Commerce Multiple Choice Questions and Answers for Practice
Commerce MCQ Questions for Practice
16. Minimum number of members in case of public company is
Correct Answer is: 7
17. Net Assets minus Capital Reserve is
Correct Answer is: Purchase consideration
18. Premium on issue of shares can be used for
Correct Answer is: writing of capital losses
19. Premium received on issue of shares cannot be utilised for
Correct Answer is: for distribution of dividend
20. Premium received on issue of shares is shown on
Correct Answer is: liability side of the balance sheet
21. Section .............of companies act 1956 deals with the scheme of stock invest
Correct Answer is: 69 to 73
22. Share allotment account is a
Correct Answer is: personal account
23. Shares received from the new company are recorded at
Correct Answer is: Market value
24. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet.
Correct Answer is: Miscellaneous expenditure
25. The minimum share Application money is
Correct Answer is: 5% of the face value of shares
26. The original amount of preference share capital should be transferred to ...................account in the time of amalgamation in the books of vendor co.
Correct Answer is: Preference shareholders Account
27. The shares received from the new company is recorded at
Correct Answer is: Market value
28. Trade Payables are recorded in .............
Correct Answer is: Liability side of B/S
29. When company purchases the business of another company ................comes into existence.
Correct Answer is: Absorption
30. When liquidation expenses is paid and borne by seller company then it is debited to
