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Amalgamation

Accountancy

In the nature of purchase What is the journal entry of statutory reserve ? (ex. Development Rebate Reserve, Investment Allowance Reserve, Export Profit Reserve) In the books of transferee and transferor company ?

Jiya T

CA Inter

★ 10

20-Apr-23 14:26

361

Answers (4)

Best Answer

For transferor company, these reserves would not exist any more. They would be transferred to shareholder's account.

CA Suraj Lakhotia

Admin

22-Apr-23 13:10

In books of transferee Amalgamation Adjustment a/c Dr. Statutory Reserve a/c Cr. And vice versa for transferor company.

Saravana Perumal

CA Final

★ 3K+

20-Apr-23 17:16

CA Suraj Lakhotia Admin

For transferor company, these reserves would not exist any more. They would be transferred to shareholder's account.

For only Amalgamation in nature of Purchase. Right sir. In case of merger these transferred to Transferee Co.

Saravana Perumal

CA Final

★ 3K+

22-Apr-23 13:30

Saravana Perumal

For only Amalgamation in nature of Purchase. Right sir. In case of merger these transferred to Transferee Co.

These are not transferred as such. It is only a notional entry passed by acquirer company.

CA Suraj Lakhotia

Admin

22-Apr-23 17:16