Please Help: Demerger
Posted Date : 09-Jun-2012 , 05:34:33 pm | Posted By vivek soni
A Ltd Have Two Division as 'X' & 'Y'. A ltd Sold X division to An Existing Company 'Z' Ltd. In Consideration of transfer of Division x Company 'Z' Issue Equity Share to member of company.
(1) Whether it is a Demerger?
(2) If not What is this ?
(1) Whether it is a Demerger?
(2) If not What is this ?
Category : Accounts | Answers : 0 | Comments : 3 | Hits : 254
Answers
Comments
Arihant
10-Jun-2012 , 11:14:22 amThis is not a demerger. x ltd. is selling a part of his business. in demerger, two new companies came into existence.
CA Sagar saraswat
10-Jun-2012 , 05:59:28 pmit is a demerger. entries will be done as in case of payment of pc to members
CA Sagar saraswat
10-Jun-2012 , 05:59:36 pmit is a demerger. entries will be done as in case of payment of pc to members