Problem in Management A/c

[Divesh4u]

How will you come to in Amalgamation
that which method you will apply
either Merger or Purchase



What to do those Items in Balance Sheet for which no information is given
Whether they are taken over or not?

[ajayg]

as far ur first question goes if nothin is given in the q it should be always treated as amalgamation in the nature of purchase.if they want u to solve as a merger they will mention itin the question.as far as ur 2nd question goes i need more clarity.bye

[chris2s2005]

Originally posted by Divesh4u@Mar 12 2005, 05:58 PM
How will you come to in Amalgamation
that which method you will apply
either Merger or Purchase
What to do those Items in Balance Sheet for which no information is given
Whether they are taken over or not?

[snapback]1206[/snapback]

hi divesh
if nothing is mentioned in the problem about the method then we have to check two important conditions (there are 5-6 but 2 are important ) i.e. 1. all assets and liabilities are taken over at book value. 2. purchase consideration is discharged in the form of equity shares only. (for fractions shares cash can be used).

for ur 2nd question if nothing is said about taken over than u have to assume it is taken over and at book value.

i hope u can understand now
bye and all the best

[Divesh4u]

Originally posted by chris2s2005@Mar 12 2005, 11:55 PM
hi divesh
if nothing is mentioned in the problem about the method then we have to check two important conditions (there are 5-6 but 2 are important ) i.e. 1. all assets and liabilities are taken over at book value. 2. purchase consideration is discharged in the form of equity shares only. (for fractions shares cash can be used).

for ur 2nd question if nothing is said about taken over than u have to assume it is taken over and at book value.

i hope u can understand now
bye and all the best

[snapback]1215[/snapback]

Thanks

now i understood clearly