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.

1 Answer

Answer :

(C) Realisation A/c

Related questions

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

Description : 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

Last Answer : A. Realisation account

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.

Description : When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these (D) Debited to Capital Reserve

Last Answer : While calculating purchase consideration ............... values of assets is to be considered. (A) Book value (B) Revalued price (C) Average price (D) Capital

Description : When the Net Assets are less than the Purchase Consideration, the difference will be (A) Debited to Goodwill A/c (B) Debited to General Reserve (C) None of these

Last Answer : (A) Debited to Goodwill A/c

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

Description : Himanshi Ltd. purchase consideration is Rs.22,345 and Net Assets Rs.6,568, then........... (A) Goodwill Rs. 15,777 (B) Capital Reserve Rs. 15,777 (C) Goodwill Rs. 28,913 (D) Capital Reserve Rs. 28,913

Last Answer : (A) Goodwill Rs. 15,777

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

Last Answer : (C) Purchase consideration

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

Description : In amalgamation of companies there are two or more liquidation and one formation.

Last Answer : TRUE

Description : Under external reconstruction there is one liquidation and one formation.

Last Answer : TRUE

Description : 2. The underwriting commission is payable in cash .

Last Answer : FALSE

Description : When the underwriting commission becomes payable , the underwriter A/c is debited

Last Answer : FALSE

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

Description : Following is not a fixed asset - (A) Goodwill (B) Loose Tools (C) Copyright (D) Livestock

Last Answer : B) Loose Tools

Description : Net Assets of D.Co. for Purchase Consideration worth Rs. 4,00,000. At the time of absorption, the company has paid 32,000 equity shares each of Rs.10 each at 10% premium, then remaining cash will be - (A) Rs. 48,000 (B) Rs. 84,000 (C) Rs. 80,000 (D) Rs. 90,000

Last Answer : (A) Rs. 48,000

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

Description : When the liquated company has adequate cash to pay off all liabilities , the interest on liabilities should be paid : a) Upto the date of commencement of insolvency proceedings b) Upto the date of actual payment of liabilities c) Upto the date of payment to shareholders d) None of the these

Last Answer : d) None of the these

Description : The assets which is not taken under the net assets method of calculating Purchase Consideration is: (A) Loose Tools (B) Bills Receivable (C) Machinery (D) Share issued expenses

Last Answer : (D) Share issued expenses

Description : The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet. (A) Reserve and Surplus (B) Fixed Assets (C) Investments (D) Miscellaneous Expenditure

Last Answer : (B) Equity Shareholders Account

Description : Freight costs paid by a seller on merchandise sold to customers will cause an increase a. in the selling expense of the buyer. b. in operating expenses for the seller. c. to the cost of goods sold of the seller

Last Answer : b. in operating expenses for the seller.

Description : Preferential creditors are treated as fully secured creditors when they can be fully paid.

Last Answer : FALSE

Description : Monetary items _________ (a) Are assets and liabilities to be received or paid in money (b) Are assets to be received in fixed or determinable amounts of money (c) Are money held and assets and ... to be received or paid in fixed or determinable amounts of money (d) None of the above

Last Answer : Are money held and assets and liabilities to be received or paid in fixed or determinable amounts of money

Description : If the intrinsic values of shares exchanged are not equal, the difference is paid in ........... (A) Cash (B) Debenture (C) Pref. share (D)Assets

Last Answer : (A) Cash

Description : As per AS-14 purchase consideration is payable to _________________. (A) Shareholders (B) Creditors (C) Debenture holders (D) Bank

Last Answer : Shareholders

Description : Preference dividend in arears on the date of winding up is a) Treated as Secured creditor b) Treated as Preferential creditor c) Treated as Over – riding preferential creditor d) Added to Preference Share Capital

Last Answer : d) Added to Preference Share Capital

Description : Company incorporated outside India can become a partner in a LLP.

Last Answer : TRUE

Description : Company incorporated outside India can become a partner in a LLP.

Last Answer : TRUE

Description : If a default is made in delivering the annual return to the Registrar , the company is likely to facea) Compulsory winding up by the tribunal. b) Voluntary winding by members. c) Voluntary winding up by creditors. d) None of the above

Last Answer : a) Compulsory winding up by the tribunal.

Description : A contributory can only be present member of liquidated company.

Last Answer : FALSE

Description : If the company is insolvent , interest on debentures is payable upto the date of actual payment.

Last Answer : FALSE

Description : Only an insolvent company can be liquidated.

Last Answer : FALSE

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

Description : The shares received from the new company is recorded at________ (A) Face value (B) Market value (C) Average price (D) None of these

Last Answer : (B) Market value

Description : When company purchases the business of another company ........ comes into existence. (A) Amalgamation (B) Absorption (C) External Reconstruction (D) Internal Reconstruction

Last Answer : (B) Absorption

Description : In amalgamation of two companies (A) Both companies lose their existence (B) Both companies continue (C) Any one company continues

Last Answer : (A) Both companies lose their existence

Description : In case of .............., one existing company takes over the business of another company and no new company is formed.(A) Amalgamation (B) Absorption (C) Reconstruction (D) None of the Above

Last Answer : (B) Absorption

Description : Shares received from the new company are recorded at - (A) Face value (B) Average price (C) Market value (D) None of the above

Last Answer : (C) Market value

Description : 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

Last Answer : (B) Revised Value

Description : 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

Last Answer : (A) Amalgamation

Description : Absorption is said to take place when an existing company takes over one or more existing companies.

Last Answer : TRUE

Description : Two or more companies combining to form a new company is called absorption.

Last Answer : False

Description : years old male complaining from scaly lesion in his chest , then become hypopigmented , last 2 months in winter he spend his time neat to sea, by examination showed hypopigmented lesion over chest & arms Dx : Vitiligo taenia versicolor

Last Answer : taenia versicolor

Description : Kirti Co’s Balance Sheet shows Fixed Asset Rs. 3,60,000. At the time of absorption calculation of Net Assets is 10% less than the market value, then market value of such fixed assets is ............ (A) Rs. 3,24,000 (B) Rs. 4,00,000 (C) Rs. 4,20,000 (D) None of these

Last Answer : (B) Rs. 4,00,000

Description : Pick out the wrong statement. (A) Net worth means paid up share capital and reserve & surplus (i.e. shareholders equity) (B) Return on equity = profit after tax/net worth (C) Working ... /net working capital (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Last Answer : (D) Total cost of production is more than net sales realisation (NSR) at breakeven point

Description : Bryan Company purchased merchandise from Cates Company with freight terms of FOB shipping point. The freight costs will be paid by the a. seller. b. buyer. c. transportation company. d. buyer and the seller.

Last Answer : b. buyer.

Description : If the goodwill raised at the time of retirement of a partner is to be written-off, then the capital accounts of the remaining partners are debited in– (A) New profit sharing ratio (B) Capital ratio (C) Old profit sharing ratio (D) Sacrificing ratio

Last Answer : Answer: Old profit sharing ratio

Description : ibuprofen is contraindicated in -htn -dm -peptic ulcer

Last Answer : peptic ulcer

Description : best test to detect age of gestation is -LMP -U.S.

Last Answer : U.S.