corporate accounting amalgamation- 08-02-23

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

• Amalgamation

• Absorption

• Internal reconstruction

• External reconstruction

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

• Amalgamation

• Absorption

• Internal reconstruction

• External reconstruction

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

• Book value

• Revised Value

• Average values

• Market values

Shares received from the new company are recorded at -

• Face value

• Average price

• Market value

• None of the above

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

• Reserve and Surplus

• Fixed Assets

• Investments

• Miscellaneous Expenditure