RAHUL JOSHI (Doing articleship) (229 Points)
27 March 2013few 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
Future CA
(Student)
(58 Points)
Replied 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
murlidhar pal
(student)
(26 Points)
Replied 25 December 2013
i want to know treatment of workmen compensation fund in the books of transferor co.
Santosh
(CA Final Student)
(28 Points)
Replied 08 February 2014
I want to know wat are the balance thar transferred to shareholders account in amalagamation nd which balance does it have ?????
santosh sahoo
(Student )
(22 Points)
Replied 28 March 2019
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