08-13-2007, 05:03 AM
Hi We are studiying Company Accounting these days the topic is Absorbtion,My Question is about the Purchase consideration that how is it determined?I.e "A" company is absorbing "B",the agreement is that A will take everything exept all the Liabilities of B
B have Cash=100,000 & Furniture=400,000 & on Credit side B have Account Payable 100,000 & Debenture Payable 50,000 Retained Earning=150,000 & Share Capital(each 10 at par) 200,000
A will give 1 share of 10 each(20rs Market Value)against 2 Share of B
I need all the Entries & the Computation for Purchase Consideration then i will do another question when u will answer this
B have Cash=100,000 & Furniture=400,000 & on Credit side B have Account Payable 100,000 & Debenture Payable 50,000 Retained Earning=150,000 & Share Capital(each 10 at par) 200,000
A will give 1 share of 10 each(20rs Market Value)against 2 Share of B
I need all the Entries & the Computation for Purchase Consideration then i will do another question when u will answer this
