Commerce Multiple Choice Questions and Answers

21. Section .............of companies act 1956 deals with the scheme of stock invest

1. 69 to 70
2. 69 to 71
3. 69 to 72
4. 69 to 73

22. Share allotment account is a

1. personal account
2. Real account
3. Nominal account
4. Impersonal account

23. Shares received from the new company are recorded at

1. Face value
2. Average price
3. Market value
4. None of the above

24. The Amalgamation Adjustment Account appears in the books, it is shown under the heading of ......... in the balance sheet.

1. Reserve and Surplus
2. Fixed Assets
3. Investments
4. Miscellaneous expenditure

25. The minimum share Application money is

1. 5% of the face value of shares
2. 10% of the issue price of shares
3. Re. 1 per share
4. 15% 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.

1. Preference shareholders Account
2. Capital Reserve Account
3. Equity share capital Account
4. Equity share capital Account

27. The shares received from the new company is recorded at

1. Face value
2. Market value
3. Average price
4. None of these

28. Trade Payables are recorded in .............

1. Asset side of B/S
2. Liability side of B/S
3. P & L a/c
4. None ofthe above

29. When company purchases the business of another company ................comes into existence.

1. Amalgamation
2. Absorption
3. External Reconstruction
4. Internal Reconstruction

30. When liquidation expenses is paid and borne by seller company then it is debited to

1. Bank A/c
2. Goodwill A/c
3. Realisation A/c
4. Capital Reserve A/c