Tag Archives | Accounting Treatments

Treatment of Profit or Loss Prior to Incorporation | Company | Accounting

In this article we will discuss about the accounting treatment for profit or loss prior to incorporation of a company. Sometimes, a company is formed for purchasing certain running or going concern. A company comes into existence only after its registration i.e., its incorporation. A company can earn profits only after its incorporation, but not before its incorporation. In many [...]

By |2017-02-06T20:58:59+00:00February 6, 2017|Incorporation|Comments Off on Treatment of Profit or Loss Prior to Incorporation | Company | Accounting

Accounting Treatments for Payment of Purchase Price

In this article we will discuss about the accounting treatments for payment of purchase price in relation to acquisition of business, explained with the help of suitable illustrations. (A) New Set of Books are Opened: The following are the entries recorded by the purchasing company: First Method: Note: (a) If the purchase price exceeds the net assets, the excess amount [...]

By |2017-02-06T20:58:59+00:00February 6, 2017|Accounting Treatments|Comments Off on Accounting Treatments for Payment of Purchase Price
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