03 January 2010
A ltd & B ltd r going to merge .new co. is C ltd,then J/E to trnsfr assets and liabilities is made ,then difference in Dr. is goodwill. if difference in Cr.is .......?
04 January 2010
Hi Janak, in case of amalgamation in the nature of merger, the difference, whether Dr. or Cr., is adjusted into opening revenue reserves whereas if it is amalgamation in the nature of purchase, Dr. difference is goodwill n Cr. difference is Capital Reserve. Regards, CA Shakuntala Chhangani
CAclubindia
