Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Amlgamation

Arniv Sharda (CA Final) (3006 Points)

12 May 2012

Friends

whether the question of amg that came in the paper was correct or not

none of my friends got its balance sheet tallied

kindly reply

cheers

Reply
Follow
Share

11 Replies

CA Pallav Singhania (IT System Auditor) (33462 Points)
Replied 12 May 2012

Intrinsic value for both companies....13

Balance sheet 1 lac short...that will be capital reserve

1 Like

Upgrade to CAclubindia Pro. Subscribe Now!

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 12 May 2012

yaar ase thode na hum capital reserve dalenge.... thre s sme mistke i think

Arniv Sharda (CA Final) (3006 Points)
Replied 12 May 2012

agreed with piyush

aryan bhai intrinsic value toh 13 thi par balance sheet tally nai ho rahi thi

by the PC net assets se nikalni thi ya payment method se

cheers

Vikas Gupta (CHARTERED ACCOUNTANT) (16295 Points)
Replied 12 May 2012

intrinsic value = 13

Balance Sheet

Capital = 943300 GoodWill = Nil

General Res= 101000 Building = 385000

Capital Res= 20990 Stock = 166500

Profit & Loss= 66000 Cash at bank = 207590

S.Crs = 102600 Drs = 459800

Prel exp = 15000

Total 1233890 1233890

Calc of Capital Res

Vasudha Ltd Good Will = 50000

Vaishall Ltd Good Will = 50000

Capital Res = -120990 (50000+175000+172900+75000+109590-58200-403300)

Total Cap Res Net 20990

Vikas Gupta (CHARTERED ACCOUNTANT) (16295 Points)
Replied 12 May 2012

So friends there is no mistake

Upgrade to CAclubindia Pro. Subscribe Now!

Arniv Sharda (CA Final) (3006 Points)
Replied 12 May 2012

bhai S and V

mujhe toh yeh galat lag raha hai

cheers

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 13 May 2012

of course net assets method s niklegi.... bcz... purchase consideration to after net assets of vaishali niklane k bad hi pta chelgi... to isme to capital reserve ka swal hi ni uthta

prateek (cpt done) (34 Points)
Replied 13 May 2012

Bhaiyo goodwill bhi question me de rakhi thi jo balance sheet me ayegi and securities premium kahan gya

preliminary expense poore write off honge dono companies ke

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 13 May 2012

ya agree with prateek... preliminary expenses should b w/o from the equityshareholders A/c.... and ya goodwill b ayegi at revised rate

CA... (Others) (119 Points)
Replied 13 May 2012

As the book value of assets of new company is changed,10000(net of goodwill and building) should be transferred to revaluation reserve....hence b/s tallies.

Upgrade to CAclubindia Pro. Subscribe Now!

Vikas Gupta (CHARTERED ACCOUNTANT) (16295 Points)
Replied 14 May 2012

Originally posted by : piyush tanwar
	of course net assets method s niklegi.... bcz... purchase consideration to after net assets of vaishali niklane k bad hi pta chelgi... to isme to capital reserve ka swal hi ni uthta

Friends first of all hum PC intrinsic Value se calculate kar rahe hai so goodwill and capital reserve aayega..agar net assest value se karte to nahi aata...

Vasudha Ltd ke koi goodwill and fixed assets ke value change nahi karni hai..wo humko siraf intrinsic value calculate karne mai help karege..Koi be Accounting Standard humko goodwill upword revalue apni book mai karna allow nahi karta..and as per AS-26 only purchase goodwill he record kar sakte hai..revalue nahi kar sakte..as per AS-14 Amalgamation ke time hum vasudha ke fixed asset be revalue nahi kar sakte..unless specily provide na keya ho..agar aisa likha ho "Vashuda Ltd should record Fixed assets on revalued amount" then amalgamation se phale usko revalue karta hota hai..but aisa kuch be nahi hai..

goodwill and capital reserve both ek sath nahi aate..so dono company ke goodwill and capital reseve net karne hai

Preliminary exp..vaishali ltd nahi nahi aayege and vasudha ke bare mai kuch be nahi so isko writeoff karne ke koi need nahi hai..but tum agar write off karoge to uska ek note dena hoga because qus nahi bol raha writeoff karne ke leya

Prateek ji...security premium bech mai kaha se aa gaya...issue to face value per hue hai...