While making entries for Amalgamation, the purchasing co takes over the contingent liability of the vendor company.
Does that liability come in the Amalgamated Balance Sheet?
Pls reply
3 Replies
Deepika Agarwal
(CA practice)
(93 Points)
Replied 26 March 2010
first noted that contingent liability does not apper in balance sheet they show as a footnote.
and i give it ur query answer fully on tomorrow. please wait
(Guest)
| Originally posted by : Deepika Agarwal | ||
 |
first noted that contingent liability does not apper in balance sheet they show as a footnote. |
 |
Deepika is right. It will appear as a footnote to B/s after amalgamtion.... BUT if as on date of amalgamation, that contingent liability loses its nature i.e it become a certain one... you will have to treat that liability as other liabilities at the time of amalgamation...
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