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Amalgamation

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

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Sandeep Dharar (Expert)
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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