
applications which bear the stamp applications which does not bear
r
of an underwriter. the stamp of an underwriter.
a
Company
g
Company received Marked Application for SBI 25,000, HSBC 15,000 and Unmarked 20,000
20,000 Unmarked applications
a n
h
Distributed in the ratio of gross
B
liability i.e. 1 : 1.
d
1.The distinction between marked
n
and unmarked applications
a
becomes immaterial when
The whole issue is subscribed
n
50,000 Applications 50,000 Applications by only one underwriter.
A
(-) 25,000 Applications (-) 15,000 Applications The issue is fully subscribed
A
(Marked) (Marked) 2.When there is more than one
underwriter, the unmarked
C
(-) 10,000 Applications (-) 10,000 Applications
(Unmarked) applications are divided amongst
(Unmarked)
underwriters in the ratio of their
15,000 shares Net Liability 25,000 shares gross liability.

Decided to issue 1,00,000 shares and Decided to issue 1,00,000 shares and
a
appointed an underwriter appointed an underwriter
r iy
g a
n
80% issue is 20% is treated as
a
underwritten by having underwritten
h
underwriter by company
d B
a n
n
100% issue is underwritten by 20%
80%
A
underwriter. Company
Underwriters
C A
100% issue
underwritten by
Marked applications = Total number of
Underwriter
applications received x percentage of
underwriting.

Statement Showing the Liability of Underwriters
iy a
[Figures - No. of shares]
a r
Underwriters
n g
A B C
a
Gross liability
h
Less: Marked applications (excluding
B
firm underwriting)
a n
Less: Unmarked applications allotted in
n
the ratio of gross liability
A
Less: Firm underwriting
C
Net Liability as per agreement

No Particulars L.F. Debit Credit
iy a
1. Applying Money received towards firm Underwriting
r
Bank A/c Dr.
a
To Underwriters Personal A/c
2. Underwriters Liability [Application + Allotment money]
n g
a
Underwriters Personal A/c. Dr.
h
To Equity Share Capital A/c
B
To Share premium A/c
3. Commission due
n d
a
Underwriters Commission A/c. Dr.
n
To Underwriters Personal A/c.
4.
A
Settlement of Account
A
Bank A/c. Dr.
C
To Underwriters Personal A/c.
(in case of receipt)
(in case of payment, reverse the above entry)

iy a
a r
n g
h a
d B
a n
A n
C A
Whatever may be the reason for insolvency, all companies going into for liquidation has to undergo
following steps....
Liquidator Statement of Accounts provides
a
the details of his receipts & payments during
iy
the liquidation process.
a r
Step 1 Step 2 Step 3
n g
Court receives petition Board of Directors upon the
from Creditors Liquidator submits
a
order of High Court, prepares
"Liquidator Statement of
Statement of Affairs & submits
h
Accounts"
Court Appoints official the same to Liquidator.
B
liquidators
d
Liquidator takes the custody of Court orders dissolution.
n
property
a
Liquidator is the person
who conducts the
n
dissolution of the company
A
Prepares Statement of Affairs which provides the details like -
1) The assets of the company
A
2) Its debts and liabilities;
C
3) The names of its creditors, stating separately the amount of
secured and unsecured debts;
4) The debts due to the company.

iy a
Estimated
Particulars Realisable
r
Values (Rs)
a
Assets not specifically pledged (as per list 'A')
g
Balance at Bank
n
Cash in Hand
a
Marketable Securities
Bills Receivable
h
Trade Debtors
B
Loans and Advances
Unpaid Calls
d
Stock-in-trade
n
Work-in-progress
a
Freehold Property, Land and Buildings . .
n
Leasehold Property
A
Plant and Machinery
Furniture, Fittings, Utensils, etc
A
Investments other than marketable securities
C
Livestock
Vehicles, etc.
Other property, viz.


*Assets specifically pledged (as per list B')
a
(a) Estimated (b) Due to (c) (d)Surplus
iy
Realisable Secured Deficiency carried to
Value Creditors Ranking as last
r
Unsecured column
(Rs) (Rs) (Rs) (Rs)
g a
a n
h
Estimated surplus from assets specifically pledged
d B
Estimated total assets available for preferential creditors, debenture
holders secured by a floating charge, and unsecured creditors** (carried
n
forward)
a
Summary of Gross Assets
n
(d) Rs.
A
Gross realisable value of assets specifically pledged Rs
Other Assets
A
Gross Assets (Rs)
C
Estimated total assets available for preferential creditors,
debenture holders secured by a floating charge, and
unsecured creditors** (brought forward).

Liabilities Rs
a
(e) (to be deducted from surplus or added to deficiency as the case may
be.)
iy
Gross Secured creditors (as per List 'B') to the extent to which claims are
r
Liabilities estimated to be covered by assets specifically pledged
a
Preferential creditors (as per List 'C')
g
Estimated balance of assets available for Debenture holders secured
n
Rs
by a floating charge and unsecured creditors
a
Debenture Holders secured by a floating charge (as per List 'D')
h
Estimated Surplus / Deficiency as regards Debenture Holders
B
Unsecured Creditors (as per List 'E')
Estimated unsecured balance of claims of creditors partly secured
d
on specific assets, brought from preceding page(c)
n
Trade Accounts
a
Bills Payable
n
Outstanding Expenses
A
Contingent Liabilities (state nature)
A
Estimated Surplus / Deficiency as regards Creditors
Issued and Called-up Capital:
C
... preference shares of... each... called-up (as per List 'F')
... equity shares of... each... called-up (as per List G)
Estimated Surplus/Deficiency as regards Members** (as per List 'H')

a
Rs
iy
Items contributing to deficiency (or Reducing Surplus):
r
Excess (if any) of Capital and Liabilities over Assets on the20 as
a
1 shown by Balance Sheet
g
Net dividends and bonuses declared during the period from..20 to the
n
2 date of the statement
a
3 Net trading losses
h
4 Losses other than trading losses written off or for which provision has been
B
made in the books during the same period
d
5 Estimated losses now written off or for which provision has been made for the
purpose of preparing the statement
n
6 Other items contributing to deficiency or reducing Surplus
a
Items reducing Deficiency (or contributing to Surplus):
A n
7 Excess (if any) of assets over capital and liabilities on the.20.. as shown on
the Balance Sheet
A
8 Net trading profits (after charging items shown in note below) for the period
from 20 to the date of statement
C
9 Profits and income other than trading profits during the same period
10 Other items reducing Deficiency or contributing to Surplus
Deficiency/Surplus as shown by Statement

a
Liability in respect of bills discounted by the company is contingent, any amount expected to be
iy
paid in respect of bills discounted should be included in List E. This applies to all contingent
r
liabilities.
a
Bills payable are creditors and hence should be included in the appropriate list according to the
g
securities held by the holders of the bills. Generally Bills payable are unsecured and hence
n
included in unsecured creditors (list E).
a
Debentures should be assumed to have a floating chare, 3 if nothing is mentioned regarding the
h
security held by the debenture-holders (List D).
B
Unclaimed dividends should be included in unsecured creditors.
Uncalled capital should not be treated as an asset but calls in arrears should be treated as an
d
asset (List A).
n
Personal guarantees by directors are not considered as security.
n a
A
C A
iy a
As per section 530, there are in totality 7 dues which has to be paid first in case of liquidation
r
which are as follows.
g a
i. All revenues, taxes, cesses and rates due to Central Government or State Government or local
n
authorities. The amount should have become due and payable within 12 months before the winding
a
up order.
h
ii. Wages or salaries of an employee for four months. The wages or salary for four months must be due
within 12 months next preceding to relevant date. The amount shall not exceed such sum as may be
B
notified by the Central Government (presently Rs 20,000) for any one claimant.
d
iii. Accrued holiday remuneration which has become payable to an employee or in case of his death to
n
any other person.
a
iv. All amounts due in respect of contributions payable by the company as employer under any law.
n
However, this is not payable if the company is being voluntarily wound up for reconstruction or
amalgamation.
A
v. Compensation payable under the Workmen's Compensation Act, 1923 in respect of the death or
A
disablement of any officer or employee of the company.
vi. All sums due to any employee from the Provident Fund, Pension Fund, Gratuity Fund or any fund for
C
the welfare of the employee including any contribution due to the fund, and
vii. Any expenses of investigation held in pursuance of Section 235 and 237 and appointed as payable by
the company.

iy a
r
However, even within these 7 dues, company has to first settle down the dues related to the
a
Workmen.
g
However, regular Secured Creditors of the company dont find any place in Section 530
a n
Workman
B h
d
Realisable value of security
given to Secured Creditors Secured Creditor
n
Rs. 3,00,000 Amount Due is Rs. 4,00,000
a
Amount Due is Rs. 1,00,000
A n 1,00,000 + 4,00,000 = 5,00,000
C A
Question is who will get the
payment first?
Workers because they are preferential creditors
as per section 530 or Secured Creditors because
they have security???

