In this article we will discuss about the accounting provisions relating to forfeiture of shares, explained with the help of suitable illustrations. When a shareholder fails to pay any call money which is due from him, the Company has two options: (i) To file a suit against the defaulting shareholder, or (ii) To forfeit his shares. Generally, a Company adopts [...]
In this article we will discuss about the accounting provisions regarding inter-company stocks, explained with the help of illustrations. Inter-Company Owings generally arise because of purchases and sales that are made before the amalgamation or absorption. When the vendor company has purchased goods from purchasing company it is possible that some of which remains unsold at the time of merger. [...]
In this article we will discuss about the accounting provisions regarding revaluation of assets and liabilities in the consolidated balance sheet, explained with the help of a suitable illustration. At the time of acquiring shares in a subsidiary company, it is usual for the holding company to revalue the assets and liabilities of the former in order to arrive at [...]