While making entries for Amalgamation, the purchasing co takes over the contingent liability of the vendor company.
Does that liability come in the Amalgamated Balance Sheet?
Pls reply
Murali (Textile Designer) (66 Points)
26 March 2010While making entries for Amalgamation, the purchasing co takes over the contingent liability of the vendor company.
Does that liability come in the Amalgamated Balance Sheet?
Pls reply
Deepika Agarwal
(CA practice)
(93 Points)
Replied 26 March 2010
first noted that contingent liability does not apper in balance sheet they show as a footnote.
and i give it ur query answer fully on tomorrow. please wait
| Originally posted by : Deepika Agarwal | ||
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first noted that contingent liability does not apper in balance sheet they show as a footnote. |
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Deepika is right. It will appear as a footnote to B/s after amalgamtion.... BUT if as on date of amalgamation, that contingent liability loses its nature i.e it become a certain one... you will have to treat that liability as other liabilities at the time of amalgamation...
CAclubindia
