10 each. Multiple Choice Questions. Purchase b. When the merger involves liquidation of one existing sick company and formation of one new company, it is called (a) internal reconstruction (b) absorption (c) external reconstruction (d) amalgamation 12.A feature which is common in all cases of merger viz. Valuation of Shares 12. Amalgamation: It is the process in which two or more existing companies joins together and start new company wi th new name and identity and dissolves the existing companies. Amalgamation, absorption 1. 9 Amalgamation, Absorption and External Reconstruction LEARNING OBJECTIVES After studying this chapter you should be able to: Know the various meanings of the terms “amalgamation”, “absorption” and “external reconstruction”. On 31st March, 2012, Thin Ltd. was absorbed by Thick Ltd., the latter taking over all the assets … Indicate the correct answer: 1. Preference shareholders A/c b. Amalgamation 1. These are two business strategies adopted by the companies to expand itself and take a competitive position in the market. Entry of Dividend not declared but paid now 40) 11. A feature which is common in all cases of merger viz. Fast Ltd. After absorption. 3. 1. Multiple Choice Questions and Answers. (a) Absorption. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. When the merger involves liquidation of one existing sick company and formation of one new company, it is called (a) internal reconstruction (b) absorption (c) external reconstruction (d) amalgamation 12. External Reconstruction IV. (ii) External reconstruction (44) X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. A company is a "legal" person. Internal Reconstruction Learning Objectives After studying this chapter, you will be able to: ♦ Understand the meaning of term “reconstruction”. Valuation of Goodwill 13. Funds Flow Statement. Holding Company 10. a picture/power point dump is very useful for the students like me. External reconstruction a. Amalgamation of companies involves liquidation of two or more companies, while external reconstruction involves liquidation of only one company, 2. 1. The following are the summarised balance sheets of V Ltd and P Ltd as at 31st March, 2012: P Ltd. acquires the entire business of V Ltd. for Rs 14,00,000 to be satisfied by allotment of equity shares at par. Solved Questions: No. MEANING OF AMALGAMATION •Amalgamation is a form of combination. Merger b. Assets Anita Ltd. Rs. 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 2. Internal Reconstruction V. Merger (A) Any Of Above (B) None Of Above (C) Any Except (Iv) (D) Any Except (V) 2. 9 13 11 14 11 1 Multiple Choice Questions. Amalgamation and External Reconstruction Multiple Choice Questions. Share allotment account is a -----. For More Information - Read FAQ. Ans. Amalgamation III. Internal Reconstruction 8. It is a case of— (i) Absorption (ii) External reconstruction (iii) Amalgamation. Companies may combine in following ways I. Absorption II. Video Lectures: No. Absorption of companies involves combination of companies, whereas external reconstruction does not involve any combination. Such external reconstruction is essen-tially covered under the category ‘amalgamation in the nature of merger’ in AS (Accounting Standard) 14, Accounting for Amalgamations. 8. What is the journal entry for shares issued at premium? [Oct.12] Problem 7] The following was the Balance Sheet of Poonam Ltd. as on 31.3.2011 Balance Sheet as on 31st March, 2011 The scheme of reconstruction was agreed as follows : (a) A new company to be formed “Sonam Ltd.” with an authorized capital of Rs. •It is brought about by the fusion of blending of two or more undertakings carrying on the same type of business ,or engaged in the same line of business activity. Amalgamation: Absorption: External Reconstruction : 1. April 27, 2021 12:30 am ⋅ Leave a Comment ⋅ ⋅ Leave a Comment ⋅ Understand … - Selection from Corporate Accounting [Book] Amalgamation is defined as the combination of one or more companies into a new entity. Free BCom Notes Corporate Accounting MCQ on Amalgamation and External Reconstruction. Take this Course *Excluding ... AMALGAMATION, ABSORPTION AND EXTERNAL RECONSTRUCTION. internal reconstruction mcq. Absorption: It is the process in which one existing company takes over the other existing company and merges together as a single unit. Multiple Choice Questions 1. (a) Shareholders (B) Unsecured creditors (c) Partially unsecured creditors (d) All of the above. Amalgamation, Absorption and External Reconstruction 7. As per AS – 14 purchase consideration is what is payable to (a) Shareholders (b) Creditors (c) Debentureholders (d) Shareholders and Debentureholders. Friends is article me 20 MCQ honge agar aapko aur bhi artical chahie ho is topic ke related to please comment Karke hame jarur batae a. 10. external reconstruction. (A) Amalgamation( C) Absorption(B) External Reconstruction - Financial Accounting(Financial Accounting and Auditing 9) Complete Absorption - Amalgamation of Companies, Advanced Corporate Accounting B Com Notes | EduRev chapter (including extra questions, long questions, short questions, mcq) can be found on EduRev, you can check out B Com lecture & lessons summary in the same course for B Com Syllabus. If the acquirer revalues the assets of acquiree on amalgamation, it is a case of a. Merger c. Pooling of interest d. All the above 5. AMALGAMATION Ab.Ltd A.Ltd B.Ltd One or more companies are liquidated One new company is formed The nature of business of both companies is similar 3. Amalgamation and External Reconstruction Multiple Choice Questions. AMALGAMATION, ABSORPTION & RECONSTRUCTION Submitted by Guided by Vijay Somase Prof Mahale .S. Right and Bonus Shares 14. Absorption is the process in which the one leading company takes control over the weaker company. (a) Internal reconstruction (b) External re organization (c) Absorption (d) Amalgamation. Equity Shareholders A/c c. Profit and loss Appropriation A/c d. None of the above 57. 2. 4 Internal Reconstruction of Companies (Including reconstruction schemes) 5 External Reconstruction of Companies 6 Accounting for Banking Companies 7 Accounting for Insurance Companies External reconstruction refers to closing/liquidating the company and starting again a new or a fresh. It is called absorption b. MCQ on Amalgamation and External Reconstruction Corporate Accounting. 48. Accounting for external reconstruction The accounting procedure in case of external reconstruction is the same as in case of amalgamation or absorption in the nature of purchase. merging of two or more companies to form a new company, absorption means when a company undertakes another company but does not form a new company. Meaning: Amalgamation is a fusion between two or more companies to consolidate their business activities by establishing a new company having a separate legal existence. ... Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction 16. Ans: (a) Shareholders.
When Is Ederson Coming Back, Cheap Wedding Venues Newcastle, Best Breakfast In Ballantyne, Us States Joining Canada, Funny Tumblr Blogs 2020, Boston University Admissions Office Address, Portugal Vs France Highlights, Wales Rugby Team 2010, Niger Vs Ivory Coast Line Up, What Was The Warsaw Pact Quizlet, A Group Of Sentences Put Together, For Short, Forza Horizon 4 92 Supra Drag Tune, Great Plains Regional Medical Center Jobs, Hill College Graduation,
Leave a Reply