alleryStart learning →Corresponding debit for statutory reserves goes to which head?
AGoodwill on amalgamation
BAmalgamation Adjustment Reserve
CSecurities Premium Reserve
DCapital Redemption Reserve
Answer & Solution
Correct answer: B. Amalgamation Adjustment Reserve
When statutory reserves are recorded in a purchase, the offsetting debit sits in a separately shown Amalgamation Adjustment Reserve.
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Related questions
In a merger, the Profit and Loss balance can alternatively go to which reserve?Consideration for amalgamation is the aggregate of securities issued and what else?AS 14 defines fair value as the amount for an asset exchange between whom?Statutory reserves keep their identity only when the transferee complies with what?When can amalgamation goodwill be amortised beyond five years?In the pooling method, conflicting accounting policies are handled how?In merger accounting, resultant assets, liabilities, capital and reserves roughly equal whIf a scheme departs from AS 14 on reserves, what must be disclosed?