Please Help: amalgamation ( in nature of purchase)
Posted Date : 17-Sep-2011 , 06:33:06 pm | Posted By: Anu Jain
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Accounts | Answers :
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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.
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 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.
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