Objective Questions : ty : , re a 325

Com.) (Sem. — V1)

Financial Accounting (T.Y. B.
a's

‘Amalgamation ofc‘companies is governed by : :

a) AS-13 b) AS-14 a 3 AS-9 d) AS-11 |
2. The scheme of amalgamation can involve _ companies :
a) none © > b) two : “-¢) one : d) three
3. The amalgamation requires approval of ‘
a) High Court b) | Registrar of Companies
c) Central Government ; ; d)_. Directors
4. Approval by a shareholders is necessary for treatment as in nature of merger.
a) 51% b) 75%, c) 90% d) 80%
5... Approval by % of shareholders is required for implementation of the scheme of amalgamation.
a) 51% © ‘b) 75% c) 80% — d) + 90%
6. Incase of purchase method, transferee company should record assets at
a) book value 3 b) — cost
c) market value d). agreed value
7. . Incase of pooling ofi interest method, transferee company should record assets at
SYNOPSIS a) cost : el b) market value
c}. agreed value : e. d) book value
325— 335 8. Amalgamation Adjustment Reserve Account is required in respect of
L Multiple Choice Questions: a) general reserve ey: b) . statutory reserve
rption and
AS— 14: Amalgamation, Abso 325 c). security premium d) . capital reserve
External Reco nstr ucti on
329 9. The excess of net asset value over consideration is %
of Foreign Currency
Accounting of Transactions 331 a) capital reserve ... b) — security premium
Liquidation of Companies 334 c) profit or loss d) goodwill
Debentures
Underwriting of Shares and 334 10. AS-14 covers amalgamation of te, Saegpene ; :
ility Partnership tae b) firms
Accounting for Limited Liab a) companies
c) firms and company ; : d) Directors and Partners
336-339 assets to Realisation Account at
words: 11. On amalgamation, the transferer company transfer its
IL Fillin the Blanks with suitable
rption and a) agreed value b). book value
AS— 14 : Amalgamation, Abso 336 d) original cost
c) market value
External Reconstruction 337
of Foreign Currency 12. X Ltd. And Y Ltd form into a new company XY Ltd.
Accounting of Transactions 337 X Ltd. . Y Ltd.
Liquidation of Companies 338 zg. =
ures
Underwriting of Shares and Debent 334 Net Assets : 550,000 6,00,000
y Partnership
Accounting for Limited Liabilit Purchase consideration } : 10,00,000 8,00,000
The purchase consideration is to be settled by issue (© 100) of fully paid shares of XY Ltd at par. The
339-341
: number of shares issued to XY Ltd. will be
| III. Match the Columns :
on and Eb) 2,00,000 shares
: AS — 14 : Amalgamation, Absorpti 348
a) 1,00,000 shares
55,000 shares
c) 45,000 shares d)
External Reconstruction J40
of Foreign Currency 13. On31* March, 2019; X Ltd. Acquited Y Ltd. The Balance Sheet of Y Ltd. was as follows:
‘Accounting of Transactions Jal <. : Assets ; ©
Liabilities
Liquidation of Companies jal : : 3,00,000 | |. Fixed Assets” : 13,00,000
entures Equity Capital .
Underwriting of Shares and Deb jal Reserves i 9,50,000 |) Current Assets eo : 5,70,000
y Partnership _1,00,000 ~
Accounting for Limited Liabilit Current Liabilities : _7,20,000 || Preliminary Expenses
; S 19,70,000 : 19 70,000
342-344
