Amalgamation

Any additional payment w.r.t the contingency  should be included in the consideration if payment is probable and a reasonable estimate can be made.

What will be effect on BR and BP amount after Amalgamation??and Why?

is this BP/BR related to the contingency ?

Originally posted by : bibin
	is this BP/BR related to the contingency ?

Yes

After Amalgamation there will be no set-off for inter-co B/R and B/P as the bills are discounted. There will be no contingent liability but the discounted bills are actual liability to bank and are reflected in B/P.