Rahul Walame (Chartered Accountant) (580 Points)
13 March 2013A TRANSFEROR CO HAS 90LAC DEBENTURES AT 10 % ON AMALGAMTION THEY ARE CONVERTED TO SUCH AMT OF DEBENTURES @ 15% THAT THE INTEREST EARLIER AND INTEREST PAYABLE NOW WILL BE SAME.KINDLY TELL ME THE A/CING ENTRIES IN THE BOOKS OF TRFRR AND TRFREE.FOR THI EVENT
TKKKKKK
(PRACTICING CA)
(3268 Points)
Replied 13 March 2013
transferor
15 % debentures a/c dr 6000000
realisation a/c dr 3000000
to 10 % debentures a/c (own) 9000000
transferee
10 % debentures a/c dr 9000000
to 15 % debentures a/c 6000000
to capital reserve a/c 3000000
Rahul Walame
(Chartered Accountant)
(580 Points)
Replied 18 March 2013
sir u have passed 15%debentures ac dr which will appear on asset side.but the trfror co has closed.
sir i am discussing my accing treatment plz tell me whether it is appropriate or not.
while determining pc take debentures at rs 60lac..to that extent pesv will automatically get adjusted in trfrees books and in the books of trfror
Realisation a/c dr 90lac
To 10% Debentures A/c 90lac
Trfree co A/c dr
to realisation a/c
In the above entry The debentures will appear at 60lacs indirectly and loss of rs 30l will autoatically get adjusted in profit/loss in realisation kidly tell me whether the above accing treatment is appropriate or not.
TKKKKKK
(PRACTICING CA)
(3268 Points)
Replied 19 March 2013
treatment is same.i have shown realisation a/c for your understanding. and remember realisation a/c is only for transferor co. I am advising you to first understand each entry of amalgamation. It is very imp chapter. After that solve the sum.
CAclubindia
