Commerce Multiple Choice Questions and Answers for Practice

16. Minimum number of members in case of public company is

1. 7
2. 4
3. 5
4. 6

17. Net Assets minus Capital Reserve is

1. None of these
2. Goodwill
3. Total assets
4. Purchase consideration

18. Premium on issue of shares can be used for

1. paying fees to directors
2. distribution of dividend
3. writing of capital losses
4. transferring to general reserve

19. Premium received on issue of shares cannot be utilised for

1. for distribution of dividend
2. for the issue of bonus shares
3. for writing of preliminary expenses
4. for providing premium payable on redemption

20. Premium received on issue of shares is shown on

1. debit side of the P & L a/c
2. asset side of the balance sheet
3. liability side of the balance sheet
4. credit side of the P&L a/c.

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

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

22. Share allotment account is a

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

23. Shares received from the new company are recorded at

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

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

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

25. The minimum share Application money is

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

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

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

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

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

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

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

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

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

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