How to Calculate Purchase Consideration in Amalgamation? | May 2024 | Nov 2024
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- Опубліковано 5 сер 2018
- #Purchase #Consideration
This video explains a systematic method to calculate Purchase Consideration in Amalgamation. Learning how the calculation of purchase consideration in amalgamation is done, would help you solve the related issues easily.
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Its really crystal clear ... Preparing for my sem exams !
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Sir , In PURCHASE method, while payment of liquidation expenses of the vendor company by the purchasing company , what is the entry passed!
Goodwill/Capital Reserve A/C Dr.
To Cash A/c
( And such Goodwill/ Capital reserve will be adjusted with the Goodwill/Capital reserve arising because of amalgamation.)
BUT many authors prescribe strictly using only Goodwill A/c for payment of liquidation expense .Could you please provide a final conclusion!
If you have Capital Reserve balance, it will be adjusted against capital reserve (reduce capital reserve) and if there is no capital reserve balance, debit it to goodwill.
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Hi, You can check out a question at Free Course on www.IndigoLearn.com
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