Treatment of purchase consideration

Amit (.) (104 Points)

06 December 2012  

Dear all,

Can I show  "purchase cosideration "under  the line item of share application money pending allotement in books of amalgamating company, instead of share allotement?  Assume that authorised share capital is not sufficient in books of amalgamating company to meet out purchase consideration. Problem arisen on account of absorption while a private limited company taking over to a proprietorship concern.

Best Regards

Amit