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Amalgamation of partnership firms

sobitha krishnadas (1 Points)

08 April 2021

In amalgamation of partnership firms , What is business purchase account ?

Why it is prepared ?

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 08 April 2021

Business purchase account is the statement where acquirer company records all the assets acquired of target company and the liabilities settled of the target company and also records the consideration paid to the target company. As a result, after calculation either goodwill or capital reserve will arise in business purchase account