when transferor sold goods to transferee co,in case of amalgamation in nature of purchase, why the profit earned by seling those goods is transferrd to goodwill or capital reserve??.
please any one answer for this....
2 Replies
Deepali
(CA Final Student)
(105 Points)
Replied 27 January 2016
When transferor that is selling company has sold goods to purchasing company, then in purchasing company's books it would have gone in stock. Which means that the profit element is also recorded. But once purchasing company has acquired selling company, the profit element should be removed
Recent Topics
- File an Amended Income Tax Return to Exclude Polit
- FIFT TO HUF - SEC 64 & SEC 54 RELATED
- Selling my 12+ years old Private Limited Company
- 5 YEAR OLD DELHI ROC COMPANY
- GST Order to pay penalty without proof of wrongdoi
- TDS Applicability on Rent to KINFRA
- Profit & Loss Statement Analysis: Gross Profit
- PAYMENT OF RCM under gst
- Tally Entry On Accounting Payables
- When to register as a representative assessee?
Related Threads
CAclubindia
