Question

Which of the following fictitious assets is not taken over by the transferee company?

• A. Preliminary expenses
• B. Underwriting commision
• C. Discount on issue of shares
• D. All of these

Answer 1

The correct option is D All of these

During Amalgamation , Realization Account is opened and all the assets except any fictitious assets like preliminary expenses, underwriting commission, discount on issue of shares or debentures, profit and loss account (Dr.) balance, etc., are transferred to it at their book value.