Workman Realisable value of security
iy a
r
given to Secured Creditors Secured Creditor
a
Amount Due is Rs. 1,00,000 Rs. 3,00,000
Amount Due is Rs. 4,00,000
n g
a
1,00,000 + 4,00,000 = 5,00,000
B h
3,00,000 1/5 = 60,000
d
Realisable value of
n
Security
a
Rs. 3,00,000 3,00,000 4/5 = 2,40,000
n
As per Section 529 A ,Workman & Secured Creditors are
A
treated as Overriding Preferential Payments i.e. they
Overriding Preferential Payment
A
have preference over other preferential creditors.
C
Balance unpaid amount of workmen (1,00,000-60,000) Rs. 40,000
Short amount paid to secured creditors due to sharing of workmen Rs. 60,000
Total Rs. 1, 00,000

The liquidator must present an account of his receipts and payments at
a
least twice a year as long as he is in the office to
r iy
a
The court The Registrar
g
(in case of compulsory winding up) (in case of voluntary winding up)
a n
h
Order of Payment :-
B
1) Workmen's dues and claims of the secured
creditors as mentioned in Section 529A
d
2) Overriding preferential payments
n
3) Legal charges,
n a
4) Liquidator's remuneration
5) Cost of expenses of winding up, Section 530 (6)
A
6) Preferential creditors, Section 530 (1)
A
7) Creditors secured by floating charge
C
8) Unsecured creditors.
9) Preferential shareholders
10) Equity shareholders.

a
Receipts Rs. Payments Rs.
iy
To Cash and Bank Balances By legal charges
a r
To Realisation of Assets (individually) By Liquidators remuneration
To Surplus from secured creditors
n g
% on amounts distributed
a
To Calls in arrears realized % on realisation
To Calls on contributories realised
B h
% on amounts paid to shareholders
d
By Cost of winding up
n
By Debenture holders creditors
a
(having a floating charge) +
outstanding interest
A n By Preferential
By Unsecured creditors
A
By Payment to contributories
C
Preference shareholders +
Arrear dividends
By Equity shareholders
Total Total

iy a
r
Insolvent Ltd.
a
Creditors
n g
Later on Co. goes into liquidation
a
Machinery Loan of Rs. 7,50,000
h
Plant & Machinery worth
security worth Rs.
B
Rs. 10,00,000/-
10,00,000
n
If Realised Rs. 9,00,000
d If Realised Rs. 5,00,000
a
Treated as
n
Surplus amount of Rs. Deficit amount Rs. (7,50,000 Unsecured
Treated as
(9,00,000 7,50,000) =
A
Receipts 5,00,000) = 2,50,000 Creditors
1,50,000
A
Liquidators Statement of A/c Liquidators Statement of A/c
C
Unsecured creditors
Receipts 1,50,000 2,50,000

a) Liquidator is entitled to remuneration @
5% of the amount of asset realised by
a
Balance Sheet (Extract) of Insolvent Ltd. him.
iy
Particulars Rs.
r
Land & Building 5,00,000 [It is assumed that secured creditors
a
themselves realize the asset. Hence,
Furniture 2,00,000
g
liquidator is eligible for remuneration
Stock 1,50,000
n
only on surplus]
Cash in hand 25,000
Cash at bank 45,000
h a Particulars Rs.
B
Loan from bank Land & Building 5,00,000
1,00,000
(secured by pledge of stock) Furniture 2,00,000
d
Stock [1,50,000 1,00,000
n
50,000
a
If the amount available is insufficient to pay Cash in hand
Nil
n
unsecured creditors fully, the commission Cash at bank
A
due to the liquidator is calculated as per the
following formula Total 7,50,000
A
5% remuneration 37,500
C
Commission =

Not entitled to get any
100+
commission on cash &
.
bank balance

a
Liquidated on 30-09-2011 Outstanding 12%
iy
debenture of Rs.
r
5,00,000
a
Insolvent Ltd.
Liquidator repays debentureholders on
g
31-12-2011
a n
h
Solvent Insolvent
Interest is payable upto the
d B Interest is payable upto the
n
date of actual payment loan date of liquidation
n
01-04-2011 to 31-12-2011
a 01-04-2011 to 30-09-2011
A
i.e. 5,00,000 X 12/100 X 9/12 i.e. 5,00,000 X 12/100 X 6/12
A
= 45,000 = 30,000
C
Rule is applicable for all the
debts

Particulars Rs. Particulars Rs.
a
Equity share capital 10,00,000 Cash 50,00,000
iy
Preference share capital 35,00,000
Pref. dividend (payable) :
a r
g
2008-09 1,00,000
n
2009-10 1,00,000
h a
2010-11 1,00,000
B
If not declared by company, treated as Arrears
n
If declared by company in GM, treated as Debt.
d Particulars Rs.
a
Cash = 50,00,000
n
Particulars Rs. Equity = (-) 10,00,000
A
Cash 50,00,000 40,00,000
A
Debt 3,00,000 Preference shares = (-) 35,00,000
C
47,00,000 5,00,000
Dividend on PS (-) 3,00,000
2,00,000

a
Liabilities Rs.
iy
Share Capital, Authorised and Subscribed:
r
5,000 6% Preference Shares of Rs.100 each fully paid 5,00,000
a
Deficit = 56,750
*2,500 Equity Shares of Rs. 100 each Rs. 75 paid up 1,87,500
7,500 Equity Shares of Rs. 100 each Rs. 60 paid up
n g
4,50,000
Liabilities
h a Rs.
B
Total equity capital paid up (Rs 4,50,000 + 1,87,500) 6,37,500
d
Add: Deficit (Given) 56,750
n
Loss to be borne by 10,000 equity shareholders 6,94,250
a
Loss per share Rs 6,94,250 10,000 69.425
A n
Amount of call for 7,500 equity shares of Rs. 100 each Rs. 60 paid (69.42 - 60) 9.425
70687.5
A
Total Amount collected (7,500 shares x Rs. 9.425)
C
Amount of refund for 2,500 equity shares of Rs. 100 each Rs. 75 paid 5.575
(75 69.425)
Total amount refunded (2,500 shares x Rs. 5.575) 13937.5

Liability Of ' B' List Of Contributors
iy a
r
List A List B
g a
n
The 'A' list contains the names of persons The 'B' list contains the name of persons
a
who are members for a period of one who were members with a period of one
h
year prior to the date of winding up. year prior to the date of winding up.
d B
In case present shareholders (List A) fail to pay, money shall be called from the past shareholders (List
n
B) subject to certain conditions.
a
1) A past member holding partly paid shares who has ceased to be a member for one year or
n
upwards before the commencement of the winding up shall not be liable to contribute. Only
A
those members who have ceased to be members within one year before the commencement of
winding up may be called upon to contribute. Such contributories are called 'B' list
A
contributories.
C
2) A 'B' list contributory will be liable to pay only for those creditors or debts which were
contracted before he ceased to be member.
3) 'B' list contributory will be liable only if present member is unable to make payment.
4) Maximum amount which may be called from him will be the amount unpaid on his shares.

