Amalgamation doubts list to be continued.....

 I want to just see the response of our Club India Friends...

So thats why i right the negative paragraph, But i am happy to see that there are lots of student who r really interested in giving answers...

So, if any feel bad...

I am sorry for this....

I am not mean to hurt any one....

I am only want to see the responses of our friends.....

I want to just see that who is appreciate this and who  nt.....

and i see it.........

thats all............

ok friends....

Brother I think u have a little bit problem with u r study....

I think u r Science Or Arts Student...

Then What r u doing here in commerce circle...

I know these r silly Q's U must give answer of these question............. 

@ Sandeep,

It seems you are quite knowledgeable. If at all you are, better share with others. Do not discourage others for asking doubts. It may be silly for you, but for the other person its a big doubt. He is asking to get cleared. If Mr. X says same thing which you said , how you will feel???

Instead of typing 4 discouraging lines, one line answer to the above questions would have helped someone. Try to change your attitude. Nobody here is master of anything. Everyone learns something daily. Learning is not about cramming things. Understanding simple maths of 9th class is real learning. If some one is learning with dedication, don't kill that urge by saying stupid words.

@ Cute Viru,

I appreciate your queries. Never get discouraged by such stupid words. Doubt is doubt, it has to be cleared. The answer to your queries follows in my next reply..

hey Sandeep

even u shud go for arts coz u r good at giving lectures and cud b a teacher..

so ?? now what u r doing in commerce circle ??

1-- In amalgamation specially in case of purchase different items are taken at agreed values. This valuation is done to give real time value to different items taken over. As in case of creditors, the other party might agree to receive amount due at a discount. This will result in taking creditors at discounted price. I have seen a case where, creditors were appearing for some thousand rupees in company books for a long time. Those creditor have not collected money from a long period due to some bill mistakes. Then after agreement between the parties as it was sister concern the amount was totally written back and creditors value became zero from those thousand rupees.

2-- When amalgamation takes place , an authorized valuator of fixed assets is appointed to determine correct value of the building or any other asset( It happens when parties agree to it). If valuation is done at a higher price than book value, then Building value will be taken at that agreed higher price.( Parties should agree).

Replies are just few indicators  to make you explain. There can be many cases where such values will differ.

More answers to follow.....

4--- Any expenses incurred on a new project is of deferred nature. It means the expense incurred now on the project will give benefit over a period of time in future. Remember simple definition of Asset--- Anything which will give monetary returns in future.

  So here Exp. on new project is an Asset but Fictitious Asset. Fictitious Asset means any ASSET which will not fetch you any money on selling it. Here the money incurred on new project will not be salable in market. Building is an asset and will give you money when you sell it, so its not fictitious asset. 

5-- P&L A/c(Dr.) is also fictitious asset. How it comes??? Suppose in case of merger transferee co. pays liquidator exp. Its shown as P&L A/c  Dr.

                                                                                     To Bank A/c

This will give you debit balance of P&L. Since this expense will give you benefit in future, its an Asset but its Fictitious Asset . For reason of fictitious asset see 4th point.

3---- Please clarify your question in an elaborate manner. I am not getting your exact doubt.

Originally posted by : Faiz Ahmed
	Brother I think u have a little bit problem with u r study.... I think u r Science Or Arts Student... Then What r u doing here in commerce circle... I know these r silly Q's U must give answer of these question.............                                                               --- Said by Sandeep @ Sandeep, It seems you are quite knowledgeable. If at all you are, better share with others. Do not discourage others for asking doubts. It may be silly for you, but for the other person its a big doubt. He is asking to get cleared. If Mr. X says same thing which you said , how you will feel??? Instead of typing 4 discouraging lines, one line answer to the above questions would have helped someone. Try to change your attitude. Nobody here is master of anything. Everyone learns something daily. Learning is not about cramming things. Understanding simple maths of 9th class is real learning. If some one is learning with dedication, don't kill that urge by saying stupid words. @ Cute Viru, I appreciate your queries. Never get discouraged by such stupid words. Doubt is doubt, it has to be cleared. The answer to your queries follows in my next reply..

 Totally Agree with Faiz

@ Faiz.. Thanks a lot for nice explaination...

Agree with above explanation

Thanks Faiz sir for the wonderful explanation to Q. 4 and 5 .. it cleared my doubts too. 

Everybody commit mistake sundeep......dont try to change the topic.....itsa big thing that you accepted that.....god bless

Faiz i have no words for u,u are going to break records in coming exams.....i request to leave some gap for us also,....lol

Question 3 Sundry assets

                               To sundry liabilities

                                To Capital reserve

In the books of new co on the purchase of old co.
 

Can i write general reserve instead of that.......whats this capital reserve...loss or profit?

i was not able to understand 1question s answer ...........

Anyways thanx a ton

Hay Faiz...

Wonderful Explanation Great job Indeed.

 You are having Good skill of Explaining subject matter

Keep Sharing

THANKS FAIZ FOR WONDERFUL EXPLANATION

Originally posted by : SHALINI
	Thanks Faiz sir for the wonderful explanation to Q. 4 and 5 .. it cleared my doubts too.

I am not Sir. I am a student like you only.. You are most welcome.  All The Best !!!

Originally posted by : Sweta Kini
	Hay Faiz... Wonderful Explanation Great job Indeed.  You are having Good skill of Explaining subject matter Keep Sharing

Thnx Swetha for your positive remarks. Its great to be associated with all of you by sharing & gaining knowledge. 

All the best to you.