Please Help: amalgamation ( in nature of purchase)
Posted Date : 17-Sep-2011 , 06:33:06 pm | Posted By anu jain
S ltd holding 25% share capital of P co. it taken over p co. after the taken over P ltd gets purchase consideration of Rs 803000/- in form of equity shares of Rs 10 each in s ltd. Now the problem is this how to pass contra entry of the share of s ltd (i.e. 25% of 803000)…
Question is asked to show the treatment of g/w or capital reserve in b/s.
In the answer g/w of Rs 80000/- came in b/s. but the b/s of s ltd is not given so how can I pass the contra entry of s ltd investment to make the b/s total tally.
Question is asked to show the treatment of g/w or capital reserve in b/s.
In the answer g/w of Rs 80000/- came in b/s. but the b/s of s ltd is not given so how can I pass the contra entry of s ltd investment to make the b/s total tally.
Category : Accounts | Answers : 1 | Comments : 0 | Hits : 394
Answers
Answer By: Ashish Karundia
Dear Anu,
Please share the complete details of the deal. Further, it appears to me that it is Accounts question of IPCC level. If so, then I will request you to solve it on the basis of concepts explained in the books or else the concepts explained by your teacher in case you have taken the classes.
Please share the complete details of the deal. Further, it appears to me that it is Accounts question of IPCC level. If so, then I will request you to solve it on the basis of concepts explained in the books or else the concepts explained by your teacher in case you have taken the classes.
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