Accounting · Amalgamation of Companies
If preference shares are settled at a premium during the liquidation process in an amalgamation under the absorption/realisation method, the premium paid is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1credited to Realisation Account
- 2debited to Realisation Account✓
- 3debited to Capital Reserve Account
- 4credited to Securities Premium Account
Correct answer
debited to Realisation Account
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