What is the difference between absorption, amalgamation and
liquidation of companies? And why realisation account is
being prepared ?
- 2 Answers
- 22544 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / jayanti
Absorption refers to the process by which a company fully
takes over another company and carries on the existing
business of his with additional resources of the company
taken over.. while amalgamation means two companies coming
together to form a new entity and carry on the businees.
realisation account is prepared just to make a statement
showing the distribution of the companies assets that are
realised among shareholders, creditors and others before
the company is fully closed.
| Is This Answer Correct ? | 55 Yes | 6 No |
Answer / thouhid
1. Liquidation
Two or more companies are liquidated in the process of amalgamation. One or more companies are liquidated in absorption.
2. Formation
In amalgamation, a new company is formed to take over the business of vendor companies. In absorption, no new company is formed, only purchasing or absorbing company take over the business of liquidated company.
3. Size
There is no such matter of size of amalgamating companies. Generally, size of purchasing company is greater than that of vendor company in absorption.
| Is This Answer Correct ? | 28 Yes | 1 No |
what is term loan?
EXPAND___________NAC
What is Scientific Purchasing?
define current assets? asked on 30/7/09
ACCOUNTING CONCEPTS AND CONVENTIONS
what is general HR?
Hello Everbody....this saturday i attended the interview of times job fair...were capgemini has called me for technical round ..I am bcom graduate with tally an SAP FICO....Can any body help me ... I wan to know what is this technical round...An what they may ask me ......if any body have question an answer kindly send to my id ..that is damudi123@yahoo.com....or contact me to my number ..+919900410314.Or any body have friends working in capgemini bangalore?Please i need urgent help...thnak you with regards adnan hasan
EXPAND___________MRP
what is the uniform public construction cost accounting act?
Good will of Rs 100000 brought by D,a new partner was withdrawn by the partners in equal ratios.Pass required entries
Can someone tell me about SAP FI/CO test questions?WHat are the main things we must know?
WHAT IS THE MEANING OF BLUE CHIP COMPANY?
Audit 
