If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet
A)form of merger
B)form of purchase
C)net assets method
D)consideration method

Question

Quizplus · Accepted Answer

In the form of purchase, the General Reserve or Profit and Loss Account balance of the acquired company is not shown in the balance sheet of the acquiring company. This is because, under purchase accounting, only identifiable assets and liabilities are recorded at their fair values, and any pre-existing reserves or profit and loss balances of the acquired company are not carried over.

If Amalgamation Is in the