Question

In Case of amalgamation profit and loss on the sale of form is ascertained through – account

Answer 1

Answer:

and Loss Account. 21-22. Treatment of Reserves Specified in ... there is a purchase by one company (referred to as the acquiring

Answer 2

In Case of amalgamation profit and loss on the sale of form is ascertained through – account

• The balance of the Profit and Loss Account shown in the financial statements of the transferor company is combined with the corresponding balance shown in the financial statements of the transferee company in the event of a "amalgamation in the type of merger".
• In the event of an amalgamation, the transferor company must wind up its operations; as a result, it will sell its assets, settle its debts, and distribute any remaining funds to its shareholders. It is accomplished by creating a brand-new account called a Realization Account.
• The final step in accounting is called the final account. The creation of the Trading Account, Profit and Loss Account, and Balance Sheet are considered final accounts. This account's primary objective is to display the firm's profit or loss for the given accounting period.
• Incomplete Records are those accounting records that are kept using the single entry method rather than the double entry method. If the owner keeps inaccurate records, he only properly prepares the cash account, debtors account, and creditors account.

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