The original amount of preference share capital should be transferred to . . . . . . . . account in the time of amalgamation in the books of vendor co.

The correct answer is: B. Equity share capital account

The original amount of preference share capital should be transferred to the equity share capital account in the time of amalgamation in the books of vendor co. This is because, on amalgamation, the preference shares of the vendor company are converted into equity shares of the acquiring company. The amount of the preference share capital is therefore transferred to the equity share capital account of the acquiring company.

The other options are incorrect because:

• Option A, capital reserve account, is incorrect because the capital reserve account is a reserve account that is created to account for the excess of the purchase consideration over the fair value of the net assets acquired.
• Option C, equity share capital account, is incorrect because the equity share capital account is already used to account for the equity shares of the acquiring company.
• Option D, preference shareholders account, is incorrect because the preference shareholders account is used to account for the preference shares of the vendor company.

I hope this explanation is helpful. Let me know if you have any other questions.