Amalgamation and averge due dates doubts?

1.Why do we give  to only equity and prefr share holders...do real owners of company CEO get any money for amalgamation?

Please  read AS-14 it says purchase consideration means payment to  shareholder only. share holder means both equity & preference  share holder.

2.Why goodwill is amortised?

If u are asking about  AS-14 goodwill  amortised in 5 years, unless longer period is justified [as give n in AS-14]

3.In net assets method,why do prefrence shares are not included and debentures are included?

since u r computing PC from the point of view of shareholder only[share holder means both equity & preference shareholder] ,  The pref shareholder are not ne treated liability from shareholder point of view , that hence  liability towards them is  not subtracted.

.If i give working note first and then original solution,then would it be wrong in exam?

NOT AT ALL

5.Sundry charges debited to customers ...what should be the entry with detail?

DEBTORS

To SUNDRY EXPENSES

6.Difference between discount and rebate?

rebate only means trade discount(to attract customer and increase sale ) but 'discount' can be cash discount or trade discount. A rebate is a tool that businesses use to increase sales, making it look like you are getting a better deal than you really are. 

7. In computation of capital employed,why dont we deduct long term liabilities ..

                          assets - short term liabilities = capital employed

we can compute capital employed from

• long term point of view.
• share holder point of view.
• equity shareholder point of view.

in first case (long term point of view.)

assets - short term liabilities = capital employed

in second case (share holder point of view.)

assets - short term liabilities - Pref share capital = capital employed

in last case (equity shareholder point of view.)

assets - short term liabilities - Pref share capital - Eq share capital= capital employed.

so its depends 

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sorry for typographical mistakes

I DO AGREE WITH MANMOHAN..

AND IN ADDITION TO THAT I WOULD LIK;E TO SAY THAT

I THOUGHT  THAT  CEO USUALLY HELD SOME SHARES SO INDIRECTLY HE IS GETTING THE MONEY.

Originally posted by : parth
	I DO AGREE WITH MANMOHAN.. AND IN ADDITION TO THAT I WOULD LIK;E TO SAY THAT I THOUGHT  THAT  CEO USUALLY HELD SOME SHARES SO INDIRECTLY HE IS GETTING THE MONEY.

I know only legal means , about indirect means i will come to know when I'll  be in practice