Accounting ( Best 40+ ) Accounting for Amalgamation Absorption and External MCQ by Mr. DJ 18/11/2021 Accounting for Amalgamation Absorption and External MCQ Table of Contents ToggleAccounting for Amalgamation Absorption and External MCQAccounting for Amalgamation Absorption and External MCQ1. Shares received from the new company are recorded at –2. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ………………3. When one of the existing companies take over business of another company or companies, it is known as ………..4. While calculating purchase price, the following values of assets are considered5. While calculating purchase price, the following values of assets are considered6. Which of the following statement is correct?7. If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt ………….. accounting policies.8. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ……… in the balance sheet.9. If amalgamation is in the ……………, the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet.10. If the intrinsic values of shares exchanged are not equal, the difference is paid in ………..Accounting for Amalgamation Absorption and External MCQAccounting for Amalgamation Absorption and External MCQ11. In case of ………….., one existing company takes over the business of another company and no new company is formed.12. In amalgamation of two companies13. When purchasing company pays purchase consideration, it will be debited to14. When the purchasing company bears the liquidation expenses, it will debit the expenses to15. When the Vendor (seller) company agrees to bear liquidation expenses, it will debit16. When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to17. When the Net Assets are less than the Purchase Consideration, the difference will be18. While calculating purchase consideration …………… values of assets is to be considered.19. Net Assets minus Capital Reserve is _________20. Hitesh Ltd.’s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then……….Accounting for Amalgamation Absorption and External MCQAccounting for Amalgamation Absorption and External MCQ21. The original amount of preference share capital should be transferred to ………… account in the time of amalgamation in the books of vendor co.22. The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to:23. In case of inter-company holdings, the purchasing company, at the time of payment of the purchase consideration, surrenders the shares in the vendor company by crediting:24. The vendor company transfers preliminary expenses (at the time of absorption) to:25. A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of:26. For amalgamation in the nature of merger, the shareholders holding at least ______ or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company.27. As per AS–14 purchase consideration is what is payable to28. In the case of ………………………. only one of the combining companies survives and the other losses its separate identity.29. ……………….is the amount payable by the purchasing companies to the vendor company for taking over the business of vendor company.30. In absorption there is one ……………………and no formation.Accounting for Amalgamation Absorption and External MCQAccounting for Amalgamation Absorption and External MCQ31. In external liquidations, there is one liquidation and one ………………32. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ………………33. When one of the existing companies take over business of another company or companies, it is known as ………..34. Which of the following statement is correct? Accounting for Amalgamation Absorption and External MCQ 31. In external liquidations, there is one liquidation and one ……………… A. Formation B. Merger C. Demerger D. Purchase consideration 32. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ……………… A. Amalgamation B. Absorption C. Internal reconstruction D. External reconstruction 33. When one of the existing companies take over business of another company or companies, it is known as ……….. A. Amalgamation B. Absorption C. Internal reconstruction D. External reconstruction 34. Which of the following statement is correct? A. The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only B. The amount of Goodwill or Capital Reserve is found out in the books of vendor company only. C. Goodwill = Net Assets – Purchase price ( D. The face value of shares of purchasing company will be taken in to account while calculating purchase consideration. Share this:TwitterFacebookMoreLinkedInRedditTumblrPinterestTelegramWhatsApp Related Pages: 1 2 3 4 amalgamation adjustment account is opened in the books of transferee company to incorporateamalgamation questions and answers pdfgoodwill arising on amalgamation is to be mcqin amalgamation of two companiesin case of amalgamationmcq of amalgamation of companymiscellaneous expenses are shownwhen amalgamation is in the nature of merger the accounting method to be followed iswhen purchasing company pays purchase consideratio
