Slump sale- accounting entries in books of buyer
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 November 2014
We have purchase a business on going concern basis from our associate company under slump sale. it includes take over of all the assets and liabilities related to that particular business for lump sum price agreed.
being slump sale, for assigning values to individual assets and liability, we got fair valuation from independent valuer. we assigned value to individual assets and liability as per valuation report.
the consideration which we paid for slump sale is lower than the fair value of assets and liabilities taken over. the difference we treated in out books as capital reserve.
can anybody help me to confirm whether treatment given by us is right or wrong?
being slump sale, for assigning values to individual assets and liability, we got fair valuation from independent valuer. we assigned value to individual assets and liability as per valuation report.
the consideration which we paid for slump sale is lower than the fair value of assets and liabilities taken over. the difference we treated in out books as capital reserve.
can anybody help me to confirm whether treatment given by us is right or wrong?
Amol S Joglekar
(Expert)
13 November 2014
The treatment given by you is correct.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Visiting card purchase
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Wrong CMPo8 file
- Equity Share Sale and Purchase
- Additional trade name
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Number of years as per AS amortisation of Goodwill
- Whether output tax is taken credit by purchaser
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
