1. Chapter- 2 AMALGAMATION OF PARTNERSHIP FIRMS
F.Y.B.Com
Sub- Financial Accountancy
Prof.P.A.Navale

2. Introduction:-
Suppose ‘AB’ is none company and ‘CD’ is another company. The A & B in partnership and C & D also are in partnership.
These partnership firm combined their business and for new business with amalgamation that is “ ABCD” , there its known as amalgamation.

3. Definition of Amalgamation:-
1) Amalgamation means combining, coming together or joining together of two business concern to form a single and bigger business concern.
2) Amalgamation means two or more firms transfer their business into one new firm which is formed to take over a such business.

4. Objectives of Amalgamation :-
1) To achieve large operation
2) To save cost of production
3) To increase market share of production
4) To reduce unnecessary cost of advertising
5) To accumulated reserves and funds
6) To achieve mass production at minimum cost
7) To avoid cut throat competition
8) To become monopolist
9) Big business unit by increasing capital

5. STEPS OF CLOSE THE BOOKS OF AMALGAMATION:-
Prepare revaluation account of the old all firms.
Transfer such profit and loss to partners capital account.
Close the partners capital account.
Prepare the amalgamated balance sheet of new firm and close it.

6. Advantages:- To reduce in cost To acquire monopoly
To enjoy better financial status
To make high profits
To useful for diversification
To managerial effectiveness

7. THANK YOU