When the expenses of liquidation are to be borne by the vendor company, then the vendor company debits: A. Realisation account B. Bank account C. Goodwill account. D. Purchasing company account

When the expenses of liquidation are to be borne by the vendor company, then the vendor company debits:
A. Realisation account
B. Bank account
C. Goodwill account.
D. Purchasing company account
by

1 Answer

Answer :

A. Realisation account
by

Related questions

When the expenses of liquidation are to be borne by the purchasing company, then the purchasing company debits: A. Vendor company's account B. Bank account C. Goodwill account. D. Realisation A/c

Description : When the expenses of liquidation are to be borne by the purchasing company, then the purchasing company debits: A. Vendor company's account B. Bank account C. Goodwill account. D. Realisation A/c

Last Answer : C. Goodwill account.

When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.

Description : When liquidation expenses is paid and borne by seller company then it is debited to _______ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.

Last Answer : (C) Realisation A/c

When the purchasing company bears the liquidation expenses, it will debit the expenses to (A)Vendor Company‘s Account (B) Bank Account (C)Goodwill Account (D)None of the above

Description : When the purchasing company bears the liquidation expenses, it will debit the expenses to (A)Vendor Company‘s Account (B) Bank Account (C)Goodwill Account (D)None of the above

Last Answer : (C)Goodwill Account

When the purchasing company makes payment of the purchase consideration, it debits: A. Business purchase account B. Assets account C. Vendor company's account. D. Realisation A/c

Description : When the purchasing company makes payment of the purchase consideration, it debits: A. Business purchase account B. Assets account C. Vendor company's account. D. Realisation A/c

Last Answer : C. Vendor company's account.

When liquidation expenses is paid and borne by seller company then it is debited to_____ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.

Description : When liquidation expenses is paid and borne by seller company then it is debited to_____ (A) Bank A/c (B) Goodwill A/c (C) Realisation A/c (D) Capital Reserve A/c.

Last Answer : (C) Realisation A/c

The vendor company transfers preliminary expenses (at the time of absorption) to: A. Purchasing Company account B. Realisation account C. Purchasing company's account. D. Equity shareholders' account

Description : The vendor company transfers preliminary expenses (at the time of absorption) to: A. Purchasing Company account B. Realisation account C. Purchasing company's account. D. Equity shareholders' account

Last Answer : D. Equity shareholders' account

For paying liabilities not taken over by the purchasing company, the vendor company credits: A. Realisation account B. Bank account C. Liabilities account. D. purchasing company account

Description : For paying liabilities not taken over by the purchasing company, the vendor company credits: A. Realisation account B. Bank account C. Liabilities account. D. purchasing company account

Last Answer : B. Bank account

When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to (A) Realisation Account (B) Bank Account (C) Liability Account (D)None of the above

Description : When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to (A) Realisation Account (B) Bank Account (C) Liability Account (D)None of the above

Last Answer : (A) Realisation Account

The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to: A. Share capital account B. Purchasing company's account C. Realisation account. D. Business purchase account

Description : The share capital, to the extent already held by the purchasing company, is closed by the vendor company by crediting it to: A. Share capital account B. Purchasing company's account C. Realisation account. D. Business purchase account

Last Answer : C. Realisation account.

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.

Description : 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 ... face value of shares of purchasing company will be taken in to account while calculating purchase consideration.

Last Answer : (A)The amount of Goodwill or Capital Reserve is found out in the books of purchasing company only

When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to______ (A) Realisation Account (B) Bank Account (D) Liability Account (D) Creditors Account

Description : When the purchasing company does not take over a particular liability and the vendor company pays that liability, it will debit it to______ (A) Realisation Account (B) Bank Account (D) Liability Account (D) Creditors Account

Last Answer : (A) Realisation Account

Which of the following statement is correct? (A) The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only (B) The amount of Goodwill or Capital Reserve is recorded 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.

Description : Which of the following statement is correct? (A) The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only (B) The amount of Goodwill or Capital ... value of shares of purchasing company will be taken in to account while calculating purchase consideration.

