Dhruval posted an Question
January 08, 2021 • 15:00 pm 30 points
  • UGC NET
  • Commerce

Balancesheet of z ltd how to claculate amalgamation adjustment account 1700000 ??

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  • Rucha rajesh shingvekar

    so that is amount of statutory reserves

  • Rucha rajesh shingvekar

    In nature of Purchase -it is done as follows :- Amalgamation Adjustment a/c Dr. Statory Reserve a/c

  • Rucha rajesh shingvekar

    As per Accounting Standard 14, Accountimg for Amalgamation issued by ICAI. an amalgamation adjustment account arises when certain statutory reserves need to be maintained by the transferee company which were previously maintained in the transferor company’s accounts. Examples of Statutory Reserves are: Investment allowance reserve; development rebate reserve, export profit reserve etc.). In the books of the transferee company, this is done by debiting the amalgamation adjustment account and crediting the statutory reserve account.

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