Question

amalgamation is in the , the General Reserve or Profit and Loss A/c

balance will not be shown in the balance sheet.​

Answer 1

Answer:

Under the purchase method, the transferee company accounts for the amalgamation either by incorporating the assets and liabilities at their existing carrying amounts or by allocating the consideration to individual identifiable assets and liabilities of the transferor company on the basis of their fair values at the ...

Answer 2

Amalgamation is a combination of two or more companies into a new entity.

• Amalgamation is different from a merger as this company survives individually as a single entity.
• Amalgamation is the combination of two companies so that they can combine the assets and liabilities of both entities into one.
• Through amalgamation company can increase cash resources and eliminate competition.

Correct Question is If the amalgamation is in the ........................., the general reserve or Profit and loss A/C balance will not be shown in the balance sheet.

So, the answer is if the amalgamation is in the form of a purchase the general reserve balance will not be shown on the balance sheet.