Doubt - realization account

Dear gauri 

Please expain your doubt with some amounts ... question is not clear.

Relisation accounts are prepared to find out profit or loss on disposal of assets. While we making disposal of assets we take's all book value of assets and liability in corresponding side and taking realisable value in credit side. Anf after balancing it shows the net effect on disposal.

If u will take purchasing price even though u have to deduct book value to find out profit or loss. hence first transfer all assets at book value and then write relisable value to credit of relisation account.

Hey Manoj,
Yes I am talking about preparing a realisation account during amalgamation. :)

Thankyou Saroj Kumar! 

in amalgmation we take the asset and liabilities at book value not on market value...

as the historical cost concept.....

Thankyou for your reply Rahul Jain :)