08 August 2010
in amalgamation which is of merger in nature u need to incorporate all the assets and liabilities at book value and so it would be automatically incorporated
if is purchase method then the following entry may be passed
amalgamation adjustment a/c Dr. to Statutory reserves a/c
amalgamation adjustment is to be shown under misc exp in b/s
09 August 2010
Irrespective of whether the amalgamation is in nature of merger or purchase, the nature of statutory reserves is to be maintained and carried forward to the new company. The entries are as above
CAclubindia
