About Amalgamation

so amalgamation adjustment reserve basically means where a statutory regulation has compulsorly kept or has insisted to keep certain reserve for a certain period of time to the selling company and when the purchasing co
takes over selling co.it has to maintain the same reserve as it becomes a statutory obligation on the purchasing company too


for this entry is passed as:

Amalgamation adj reserve account dr.
To statutory reserve account (which may be either development reserve or export profit reserve etc)

OK , for practical problems they should be added first and then deducted with a separate line account called amalgamation adjustment reserve... am I right?

yes . Very important but an easy adjustment seen in almost all attempts for iPcc

hoo thank you so much