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    Unit 1 - Corporate Restructuring

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    © All Rights Reserved
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    Best E-learning Platform Www.dreamtopper.in ee SS Unit I PA REOHTCOEE OLE Am wlahtc [Corporate Reconstructing] Ret 1—ferera & earura atte wee crave & uate A arg aa | # What do you mean by amalgamation in the nature of merger and in the nature of purchase? TMK (Amalgamation) ei WA & agen wate feaftad A sae Par fare ™ e— () faa & mae a Usa (Amalgamation in the nature of merger) (2) a waa atta (Amalgamation in the nature of purchase)! 1. facta & FANE FI Tata (Amalgamtion in the Nature of Merger) —frrfefian ora anit ya at a fact art & wien A fara & ea a wate a STE ORR F ae eas set at a aaa we aifes RETA wor & et aii Gi Rent sort Sere re ae RENT a ae a EM Feu oe RTE eee FUMIH, SillBsHCG aT eT sieht sites Wea & Hy-a-wy 90% Sid cea Eph Baer sired wala ae aA wei) Gi) FRAC HEPA HA ah area Strat Sh Beane seer 3 Tre steer a & fore caplet 24 @, SF eer ErH gr ata MET Sieh ay Fries area Be UebtHeT & few aT YOK: Wart fee STE, FY safer aT afte atelier ara weHet 4 feat ore Gy) Feared er EI UT ae Ge ey ore a aT, Ta TEM @) Ra wert & fate rach A cerrcs wert a afr wel Tray a sah yerata yea we wef faren Sem ae VAN Maa a erat Fife 8 ah ore Bt WHET OT shea 8 sam Tara fepe HT AHA eI Fa van we ¢ fh fara } waa & usar 8 yearn Ser wa Rand Sert Sy ar sfeaca ae teat toate Si eat ar oars Ht a Tem C1 Fas sefatad St erat stnnfal a eatin ot aga ee TH aT Tea So aafte fata fear aa are SAY ara at amd, deri wei aia a faa tw ae fea oT a1 2. ma & wa aT Yentett (Amalgamation in the nature of Purchase)—farera & tara & wate 8 fe ote wef an secre farm en 2, Wa saa 8 ate we aT aftr wel at oft ael Bt on ga ta usta a A TAS FH UHR A ST C1 aR oh Uta F fare we EPH SRI qed wort a gol er a wa oe fer sit Pet Sree Tata 3H ara aaa feat sfaa mia S freifta feu ae me oftKe a Ta seit A ot sera A a aad A ar eva S feet cH aT ae wo A fen oT ae 21 Fa an 4 ees Se Hl eae wa Cai a PRIA SEH Sr a fern sien @ fra wererey FRING Hert cae ae a ore é sik PRINS FEM SIN Tea HEH sh Ya Fae fea Tal wad 21 See. & feu ‘ar’ fates 3 a fates & eae a after from afer ‘a’ fetes % orrara a arg TaN Bt Soo ae oat ae wha HTH a UTR 2,7 fe fae a oe waa! fates & sigan ‘ar’ fetes & sigerd ze a Wea @ @ ae wa & aM a Vat ae eV: ale oh we aroha Ue afar I PRIA Hert st Geral A Sef Aer HK aafirctas Slat 2 at ae ot wa Tara HI Vat Sat ZI AIR: Fa et a ah Se SETH sik Se Hert & arret FATS Br Sie 2) a ofthe ar Prater wed wae sah fat Teal wr shea ea a Freie fren aren @1 shad Fer Petits aa aq ore Taira or wan fan wre @1 sere & few wa ofrwe wfayfral a wo At ah dente siftrerd aro fared yea a a stad yer APT ST Pere U1 Ta ae ara aha & Sa F a a om fw me aeaheh & aT Aes Hl Haha Ha EU Shad Fea faite ax Gerd @, Weg Wa wm fru me aeafa ar arom yea fax & me fratita 4 a ae a gem FeO Ys ye Aa H ea tl wea ofrre & frat at de dfeai frafatad I (i) YS FTAA Aa (Net Payment Method) (ii) Ys AFT As (Net Assets Method) (ii) HM FH sty Af ar sig-fafraq Ufa (Share Proportion Method or Share Exchange Method) wer 2—uatercor & ae Beara eet att wearatt cant ap | Yetal F ate-at wfarfteat at src €? What accounting ‘entries are made in the books ge transferor company and transferee company at the time of amalgamation? . aa water & ara a are