Archive | Companies

Private and Public Company: Difference | India | Accounting

The upcoming discussion will update you about the differences between private and public company. Difference # Private Company: 1. The minimum number of members required to form a company is two. 2. The maximum number of members must not exceed fifty. 3. It must have two directors. 4. Shares are not freely transferable. 5. It […]

Remuneration Payable to Managerial Personnel | Accounting

Remuneration payable to different categories of managerial personnel is as follows:- 1. Manager 2. Managing Director 3. Whole-Time Director 4. Director. 1. Manager: Manager means a person who has got the control of the whole or substantially the whole of the affairs of a company. There can be only one manager in a company and […]

Accounting Provisions Regarding Inter-Company Stocks | Amalgamation

In this article we will discuss about the accounting provisions regarding inter-company stocks, explained with the help of illustrations. Inter-Company Owings generally arise because of purchases and sales that are made before the amalgamation or absorption. When the vendor company has purchased goods from purchasing company it is possible that some of which remains unsold […]

Powers and Duties of a Liquidator | Company

In this article we will discuss about the powers and duties of a liquidator of a company. Also you will learn about the order of payment by a liquidator. Powers of Liquidator: Subject to certain legal provisions and adherence to certain procedures the powers of a liquidator are broadly enumerated as follows: (1) He can […]

Distribution of Surplus by Liquidator | Company

When all the liabilities are paid by the Liquidator and even then some amount remains in balance with him, he distributes this balance called surplus among the shareholders of the company. The following guidelines are as follows: (1) Surplus is to be distributed as per the provisions of the Memorandum of Association and Articles of […]

Liquidator’s Statement of Affairs | Company

In this article we will discuss about the accounting treatment for liquidator’s statement of affairs, explained with the help of a suitable illustrations. Statement of Affairs to be made to Official Liquidator: As per Section 454 of the Companies Act, the Officers or Directors of the Company under winding up order, must make out and […]

Treatment of Minority Interest | Company

In this article we will discuss about the treatment of minority interest in the consolidated balance sheet, explained with the help of a suitable illustration. The Subsidiary Company is a wholly owned Subsidiary of Holding Company. It may be possible that Holding Company may not hold 100% shares of the subsidiary Company. A part of […]

Preparation of Accounts of Insurance Companies | Accounting

For the purposes of maintenance of accounts, two types of books are required to be maintained by such organisations. Statutory Books: (a) Register of Policies: It contains the particulars in respect of each policy issued by the insurer such as the name and address of the policy holder, date when the policy was affected and […]

Accounts of Insurance Companies | Accounting

Here is a compilation of top five accounting problems on accounts of insurance companies with its relevant solutions.  Problem 1:   From the following data relating to claims of an insurance company calculate amount of claims to be debited to Revenue Account for the year ended 31st March 2006: Problem 2: From the following particulars […]

Types of Insurance Business in India | Company

Indian Insurance business can be divided into two categories: (A) Life Insurance (B) General Insurance: which includes (a) Fire Insurance (b) Marine Insurance (c) Miscellaneous Insurance (A) Life Insurance: Life insurance is a contract in which insurer, in consideration of a premium, undertakes to pay a certain sum of money either on the death of […]

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