After the formation of the new merged/ amalgamated company, there are some necessary entries that are required to be passed. All the assets and liabilities are recorded in the new company and share capitals are recorded according to the purchase…
In order to complete the process of amalgamation/ merger, there is a need to close the books of the old company. Entities cannot keep their records open due to the fact they are going to lose their status. In order…
The Purchase consideration is the amount of consideration that the old entity is getting in the new company after ceasing to lose its former status. In the question, information is provided regarding how to calculate the purchase consideration. Example Question…