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Amalgamation of companies
Accountancy
In illustration 11,why equity share is not calculated at premium but pref share value is taken at premium....
Answers (2)
Purchase consideration is calculated as per the net asset method (5,30,000). After considering payments to pref.shares by considering the premium (1,10,000), Balance of 4,20,000 is payable to equity share holders. face value-10 value of the share, including premium, is -10.5 so, total shates to be issued=4,20,000/10.5 40,000 shares of hari Ltd 40,000*0.5(premium per share)considered in B/s under R&surplus
