Amalgamation
Suresh Pai S (Tax Consultant) (1029 Points)
04 March 2017
In an amalgamation in the nature of merger if expenses are met by the transferor company, what is the treatment. Why?
4 Replies
Venkatesh Iam
(97 Points)
Replied 04 March 2017
realisation a/c debit to bank account since its loss to selling company
CA Gopal Somani
(Consultant)
(2057 Points)
Replied 28 March 2017
There will not be any entry of realisastion expense in the books of Transferee company, when expenses are paid by tranferor company.
When Transferee compant pay the expenses then entry will be
Goodwill/Capital reserve A/c DR
To cash/Bank
I have created videos to explain the various concepts of Amalgamation for CA CS CWA students. Below is the link to check the same -
https://youtu.be/ouSL6sRa4vs?list=PLjemDd6cjImDWEsKTgF6OtUZhVOXzoMCI
Please check.
I hope you will be be having a good learning from it.
Thanks !
CA Gopal Somani
Raju Singh Dahiya Rajput
(ca)
(22 Points)
Replied 01 May 2017
Where to write amalgamation adjustment reserve account in balance sheet? plz say in detail
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