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Amalgamation of companies
Accountancy
How does the concept of paid up capital work in amalgamation mainly when purchasing company issues shares at a value based on paid up capital?. For eg. ( Have attached the of the question)
Answers (1)
Can you clarify your query In the question attached - shares are issued at face value 20 and question states 18 paid up that means Rs.2 are yet to be called... and Rs.4 as premium.... So 5 shares of value 22 (18+4) is taken as consideration.... so 1 prefernce share in old company = 5 x 22 of new company
