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
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Contingent liability taken over in Amalgamation
Replies (3)
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...
agree with faiz ahmed
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