Please solve this question

Others 105 views 2 replies

please try to  solve this as soon as possible.


Attached File : 2865332 20210319031947 amalgamation.pdf downloaded: 32 times
Replies (2)

In the books of B

1.& 2. it doesn’t matter because it used amounts while acquisition and not number of shares data. So, A total equity= Two lakhs worth

By cost of investment a/c two lakhs

To Bank one lakh eighty thousand only 

To Cash twenty thousand

3. While transferring debentures, the par value can be transferred from A the same as this and B will re calculate the outstanding liabilities payable at the end of the year. 

By A a/c (fifty thousand)

To Debentures a/c 

 

In the books of A

By Bank (two lakhs) 

To Sales proceeds 

To recognise the loss,

By loss on sale (fifty thousand)

To Sploci-pl 

then derecognise NB the debentures

By Debentures a/c ( fifty thousand)

To B a/c 

 

Hope this is the right answer

 

Today's Saying -Truth always win .


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