Method of amalgamation ?

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CA Sahil Singla.. (Querist)
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16 September 2011 Experts

In some questions it is not mentioned whether it is Amalgamation in the nature of purchase or merger. So, can we assume any method in these sort of questions ? or First we have to check the Five conditions of merger & then decide ?

Plz answer from Exam Point of view.

CA Sumat Singhal

CA Sumat Singhal (Expert)
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17 September 2011 If nothing is mentioned then read questions very carefully then test the five conditions then u can find nature of amlgmn and accordingly method.

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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29 September 2011 well generally in such case, it is questions of purchase method, if it is not mentioned which method was applied

CA Sahil Singla..

CA Sahil Singla.. (Querist)
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29 September 2011 sir

here is the link to RTP CA FInal Nov 2011. In this ques No.2 on amalgamation is given & it is asked to prepare B.sheet as per Merger method. But solution is given as per Purchase method. Plz clarify

https://220.227.161.86/23421rtpfinanewnov2011_1.pdf

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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04 October 2011 no where it is asked in the question that the question is to be solved as per merger method

plz read carefully the question again

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CA Sahil Singla..

CA Sahil Singla.. (Querist)
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04 October 2011 haha...sir r u kidding ?

Last line clearly mentions that Prepare B.sheet of Hight Ltd after merger

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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05 October 2011 brother don't mind
the question is saying that you you are reqd to prepare the balance sheet after merger

not it is been said anywhere according to merger

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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05 October 2011 hindi me bolun to line ka matlab hai k

dono company k merger k baad k balance sheet banao

amalgamation k case me do companies ka merger hota hai question keh rha hai k merger i.e. amalgamation k baad k balance sheet banao

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CA Sahil Singla..

CA Sahil Singla.. (Querist)
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05 October 2011 okay. I understood what you said.
But in this question all the 5 conditions of merger are satisfied, then why answer follows purchase method ? why not merger method ?

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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10 October 2011 Hey Sahil i am giving you a simple tip for final examination

If the name of the method is mentioned, then follow the method

If no method is prescribed then follow the PURCHASE method irrespective of the satisfaction of five conditions

This is the thumb rule to solve the questions

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