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+--- Thread: B.Com Part II - Realization Account (/thread-b-com-part-ii-realization-account)
B.Com Part II - Realization Account - Mamdani99 - 12-08-2010
I need your assistant. Plz help me.
I took this from unsolved paper of B.Com Part II Accounting.(Year 1988 Q.No. 2 - Accounting for Co. - AMALGAMATION)
--------------------------- xxx ------------------------------
Plant Asset Rs. 80,000 (DR)
Allownance for Depreciation - Plant Asset Rs. 15,000 (CR)
Plant Assets are taken over at Rs. 60,000 by new co.
--------------------------- xxx ------------------------------
My question is that what is the journal entry of liquidating Co.
and also I need the journal entry in the books of new company.
Thanks.
- Fareed - 12-15-2010
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Mamdani99</i>
<br />I need your assistant. Plz help me.
I took this from unsolved paper of B.Com Part II Accounting.(Year 1988 Q.No. 2 - Accounting for Co. - AMALGAMATION)
--------------------------- xxx ------------------------------
Plant Asset Rs. 80,000 (DR)
Allownance for Depreciation - Plant Asset Rs. 15,000 (CR)
Plant Assets are taken over at Rs. 60,000 by new co.
--------------------------- xxx ------------------------------
My question is that what is the journal entry of liquidating Co.
and also I need the journal entry in the books of new company.
Thanks.
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear I duno wot methods b.com is pursuing, but to be general and applying normal accounting, this seems a normal disposal by the disposing company and a normal acquisition of capital asset by the acquiring company,
Disposing Company
Cash a/c 60,000
Loss on disposal a/c 5,000
Asset a/c 65,000
Acquiring company
Asset a/c 60,000
Cash a/c 60,000