21.
Premium received on issue of shares is shown on
A
asset side of the balance sheet
B
liability side of the balance sheet
C
credit side of the P&L a/c.
D
debit side of the P & L a/c
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Premium received on issue of shares is shown on
asset side of the balance sheet
liability side of the balance sheet
credit side of the P&L a/c.
debit side of the P & L a/c
Premium received on issue of shares cannot be utilised for
for the issue of bonus shares
for writing of preliminary expenses
for providing premium payable on redemption
for distribution of dividend
Premium on issue of shares can be used for
distribution of dividend
writing of capital losses
transferring to general reserve
paying fees to directors
Net Assets minus Capital Reserve is
Goodwill
Total assets
Purchase consideration
None of these
Minimum number of members in case of public company is
4
5
6
7
Maximum number of members in public limited company is
10
20
50
unlimited
In case of public limited company, after getting the ..................the company can start the business
Memorandum of Association
Table A
Certificate of commencement of business
Articles of Association
In case of ..................one existing company takes over the business of another company and no new company is formed.
Amalgamation
Absorption
Reconstruction
None of the Above
In amalgamation of two companies
Both companies lose their existence
Both companies continue
Any one company continues
None of the above
If the two companies have different accounting policies in respect of the same item, then they make necessary changes to adopt.............. Accounting policies.
Lifo method
Fifo method
Weighted method
Uniform
If the minimum subscription is not received by the company, then the refund of application money should be made within ...........days
7
9
10
22
If the market price of the shares to be given for Purchase Consideration at the time of absorption, ............of the share is to be determined
Fair Value
Face Value
Intrinsic Value
Yield Value
If the intrinsic values of shares exchanged are not equal, the difference is paid in ...........
Cash
Debenture
Pref. share
Assets
If Company A purchases the majority shares of Company B, what combination would this be referred to?
Amalgamation
Takeover
Absorption
None of the above
If amalgamation is in the ..............., the General Reserve or Profit and Loss A/c balance will not be shown in the balance sheet.
Form of Merger
Form of purchase
Net assets method
Consideration method
Holders of preference shares will have a right to vote if the dividend remains in arrears for a period not lessthan
2 year
3 years
6 years
none of these
Hitanshi Ltd.s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then...........
Goodwill Rs. 8,777
Capital Reserve Rs. 8,777
Goodwill Rs. 15,913
Capital Reserve R
Both of the old companies will not exist in
Internal reconstruction
Absorption
External reconstruction
Amalgamation
All direct & indirect expenses related to business are charged
Profit and loss account
Trading account
Trading account Profit and Loss account
Directly to Balance sheet
After getting minimum subscription of shares, the company has to allot shares with in ..........days
90
100
110
120