orfer wfeftoat (Journal Entries at the time of Amalgamation) | Teter & ana wa wfafteat ae a yd ae ea Tae atm fee Tat wa St wef 8 a werd a fara ah ela A ceTH HOH wt TETH Hy | feafeat ¥ we at a sa fated at Smith afar seat wert at pera y Se fest & ag aS SS to j aria wfefteait (Journal Entries) () RAR GAP a Gerat A (il) RT Da ST Geaast F (1) facia & vebtexor Bh aan # (2) pad eater Ht aan F @) FAIRRo ort at yeatel A orc vfafeat (Journal Entries in the Books of Transferor Company) forcra & ea a Vala Gl a a ae Hr, Tal ceed F wes aorh a paral 4 frafataa fated a ort g— Q) Fae yd wa ayd wef & gets yet ageh Ga F arta ae Realisation A/c Dr. To Various Assets A/c (Being various assets transferred to Realisation Account) (2) fafaa ot am aha amt; 3a, sig wi seo we ah, mae wr tH Bfae aret onfe a ana sigenftdy & aa FX aratta ae Equity Shareholder’s A/c Dr. To Discount on Shares and Debentures A/c To Preliminary Expenses A/c To Underwriting Commission A/c (3) (4) (5) (6) 7) (8) (9) To Expenses of Issue of Shares and Debentures A/c To Statement of Profit and Loss Being balance of above accounts transferred to Equity Shareholders Accounts) BeTee SE ene fr aay a eat Sa ree, Saw ferw— Bank A/c Dr. To Realisation A/c ’ (Being sale of assets) Rad Serh aro far afer + ferent are z, a Various Liabilities A/c Dr. To Realisation A/c” (Being balance of various liabilities transferred to Realisation A/c) Tes seh ar fir aft a ad quae Pea ore 2, sae far— Various Liabilities A/c Dr. To Bank A/c (Being payment of liability made) wa saged ata a ya sitar fan oer 2, ct sift & faa— Realisation A/c Dr. To Liability Concerned A/c (Being record of premium on... ...liability) ae ae ite gr wk Pe a a wet & Liability Concerned A/c Dr. To Realisation A/c (Being record of discount on... ra a where % ferw— Transferee Company A/c Dr. To Realisation A/c (Being purchase consideration receivable) wa See ITA BI Shares in Transferee Company A/c Dr. Debentures in Transferee Company A/c Dr. Bank A/c Dr. To Transferee Company A/c “(Being purchase consideration received) savliability) (10) (ql) (12) (13) a4) (15) (16) (17) ra MATA HT RETA HA Equity Shareholders’ A/c Dr. To Shares in Transferee Company A/c To Debentures in Transferee Company A/c To Bank A/c (Being distribution of purchase consideration) Titer sin i at + at a yatta sieeafti & ae y arta aA Preferential Share Capital A/c . Dr. To Preference Shareholders’ A/c | (Being balance transferred to Pref. Shareholders’ A/c) oe Sart fern sre @, ct sitter Realisation A/c Dr. To Preference Shareholders’ A/c (Being record of premium on pref. shares) sf ne oat eid raron We th watt §| | Preference Shareholders’ A/c Dr. To Realisation A/c (Being record of discount on pref. shares) o*r wo" (afe a al) yalfeer sigenftat st aR Ww Preference Shareholders’ A/c Dr. To Bank A/c (Being payment made to pref. shareholders) ageh ora 1 ny a Realisation A/c Dr. | To Equity Shareholders’ A/c | (Being profit on realisation transferred to | Equity Shareholders’ A/e) ageh ae ails er Equity Shareholders’ A/c Dr. To Realisation A/c (Being loss on realisation transferred to Equity Shareholders’ A/c) CRIN HEM NT Ca TA SAA BHT PTA HLA TL Realisation A/c Dr. To Bank A/c (Being expenses of liquidation paid) (18) See Serf at ste Gal, fated ed are er creat ara a Baise arat & ferw— Equity Share Capital A/c Dr. Various Reserves and Funds A/c Dr. Securities Premium Reserve