Last Answer : The amount of Goodwill or Capital Reserve is recorded in the books of purchasing company only

The first item in order of payment to be made by liquidator is A. Liquidation expenses B. Secured creditor C. Preferential creditor D. Preference shareholder

Description : The first item in order of payment to be made by liquidator is A. Liquidation expenses B. Secured creditor C. Preferential creditor D. Preference shareholder

Last Answer : A. Liquidation expenses

Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Description : Under purchase method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Last Answer : C. Goodwill or capital reserve

Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Description : Under pooling of interest method the difference between the purchase consideration and share capital of the transferee company should be adjusted to: A. General reserve B. Amalgamation adjustment account C. Goodwill or capital reserve D. None of the above

Last Answer : A. General reserve

Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above

Description : Goodwill arising on amalgamation is to be A. Retained in the books of the transferee company B. Amortised to income on a systematic basis normally five years C. Adjusted against reserves or profit and loss account balance D. All of the above

Last Answer : B. Amortised to income on a systematic basis normally five years

Which accounting concept specifies thepractice of crediting closing stock to the trading account? a) Cost b) Realisation c) Going concern d)Matching

Description : Which accounting concept specifies thepractice of crediting closing stock to the trading account? a) Cost b) Realisation c) Going concern d)Matching

Last Answer : d)Matching

X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. Liquidation

Description : X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. Liquidation

Last Answer : A. Absorption

X Ltd. goes into liquidation and a new company Z Ltd. is formed to take over the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. commencement.

Description : X Ltd. goes into liquidation and a new company Z Ltd. is formed to take over the business of X Ltd. It is a case of: A. Absorption B. External reconstruction C. Amalgamation. D. commencement.

Last Answer : B. External reconstruction

A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of A. Absorption B. External reconstruction C. Amalgamation. D. commencement

Description : A Ltd. and B Ltd. go into liquidation and a new company X Ltd. is formed. It is a case of A. Absorption B. External reconstruction C. Amalgamation. D. commencement

Last Answer : C. Amalgamation.

When purchasing company pays purchase consideration, it will be debited to (A)Business purchase account (B)Assets account (C) Liquidator of selling company’s account (D)None of the above

Description : When purchasing company pays purchase consideration, it will be debited to (A)Business purchase account (B)Assets account (C) Liquidator of selling company’s account (D)None of the above

Last Answer : (C) Liquidator of selling company’s account

The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account

Description : The original amount of preference share capital should be transferred to ............ account in the time of amalgamation in the books of vendor co. (A) Preference shareholders Account (B) Capital Reserve Account (C) Equity share capital Account (D) Equity share capital Account

Last Answer : (A) Preference shareholders Account

Small items like, pencils, pens, files, etc. are written off within a year according to _ concept. a) Materiality b) consistency c) Conservatism d) Realisation

Description : Small items like, pencils, pens, files, etc. are written off within a year according to _ concept. a) Materiality b) consistency c) Conservatism d) Realisation

Last Answer : a) Materiality

Which accounting concept satisfy the valuation criteria a] Going concern, Realisation, Cost b) Going concern, Cost, Dual aspect c) Cost, Dual aspect, Conservatism d) Realisation, Conservatism, Going concern.

Description : Which accounting concept satisfy the valuation criteria a] Going concern, Realisation, Cost b) Going concern, Cost, Dual aspect c) Cost, Dual aspect, Conservatism d) Realisation, Conservatism, Going concern.

Last Answer : a] Going concern, Realisation, Cost

Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R

Description : Hitanshi Ltd.‘s purchase consideration is Rs.12,345 and Net Assets Rs.3,568, then........... (A) Goodwill Rs. 8,777 (B) Capital Reserve Rs. 8,777 (C)Goodwill Rs. 15,913 (D) Capital Reserve R

Last Answer : (A) Goodwill Rs. 8,777

The rule debit all expenses and losses and credit all income and gains relates to A] Personal account B] Real account C] Nominal accounts D] All

Description : The rule debit all expenses and losses and credit all income and gains relates to A] Personal account B] Real account C] Nominal accounts D] All

