MyQuestionIcon

1

You visited us 1 times! Enjoying our articles? Unlock Full Access!

Privatisation

Under purchas...

Question

Under purchase method of amalgamation, _______ of the transferor company continues to appear in the balance sheet of the transferee company.

A

Capital reserve

No worries! We‘ve got your back. Try BYJU‘S free classes today!

B

General reserve

No worries! We‘ve got your back. Try BYJU‘S free classes today!

C

Statutory reserve

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

D

Specific reserve

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is C Statutory reserve
Ans:
Amalgamation in the nature of Purchase -
It is done as follows :-
Amalgamation Adjustment A/c Dr.
Statutory Reserve A/c Cr

Suggest Corrections

thumbs-up

0

Similar questions

Q. While preparing the books of the transferee company in purchase method, the difference between purchase consideration and share capital of the transferor company should be adjusted in _______.

Q. The excess of purchase consideration over net assets of the transferor company acquired by the transferee company should be recognized as ________ in purchase method.

Q. In purchase method, the excess of net asset of the transferor company acquired by the transferee company over the purchase consideration should be recognized as ________.

Q. While preparing the transferee company's financial statement under amalgamation in the nature of merger, the assets and liabilities taken over from the transferor company should be incorporated at _____.

Q. For amalgamation in the nature of merger, the shareholders holding at least _______or more of the facevalue of equity shares of the transferor company becomes the equity shareholders of the transferee company.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Privatisation and Globalisation

ECONOMICS

Watch in App

explore_more_icon

Explore more

Standard XII Economics

Join BYJU'S Learning Program

CrossIcon