A/c Dr. Statement of Profit & Loss (Surplus) Dr. To Equity Shareholders’ A/c (Being balance of above accounts transferred to Equity Shareholders’ A/c) (19) aa 8, da GM H Aa A orale HT R— Equity Shareholders’ A/e Dr. To Bank Ale To Shares in Transferee Co. A/c (Being final payment. made to equity Shareholders and account closed) I. ead wart at Geral Forfa fafa (Journal Entries in the Books of Transferee Company) 1, we fered aU a Vata BATS Te eA HT at GeTeHt aagtencor fetes are Pret wlafteat at ort ge @) 2a wa Bere ar ere a Business Merger A/c Dr. To Liquidator of Transferor Company A/e (Being consideration payable to liquidators of Transferor Co.) Gi) See FOr a ora are wae, areal ua afafeat ae er aa Various Assets A/c Dr. To Various Liabilities A/e To Various Reserves and I'unds Ale To Business Merger A/c To General Reserve A/c (Balancing figure) (Being various assets, linbilities and reserves taken over from transferor company and balancing figure credited to General Reserve) . aaayvOr Various Assets A/c Dr. General Reserve A/c Dr. (Balancing figure) Gii) Gv) Ww) (vi) (vii) (i) Gi) To Various Liabilities A/c To Various Reserves and Funds A/c To Business Merger A/c (Being various assets, liabilities and reserves taken over from the transferor company and balancing figure credited to General Reserve) BY MATHS HT PTA HA Liquidator of Transferor Company A/c Dr. To Equity Share Capital A/c To Bank A/c (Being the discharge of purchase consideration) werd ser a cera Fert wa ori a ya ay rR Expenses of Liquidation A/c Dr. To Bank A/c | (Being expenses of liquidation paid) TaN Sra Ft ara daa a srfatad eA General Reserve A/c Dr. To Expenses of Liquidation A/c @eing expenses of liquidation written off with General Reserve) Ber Ser Soper ori Ss fere— Preliminary Expenses A/c Dr. To Bank A/c (Being preliminary expenses paid) Cartes Ser F oa SH Sa Her | arora Be vitads) a Debentures of Transferor Co. A/c Dr. To Debentures (of Transferee Co.) A/e (Being debentures of transferor company, converted into debentures of transferee company) WH Be Bh LTT aT WaT OT Hla See HTT aA at eTeAL pre Fert rer FPreferttarer wfertecat at srreft f— Ba wea sere I a HL Business Purchase A/c Dr. To Liquidators of Transferor Co. A/c (Being consideration payable to liquidators of Transferor Co.) eared sot a nf ares ea we ee Fee Various Real Assets A/c Goodwill A/c (Balancing figure) be To Various Liabilities A/c To Business Purchase A/c (Boing various assets and liabilities taken over from the transferor company and balancing figure debited to Goodwill A/c) aeavOr Various Real Assets A/c Dr. To Various Liabilities A/c To Business Purchase A/c To Capital Reserve A/c (Balancing figure) (Being various assets and liabilities taken over from the transferor company and balancing figure credited to Capital Reserve) (ii) A Sf BT TATA SE KR Liquidator of Transferor Co. A/c Dr. To Equity Share Capital A/c To Preferential Share Capital A/c To Debentures A/c To Bank A/c (Being the discharge of purchase consideration) (iv) Beare sort & Shae dente saat Brera HEA fere— Amalgamation Adjustment A/c Dr. To Various Statutory Reserves A/c (Being incorporation of statutory reserves of Transferor Co.) () Feree eer het ar PA weed ser Heer A utes arr Hel Debentures of Transferor Co. A/c Dr. To Debentures (of Transferee Co.) Ale (Being allotment of debentures to discharge debentures of Transferor Co.) (vi) Bere wer arr wear Her BAG oe ST ATA BT wT Expenses of Liquidation A/c Dr. To Bank A/c (Being payment of liquidation expenses) (vii) BATA ora a Gala aT ah daa O sroferfiad He Goodwill/Capital Reserve A/c Dr. To Expenses of Liquidation A/c (Being written off expenses of liquidation) (viii) FRITS wer are wes ore ar PTAA BTA Preliminary Expenses A/c Dr. To Bank A/c (Being preliminary expenses paid) 4 ae en hee ae Re siren ere Pet ree ? 