Amalgamation (AS 14 ) IN ABSORPTION , VENDOR COMPANY KE PREFRENCE SHARE HOLDERS KO PREFERENCE SHARE AT PREMIUM PER ISSUE KARNE PER USE P&L se Adjust karte he ya nahi and realisation account me premium

Krishna · 3 Apr 2025

No. Preference share ko premium par issue krne par P&L se nhi krte, in that case you would issue less no os shres insted of asking for more money and put the extra money received into a securities premium A/C. No. Debentures issued on Premium/Discount are also not recorded in P&L. Instead you would issue more or less no of debentures, and for premium it would be transferred to Securities premium A/C, and the loss will be treated as a fictitious assest and recored as "Discount on Issue of Debentures" on the Asset Tier of B/S, and will be amortized gradually with the P&L overtime. Hope this helps!