What journal entries are passed in the books of Transferor company in the case of amalgamation? Explain.

In the case of amalgamation, the transferor company is the company whose assets and liabilities are transferred to another company, called the transferee company. The amalgamation may be either a merger (where both companies dissolve and form a new one) or a consolidation (where one company absorbs another). The accounting treatment for the transferor company depends on the type of amalgamation, whether it is a merger or an acquisition. However, certain general journal entries are passed in the books of the transferor company when the amalgamation occurs.

Here are the journal entries typically passed in the books of the transferor company:

1. Transfer of Assets
   The first step in the amalgamation process is the transfer of assets. All the assets, including fixed assets, current assets, and any other property of the transferor company, are transferred to the transferee company. The journal entry for this would be:

   • Debit: Various asset accounts (such as Plant & Machinery, Land, Buildings, Debtors, etc.)
   • Credit: Amalgamation Reserve or the transferee company’s account (if the transferee company directly issues shares or ____ _____ _________ ____ _______ _____ ________.
     ______ ________ _____ _____ ________ _______.
     ____ ____ ________ ______ _________ _____ ____ ______.
     _____ _______ _______ _________ ____ ____ ________ ______.
     ______ _________ _________ ___ _______ _____.
     _______ ______ ______ _________ ________ ____ ____ ______ ____ ______ ________ __________.
     __________ ___ _________ ___ __________.
     _____ ______ ____ _______ ______ ________ ________ _______ _________.
     _____ _____ _________ _________ _____ __________ _____.
     _____ ___ ____ ___ ___ ___.
     __________ __________ __________ __________ _____ ___ _________ ___ _______ ____ _______ ____.
     ___ _________ __________ ___ ______ _______ _________ _______ __________ _______.
     ____ _________ ___ _________ ____.
     ______ __________ _______ _______ ______ ____ _____ ___.
     ________ _____ _______ __________ _________ ____ ______ _____ ______ ___ _____.
     ________ ___ _________ _________ ______.
     _______ __________ ____ _____ ___ ________ ________.
     __________ _________ ________ _______ _________ __________.
     __________ ________ ________ ____ _____.
     __________ ___ _____ _____ ____ ________ ________ ______ ________ _________ _________.
     _______ ______ ________ ______ ___ ________ _______ ____ ________ ______ ______ ____.
     _____ _________ ______ ____ ___ _________ __________ _______ __________.
     ______ _____ ___ __________ ________ ________ _______ _____.
     ________ _____ _________ ______ ____ ____ _____ ____ __________ _______ ______ ________.
     ____ _______ ____ ____ ______ ______ _______ _______ _________ ___.
     ____ ____ _____ ____ _____ _______ __________ _______ __________ ____.
     ______ __________ ___ __________ _________ ______ _____.
     __________ ________ ____ ______ _________.
     ______ _________ _______ _________ _________ ___ __________ ___ _______ ___.
     ____ ____ ______ _____ ________.
     ______ _____ ________ __________ _____.
     _____ ____ __________ _________ ______ _____ _________ ________ ______ ________ _______ ______.
     ___ ____ _________ __________ __________ ________.
     _________ ________ _______ ____ ________ _________ ________ ___ _______ ______ ________ ________.
     ___ _______ ______ _____ ________ __________.
     _________ _________ __________ _____ __________ _______ __________ ____.
     _______ __________ _________ ___ _____ ____ ______ ___ _______.
     ________ ___ ______ _____ ______ ____ _____ ________ __________ __________ ___.
     ____ ____ _________ _________ _____ ___ _____ ______.
     ________ ______ _______ __________ ____.
     _____ __________ __________ ____ ________ _______ _____ __________ ______ ______ _________.
     ______ _______ ____ _________ _________ ______ __________ ____ ________ _______ ________ _________.
     _______ _________ ___ _____ ___ ________ ___ __________.
     ____ _____ __________ ________ __________ ___ ____ _____ _________ ____ _________.
     ____ ________ _________ _____ ____ ________ ___.
     ______ ________ ______ _____ ____ _____ ____ _______ ____ _________ _____.
     ______ ____ ________ ________ _____ _______ _______ _____ _____ ___ _____ __________.
     __________ ____ _____ __________ ____ _____ _________ ______ ____ ____.
     __________ ____ _________ ______ ___ __________ ________ ______ ___ _________ ___.
     ____ __________ ______ ________ ______ ___.
     ___ _____ _______ ________ _______ ___ ________ __________ ___.
     _____ _____ ______ ________ ___ ______ ________ __________ ______ __________ ______ __________.
     _______ ________ _____ _____ _________ _____ _____ ____ _____ ________.
     _____ ________ ________ __________ ________ __________ _____ ______.
     _________ _______ ___ _________ _________ _____ ___ ___ _______ _____ ________.
     ____ ______ _____ _______ ___ _______ ______ _____ ____ ______ __________.
     __________ ______ ____ ______ ___ ____ ____ _________ _______ _______ ___ _________.
     _____ ___ ________ ________ _________.
     ___ _________ ______ _________ ____.
     _________ ______ ______ _______ ___ ________.
     ______ ____ ___ ________ ___ _________ _______ ___.
     ____ ___ _______ _________ ___ __________ ________ ___ ____.
     ___ ______ ___ ____ ___ ______ ___.
     Get Full Answer on WhatsApp