iy a
a r
n g
h a
d B
a n
A n
C A
An Asset becomes NPA when it ceases to generate income.
Term loan Overdraft / cash credit Bill purchased and Agriculture
a
discounted advances
r iy
a
Mr. Sam Mr. John Mr. Ramesh Farmer
g
Overdraft = 1,00,000 discounted bills of took agriculture
Took loan of Rs. 25 lakhs
n
Date of withdrawal = exchange advance for short
a
31-12-2011 duration crop.
Due date = 31.12.2011
h
Drawee dishonoured
If Mr. John do not pay the bill on due date He does not repay
B
Bank dont receive any amount in the bank i.e. 31-12-2011 any amount for a
then the account is
d
any amount towards period of two crop
treated as Out of
n
Installment till The bill remains season then it is
Order
a
31.3.2012 overdue up to treated as NPA
n
31.3.2012
Out of order for The instalment of
A
Difference of 90 days
90 days principal or interest
Difference of 90 days
thereon remains
A
Interest or Instalment overdue-
C
of principal has The account has Short Duration Crops
remained overdue for remained out-of- The bill remains Two Crop Seasons
a period exceeding order for a period overdue for a period Long Duration Crops-
90 days. exceeding 90 days exceeding 90 days. One Crop Seasons

Nature
Standard Assets Sub-standard Assets Doubtful Assets
iy a
Loss Assets
Asset which do not
a r
g
pose any problems An asset classified Asset, where loss has
Assets which have
n
and which do not as doubtful if it been identified by
remained an NPA
a
carry more than remained in the the bank or internal
for a period not
h
normal risk sub-standard / External Auditors
exceeding 12
attatched to the category for 12
B
or by the RBI
months.
business. They are months. Inspection.
d
not NPAs.
n
Term Loan taken on 31st Jan. 2006
a
Customer do not repay the loan
n
Maturity on 30th June 2006 till 30th Sept. 2006 i.e. default
A
continues for 90 days after
maturity.
A
Upto 1st Oct. 2006 Term loan will be treated as NPA
C
If Auditor stamps doubtful
From 1st Oct. 2006 to 30th Sept. 2007 Substandard Asset
asset as a bad, then it is Loss
Asset.
After 1st Oct. 2007 Doubtful Asset

iy a
Required Provision as a
r
Nature of Asset % of Total Outstanding
a
Standard Assets
g
Direct Advances to Agricultural and SME Sectors 0.25%
n
Residential Housing Loans beyond Rs.20 Lakhs 1%
a
advanced to Specific Sectors (E.g. Personal Loans-credit card, 2%
h
commercial Real Estate Loans, Capital Market Exposures and Loans and 0.40%
Advances to non deposit taking NBFC)
B
Others (Not Covered above)
n d
Sub Standards Assets Irrespective of ECGC Cover & Security Available 15%
a
(When Unsecured exposures is less than 10% of Total Outstanding Exposure
n
provide additional 10% on total outstanding, therefore totaling to 20%)
A
Doubtful Assets- Secured Portion
Up to 1 Year 25%
A
1 3 Years 40%
C
More than 3 years 100%
Doubtful Assets Unsecured Portion 100%
Loss Assets 100%

Particulars Rs.
a
70,00,000
iy
Term loan
(-) Security (Building) 20,00,000
a r
Loan Rs. 50,00,000
Security
g
70,00,000 (-) ECGC (50,00,00 X 40%) 20,00,000
Realisable value
n
Unsecured portion 30,00,000
= 20 lakhs
a
Gives guarantee to the extent of 40%.
Particulars
B h Rs. Rs.
d
Balance Outstanding XXXX
n
Less: Realisable Value of Security XXXX
n a
Unsecured Portion XXXX
A
Less: Extent of ECGC Cover XXXX
Net Unsecured Portion XXXX
A
Provisioning Required:
C
1. For net Unsecured Portion (100% x Net Unsecured Portion) XXXX
2. For Secured Portion of Advance (Amount x Appropriate %) XXXX
Total Provision Required XXXX

a
Ram discounts bill with bank of amount Rs. Rebate on bills
iy
10,000 for 3 months @ 5% on 01.03.2011 discounted refers to
r
Mr. Ram the unearned
a
discount on those bills
g
Discount of Rs. 125 10,000 123 5% is Income for Bank that will mature after
n
which they credited to its Revenue Account. the date of closing of
a
accounts or that
h
portion of the discount
B
which relates to the
1st March 2011 31st March 2011 31th May 2011 period falling after
d
the close of the year.
Discount of Rs. 41.67
a n Discount of Rs. 83.33
n
(125 13) (125 23)
A
Unearned interest = bill value
As per X discount rate X (No. of days
A
F. Y. 2010-2011 accrual F. Y. 2011-2012 to maturity on balance sheet
C
concept date / 365 days)
This unearned discount of Rs.83 which belongs to next F.Y. is

called as Rebate on Bill Discounted.

a
iy
For discounting of bill by customer and recording the discount
1.
r
income:
a
Bill Discounted A/c Dr.
g
To Customers A/c (at Present Value)
a n
To Discount on Bills A/c (Balancing figure=Income of the Bank)
2.
B h
For transfer of unearned discount to Rebate on Bills Discounted:
d
Discount on Bill A/c Dr.
n
To Rebate on Bills Discounted A/c (at Unearned Discount)
3.
n a
For transfer of Opening Balance of unearned interest to Interest
A
and Discount for the year:
Rebate on Bills Discounted A/c Dr.
A
To Discount on Bills A/c
C
iy a
banks are required to
a r
g
maintain capital adequacy
n
ratio of 9%. Mr. Mohan
a
Mr. Ram
h
1,000 X 9% = Rs. 90
d B

n
+
n a
A
C A
Tier I capital is permanent capital and are readily available at the time of crisis.
Tier II capital is less permanent and are less readily available.
a
Computation of Tier I Capital Rs. Rs.
iy
Paid up Equity Share Capital 50 crore shares of Rs. 10 each XXX
r
Add: (i) Statutory Reserve XXX
a
(ii) Share Premium XXX
n g
(iii) Other free reserves XXX
a
(iv) Capital Reserve arising out of surplus from sale of assets XXX XXX
h
XXX
B
Less: (i) Equity Investment in Subsidiaries XXX
(ii) Intangible Assets XXX
d
(iii) Current and brought forward losses XXX
XXX
n
XXX
a
Any deferred revenue expenditure related to Voluntary Retirement Scheme (VRS) would not be
n
deducted from Tier I capital
A
Computation of Tier II Capital Rs. Rs.
A
(ii) Cumulative perpetual preference shares XXX
C
(iii) Revaluation reserve at a discount of 55% XXX
(iv) Contingency and Loss Reserves XXX
XXX
Tier II capital is limited to maximum of 100% of Tier I capital.

Computation of Off Balance Sheet Items
No Asset % Weight to Book Value
a
I Cash and Balance with RBI 0
iy
II Balances with banks 0
r
Money at call and short notice 0
a
III Investments
a. Government and other approved securities 0
g
b. Others 100
n
IV Advances
a
Bills purchased and discounted and other credit facilities
h
a. Claims guaranteed by Government of India 0
B
b. Claims guaranteed by State of Government 0
d
c. Claims on Public sector undertakings 100
n
d. Others 100
V Fixed Assets (net of depreciation) 100
a
VI Other Assets
n
a. Advance income tax, TDS, Interest accrued on Government
A
securities and interest accrued on balance with RBI 0
A
b. Others 100
C
Computation of Risk Weighted Assets
Acceptances, Endorsements, Other obligations, etc.
a. Guaranteed by Central / State Government 0
b. Others 100

Financial Statement Schedule
a
Form
iy
No. Name
A Balance Sheet 1 Capital
a r
g
2 Reserves and Surplus
n
3 Deposits
a
4 Borrowings
h
5 Other liabilities and provisions
6
B
Cash and balance with RBI
7 Balance with banks, money at call and
d
short notice
n
8 Investments
a
9 Advances
n
10 Fixed assets
A
11 Other assets
12 Contingent liability
A
B Profit and Loss Account 13 Interest earned
C
14 Other income
15 Interest expended
16 Operating expenses

iy a
a r
n g
h a
d B
a n
A n
C A
Covers the risk on Covers the risk on
a
account of
iy
account of
a r
Fire
n g
a
Flood
h
Accidental Death Death on account
B
of disease
Theft
n d
n a
A
Insurance cover on property. Insurance cover on life of human
Insurable value determinable. Insurable value determined by policy
A
Policy cant be cancelled. holder.
C
Claims is payable by insurance company in Policy can be terminated.
the event of loss suffered by insured due Claims is payable either on death or on
to a specialised cause. expiry of stipulated period in the policy.

