Type –Inter Company Holdings-Purchasing Company in selling Company
In the Books of Transferor
Amount Due to Outside Shareholders
a. Share Capital (Remaining Capital after cancellation) and Reserves in Full
Note : Reserves to the extent of Purchasing Company interest is also included in the above Reserves since the impact on amount due to outside shareholders remains the same even if prorate share of reserves is transferred to Realisation Account since Realisation profit will increase by the same amount.
Can any one can give Numerical Illustration to make me understand the higlighted Point to a layman like me to understand
Thanks in advance
CAclubindia
