Amalgamation doubts dnt seem to end....

vikas gupta (c.a final....) (714 Points)

08 December 2010  

1. why do we write off cost of issue of debentures in case of merger from Pand loss a/c like

sundry assets

          To sundry liabilities

          To Reserve ( suppose 180 - 20 ) ,20 amount is of cost of issue od debntrs.,.....but why?

          To debentureholders why not 5% dentures? (Doubt )

 

2.Provision is liability so whats the difference b/w provision for bad and doubtful debts and reserve for bad and doubtful debts?
 

3.Why cant we purchase shares directly from company and through broker only?

4. why do creditors have market value?

5. In 1st question entry,why cant we write 5% dentures and debentureholders only?

6.IF company takes over all assets except debtors for which provision on debtrs is to be raised ( whats the meaning of this line exactly )?.......then can we write net amount as follows :

sundry assets

debtors ( net amount )