CA-IPCC ACCOUNTS
AMALGAMATION-{in the books of transferor company}
sometimes cash is directly transfered to cash a/c while in other cases it is taken to realisation a/c.
It would be nice,,,,,,, if someone could let me know the exact interpretation of cash in the above circumstance
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Amalgamation
Replies (4)
hi friend,
it is depend on situation. if transfree is taken all Assets and liabilities then no need open cash account but i have noted your thinks in my mind, i will seach it ASAP and give reply for think.
Regards
Ankur Agrawal
If all assets including cash taken by purchasing co, treat it in realisation... Came to know today.Also assume in such case liquidation exps are borne by purchaser.
IN that case ,,,,,,,,,,,what ud be the treatment of LIQUIDATION EXPENSES,,,,,,,,,,,i think v need to assume sumthing
Regarding liquidation exps if the transfaree (buyer) takes all assets including cash , logically thinking the transferor (seller) is not left with any CASH... therefore it is assumed that transfaree( buyer) itself pays the liquidation exps. In the books of seller ( Realisation) account in this scenario no liquidation exps will be passed.
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