Amalgamation

Hai,

As per my understanding, in case of amalgamation in nature of purchase the purchasing company(transferee company) would record statutory reserves under AMALGAMATION ADJUSTMENT ACCOUNT.

it will not be transferred to shareholders account

Tnq fr replying but in one problem I observed that such statutory reserve also been transferred 2 share holders a/c

You can send PM if u need further help on this. It wont be taken to equity shareholders account am sure about that.

Thanks and Regards

 

In case Transferor company or selling company AS-14 is not applicable hence the main objective is closing books of accounts including reserves which include statutory reserves and equity share capital to shareholders account.
In case of transferee Co or purchasing company, in purchase method there statutory reserves are incorporated by following entry
Amalgamation Adjustment
To Statutory reserve

OK leave this question but l also observed in amalgamation in  the nature of merger all the reserves will be taken over by the transferee co and at the same time those reserves also been transferred 2 equity share holders a/c y like that can u explain me plz

Tnq fr replying but can u explain y as-14 is not applicable

In Transferor company books main objective is closing books of accounts hence all reserves are transferred to shareholders account irrespective whether it is amalgamation in nature of merger or purchase.

OK understood once again tnq fr replying

Tnq sir , now I understood 

Tnq fr replying Sir now I understood