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?

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4 Replies

Venkatesh Iam (97 Points)
Replied 04 March 2017

realisation a/c debit to bank account since its loss to selling company

Suresh Pai S (Tax Consultant) (1029 Points)
Replied 06 March 2017

transferee 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

1 Like

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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