4 How does purchase consideration calculated for the|” purpose of amalgamation ? . ly TR wa wferpet Ud Saat TOT if (Purchase Consideration and its Calculation) 1, wa vfred a ad sa qe a ale 2, fre uate & aaa eS, seri & sivent aot seated wd are. & fee Seman Hert A ors ath \ Tre ars 14 Hae, “User & feet al aera eeITA EPH BT CIR HEH Hl Prifra sie ws. ora ofayfeel ar wart The Ts TE a ST waft a 69 ¥ faa ae yma @ ai 1” ga ya wa Stem He | wort & stented sro igi, eel, wae a1 aa arate wT A ore fern Hl aaa @ ae oi ore 2 fe seo at fee eM PTA aT area cfs qa wl a oferel enfirer wet eee V1 ae aM fear sie fee se Tea art arr a fern eae Sra TAA He fear 7H eI ale SAT HOA STI aid afaa ere a a Fel fern rn @, a saa TG FRIAS SEA are feat aTem! aan: wa aia a eh ce Her sit SaTRN Heh | arr aqara ste erat 21 ea Stew ahr Prete ea Tae gee Pah Tea & faa yea an Prato fare sar 81 Sfad Aga Fratita act eq art Tetra a | sein faren ren 21 sa ae ort arene” a we A a a aT fee Te aA aT ea a Aah Gea FEO, Sha YH Powlhe Hy epee Ta ATT FHT se rein a ae ye Fewer Ay ae FAM AY eH a BERT Prater | FerR HA Te ren Bi wea server Faker at Ata feat Frevera, e— | I. yw Fra Tift (Net Payment Method) Il. arafa tifa (Net Assets Method) IIL. ate # arqara df a sigi-fafrra aft (Share Proportion Method or Share Exchange Method) 1. Sex Bra fer (Net Payment Method) rar A -14 agers ace 2 fas wa ferme Yor BTS YS TE suena Bren 21 San FI 14 aI we | fae ane fore ferset FT STA | RRA eed BRT ReATATR HERA a Pettis ste Ua srr sere ar Aa cafe wa tars aT ST Tear Bw H fan my TAA A ele Vl Fa HHT TH “Af S orania wwe wine MATCH HHA Tra a Galera sterenfea arat & tq ae ou my sie, seo wd THE aT Het AT eer Vt ae ATT Tear stent @ fie PETRY er are fare va wee PTAA wea BATRA FT ATT al ea @1 aa: HOTTA a ory Cafe BH fee Te PTA wha Hf ain a BA a 81 ged THR ST STARR TATA a ca (fered BH I) BI SIT $ of sea PA CT HEPA are fae ver a eM Her Se ser a sie a eer ar Pia area, sifted won ae a Ta 2 af wea 8 pe wT A Ho Ae Here, dl fara Hl ae F sta wr yea PRAT yea & oi wea St een Sie aT Ter Te Aefena fore AT 2 Nl, Bw waft Af (Net Assets Method) We Safe Gla & STAR se ferme cht TART aT Feel SEAR He BTT faq ma ash Boafee H Shara Ara a Ys Te yes aT A A geared eerH are fargo Prater yeaa erat fhe Se eI Fa Ata a wa ware STO aa ar Fe farsa ar a A cer Ara e— (1) ae Fa Her ce Ser a ah aaah a ed & fore dan ort @, da aoe A tes a do Sn oh ne BA, veg at sa we # ‘Unamortised Expenses’ al wife wet frat Sel (2) ae Bre wate, aa ers Bi al ch ws Grated He eure BH, Ta aa fe sae fania Go 4 Hel ea el (3) af wear EPA ar BS arabe at ch srl eM, at Se eur a wee ors fea STEM! (4) ‘ofa’ wee Bite diet vA A raat Bail cael aT aa ATTA eI carafe cifras & ara # Hh Meare wera she cla a; HA carne MTN A 2a fatal (5) zafarcah aif a caferatee cae; SY AI ier feet sire, artart gdea ave, ater wars, falters eer, caign APART ary anf a waiter et wa I MN, afett oA argarer

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