1. On amalgamation, Share issue Expenses A/c appearing on Assets side of the balance sheet of the vendor company
a) is closed by debit to Realisation A/c
b) is closed by debit to Equity Shareholders A/c
c) is closed by debit to Profit & Loss A/c
d) is closed by credit to Equity Shareholders A/c
2. On amalgamation, Profit & Loss A/c (Dr.) balance of the vendor company
a) is closed by debit to Equity Shareholders A/c
b) is closed by debit to Realisation A/c
c) is closed by credit to Equity Shareholders A/c
d) is closed by credit to Realisation A/c
3. On amalgamation, Debenture A/c appearing in the balance sheet of the vendor company
a) is closed by credit to Purchasing Company A/c, if debentures are taken over by the purchasing company
b) is closed by credit to Realisation A/c, whether debentures are taken over by the new company or not
c) is closed by credit to Debentureholders A/c, if debentures are not taken over by the new company
d) is closed by debit to Realisation A/c, whether debentures are taken over by the new company or not
4. On amalgamation, Provident Fund A/c appearing on the Liabilities side in the balance sheet of the vendor company
a) is closed by credit to Purchasing Company A/c
b) is closed by debit to Realisation A/c
c) is closed by credit to Equity Shareholders A/c
d) is closed by credit to Realisation A/c
5. On amalgamation, Sinking Fund A/c appearing on the Liabilities side in the balance sheet of the vendor company
a) is closed by credit to Purchasing Company A/c
b) is closed by credit to Realisation A/c
c) is closed by credit to Equity Shareholders A/c
d) is closed by debit to Realisation A/c
6. On amalgamation, if the dissolution expenses are paid as well as borne by the purchasing company
a) Entries are passed in the books of the purchasing as well as the vendor company
b) no entry is passed in the books of the vendor company
c) no entry is passed in the books of the purchasing company
d) no entry is passed in the books of the purchasing as well as the vendor company
7. On amalgamation, if pref. shares are settled at a premium
a) the premium is credited to Realisation A/c
b) the premium is debited to Realisation A/c
c) the premium is credited to Security Premium A/c
d) the premium is debited to Capital Reserve A/c
8. On amalgamation, accounting procedure used by the vendor company
a) is the same in all types of amalgamation
b) is different depending upon whether the amalgamation is in the nature of a merger or a purchase as defined by Accounting Standard 14
c) is different depending upon whether the companies are private or public
d) is different depending upon the amount of purchase consideration
9. On amalgamation, accounting procedure used by the purchasing company
a) is the same in all types of amalgamation
b) is different depending upon whether the amalgamation is in the nature of a merger or a purchase as defined by Accounting Standard 14
c) is different depending upon whether the companies are private or public
d) is different depending upon the amount of purchase consideration
10. All the assets and liabilities of the vendor company become the assets and liabilities of the purchasing company
a) if the amalgamation is in the nature of merger as defined under AS 14
b) if the amalgamation is in the nature of absorption as defined under the Companies Act
c) if the amalgamation is in the nature of external reconstruction as defined under the Companies Act
d) if the amalgamation is in the nature of purchase as defined under AS 14