Amalgamation of company - Illustration 15


I had one doubt sir, why you were not taken 10% debenture and loan from A for calculating Purchase consideration. It should be in Building 306000 Inventory 576000 Tr. Receivable 234000 Inventory 198000 Goodwill 216000 Bank 0 Less: Tr. payable (320000) 10%Deb (400000) Loan from A (160000) Net asset 650000 Therefore, B ltd will settle the payment by using cash and Equity share Cash = 600000 -Net asset = 650000 Equity share value = Rs.50000 Issue Price = Rs.125 Equity share =400 shares Amount(125*400) =Rs. 50000 If it is wrong please answer me why we were not taken the same. Thank you, sir Video Details P1 - Advanced Accounting (New) - Without AS Amalgamation of Companies 54. Illustration 15 - Bank a/c adjustment - Part 2

Nishanth SK

Nishanth SK

CA Inter


22-Feb-24 09:02


Answers (1)

The questions mentions only trade payables taken over at book value. Hence other liabilities are not considered.

CA Suraj Lakhotia

CA Suraj Lakhotia


13-Mar-24 14:37

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