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FINANCIAL ACCUNTING PROJECT FINANCIAL ACCUNTING PROJECT TYBCOM B

NAME
ANJU KUREJA SUNIL KUSHWAHA SUPRIYA NITESH MANIK MANOJ MEHTA AMIT MISHRA POOJA MORPANI

ROLL NO.
161 162 163 164 165 166 167

DARSHANA MORE
SNEHA MORE SUVET MORE

168
169 170

Amalgam To unite, to come together as one, to blend

Amalgamation

Dissolution of one or more business entities and transfer of Your own footer Your Logo business of dissolved entities to another entity

For Accounting Purposes


Amalgamation

Amalgamation in the Nature of Merger

Amalgamation in the Nature of Purchase

AMALGAMATION IN THE NATURE OF PURCHASE

METHODS FOR CALCULATION OF PC 1. Lump Sum Method 2. Shares Exchange Ratio Method 3. Net Assets Method 4. Net Payment Method

Transactions & Events in Amalgamation


Determination of Purchase Consideration
Accounting in the books of the transferor company

Accounting in the books of the transferee company

Accounting entries in the books of Transferor Co. Assets & Liabilities transferred:
Realisation A/c To Assets A/c Dr. (BV) (BV)

Liabilities A/c Dr. (BV) To Realisation A/c (BV)

Settlement of Assets & Liabilities not taken over:


1. Bank A/c Dr.

Realisation A/c
To Assets A/c

Dr. (assuming Loss)

2. Liabilities A/c

Dr.

To Bank A/c

To Realisation A/c (Discount if any)

Purchase Consideration Received:


Shares in transferee co A/c Dr. Bank A/c To Transferee Co. A/c Dr.

Purchase Consideration Due:


Transferee Company A/c Dr. To Realisation A/c

Realisation Expenses
Incurred by Transferor Co.

Incurred by Transferee Co.

Incurred by Transferor Co & Reimbursed by Transferee Co.

No Entry

Realisation A/c Dr. To Bank A/c

1. Transferee Co. A/c Dr. To Bank A/c

2. Bank A/c

Dr. To Transferee A/c

Amount due to Shareholders


Share Capital A/c Reserve & Surplus A/c To Shareholders A/c Dr. Dr.

Settlement with the shareholders


Shareholders A/c Dr.

To Shares/ Securities in Transferee Co. A/c

To Bank A/c

Transaction/Events of Transferee Co.


1. PC Due 2. Incorporation of Assets & Liabilities 3. Discharge of PC 4. Realisation Expenses 5. Inter company Owings 6. Maintenance of Statutory Reserves

Accounting entries in the books of Transferee Co.


Purchase Consideration Due:
Business Purchase A/c Dr. To Liquidator of Transferor Co.

Incorporation of Assets & Liabilities:


Assets A/c Goodwill A/c To Liabilities A/c To Business Purchase A/c To Capital Reserve (Bal fig.) Dr. Dr. (Bal fig.)

Discharge of Purchase of Consideration:


Liquidator of Transferor Co. A/c To Share Capital A/c To Securities Premium A/c To bank a/c Dr.

Realisation Expenses
Incurred by Transferor Co. Incurred by Transferee Co. Incurred by Transferor Co & Reimbursed by Transferee Co.

No Entry

1. Goodwill /Capital Reserve A/c Dr.

To Bank A/c

THANK YOU!