Amalgamation

Hi Dhruv,

Please clear your question as PC can also be calculated by Net assest method under which we take total of assests and deduct liabilities which includes debentures and outsiders liabilities.

Thanks

Hi Dhruv,

   while calcualting Purchase Consideration we take into consideration what owner of the company would recieved through such amalgamation. for comapny as per accounts Equity shareholders & prefernce shareholders are owner of the company so we consider dis two only and exclude what is paid to debenture holders.. outsiders liability payment is dependent on question if acquirer company agrees to pay it then it would be consider as part of P.C.