Dear All
Amalgamation in the nature of merger provides that the assets and liability of the transferee company is taken on the book value.
The difference arising on the value of shares issued and share capital already held will be transferred to a account
Should this amount is transferred to capital loss or the profit and loss debit account
Thanks and regards
Sandeep
Hello Friends
The difference arising on the value of shares issued and share capital already held will be transferred to P/L A/c or General Reserve under Pooling of Interest Method (Nature of Merger)
In case of Profit----General Reserve
In case of Loss----- P/L A/c
However Goodwill Can be debited for Loss or Capital Reserve Can be Credited in case of Profit in Amalgamation in the nature of purchase
Chirag N Shah & Associates
Mumbai
CA Inter
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