Accounts of Holding Company: Types, Advantages, and Disadvantages
What is a Holding Company? A company that has one or more subsidiary companies having full control over them. It is formed for the purpose of purchases and owning shares…
Internal Reconstruction of Company: Difference, Methods
Internal reconstruction means the reorganization of the capital structure of a company without forming a new company and without liquidating the existing company.
Amalgamation of Companies: Objectives, Types, Advantages, Differences
What is Amalgamation of Companies? The amalgamation of companies means to form one company by merging two or more companies. It may also mean that one company has acquired another…
Purchase of Business: Purchase Consideration, Methods
Meaning of Purchase of Business Purchase of Business generally means buying of one business firm by another business firm. But the term is used differently in different cases. ‘Purchase of…
What is Valuation of Shares? Importance, Methods, Purpose and Need
What is Valuation of Shares? The share capital is the most important requirement of a business. It is divided into a ‘number of indivisible units of a fixed amount. These…
Valuation of Goodwill: Nature, Factors, Methods for Valuation, Why do we Need
What is Goodwill? Goodwill of a business means reputation, popularity, or image of the business in the market. Goodwill of a business is earned by the entrepreneur by delivering good…
Buy Back of Shares: Procedures, Advantages, Disadvantages, Conditions, Accounting Treatment.
What is Buy Back of Shares? Buy back of shares, or other specified securities means buying back of its own shares or other specified securities by the company from the…
Redemption of Debentures: Methods, DRR, Journal Entries
The money raised through the issue of debentures is a loan to the company and must be repaid on the specified date and in a specified manner. Normally the time and mode of repayment are indicated in the prospectus at the time of issue of debentures by the company. The repayment of the number of debentures is called the redemption of debentures.
What are Right Shares? Objectives, Advantages, Disadvantages, Accounting Treatment
What are Right Shares? Right shares means shares that are issued to the existing equity shareholders by virtue of their shareholders. Issue of right share means the issue of further…
What is Government Accounting?
Government accounting refers to all the financial documents and records of public institutions that relate to the collection of taxpayers’ money, and the analysis, control of expenditure, administration of trust funds, management of government stores and all the financial responsibilities and duties of the relevant organs.