alleryStart learning →In a merger, the General Reserve of the transferor becomes what in the transferee?
ASecurities Premium
BGeneral Reserve
CRevaluation Reserve
DCapital Reserve
Answer & Solution
Correct answer: B. General Reserve
Merger accounting preserves the form of each reserve, so a General Reserve stays a General Reserve.
Keep practising Accounting for Amalgamations
Browse all Accounting for Amalgamations questions for CA Inter, or explore more Accounting topics.
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?