CA Sourabh Baser (Chartered Accountant) (115 Points)
25 January 2013Amalgamation adjustment account as stated under miscellanous expenditure head as per old schedule vi will be shown under which head in revised schedule vi ..... under reserve & surplus in negative balance or under other non current/current asset. Please provide the suitable justification also for the same.
CA Sourabh Baser
(Chartered Accountant)
(115 Points)
Replied 25 January 2013
But this entry is passed at the time of reversal after said period of completion for statutory reserves i.e 8 yrs. i just want to know the treatment in balance sheet for the carried over balance of amalg. adjst. account
This entry is passed at the time of Creation of Statutory Reserve .
in the end this entry is just reversed.
and the reason behind this is :
We showed Amalgamation adj. Acc. under miscellneous exp. (Because it doesnot block profits) in old schedule VI.
But in Revised Schedule VI miscellaneous exp/preliminary exp head can be set off with reserve and surplus.
So above mine statement is correct.
Hope this help you if u find any doubt please tell me.
Excel Mastery Program
CAclubindia