iy a
r
Agent
a
Insurance Company Businessman
g
Insurance contract
n
Term of policy
Sum Insured
a
Premium
h
The contract in which insurance company
B
undertakes to indemnify the insured on the Insurance policy
Premium is the happening of certain event in consideration
d
payment made by of a specified amount.
n
the insured as
a
consideration for The document which
The period for which an insurance policy is taken contains all the term
n
the grant of the
insurance. is known as Term of the Policy. & conditions of
A
insurance & risk
covered.
The amount for which the insurance policy is taken
A
is called as Sum Insured
CAgents Balance: It has a Credit balance. It also include the premium collected by
them from the policyholders. It has a Debit balance.

iy a
a r
g
Car
Businessman
n
LIC
Taken insurance on vehicle.
a
Taken insurance on his life.
h
Term of policy 1 yr. Term of policy = 10 years
B
(Every year needs renewal)
d
Claim is payable in
n
case of
Claim arises only when the loss occurs or
a
the liability arises.
n
OR Maturity of
Death
A
policy
C A
The surrender value under an Insurance Policy is the value of the insured is eligible to receive on closure or
surrender of a life insurance before its claim falls due.
Mr. X taken Insurance policy of Rs. 10 Lakhs for 10 years on 1-1-2011
iy a
Could not pay
a r
g
LIC Mr. X
premium decided to
n
discontinue the
a
Premium paid The amount paid on discontinue of
policy.
h
for 5 years the policy is called Surrender value.
d B 31-12-2020
n
1-1-2011
31-12-2015
a
Could not pay Paid Up Value = Sum Assured x
n
premium but (No. of Premium Paid Total
A
decided to continue Number of Premium Payable)
the policy.
A
5
Paid Up Value = 10,00,000
10
C
= 5,00,000.
Paid up policy is the policy converted in case the insured is unable to continue paying premiums on his life
policy, and discontinues the payment.

iy a
LIC
Company earned profit of Rs. 2.5 Crores.
a r
Taken Life Insurance policy Rs. 10 Lakhs each.
On Maturity
n g
Mr. X
h a Mr. Y
B
Policy Amount 10,00,000 10,00,000
d
Mr. X Mr. Y
Share in profit 10,000
a n
n
Bonus is the share of policy holders in the surplus balance in Life Fund.
With profit policy:-Under this policy, a policy holder is entitled to participate in profits of life insurance
A
company in addition to fixed sum payable on maturity.
A
Without profit policy:-Under this policy the insured is not entitled to share profit of life insurance
company. The insured receives only fixed sum of money on maturity. The premium on this policy is
C
comparatively less than in the case of with profit policies.
The bonus can be distributed either in cash or by reduction in the future premium or may be distributed
upon maturity of the policy.

Mr. X has taken policy of 15 years on 1-1-2011.
iy a
r
LIC On attaining the age of 45, insurance company will
Mr. X
a
pay fixed annual payment to Mr. X till death.
n g
a
1-1-2011 31-12-2025 31-12-2030 Death
15 Premiums
B h Fixed annual
d
payment (Annuity)
a n
Insurance Company guarantees to pay money regularly as long as one lives, in consideration of
n
lump sum money received from the insured.
A
The payment of annuity depends upon the age of annuitant and the prevailing rate of interest.
The annual (or regular) payment is called annuity and the lump sum money received is called
A
"Consideration for annuities granted".
C
Annuity paid represents an expenditure of the life insurance business and consideration received
for annuities is an item of income.

From Bajaj From TATA
a
Allianz point AIG point of
iy
of view, view,
r
Insurance is Insurance is
a
Ceded. Bajaj Allianz General Accepted.
Insured
g
Insurance Company
Insured approaches
a
On the happening of
n Bajaj Allianz will pay
h
Bajaj Allianz for uncertain event the claims to the
B
Insurance Cover covered under policy insured.
Bajaj Allianz contacts
n dTATA AIG will pay
a
TATA AIG will repay
TATA AIG to cover commission to Bajaj
n
the amount of claim
itself against larger Allianz for business
A
to Bajaj Allianz
risk. received
C A First Insured will pay

premium to Bajaj
Allianz
Bajaj Allianz will
transfer the premium
to TATA AIG for risk
undertaken

Premium:
a
Particulars Rs.
iy
Total premium received on direct business
Add: Premium received on reinsurance accepted
a r
g
Premium o/s at the end of the year
a n
Less: Premium paid on reinsurance ceded
h
Premium o/s received for last year
B
Transfer to revenue a/c
d
Commission:
a n
Particulars Rs.
n
Commission on direct business
A
Add: Commission paid on reinsurance accepted
A
Commission o/s at the end of the year
C
Less: Commission received on reinsurance ceded
Commission o/s paid for last year

Claims Less Reinsurance:
iy a
Particulars Rs.
r
Total claims paid on direct business (Including all incidental expenses incurred
a
in settlement of claims)
g
Add: Claims on reinsurance accepted
n
Claims o/s at the end of the year
h a
Less: Claims paid on reinsurance ceded
B
Claims o/s paid for last year
d
a n
A n
C A
a
Mr. X insured his Car on 1-1-2011 for a period
iy
of 1 year.
r
Mr. X
a
Policy is taken for one year.
g
i.e. Risk is for one year
a n
h
1-1-2011
B
31-3-2011 31-12-2011
d
financial year ends
n
On 31-3-2011 company has to make provision for
a
unexpired risk for the next financial year.
A n
Marine Hull Insurance 100% of Net Premium
Fire, Marine Cargo and Miscellaneous Business 50% of Net Premium
C A
If company feels that reserves is not sufficient to meet
claims to the date of closing of the financial year, they
may build up additional reserves for unexpired risks.
This is the voluntary reserve and
company will decide its percentage
on net premium.

Form Financial Statement Schedule
a
No. Name
iy
B - RA Revenue A/c 1 Premiums earned net
r
2 Claims Incurred (Net)
a
3 Commission
n g
4 Operating Expenses related to Insurance Business
a
B - PL Profit and Loss A/c - -
h
B - BS Balance Sheet 5 Share Capital
B
d
7 Borrowings
n
8 Investments
a
9 Loans
n
10 Fixed Assets
A
11 Cash and Bank Balances
A
12 Advances and Other Assets
C
13 Current Liabilities
14 Provisions
15 Miscellaneous Expenditure

This represents the excess of revenue receipts over revenue expenditure relating to life insurance
iy a
business.
The fund is available to meet the aggregate liability on all policies outstanding.
r
Revenue account is prepared every year to ascertain the balance of life insurance fund at the end of
a
the year.
g
Closing Balance of Life Insurance Fund:
Particulars
a n Amount
h
Opening balance
B
Add : Revenue Income
n d
a
Less : Revenue Expenses
n
Closing balance
A
C A
a) The balance in the life assurance fund can not be taken as the profit made by the life insurance
a
business.
iy
b) For the purpose of ascertaining the profit insurance company has to calculate its net liability on all
r
outstanding policies.
c) For calculating net liability, the actuaries calculate the present value of liability on all the policies in force
a
as well as present value of future premium to be received on policies in force.
g
d) The excess of the present value of future liability over the present value of future premium is called the
n
net liability.
a
e) If the life insurance fund is more than the net liability, the difference represents the profit.
h
f) On the other hand, the excess of net liability over the life assurance fund represents the loss for the
B
inter-valuation period.
g) 95 % of the profit of life business must be distributed to the policy holders by way of "Bonus ", on with
d
profit policies and the remaining 5 % has to the utilised for such purpose as the Government may
n
determine.
a
h) The profit or loss to the life insurance business is ascertained by preparing a statement called "Valuation
n
Balance Sheet.
Valuation Balance Sheet As on
A
Particulars Amount Particulars Amount
A
To Net Liability as per Actuarial XXX By Life Assurance Fund as per XXX
C
Valuation Balance Sheet
To Surplus (Net Profit) XXX By Deficiency (Net Loss) XXX
Total XXX Total XXX

a
Particulars Rs.
iy
Profit as per Valuation Balance Sheet XXX
r
XXX
a
Add: Interim Bonus paid
g
Less: Loss on sale of Investments XXX
n
Less: Provision for taxation XXX
a
Profit made during the Year XXX
h
XXX
B
Add: Balance Brought Forward
Total Profit XXX
n d
Less: Transfer to Fund XXX
a
Available for Distribution XXX
n
XXX
A
Distribution to Shareholders (@ 5%) XXX
A
Distribution to Policyholders (@ 95%) XXX
C
Less: Interim Bonus paid XXX
Amount due to policyholders XXX

