Question

.On amalgamation, fictitious assets of the vendor firm are transferred to _____ account​

Answer 1

Answer:

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.

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Answer 2

On amalgamation, Partners Capital Account shows the fictitious assets of the vendor firm.

Partnership capital account is an account that contains every one of the exchanges happening between the accomplices and organization firm like the underlying commitment of capital in the organization, the premium of capital paid, drawings, the portion of the profit, and different changes and it is needed to keep up with legitimate responsibility and straightforwardness between the accomplices and the firm.