Amalgamation, Absorption & External Reconstructionn

1. 1 Purchase Consideration Payable:
Business Purchase A/c Dr. xxx
To Liquidator of Selling Company A/c xxx
2 For assets and Liabilities
Sundry asset A/c Dr. xxx
To Sundry liabilities A/c xxx
To business Purchase A/c xxx
To Profit or Loss A/c xxx
To Reserves A/c xxx
3 For Payment of Purchase Price
Liquidator of Selling Company A/c Dr. xxx
To Bank A/c xxx
To Share Capital A/c xxx
To Share Premium A/c xxx
4
For Expenses of Winding up paid selling
Company
Goodwill A/c xxx
To Bank A/c xxx
5 For Formation Expenses Paid
Preliminary Expenses A/c Dr. xxx
To Bank A/c xxx
6 For Payment of any debts of Selling Company:
Debentures(SC)A/c Dr. xxx
To Debentures A/c xxx
To Bank A/c xxx
7 For Payment to Creditor of Selling Company
Creditor (SC) A/c Dr. xxx
To Bank A/c xxx
Journal Entries in the books of Purchasing Company