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A/c entries 878 views 4 replies

Q/ What is motto of preparing a shareholder a/c in amalgamation?

Replies (4)

only for the sake of understanding the funda assume instead of Amalgamation, dissolution is taking place....

at time of dissolution the surplus is distributed among equity shareholders....!!!

similarly at time of amalgamation (merger or purchase method) the surplus (cash or shares in amalgamated company) is the right of Shareholders and hence debited to shareholder account...

 

and personally my funda was that if in the Shareholder a/c debit side do not equal with credit side I have made a mistake....

because whatever it is .. profit or loss during amalgamation the shareholder a/c is sure to be tallied... coz realisation balance is transfered to shareholder a/c

jUST TO FIND OUT AMOUNT PAYABLE OR DIE TO SHAREHOLDER.......!!!!!!

@ ! @

To find shares/debentures/cash or combination of these,etc.. etc..  payable to shareholders.

To ascertain the liabilities towards the shareholder which are to be adjusted and for an appropriate trail.

Further in accounts for every entry we require its ledger.


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