Hi,
In the case of merger, how and under which head to show the debit balance of general reserve?
CA SURENDRA KUMAR RAKHECHA
(Practising CA at Surat)
(26263 Points)
Replied 13 December 2009
General Reserves never have a debit balance.
Reserve means credit balance taken apart from profits.
It may be possible that there are Miscellaneous Expenditure to the Extent Not Written Off or Adjusted.
CA kuldeep kothari
(own practice)
(375 Points)
Replied 13 December 2009
Hareesh H Sharma
(Cleared IPCC..now article)
(894 Points)
Replied 13 December 2009
I guess there was a ques lik this in this yrs IPCC paper where in case of acq by merger when we add the Dr balance amount we get in the amalgamation entry( the entry of assets and liab) and the Cr bal we get a Dr figure...which becomes a -ve amout...Is that your dbt friend???If so it shd be treatd as P/L dr bal i guess...tats wat i was told when i askd the dbt
yashodeep bafna
(PRACTICE)
(40 Points)
Replied 14 December 2009
in the case merger, there is only one out of goodwill or general reserve. after adjustment there is dr. balance of reserve ,then it is goodwill.
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