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Question

Amalgamation adjustment account is used for recording:

The correct answer is

Statutory Reserve in the books of the transferee company

Under the purchase method in AS 14, a statutory reserve that must retain its identity is credited in the transferee’s books with a corresponding debit to the amalgamation adjustment account. It is not used to preserve every revenue or general reserve.

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Important Questions from Miscellaneous

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    List-II
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