Amalgamation

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Aisha

Aisha (Querist)
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14 March 2014 in merger method y the diff b/w purchase consideratn & share cap is absorbed by reserves of seller co.

Sandeep Dharar

Sandeep Dharar (Expert)
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14 March 2014 Dear Aisha
It is not adjusted with the share capital of seller co. It is adjusted with the share capital.

Purchasing Co. will take over all the Assets & Liabilities. Then the Purchaser have to paid the amount to the seller, so R&S is only source from which the payment is to be made.

The Reserve & Surplus r created for this purpose..

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