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+--- Thread: BCom Part2 Help needed in Accounting (/showthread.php?tid=4688)
BCom Part2 Help needed in Accounting - azeembhai - 08-13-2007
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