Last Answer : C] Nominal accounts

IAll direct & indirect expenses related to business are charged: a)Profit and loss account b)Trading account c)Trading account Profit and Loss account d)Directly to Balance sheet

Description : All direct & indirect expenses related to business are charged: a)Profit and loss account b)Trading account c)Trading account Profit and Loss account d)Directly to Balance sheet

Last Answer : c)Trading account Profit and Loss account

Which of the following assets are dealt with by AS - 10 (Accounting Standard on Fixed Assets)? A. Land, building, plant and machinery, vehicles, furniture and fittings B. Goodwill and patents C. Trademarks and designs D. All of the above

Description : Which of the following assets are dealt with by AS - 10 (Accounting Standard on Fixed Assets)? A. Land, building, plant and machinery, vehicles, furniture and fittings B. Goodwill and patents C. Trademarks and designs D. All of the above

Last Answer : D. All of the above

Which of following is not the method of valuation of Goodwill? A. Average profit Method B. Super profit Method C. Capitalization Method D. Straight line Method

Description : Which of following is not the method of valuation of Goodwill? A. Average profit Method B. Super profit Method C. Capitalization Method D. Straight line Method

Last Answer : D. Straight line Method

Goodwill mean A. Good Will B. Credit C. Debit D. Good Wishes

Description : Goodwill mean A. Good Will B. Credit C. Debit D. Good Wishes

Last Answer : B. Credit

Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

Description : Net Assets minus Capital Reserve is _________ (A) Goodwill (B) Total assets (C) Purchase consideration (D) None of these

Last Answer : (C) Purchase consideration

If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____ a) Dr Drawing A/c & Cr Purchases A/c b) Dr Office Expenses A/c & Cr Motor Car A/c c) Dr Motor Car A/c & Cr Purchases A/c d) Dr Motor Car & Cr Sales A/c

Description : If one of the cars purchased by a car dealer is used for business purpose, instead of resale, then it should be recorded by_____ a) Dr Drawing A/c & Cr Purchases A/c b) Dr Office Expenses A/c & Cr Motor Car A/c c) Dr Motor Car A/c & Cr Purchases A/c d) Dr Motor Car & Cr Sales A/c

Last Answer : c) Dr Motor Car A/c & Cr Purchases A/c

Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest

Description : Pick out the wrong statement. (A) Gross margin = net income - net expenditure (B) Net sales realisation (NSR) = Gross sales - selling expenses (C) At breakeven point, NSR is more than the total production cost (D) Net profit = Gross margin - depreciation - interest

Last Answer : (C) At breakeven point, NSR is more than the total production cost

Intrinsic value of each equity shares of the vendor company is Rs. 250 and that of the purchasing company is Rs. 400. The exchange ratio of shares on the basis of intrinsic value is - (A) 2:1 (B) 8:8 (C) 8:5 (D) None of the above

Description : Intrinsic value of each equity shares of the vendor company is Rs. 250 and that of the purchasing company is Rs. 400. The exchange ratio of shares on the basis of intrinsic value is - (A) 2:1 (B) 8:8 (C) 8:5 (D) None of the above

Last Answer : (C) 8:5

Financial accounting is concerned with – a) Recording of business expenses and revenue b) Recording of costs of products and services c) Recording of day to day business transactions d) None of the above

Description : Financial accounting is concerned with – a) Recording of business expenses and revenue b) Recording of costs of products and services c) Recording of day to day business transactions d) None of the above

Last Answer : c) Recording of day to day business transactions

Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Description : Matching concept means A] Assets = capital + liabilities B] Transactions recorded at accrual concept C] Anticipate no profit but recognize all losses D] Expenses should be matched with the revenue of the period.

Last Answer : D] Expenses should be matched with the revenue of the period.

