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Amalgamation of Companies

Accountancy

answered on 11-Jul-23 08:55

i)Amalgamation in the nature of merger one or more companies are merging and forming one company. that means the earliear companies are closing down. i.e., liquidating ii)Amalgamation in the nature of purchase, purchasing company is taking over vendor company. here vendor company is closing down. i.e., liquidating. my doubt: is amalgamation is type of liquidation? a)if no then why? b) if yes then example: A ltd is taking over B ltd B ltd has 10000 equity shares of 10 each fully paid up 1000 preference shares of 100 each fully paid up here it is amalgamation in the nature of purchase. some assets and liabilities of B ltd are taken over by A ltd and remaining liabilities are set off with assets and funds available all funds are completed purchase consideration agreed by A ltd to give share holders of B ltd that 1 preference share of 100 each of A ltd for every 2 preference share holders in B ltd 1 equity share of 10 each of A ltd for every 2 equity share holders in B ltd that means preference share capital in B ltd is 1 lakh but they got 50000 worth of shares in A ltd and equity share capital in B ltd is 1 lakh but they got 50000 worth of shares in A ltd here do we need to follow liquidation rules so that first preference share holders need to paid first so here do equity share holders transfer their shares to preference share holders for complying liquidation procedure

latest answer

Amalgamation involves merging two or more companies into one entity(or) direct takeover in other case, with preference shareholders rights and preferences governed by a scheme approved by shareholders and sanctioned by NCLT...... The scheme outlines terms and conditions, including treatment of preference shares and payment too. Once approved and sanctioned, the scheme becomes legally binding and supersedes general liquidation rules. So here , what i want to conclude in summarised manner is that "The AMALGAMATION agreement supersedes(means like replace) the general liquidation rules. I think you just got to know that there's THIS MUCH topic about AMALGAMATION AGREEMENT and approvals and all that stuff 😅😅 I felt the same when i had got to know 🤣🤣👍 I hope this explanation helps you ❤️.

lohith perumalla

lohith perumalla

CA Inter

8K+

2

321

Lease

Accountancy

answered on 11-Jul-23 09:34

Can lessor (or) lesse terminate the lease before completion of the lease period For ex :- Mr. A given to Mr. b , a commercial house property for lease for a period of 3 years . Mr. B , the lesse , terminates the lease agreement by changing their business to another building without paying lease rental to the lessor in the middle of the lease period, say 2nd year. Then what will happen? Is it possible? If possible, what are the consequences? What if lesse told the lessor that he'll terminate before a prescribed period, is there a prescribed period for this case ?

latest answer

No worries!

SAI AKASH GORU

SAI AKASH GORU

CA Inter

745

5

288

Departmental accounts

Accountancy

answered on 10-Jul-23 17:38

I didn't understand this Why selling price is multiplied with purchase units Gross profit will come from sales units multiplied with selling price ,is anything wrong Gross profit ratio = gross profit ÷ selling price i.e selling price total = 1512000 Please explain this

latest answer

Could you please tell me what you understood finally? Give a short explanation

Nayani Agarwal

Nayani Agarwal

CA Inter

1K+

6

718

Liquidation of companies

Accountancy

answered on 09-Jul-23 11:24

1)What are overriding preferential payments? 2)Who are preferential creditors? 3)Difference between overriding preferential payments and preferential creditors

latest answer

Is the solution done by me in this image is correct

lohith perumalla

lohith perumalla

CA Inter

8K+

6

550

Liquidation of companies

Accountancy

answered on 09-Jul-23 11:02

What are over riding prefertial payments?

latest answer

Certain dues are to be settled in the case of winding up of a company even before the payments to preferential creditors

lohith perumalla

lohith perumalla

CA Inter

8K+

3

274

Is calls in arrears a asset?

Accountancy

answered on 09-Jul-23 16:11

Is calls in arrears a asset?

latest answer

Yes

lohith perumalla

lohith perumalla

CA Inter

8K+

4

352

PPF and SIP balance

Accountancy

answered on 09-Jul-23 11:33

Will the balance sheet of a person whose income is from consulting include balances of Public Provident Fund and SIP as investments or not?

latest answer

Systematic Investment Plan

Jiya T

Jiya T

CA Inter

10

5

405

Depreciation

Accountancy

answered on 11-Jul-23 09:43

6,7

latest answer

Workshop rent will not be added

Sneha Kasturi

Sneha Kasturi

CA Inter

4K+

3

314

Capital or revenue expenditure

Accountancy

answered on 09-Jul-23 11:18

Amount spent 1) Preliminary expenses 2) advertising a product 3) amount spent on research a product 4)Give examples for deferred revenue expenditure ?

latest answer

1. Capital in nature 2. Revenue exp

Sneha Kasturi

Sneha Kasturi

CA Inter

4K+

6

314

Profit or loss pre and post incorporation

Accountancy

answered on 09-Jul-23 08:50

On wt basis advertisment ₹36000 is allocated and why?

latest answer

Tq

Ujwal Reddy

Ujwal Reddy

CA Inter

7K+

6

325