Distinguish between amalgamation in the nature of merger and amalgamation in the nature of purchase.

Distinguish between Amalgamation in the nature of Merger and Amalgamation in the nature of Purchase All the assets and liabilities of the transferor company become after amalgamation, the asset to and liabilities of transferee company in the amalgamation in the nature of merger whereas in the amalgamation in the nature of purchase, only the net assets and liabilities adjusted in the books of transferee company. Assets and liabilities are not revalued in the amalgamation in the natured merger whereas in the amalgamation in the nature of purchase, assets and liabilities can be revalued. Purchase consideration could not paid in cash in the amalgamation in the nature of merger except that cash may be paid in respect of any fractional shares whereas in the amalgamation in the nature of purchase, purchase consideration could be paid in cash. In the amalgamation in the nature of merger, 90% shareholders are become the shareholders of transferee company whereas in the amalgamation in the nature of Purchase, it is not necessary. In the amalgamation in the nature of merger, all accounts are amalgamated whereas amalgamation in nature of Purchase, partially accounts amalgamated.