As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets

Description : As per the Matching concept, Revenue –? = Profit a) Expenses b) Liabilities c) Losses d) Assets

Last Answer : a) Expenses

M/s Stationery Mart will debit the purchase of stationery to _______ a) Purchases A/c b) General Expenses A/c c) Stationery A/c d) None

Description : M/s Stationery Mart will debit the purchase of stationery to _______ a) Purchases A/c b) General Expenses A/c c) Stationery A/c d) None

Last Answer : a) Purchases A/c

Which of the following is incorrect? a) Good will intangible asset b) Sundry debtors -current asset c) Loose tools tangible fixed asset d) Outstanding expenses -current asset.

Description : Which of the following is incorrect? a) Good will intangible asset b) Sundry debtors -current asset c) Loose tools tangible fixed asset d) Outstanding expenses -current asset.

Last Answer : d) Outstanding expenses -current asset.

Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.

Description : Which of the following cannot be treated as revenue expenditure? A. Cost of goods purchased for resale. B. Wages paid for the erection of plant and machinery. C. Obsolescence cost. D. Expenses incurred by way of repairs of existing assets which do not in any way add to their earning capacity.

Last Answer : B. Wages paid for the erection of plant and machinery.

Which of the following is not deferred revenue expenditure? A. Heavy advertisement expenditure. B. Expenses incurred in removing the business to more convenient premises. C. Preliminary expenses. D. Depreciation on fixed assets.

Description : Which of the following is not deferred revenue expenditure? A. Heavy advertisement expenditure. B. Expenses incurred in removing the business to more convenient premises. C. Preliminary expenses. D. Depreciation on fixed assets.

Last Answer : D. Depreciation on fixed assets.

Cost of inventories includes A. Direct Material + Direct Expenses B. Direct Labour + Direct Expenses C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition D. Direct material only

Description : Cost of inventories includes A. Direct Material + Direct Expenses B. Direct Labour + Direct Expenses C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition D. Direct material only

Last Answer : C. All costs of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition

Following is the application of fund A. Decrease in balance of Fixed Asset B. Decrease in working capital C. Decrease in net profit D. Decrease in preliminary expenses

Description : Following is the application of fund A. Decrease in balance of Fixed Asset B. Decrease in working capital C. Decrease in net profit D. Decrease in preliminary expenses

Last Answer : C. Decrease in net profit

Which of following is not Current Asset? A. Patent B. Bills receivable C. Cashable security D. Prepaid Expenses

Description : Which of following is not Current Asset? A. Patent B. Bills receivable C. Cashable security D. Prepaid Expenses

Last Answer : A. Patent

Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend

Description : Premium received on issue of shares cannot be utilised for ---------. A. for the issue of bonus shares B. for writing of preliminary expenses C. for providing premium payable on redemption D. for distribution of dividend

Last Answer : D. for distribution of dividend

A. Bank overdraft B. Bills Payable C. Account Payable D. Retain earning

Description : A. Bank overdraft B. Bills Payable C. Account Payable D. Retain earning

Last Answer : D. Retain earning

Which can be a method of privatisation ? i. Disinvestment ii. Denationalisation iii. Purchasing Share iv. Takeover v. Merger

Description : Which can be a method of privatisation ? i. Disinvestment ii. Denationalisation iii. Purchasing Share iv. Takeover v. Merger

Last Answer : i. Disinvestment

Amalgamate adjustment account is opened in the books of transferee company to incorporate: A. The assets of the transferor company B. The liabilities of the transferor company C. The statutory reserves of the transferor company D. The non – statutory reserves of the transferor company

Description : Amalgamate adjustment account is opened in the books of transferee company to incorporate: A. The assets of the transferor company B. The liabilities of the transferor company C. The statutory reserves of the transferor company D. The non – statutory reserves of the transferor company

Last Answer : C. The statutory reserves of the transferor company

In case of a limited company, the term financial statements includes A. Profit and loss and balance sheet B. Profit and loss account, profit and loss appropriation account and balance sheet C. Balance sheet D. None of the above

Description : In case of a limited company, the term financial statements includes A. Profit and loss and balance sheet B. Profit and loss account, profit and loss appropriation account and balance sheet C. Balance sheet D. None of the above

Last Answer : B. Profit and loss account, profit and loss appropriation account and balance sheet C