amalgamation ppt.pptx

7/29/2019 amalgamation ppt.pptx

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FINANCIAL ACCUNTING PROJECTFINANCIAL ACCUNTING PROJECTTYBCOM B

NAME ROLL NO.

ANJU KUREJA 161

SUNIL KUSHWAHA 162

SUPRIYA 163

NITESH MANIK 164

MANOJ MEHTA 165

AMIT MISHRA 166

POOJA MORPANI 167

DARSHANA MORE 168

SNEHA MORE 169

SUVET MORE 170


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Your own footer Your Logo

Amalgam

To unite, to come together as one, to blend

Amalgamation

Dissolution of one or more business entities and transfer of

business of dissolved entities to another entity


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For Accounting PurposesAmalgamation

Amalgamation

in the Nature

of Merger

Amalgamation

in the Nature of

Purchase


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METHODS FOR CALCULATION OF PC

1. Lump Sum Method

2. Shares Exchange Ratio Method

3. Net Assets Method

4. Net Payment Method

AMALGAMATION IN THE NATURE OF

PURCHASE


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Determination of Purchase Consideration

Accounting in the books of the transferor

company

Accounting in the books of the transferee

company

Transactions & Events in Amalgamation


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Assets & Liabilities transferred:

Realisation A/c Dr. (BV)

To Assets A/c (BV)

Liabilities A/c Dr. (BV)

To Realisation A/c (BV)

Accounting entries in the books of

Transferor Co.


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Settlement of Assets & Liabilities not

taken over:

1. Bank A/c Dr.

Realisation A/c Dr. (assuming Loss)

To Assets A/c

2. Liabilities A/c Dr.

To Bank A/c

To Realisation A/c (Discount if any)


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Purchase Consideration Received:

Shares in transferee co A/c Dr.

Bank A/c Dr.

To Transferee Co. A/c

Purchase Consideration Due:

Transferee Company A/c Dr.

To Realisation A/c


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Realisation Expenses

Incurred by

Transferee Co.

Incurred by

Transferor Co.Incurred by Transferor Co &

Reimbursed by Transferee Co.

No Entry Realisation A/c Dr.

To Bank A/c1. Transferee Co. A/c Dr.

To Bank A/c

2. Bank A/c Dr.

To Transferee A/c


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Amount due to Shareholders

Share Capital A/c Dr.

Reserve & Surplus A/c Dr.

To Shareholders A/c

Settlement with the shareholders

Shareholders A/c Dr.

To Shares/ Securities in Transferee Co. A/c

To Bank A/c


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1. PC Due

2. Incorporation of Assets & Liabilities3. Discharge of PC

4. Realisation Expenses

5. Inter company Owings

6. Maintenance of Statutory Reserves

Transaction/Events of TransfereeCo.


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Discharge of Purchase of Consideration:

Liquidator of Transferor Co. A/c Dr.

To Share Capital A/c

To Securities Premium A/c

To bank a/c


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Realisation Expenses

Incurred by

Transferor Co.Incurred by

Transferee Co.

Incurred by Transferor Co &

Reimbursed by Transferee Co.

No Entry

1. Goodwill/Capital Reserve A/c Dr.

To Bank A/c


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THANK YOU!

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amalgamation ppt.pptx