Accountancy- amalgamation of companies

This query is : Resolved

arpit rai (Querist)
Follow

28 September 2011 at the time of amalgamation of companies by the nature of merger, why miscellaneous expenditure of transferee company is not taken over by transferor company ?

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
Follow

29 September 2011 well brother a company is required to carry forward the expenditures which it have incurred rather than the expenditures which was incurred by the previous company

Message likes : 1 times

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
Follow

29 September 2011 moreover, the miscellaneous expenditure was the expenditure that belongs to the shareholder of the old company, not the old company

Message likes : 1 times

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
Follow

29 September 2011 If it would be allowed to transferred then in such case the new company shareholders will bear the expenditure completly which belongs to only one part of new shareholders

Message likes : 1 times

arpit rai

arpit rai (Querist)
Follow

29 September 2011 thank u sir..! truly very helpful...

arpit rai

arpit rai (Querist)
Follow

29 September 2011 and sir one more query..! why company cannot use reserves on amalgamation to distribute dividend or issue bonus share.?

arpit rai

arpit rai (Querist)
Follow

29 September 2011 AND SIR IF MISCELLANEOUS EXPENDITURE IS NOT CARRIED FORWARD TO TRANSFEREE COMPANY THEN MISCELLANEOUS EXPENDITURE OF TRANFEREE COMPANY SHOULD ALSO BE WRITTEN OFF BEFORE AMALGAMATION OR ELSE SHAREHOLDERS OF TRANSFREROR COMAPNY ALSO HAVE TO BEAR THESE EXPENDITURES. IS IT HAPPENS..?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now