Form Financial Statement Schedule
a
No. Name
iy
A - RA Revenue A/c 1 Premiums earned net
r
2 Commission
a
3 Operating Expenses related to Insurance Business
n g
4 Benefits Paid (Net)
a
A - PL Profit and Loss A/c - -
h
A - BS Balance Sheet 5 Share Capital
B
d
7 Borrowings
n
8 Investments
a
9 Loans
n
10 Fixed Assets
A
11 Cash and Bank Balances
A
12 Advances and Other Assets
C
13 Current Liabilities
14 Provisions
15 Miscellaneous Expenditure

iy a
a r
n g
h a
d B
a n
A n
C A
Double Account System is a special method of presenting the Final accounts rather than a special
iy a
system of keeping accounts. The main objective of this system is to disclose how much capital has
been raised and how much capital has been utilised in the acquisition of assets.
a r
n g
a
Amount spent for Extension as well as
h
Repairs jointly
d B
n
Particulars Rs. Particulars Rs.
a
Amount equal to the present cost of XXX Total cost of replacement XXX
n
replacement of the old asset Add Value of materials of old asset used
A
XXX
Less Sale proceeds of scrap of the old XXX in rebuilding the new asset
A
aset Less present cost of replacement of the
XXX
C
Less Value of materials of old asset XXX old asset
used in rebuilding the new asset Capitalised XXX
Charged to Revenue XXX

a
iy
1. For Cash Expenses incurred
r
New Main A/c Dr.
g a
Replacement A/c Dr.
n
To Bank A/c
2. For use of old materials in new construction
h a
B
New Main A/c Dr.
d
To Replacement A/c
3. For sale of old materials
a n
n
Bank A/c Dr.
A
To Replacement A/c
4.
C A
For closing replacement account
Revenue A/c
To Replacement A/c
Dr.

1. Contingency Reserve:
a
A sum equal to not less than 1/4 % and not more 1/2 % of the original cost of fixed assets must be
iy
transferred from the Revenue Account to Contigency Reserve until it equals 5 % of the original cost of
r
fixed assets. The amount of the reserve is required to be kept invested in trust securities.
a
The balance in reserve can be utilised with the approval of the State Government for the following
g
purposes:
n
a) To meet expenses or loss of profits arising out of accidents, strikes or circumstances beyond the
a
control of the management;
h
b) To meet expenses on replacement or removal of plant or works other than the expenses necessary
for normal maintenance or renewal; and
B
c) to pay compensation payable under law for which no other provision has been made.
d
2. Consumer Rebate reserve: This reserve is used for reduction in rates or otherwise return to the
n
consumers.
n a
3. Tariffs and Dividend control reserve: This can be utilised whenever the clear profit is less than the
reasonable return. This is like Dividend Equalisation Reserve.
4. General Reserve:
A
A
a) Section 67 of the Act, lays down that after interest and depreciation have been provided, a
C
contribution to general reserve shall be made at the rate not exceeding 1/2% of the original cost
of the fixed assets until the total of such reserve come to 8 % of the original cost of the Assets.
b) This applies only to the Electricity Boards though there is nothing to stop electricity companies
from building up reserves.

a
The Electricity (Supply) Act, 1948 provides that an electricity company can not charge any rates as they
iy
like.
They are entitled to charge such rates which gives them a reasonable return.
r
They must so adjust the rate that the amount of clear profit in any year does not exceed the
a
reasonable return by more than 20%.
n g
h a
B
1) Objective:
The law seeks to prevent an Electricity Company from earning very high profit,. For the purpose,
d
concept of Reasonable Return has been propounded. Reasonable Return is the normal which a
n
Electricity Company can e expected to earn.
2) Standard Rate:
n a
A
Standard Rate is determined for the purpose of determining yield on the Capital Base in
computation of Reasonable Return. Standard Rate = Reserve Bank of India Rate + 2%
3)
C A
Computation of Reasonable Return

a
Particulars Rs. Lakhs
r iy
Yield on Capital Base= Capital Base x Standard Rate of Return XXX
a
Add: Income on Investments other than Investment against
g
XXX
Contingencies Reserve
Add: 1/2% of Loans advanced by the Electricity Boards
a n XXX
h
Add: 1/2% of amount borrowed from State Government approved
B
XXX
organisation/ Institutions
Add:
n d
1/2% of amount raised by the Issue of Debentures XXX
a
Add: 1/2% of on balance in Development Reserve XXX
Add:
A n
Other amount as allowed by Central Govt. having regard to the
prevailing tax structure
XXX
C A Reasonable Return XXX

a
a) The original cost of fixed assets available for use and necessary for the purpose of the
iy
undertaking less contribution, if any, made by the consumers for construction of service
r
lines.
a
b) The cost of intangible assets.
g
c) The original cost of works in progress.
n
d) The amount of investments made compulsorily against Contingency Reserve;
a
e) The monthly average of stores, materials, supplies and cash and bank balances. [Monthly
h
average of Current Assets, excluding amount due from Consumer].
B
Less:
d
i. Depreciation on tangible assets and amounts written off from intangible assets.
n
ii. Loans advanced by the Board;
a
iii. Loans from approved institutions
n
iv. Debentures
A
v. Security deposits of consumers held in cash
vi. The amount standing to the credit of the Tariff and Dividends Control Reserve
A
vii. The amount set apart for the Development Reserve and
C
viii. Balance in consumer Rebate/ Benefit Reserve.

a
1) Meaning: Clear Profit is the difference between the amount of income and the sum of
iy
expenditure including specific appropriations. It is the net Profit of the Company.
a r
2) Computation of Clear Profit:
g
Particulars Rs Particulars Rs
n
To Losses brought forward from By Net Profit after usual working
a
previous year charges and interest.
h
To Income Tax
B
To Intangible asset written off
d
To Contribution to Contingency Reserve
n
To Arrears of Depreciation
a
To Development Reserve
n
To Other appropriations permitted by:
A
State Government.
A
To Balance being
CLEAR PROFIT
C
Total Total

a
Surplus is the difference between the Clear Profit and the Reasonable Return.
iy
Disposal of Surplus
a r
20% of Reasonable Return
n g Balance (D)
a
Consumer Rebate Reserve
Electricity Company (A) Least of the
B hBalance
d
following:
n
1/3rd of 20% of Reasonable Return
a
5% of reasonable return
A n
C A (B) = 50% of Balance
50% Transfer to Tariff and
Dividend Control Reserve
(C) = 50% of Balance
50% Transfer to Consumer
Control Rebate Reserve

iy a
a r
n g
h a
d B
a n
A n
C A
Dissolution of Partnership Dissolution of Firm
iy a
a r
g
Change in existing relationship between the According to Section 39 of the
n
partners. partnership Act 1932, the dissolution of
a
Firm continues its business as before partnership between all the partners of a
h
It may take place in following ways. firm is called the Dissolution of The Firm.
B
a) Change in existing PSR among partners That means the Act recognises the
b) Admission of new partner difference in the breaking of relationship
d
c) Retirement of a Partner. between all the partners of a firm and
n
d) Death of a Partner between some of the partners;
a
e) Insolvency of a Partner
n
f) Completion of the venture if partnership is
A
formed for that
g) Expiry of the period of partnership, if it is
A
for the specific period of the time.
C Death of Partner

Second Step
iy a
r
Prepare Balance
a
Balance in Realisation
Sheet of the firm as account is transferred to
g
on date of Non cash assets are Capital account.
n
dissolution. converted into cash Available cash is
a
Profit or loss on sale of distributed to creditors
h
assets is transferred to & partners.
B
Realisation account.
First Step
d
Last Step
a n
A n
A
Object of Realisation Account
C
Whatever may be the reason for dissolving the partnership, the accounts have to be closed. A
special account called Realisation Account is used to record the closing transactions, showing net
gain or loss that has resulted from the realisation of assets & settlement of liabilities.

