Amalgamation, purchase consideration

Purchasing co. Paid consideration to selling co. Through shares,Deb,cash etc. In Indigo learn of 4th problem.. Neal Ltd which is purchasing co paid itself shared how it's possible ... Can u please explain this sir ... i.e., 1)Paid to share holders of Neal Ltd,paid in the form of equity &pre shares of Neal Ltd 2) paid to share holders of Gagan Ltd, paid in the form of equity & pre shares of Gagan Ltd. My query..A)if one co is purchased the another co. Then such co. Only paid purchase consideration to selling co. [Here,both cos are involved in the purchase consideration computation] B)if both cos are included,then why it is paid to itself other than alternate co...?

anju B

CA Inter

★ 18K+

20-Oct-20 10:36

338