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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

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B

General reserve

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C

Statutory reserve

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D

Specific reserve

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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

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