a
(a) Transfer of recorded Assets to Realisation A/c
iy
Realisation A/c (With the total) Dr.
r
To Sundry Assets A/c (With their individual book values)
(b) Transfer of Liabilities, Provisions to Realisation A/c
g a
a n
Liabilities A/c (With their individual book figures) Dr.
h
Provision for Doubtful Debt A/c Dr.
B
Provision for Depreciation A/c Dr.
To Realisation A/c (with the total)
nd
a
(c) Realisation all Assets (whether recorded or unrecorded)
n
1. When assets are sold for cash
A
Cash/ Bank A/c Dr.
To Realisation A/c
2.
C A
Assets are taken away by partner
Partners Capital A/c Dr.
To Realisation A/c

iy a
3. Assets are given away to any of the creditors towards the
full/partial payment of his dues.
r
No Journal Entry may be passed
g a
n
(d) Discharge of outsiders Liabilities (whether recorded or
a
unrecorded)
h
1. When Liabilities are discharged in cash
B
Realisation A/c Dr.
To Cash / Bank A/c
nd
a
2. Partner agreeing to discharge a liability
n
Realisation A/c Dr.
A
To Respective Partners Capital A/c
A
(e) Payment of Realisation Expenses
C
1. When expenses are paid in cash
Realisation A/c Dr.
To Cash / Bank A/c

iy a
2. When expenses are paid by partner
r
Realisation A/c Dr.
a
To Partners Capital A/c
3. When any of the partners agrees to do dissolution work for
n g
a
an agreed remuneration
h
Realisation A/c Dr.
B
To Concerned Partners Capital A/c
4.
nd
When expenses are paid by a partner who has to bear such
a
expenses
n
No Entry
5.
A
When exps. are paid by the firm on behalf of a partner who
A
has to bear such expenses
C
Concerned Partners Capital A/c Dr.
To Cash/ Bank A/c

iy a
(f) Transfer of Profit in PSR on Realisation
r
Realisation A/c Dr.
a
To All Partners Capital A/cs
(g) Transfer of Loss in PSR on Realisation
n g
Dr.
a
All Partners capital A/cs
h
To Realisation A/c
(h) Payment of Partner Loan/ Advances
d B
n
Partners Loan/ Advance A/c Dr.
a
To Capital A/c (Only to the extent of Dr. Balance in capital A/c)
n
To Cash A/c (with the Balance)
A
A
(i) Transfer of Accumulated Profit in PSR
C
Profit & Loss A/c Dr.
General Reserve A/c Dr.
To All Partners Capital A/c

iy a
(j) Transfer of Accumulated Losses in PSR
r
All Partners Capital A/c Dr.
a
To Profit & Loss A/c
g
To Deferred Revenue Expenditure A/c
(k) Transfer of the Balance in Current Account(s)
a n
h
1. In case of debit balance in a Current Account of a partner
B
Concerned Partners Capital A/c Dr.
d
To concerned Partners Current A/c
a n
n
2. In case of credit balance in a Current Account of a Partner
Concerned Partners Current A/c Dr.
A
To concerned Partners Capital A/c
C A
iy a
(l) Payment to/by a Partner
1. In case of payment by a partner having a debit balance in
r
his Capital A/c
a
Cash /Bank A/c Dr.
g
To Concerned Partners Capital A/c
a n
h
2. Payment to a partner having a credit balance in his Capital
A/c
B
Concerned partners Capital A/c Dr.
d
To Cash/ Bank A/c
a n
A n
C A
The treatment of goodwill in case of dissolution of a firm may be summarized as follows:
iy a
No. Particulars If Goodwill is Already If Goodwill is not Appearing in
appearing in the Books the Books
(a) On Transfer to Realisation A/c Dr.
a r
The question of transfer
g
Realisation A/c To Goodwill A/c does not arise at all
n
(b) On sale for cash Cash/ Bank A/c Dr. Cash/Bank A/c
h a
To Realisation A/c To Realisation A/c
B
(c) On being taken over Concerned Partners Capital A/c Concerned Partners Capital A/c
Dr. Dr.
n d
By any of the partners To Realisation A/c To Realisation A/c
n a
A
C A
Trial Balance
iy a
Particulars Rs.
r
Debtors 3,50,000
a
Less: Provision for bad debts 50,000
g
3,00,000
Realisation A/c
a n Realisation A/c
Debtors 3,00,000
B h
Debtors 3,50,000 Provision 50,000
n d
n a
A
1) An Asset against which a provision or reserve has been created, should be transferred at its
gross figure and not at its net figure e.g. Debtors
A
2) Provision/Reserve against an asset is a separate account and thus, it should be transferred to
C
Realisation Account separately like other liabilities, e.g. Provision for Doubtful Debts A/c,
Machinery Replacement Reserve

Trial Balance
Particulars Rs.
iy a
r
Creditors 5,00,000
a
Provision for discount on creditors 1,00,000
n g
a
Realisation A/c Realisation A/c
Creditors 4,00,000
B
(5,00,000 1,00,000)
h
Provis. 1,00,000 Creditors 5,00,000
n d
n a
1) Provision /Reserve against a liability is a separate account and thus, it should be transferred to
A
Realisation A/c separately like other assets, e.g. Provisions for Discount on Creditors.
2) A liability against which a provision or reserve has been created, should be transferred at its
A
gross figure and not at its net figure, e.g., Creditors.
C
Trial Balance
a
Particulars Rs.
r iy
Bank balance 2,00,000
Realisation A/c
g a
Bank 2,00,000
a n
Cash & bank is never realized but same is
h
distributed in its present form.
d B
a n
A n
C A
Trial Balance
Particulars Rs.
iy a
r
Assets Realised 1,00,000
a
Loan from Relatives of the partners 30,000
n g
Creditors 20,000
a
Partners Loan 40,000
Realisation A/c
B h Realisation A/c
d
To Bank By Bank 1,00,000 To Bank By Bank 1,00,000
n
Partners Loan 40,000 Creditors 20,000
a
At par
Creditors 20,000 Loan frm. Rel. 30,000
n
Loan frm. Rel. 30,000 Partners Loan 40,000
A
A
Loan from relative of partner = external liability = at par with the creditors
C
Loan from partner = payment is made after paying creditors, but before repayment of capital

iy a
Different Ways of Dissolution
a r
g
When all Partners are Not all but some of the When all partners are
n
Solvent partners are solvent Insolvent
h a
d B
a n
n
When all partners solvent, before balancing capital account of partners, the loan from any
partner is to be paid first. And if any partner has taken any loan from firm, he has to bring
A
necessary cash in to the business.
C A
a) At the time of dissolution of a partnership firm, the capital account of a partner may show a
a
debit balance after his share of any profit or loss on realisation has been included in his account.
iy
But if he cannot make good the whole or part of a deficiency, then what should be done?
r
b) This deficiency must be shared by all the solvent partners.
a
Ratio to share deficiency by
g
Solvent partners
a n
h
In the ratio of their last agreed capitals.
In their profit sharing ratio (like
(This issue was upheld in the case of
B
any business loss)
Garner Vs. Murray.)
n d
a
No. Case Meaning of Last Agreed Capital
A n
a) In Case of Fixed Capitals Last Agreed Capital means the Fixed Capital (given in the Balance
Sheet) without any adjustment.
A
b) In Case of Fluctuating Last Agreed Capital Means the Capital after making adjustments
C
Capitals for past accumulated reserves, profits or losses, drawings,
interest on capitals, interest on drawings, remuneration to a
partner etc. to the date of dissolution but before making
adjustment for profit or loss on realisation.

iy a
When all the partners are insolvent and the the assets of the firm are inadequate to meet the
firms liabilities, the firm is said to be insolvent.
In case of insolvency of firm, the creditors of
a r
The balance amount is paid to creditors
g
the firm cannot be paid in full. The available proportionately. Any balance remaining
n
cash with the firm is first used to pay unpaid to them represent their sacrifice on
a
realisation expenses account of insolvency of partners.
B h
n d
n a
In order to close the acounts of firm, Realisation account is prepared in the usual manner.
A
A
However if loss on realisation is to be if loss on realisation is to be determined after
C
determined before considering the amount considering the amount ultimately paid to
ultimately paid to creditors, the creditors are creditors, the creditors are transferred to
not transferred to Realisation account. Realisation account.

