alleryStart learning →Transferor capital is Rs 5,00,000; transferee issues Rs 4,20,000 shares in a merger. Adjusted in reserves?
ARs 1,00,000
BRs 70,000
CRs 90,000
DRs 80,000
Answer & Solution
Correct answer: D. Rs 80,000
The gap between the transferor's capital of 5,00,000 and shares issued of 4,20,000 is 80,000, which goes to reserves.
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