Accounting · Amalgamation of Companies

Match List I with List II: List I (Method)List II (Purchase Consideration)(A) Lump-sum payment method(I) Calculated by adding up the total amount of existing shares, preference shares and cash received from the purchasing company for the shareholders of the vendor company.(B) Net Assets Method(II) On the basis of ratio in which the shares of the transferee company are to be exchanged for the shares of the transferor company.(C) Net Payment Method(III) The fixed amount to be paid by the transferee company to the transferor company for the amalgamation of its business.(D) Swap Ratio Method(IV) Arrived at by adding the agreed value of assets taken over and deducting therefrom the agreed values of liabilities. Choose the correct answer from the options given below: