Accounting Issue
This query is : Resolved
17 May 2008
Adjustment:A and B cos are going to get amalgamated,to form AB Ltd, there is a contingent liability in the books of A Ltd;worth Rs 60,000.The question is asking us to treat this as a actual exsisting Liability .How do we account this in the books of A Ltd;and also in the books of AB Ltd.
S.Srinivasaraghavan
(Expert)
17 May 2008
1. The contingent liability is towards what?
2. If it is not relating to B, you can make a provision in the Books of A and then
on merger it automatically comes to AB.
2. If it is not relating to B, you can make a provision in the Books of A and then
on merger it automatically comes to AB.
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