ts are True or False: If all the assets & Liabilities are taken at Book values the purchase consideration payable by X Ltd is
IV. State Whether the statemen
rption and
AS— 14 ; Amalgamation, Abso jde
ucti on ' a) -&11,50,000 , 2.) %19,70,000
External Reconstr jdt
of Foreign Currency .-¢) .% 20,70, 000 : : d) %10,28,000
"Accounting of Transactions jad 14. Pooja Ltd. purchased Rita Ltd. and agreed to pay the following to Rita Ltd. for the acquisition:
Liquidation of Companies jad i) 2 equity sharés'of Pooja Ltd, for= 20 each, fully paid for every equity share of Rita Ltd. and cash
Debentures
Underwriting of Shares and ddd & 4 per share held. Total equity shares of Rita Ltd. are 5000 shares.
ility Partnership
Accounting for Limited Liab
 B.Com.) (Sem. — V1)
Objective Questions was 327
Financial Accounting (T.Y.
326 goa e of 15,000 12% debentures
of f 100 each
27. If Santoshkumari Ltd. ; is taken o ver by Santoshkumar
a) Internal reconstruction . db)
Lt
moet sonstauat
oy iti
nn ae
cha rge of
, Rita Ltd. ’s 20,0 00 10% Debentures by issu atio n paya ble by Pooja Ltd.
ii) Dis
at % 5 per debe ntur e held . The purchase consider c) Absorption d) Mer 7 Seen
"of Pooja Ltd. and cash 28. On amalgamation business is taken over by :
to Rita Ltd. is .
by = 20,35,000 a): Nae aac b) Existing company
a) %18,20,000 d) 20, 32,000 d) Holdi
c) €20,38,000 Ltd. 29. As per AS 14 amalgamation is of two types : : ee
Universal
15. Balance Sheet a) Merger , b) Purchase of busi
9
as on 31st March, 201 | z c) Merger of purchase of business d) None of the bare
{| Assets
Liabilities [ft 2,00,000 30. On merger, vendor companies are ms
Fixed Assets 1,70,000 a) Liquidated . b) Formed
of
10,000 Equity Shares 1,00,000 Current Assets d) None of the above
eac h 7 c)2 ‘Dissolved
olve -
% 10 2,20,000 -
Profit & Loss Account
“ e common feature in merger, purchase of business is
50,000 3.70,000 a) Liquidation of at least two companies
Creditors 3,70,000
Ltd. for a consideration of b) Liquidation of at least one company
2019 ; Ome ga Lid. took over the business of Universal
On 1* April, c) Purchase of one company by another company
realization was :
Z 3,75,000. Profit orloss on b) 55,000 (Loss) d) Combination of at least two companies
a) % 55,000 (Profit) 50,000 (Profit) 32. As per Companies Act 1956, :
dy
c) = 80,000 (Profit) ble to : a) Amalgamation includes absorption
per AS-14 is the amount paya
16. Purchase consideration as b) shar eholders and creditors b) Absorption includes amalgamation
ureholders
a) shareholders and debent d) none of the above
c) Amalgamation excludes absorption
:
c) .shareholders :
d) Internal reconstruction includes external reconstruction
method followed is
17. Foraccounting mergers, the b) Equity Method 33. Accounting for amalgamation is governed by.
a) Pooling of Interest Met
hod
above ; a) ASI AS 14
d) none of the
Purchase Method tion and share capital of c) AS 13 a AS 11
c)
Method, the difference between purchase considera
18. Under Pooling of Interest : i 34, Accounting for absorption is governed by .
be adjusted to AS13 Ne

