Student
58 Points
Posted on 27 March 2013
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