IndigoLearn

Forums

Back

When agreed value of consideration is intrinsic value (₹30 in this example) of Y ltd. But it shows it at Face value (₹10)

Accountancy

In this example, when Yltd. Decides to show the purchase consideration at par value i.e. ₹10 per share, so in books we mentioned purchase consideration as 50,00,000 shares x ₹10 per share, but what about the rest portion of purchase consideration that Yltd.paid to X ltd but doesn't show in books that is rest ₹20 per share (₹30-₹10, agreed value -fave value)? Video Details ------------- P1 - Advanced Accounting - Without AS Amalgamation of Companies #6. Illustration 1 X Ltd Part 1

Garima Bhargava

CA Inter

★ 185

24-Apr-24 19:51

250

Answers (4)

The balance portion ₹ 20 (10,00,000) is securities premium .

Ramya Sundar

CA Final

★ 5K+

24-Apr-24 20:53

The balance portion ₹20 ( 10000000) * is securities premium

Ramya Sundar

CA Final

★ 5K+

24-Apr-24 20:57

Ramya Sundar

The balance portion ₹20 ( 10000000) * is securities premium

So what will be the general entry passed in the books of y ltd?

Thread Starter

Garima Bhargava

CA Inter

★ 185

24-Apr-24 21:52

Liquidators A/c Dr 8000000 To psc A/c 3000000 To Esc A/c 5000000 If premium is allowed then Liquidator a/c Dr. 18000000 To psc 3000000 To Esc 5000000 To securities premium 10000000

Ramya Sundar

CA Final

★ 5K+

24-Apr-24 22:04