Treatment of purchase consideration

Others 440 views 1 replies

Dear all,

Can I show  "purchase cosideration "under  the line item of share application money pending allotement in books of amalgamating company, instead of share allotement?  Assume that authorised share capital is not sufficient in books of amalgamating company to meet out purchase consideration. Problem arisen on account of absorption while a private limited company taking over to a proprietorship concern.

Best Regards

Amit

Replies (1)

Yes that is the right treatment. You may go ahead!


CCI Pro

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