#4 "TYBCOM Accounting Booster 🚀 | Amalgamation of Companies | One Shot Revision"Siraj Shaikh

Amalgamation of Companies – TYBCOM Quick Revision 📌 What is Amalgamation? Amalgamation is the process where two or more companies combine to form a new company or one company takes over another. It helps in business expansion, reducing competition, and increasing efficiency. 📌 Types of Amalgamation (As per AS-14): Amalgamation in the Nature of Merger Assets & liabilities of the old companies are combined at their book values. Shareholders of old companies become shareholders of the new company. No goodwill or capital reserve is recorded. Amalgamation in the Nature of Purchase One company purchases another company and records assets & liabilities at fair values. Goodwill or Capital Reserve is created depending on the purchase price. The purchasing company controls the merged company. 📌 Accounting Methods for Amalgamation: Pooling of Interest Method (Used for Merger) Assets & liabilities are recorded at their existing book values. No goodwill or capital reserve is recorded. Purchase Method (Used for Purchase) Assets & liabilities are recorded at their fair values. Goodwill or capital reserve is recorded based on the purchase price. 📌 Why is Amalgamation Important? ✅ Helps in business expansion and increasing market share. ✅ Reduces competition and improves operational efficiency. ✅ Leads to cost reduction and better financial management. i just hope you all must have liked the video, so do comment your view and do like and share the channel if you all feel worth sharing the channel. Don’t forget to subscribe our channel    / sam4sir      / @sirajshaikhdegreestudy   Must check playlist for all other videos. ❣️ Like, share or subscribe karna mat bhulna..!!! For notes and important questions join our telegram channel : Telegram : skyeducationofficial (in case of link failure just search by name) https://t.me/skyeducationofficial https://t.me/sirajshaikhdegreestudy Connect with me on all other social media networks Facebook : siraj shaikh Instagram : sam4sir00 Twitter : sirajsam4sir Snapchat : sam4sir (siraj shaikh) Telegram : sam4sir00