Amalgamation queries urgent

few questions related to amalgamation:-

1.In case of merger,what is the treatment of reserves whether they are transferred to realisation account or equity shareholders account ?

2.If debentures are discharged at premium or at cash then amalgamation will be done by purchase method or merger ?

3.Employees profit sharing fund,staff provident fund,workmen's compensation fund are reserves or current liability ?

Please reply ASAP...thank you

Replies (4)

1. In the books of vendor company, treatment of reseves will be same as it was in the case of purchase method i.e. it will be transferred to Equity Shareholders A/c.

2. If debentures are discharged at premium, amalgamation will be done by Purchase Method, because the purchasing company is taking over a liability i.e. Debentures at a value which is other than book value

3. Employees profit sharing fund and Staff provident fund are liabilty

and in case of workmen's compensation fund, the amount specified in question as liabilty will be liability and the remaining value will be treated as reserve

If debentures are discharged at premium or at cash then amalgamation will be done

Read more at: /forum/details.asp?mod_id=244496#.UVM2_1dbLIU
If debentures are discharged at premium or at cash then amalgamation will be done

Read more at: /forum/details.asp?mod_id=244496#.UVM2_1dbLIU

i want to know treatment of workmen compensation fund in the books of transferor co.

I want  to know wat are the balance thar transferred to shareholders account in amalagamation nd which balance does it have ?????

 

1) Existing share capiral 2) All Existed reserve 3) Realisation profit Will be credited to shareholders a/c and 1) Existed loss like Preliminary Exp. 2 ) Realisation loss 3) ES & PS in new company Will be debited to shareholders A/c

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details