Accounting for Amalgamation Absorption and External MCQ

1. Shares received from the new company are recorded at –

2. When two or more companies carrying on similar business decide to combine, a new
company is formed, it is known as ………………

3. When one of the existing companies take over business of another company or
companies, it is known as ………..

4. While calculating purchase price, the following values of assets are considered

5. While calculating purchase price, the following values of assets are considered

6. Which of the following statement is correct?

7. If the two companies have different accounting policies in respect of the same item,
then they make necessary changes to adopt ………….. accounting policies.

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

9. If amalgamation is in the ……………, the General Reserve or Profit and Loss A/c
balance will not be shown in the balance sheet.

10. If the intrinsic values of shares exchanged are not equal, the difference is paid in
………..