Excess Capital Method

Maximum Loss Method

Adjustments Included:

• Asset taken over by a partner
• Treatment of past profits or past losses in the Balance Sheet Contingent liabilities/Realization expenses/amount kept aside for expenses
• Treatment of secured liabilities, preferential liabilities like Govt. dues /labour dues etc.,
• Insolvency of a partner

Realisation method only

Calculation of Purchase Consideration, Journal / Ledger Accounts of old firms Journal of Company

• For shares (variable income bearing
  securities)
• For debenture, bonds etc. (fixed income
  bearing securities) Accounting for transactions
  of purchase and sales of investments with ex
  and cum interest prices and finding cost of
  investment sold and carrying cost as per
  weighted average method

Columnar format for investment account

Accounting for:

• Purchase and Sale of goods, services and assets Computation and treatment of exchange differences
• (excluding foreign branches, forward exchange contracts and hedging contracts)