1. Till now, all the questions relating to dissolution (ireespective of solvency of partners) are based
a
on the assumptions that all the assets are reallised & all the liabilities are setteled together
iy
before the partners are paid off.
a r
2. In actual practice, it may not be possible to realise all assets on the date of dissolution and pay
g
the liabilities on that date. Assets are realised and cash collected gradually.
a n
3. Cash available is applied in following order:
h
a) Realisation expenses
b) Outside Creditors
B
c) Partners Loan
d
d) Provision for Contingent Liability
n
e) Partners Capital.
n a
A
C A
iy a
r
Distribution of Cash
g a
n
Capital of the partners are Capital of the partners are
a
not in PSR in PSR
B h
d
Maximum loss Proportionate Distribution of cash in
n
Method Capital Method PSR
n a
A
C A
iy a
a r
n g
h a
d B
a n
A n
C A
Amalgamating Firms
iy a
Sun Associates
a r
Moon Associates
g
Decides to amalgamate and to form new partnership firm
a n
B h
d
Sun Moon Associates
a n
Separate existence of Sun Associates and Moon Associates comes
n
to an end & a new firm Sun Moon Associates is formed.
A
A
Under amalgamation, two or more firms transfer their business to a new firm which is
C
formed to take over such businesses.
Usually all the assets and liabilities are revalued in order to ascertain the true position as
on the date of amalgamation.

a
1 For Goodwill
iy
the value of the goodwill will be ascertained in case of each firm
r
and amount will be credited to partners capital account in old PSR
a
Good will A/c Dr.
g
To partners capital A/c
2. For Reserves and other undistributed profits
a n
h
B
d
To All Partners Capital A/c
3.
a n
For increase in value of assets or decrease in value of
n
liabilities
A
Assets /Liabilities A/c Dr.
To P & L Adjustment A/c
4.
C A
For decrease in value of assets or increase in value of
liabilities
P & L Adjustment A/c Dr.
To Assets /Liabilities A/c

iy a
5. For profit on Revaluation
P & L Adjustment A/c Dr.
a r
To partners capital A/c
g
(For loss on revaluation entry will be reversed)
a n
6. For an Assets taken over by a partner
h
B
To Asset A/c
d
7. For an Liabilities taken over by a partner
n
Liabilities A/c Dr.
a
To Respective Partners Capital A/c
8.
A n
For an Assets & Liabilities taken over by new firm
New Firm A/c Dr.
A
Liabilities Taken Over A/c Dr.
C
To Assets Taken Over A/c

iy a
9. Assets/Liabilities no taken over the new firm will be either sold
away or paid off and any profit or loss on such selling or payment
r
will be transferred to Partners capital A/c in ratio of their capitals.
10. Transfer of partners Capital A/c
g a
a n
h
To New Firm A/c
d B
a n
A n
C A
a
iy
1. For an Assets & Liabilities taken over
r
Assets taken over A/c Dr.
a
g
To Liabilities taken over
2.
a
For any further contribution towards capital by the partners
n
h
Bank A/c Dr.
B
3.
n
For any capital withdrawn by the partners
d
a
n
To Bank A/c
A
C A
Sold its business to a
iy a
Existence of Tom & Jerry Associates comes
a r
g
to an end
n
Tom & Jerry Associates Disney Ltd.
a
i.e. nothing but dissolution
B h
We are going to follow same accounting treatment that we have followed in
Dissolution of Firm
n d
n a
Sometimes the business of the Partnership Firm may be sold to a limited company.
A
Procedure regarding closing of the books of account of Partnership firm is the same
A
as in case of dissolution of a firm.
C
Will pay Purchase Consideration to
iy a
Disney Ltd.
a r
g
For Assets & Liabilities taken over by it. Tom & Jerry Associates
Purchase Consideration
a n
When Lump sum
B h When Lump sum
d
figure is given figure is not given
a n
n
PC = Lump Sum Figure
Payment Method Net Asset Method
A
For Eg. The company took over
the firms business for a total
A
consideration of Rs. 1,05,000
C
To arrive at Purchase consideration all payments made by the company to the firm are added
a
together. It is done as under :
iy
Particulars Rs.
a r
Cash Paid XXX
g
Issue price of Equity shares XXX
n
Issue price of Preference shares XXX
h a
Issue price of Debentures XXX
B
Total payment being the amount of Purchase consideration XXX
d
Example :- The purchase consideration was to be satisfied by a cash payment of Rs. 56,000, the
n
allotment of 8,000 equity shares of Rs. 10 each at 10% discount and the allotment of 2,000, 12%
a
preference shares of Rs. 10 each.
n
Solution :-
A
Particulars Rs.
A
Bank 56,000
C
Equity shares (8,000 X 9) 72,000
Preference shares (2,000 X 10) 20,000
Total payment being the amount of Purchase consideration 1,48,000

The value of net assets taken over by the company is the amount payable. It is computed as follows
Particulars
iy a Rs.
r
Agreed value of the Individual Assets taken over XXX
Less : Agreed value of Individual Liabilities taken over
g a XXX
n
Value of Net Assets Taken Over (Purchasing Consideration) XXX
h a
d B
a n
A n
C A
Example : The agreed value of assets and Liabilities of partnership firm is as follows :
iy a
Land and Building Rs. 3,00,000; Plant Rs. 1,50,000; Sundry Debtors Rs. 47,500; Stock Rs.
1,40,000; Bills receivable 50,000; Sundry Creditors Rs. 38,000 and Bills Payable 80,000.
r
Solution :-
g a
Particulars Rs.
n
Land and Building 3,00,000
a
Plants 1,50,000
h
Sundry Debtors 47,500
B
Stock 1,40,000
n d
Bills Receivable 50,000
a
Cash 1,00,000
n
Less : Sundry Creditors 38,000
A
Bills Payable 80,000
A
Total (Purchase consideration) 6,69,500
C
iy a
a r
n g
h a
d B
a n
A n
C A
Separate set of books are
iy a
All the departments are kept
r
kept for each department together in columnar form
g a
n
This method of
a
Each department At the year end the
Acconting is
h
is regarded as a trading results of all
employed when separate unit and
B
the departments are
the size of the Accounts are kept combined to get the
d
organisation is independently. trading results of the
n
very large or As organisation as a
a
per the law. whole
A n
A
The central Accounts department A department
C
generally maintains columnar does not maintain
Purchase and Sales Day Book to a full double-entry
distinguish between the purchases book-keeping
and sales of different departments. system of its own.

Allocation of direct expenses to each department is easy.
a
But in case of common expenses like Rent, Electricity, Insurance allocation of these expenses is
iy
difficult.
r
SI. Expenses Basis
a
1. (a) Travelling salesman's salary and commission
n g
(b) Selling expenses
a
(c) After-sales service
h
(d) Discount allowed Sales of each department (Excluding
B
(e) Freight outwards inter-departmental transfers)
d
(f) Provision for discounts on debtors
n
(g) Sales manager's salary and other benefits
a
2. (a) Rent, rates and taxes
n
(b) Air conditioning expenses Area or value of floor space
A
(c) Heating
A
3. Lighting Light points
C
4. Insurance on Stock Average stock carried
5. Insurance on Building Area
6. Insurance on Plant & Machinery Value of Plant & Machinery
7. Group insurance premium Direct wages

