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amalgamation

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(Querist)
08 August 2010 sir,
if company A took over the business of compant B.&discharge the debunture of company
B AT 20% PREMIUM.then the extra amount given to debunture holder of company B is shown in REALISTION A/c as shown in case of prefernce share in the books of company B?




thanks
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srinath

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srinath (Expert)
08 August 2010 ya exactly... it should be taken to realisation if premium is borne by B

suppose if premium is to be borne by A then it should not be adjusted
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geetanshu bhalla

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geetanshu bhalla (Querist)
09 August 2010 thanks 4 reply

but in this particular case ,what happen?
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srinath

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srinath (Expert)
10 August 2010 ya it s to be taken to realisation a/c since premium is borne by B
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