Page 62 - DCOM205_ACCOUNTING_FOR_COMPANIES_II

Unit 4: Amalgamation: Accounting Treatment

(b) On closing the realisation accounts, if there is a loss- notes
Equity shareholders’ A/c Dr.

To Realisation A/c
(Being transfer of loss on Realisation A/c to the equity shareholder’s A/c)
(10) For transferring the fictitious assets and accumulated losses:
Equity Shareholders’ A/c Dr.
To Profit and Loss A/c

To Preliminary Expenses A/c
To Underwriting Commission A/c
To Discount on issue of Shares A/c
To Discount on issue of Debentures A/c

(Being transfer of fictitious assets and accumulated losses to shares to shareholders A/c)
(11) For transferring equity share capital and accumulated profits:
Equity Share Capital A/c Dr.
General Reserve A/c Dr.
Profit and Loss A/c Dr.
Capital Reserve A/c Dr.

To Equity shareholders capital A/c
(Being transfer of share capital and accumulated profits to equity shareholders A/c)
(12) For the payment of debenture-holders:
(a) Debentures A/c Dr.

To Debenture-holders A/c
(Being transfer of debentures to debenture-holders A/c)
(b) On payment-
Debenture-holders A/c Dr.
To Bank A/c

To Debentures in Transferee company
(Being payment of debenture-holders)
(13) For the payment of preference share capital:
(a) Preference shares Capital A/c Dr.

To Preference Share Capital A/c
(Being transfer of preference share capital to preference shareholders A/c)
(b) On payment-
Preference Shareholders A/c Dr.
To Bank A/c
To Debentures in Transferee company

lovely professional university 57