SI. Expenses Basis
iy a
8. Power H.P. or H.P. x Hours worked
r
9. (a) Depreciation
Value of assets in each department
a
(b) Repairs and renewals
g
10. (a) Canteen expenses
n
(b) Workman Compensation Insurance
a
Number of employees
h
(c) Labour welfare expenses
B
11. Works manager's salary Time spent in each department
12. Carriage inwards Purchases of each department
nd
13. Expenses directly related to a particular Charged to respective department.
a
department
A n
C A
Some material has been transferred from grocery section to
a
Fruits & Vegetables section.
r iy
Cost is Rs. 100.00 But transfer is
a
made at Rs. 125.00
g
Grocery Section Fruits & Vegetables
n
Section
i.e. it includes profit element of Grocery
a
Section @25% on cost
B h
At the end of FY, Fruits & Vegetable section will value its closing stock at its cost price i.e. Rs.
d
125.00 which is transfer price of Grocery section
a n
n
Rs. 25 is unrealised profit which is equal to profit of grocery section. it is necessary to provide for
A
unrealised profit on stock held out of inter departmental transfer.
C =


iy a
1. For Unrealised profit on stock
r
Profit and Loss Account Dr.
a
To Stock Reserve Account
g
Accounting entry:
n
At the beginning of the next year reverse entry will be
2.
a
passed.
h
Stock Reserve Account Dr.
B
To Profit and Loss Account
n d
n a Balance Sheet
A
Liabilities Amount Assets Amount
A
Current Assets
Closing Stock
C
Less: Stock Reserve

iy a
a r
n g
h a
d B
n
Definition :- The Companies (Amendment) Act 2000 has inserted a new
a
clause (15A) in section 2 of the Companies Act, 1956, which states that
n
Employee Stock Option means the option given to the whole time directors,
A
officers or employees of a company, which gives such directors, officers or
A
employees the benefit or right to purchase or subscribe at a future date , the
C
securities offered by the company at a pre determined price

Proposal contains
1) Mr. Joy should work with the
a
company at least 5 years.
iy
2) Mr. Joy should be able to grab
XYZ Co.
r
the Indonesia Project.
Mr. Joy
a
Company put the proposal in 3) Mr. Joy should achieve his yearly (Director)
g
Meeting to offer ESOP Mr. Joy targets, as decided.
n
for approval. Vesting
a
Grant Conditions
B h
n d Grant Date
Vesting Period
n a Mr. Joy is required to achieve
A
these conditions within a time
A
span of 6 years. i.e.
C
(15.09.2011 15.09.2017)
Exercise Expected Life
Exercise Period 15.09.2011 15.09.2018 of an Option
Price

a
Say, Mr. Joy achieves the conditions given in
iy
proposal on 01.09.2017
a r
g
Company offered Mr. Joy shares @ Rs.
n
150 but actual price of the shares in Mr. Joy will not
a
the market at the time of exercise of exercise the option
h
option is Rs. 100
If market price of the share at the time
d B Will apply for the
n
of exercise of option is Rs. 500. shares
n a
A
A
Its employees right to purchase the shares or not but its the obligation of the
company to sell the shares whatever may be the price of share.
C
iy a
Ethical Ltd
On 01.01.2011, gives offer to its
a r
g
Employees
a n
To purchase 1,000 shares each at future date between 01.01.2014 - 01.01.2015
h
at a predetermined price of Rs. 200 subject to fulfillment of conditions on or
B
before 01.01.2014.
n d On 01.01.2015, market price of
a
If employees want, they are free the shares is Rs. 500
n
to dispose of the shares subject to
A
lock-in-period if any. i.e. market price is generally
lower than exercise price.
C A
a
In respect of options granted during any accounting period, the
iy
accounting value of the options shall be treated as another form
1.
r
of employee compensation in the financial statement of the
a
company.
g
The accounting value of the option = Number of options granted
n
* (Market Price Exercise Price)
a
Employee Compensation Expenses A/c Dr.
h
To Employee Stock Options Outstanding A/c
d B
n
2. Stock option exercised by employees during exercise period
a
Bank A/c Dr.
n
Employee Stock Options Outstanding A/c Dr.
A
To Equity Share Capital A/c
To Securities Premium A/c
3.
C A
Stock option lapsed on expiry of exercise period
Employee Stock Options Outstanding A/c Dr.
To General Reserve A/c

4. Transfer of balance in Employee Compensation
iy a
r
Expenses A/c Dr.
a
g
To Employee Compensation Expenses A/c
a n
B h
d
Decides to issue the shares to the
n
public at large on 01.01.2011.
Magical Ltd.
n a Mr. Roy
A
(Listed Co.)
A
As a part of public offer, Company gives offer to Mr. Roy to purchase 1,000 shares at a price
of Rs.200 immediately whose market price is Rs. 350 now to retain him in a company.
C Mr. Roy can subscribe to the shares of the company, if & only if he is ready to
work in a organisation for a period of 5 years. (i.e. Lock in Period)

a
Company offers performance bonus to Ms. Rozy, that is
iy
linked to the performance of the company.
Empire Ltd. Shares of the company are trading at Rs.
a r Ms. Rozy
g
250 on 01.01.2011
a n
After 5 years, i.e. on 01.01.2016, Value of
h
share becomes Rs. 900.
d B
n
Now instead of giving her shares, Company
i.e. Company will pay her (Rs. 900 Rs.
a
will pay her appreciation in the value of
250) i.e. Rs. 650 per share.
n
shares of the company
A If the value of Share becomes Rs. 100 on
A
01.01.2016, then option cant be exercised.
C
Types of ESOP for Accounting Purpose
iy a
a r
n g Employee share based
a
Equity Settled Cash Settled payment plans with cash
h
alternative
d B
n
Under these plans, either the
Under this plans, the
a
Under this plan, enterprise or the employee has
employees receive cash
n
employees receives the a choice of whether the
shares. based on the price of
enterprise settles the payment
A
enterprises shares.
in cash or by issue of shares.
C A
CA Anand R. Bhangariya
www.cavidya.com 12.8
94220 26740
iy a
r
a
A. Fresh issue of shares
n g
1. Application money received
a
Bank A/c Dr.
h
To Share application & allotment A/c
2. Allotment of shares
d B
n
Share application & allotment A/c Dr.
a
Discount on issue of shares A/c Dr.
n
To Equity Share Capital
A
To Securities Premium A/c
C A
B. Transfer of profits to Capital Redemption Reserve A/c
a
(to the extent of nominal value of shares purchased)
iy
r
g a
Other Reserves A/c Dr.
n
To Capital Redemption Reserve A/c
C. Amount due under Buy back
h a
B
Equity Share Capital A/c Dr.
Securities Premium A/c Dr.
d
Divisible Profit A/c Dr.
n
To Equity Shareholders A/c
D. Payment of amount due
n a
A
Equity Shareholders A/c Dr.
A
To Bank A/c
C
1) The Companies Amendment Act, 2000 has allowed companies to issue equity shares with
iy a
disproportionate rights.
2) The share capital of company limited by shares shall be only of two kinds, namely :
r
a) Preference Share capital
a
b) Equity share Capital
g
i. With voting rights ; or
n
ii. With differential rights as to dividend, voting or otherwise in accordance with such
a
rules and subject to such conditions as may be prescribed.
B h
n d
n a
A
C A

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PREFACE

Dedicated to Her, My Infinite Happiness, My Wife Hemlata Bhangariya

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 1.1

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 1.2

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 1.3

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 1.4

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 1.5

P = (CA - CL) (OA OL) C + D

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.1

n a It may be paid in cash or in fully

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.2

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.3

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.4

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.5

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.6

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.7

2. Underwriters Liability [Application + Allotment money]

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 2.8

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.2

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.3

(Rs) (Rs) (Rs) (Rs)

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.4

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.5

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.6

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.8

A n 1,00,000 + 4,00,000 = 5,00,000

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.9

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.10

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.12

To Surplus from secured creditors

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.13

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.14

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.15

Interest is payable upto the

d B Interest is payable upto the

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.16

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.17

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 3.18

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CA Anand R. Bhangariya 94220 26740 www.cavidya.com 4.2

Asset which do not

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 4.3

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 4.4

Total Provision Required XXXX

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 4.5

Discount of Rs. 41.67

a n Discount of Rs. 83.33

This unearned discount of Rs.83 which belongs to next F.Y. is

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 4.6

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 4.9

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 5.10

A Balance Sheet 1 Capital

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CA Anand R. Bhangariya 94220 26740 www.cavidya.com 5.2

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 5.3

Mr. X taken Insurance policy of Rs. 10 Lakhs for 10 years on 1-1-2011

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 5.5

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 5.6

CA Anand R. Bhangariya 94220 26740 www.cavidya.com 5.7

Bajaj Allianz contacts

n dTATA AIG will pay

C A First Insured will pay

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Add: Premium received on reinsurance accepted