a
transferee company should b) ° Goodwill Account a) ASI b)
t
a) General Reserve Accoun d) none of the above c) AS 14 : d). ASI
Amalgamation Adj ust men t Account

|__d
c) 35. Accounting for amalgamation by merger is as per :
a method of i
19. Pooling of Interest is b) valuation of inventory a) AS] b) AS 13
a) providing depreciation d) none of the above c) AS 14 d ASII1
ce) accounting for amalgamat
ion acquired should be
exce ss of pur chas e con sideration over net assets 36. Accounting for amalgamation by purchase is as per
hod, any
20. Under Purchase Met
®) ASIA
a) A
ASHI

|
recognised as b) capital reserve d) AS11
a) goodwill d) none of the above 37. As per AS 14 transferor company means the company
c) Profit & Loss Account or company to . _a) which is amalagamated into another company
on Real isat ion Acc oun t is transferred by transfer ers Account
21, Prof it b) Preference Shareh old b) which is newly registered
Equi ty Sha reh old ers Acc ount
a) d) none of the above c) which is none of the above
c) Profit & Loss Account consideration, |&
r Net Asse t Met hod of calculation of purchase d) Into which a company is amalgamated.
take n unde
22. The asset, which is not 38. Transferee company as per AS 14 is
b) loose tools a) Vendor compan . i
es
a) discount on issue of shar d) _ bills receivable c) Liquidated company : a me sfthe above.
c) furniture 39. o eee preliminary expenses in Balance Sheet of Vendor Company are debited to
e by :
23. Companies may combin b) Absorption a Cen c b) Equity shareholders A/c
a) Amalgamation : d) Preference shareholder A/c
ad) Any of the above
Exte rnal reco nstr ucti on it is call ed
c) Swati Ltd. a new compan y 40. °On amalgamation Profit and Loss A/c debiti balance ini Balance Sheet of Vendor Company is transferred
ha Ltd. _are taken over by
24, If Vijay Ltd. and Vishak b) External reconstruction
a) Absorption d) Internal reconstruction a) Realisation A/c , b) | Cash A/c
c) Amalgamation ed as c)a ; Eln iu oa Ae ; d) ‘Preference shareholders A/c
over by Ranbhir Ltd. it is call
95, If Deepa Ltd. is taken b) External reconstruction 41. entures Account appearing in the Balance Sheet of Vendor Company is closed by
a) Amalgamation d) Merger
/
c) Absorption ar Ltd a new company 2 Sean to Realisation Account, whether debentures are taken over or not
Ltd. and Kum ari Ltd. are taken over by Santosh Kum ,
26, If Santosh ies ; Gea to Realisation Account when debentures are taken over
ate Vendor Compan
a) Santosh Ltd. and Kumari Ltd. dor Companies c rediting to Realisation Account wh en Debentures
mar Ltd. are Ven
b). Santosh Lid. and Santoshku d) None of the above seas ill
g Company
c) Kumari Ltd. is a purchasin
company
d) Kumar Ltd. is a purchasing 22/T.Y .B.Com.—Financial Accounting (Sem.—V]) ,
 VI)
Financial Accounting (T.Y. B.Com.) (Sem. — Objective Questions
aa
Pas
any is transferred to 54. Goodwill arising on amalgamation is to be
nt in the Balance Sheet of Vendor Comp
42. On amalgamation Provident Fund Accou a) Amortized on a systematic basis
b) Purchasing co's Account b) Adjusted against general reserves
a) Realisation Account c) Retained in the books of transferee company
d) Preference Shareholders Account
c) Equity Shareholders Account d) None of the above
of Vendor Company is transferred to
43. Sinking Fund appearing in the Balance Sheet 35. As per AS 14, payment of expenses on amalgamation
c) . Preference Shareholders Account
a) Realisation Account a) Becomes part of purchase consideration
d) Purchasing Companies Account
b) Equity Shareholders Account
d at a premium, the premium is b) Does not become part of purchase consideration
44, On amalgamation if preference shares are settle c) Appears in the books of transferor company only
a) Debited to Realisation Account d) None of the above
b) Credited to Realisaiton Account 56.
Th . . . .
e asset which is not considered under Net Asset method of calculation of purchase consideration is
c) Credited to securities premium Account
d) Debited to Profit and Loss Account * a) Underwriting commission b) Plant and machine:
of a Vendor Company is
~ 45. Accounting for amalgamation in the books all types of amalgamation c) Bills receivable d) Stock ~
b) The differ ent in
a) The same in all types of amalgamation 57. ‘Pooling of Interest' is a method of
d) Dependent on purchase consideration
c) Dependent on the'type of company any is a) Accounting for amalgamation
amalgamati ion in the books of purchasing comp
46. On amalgamation, accounting for b) Calculation of purchase consideration
s
a) The same in all types of amalgamation c) Stock valuation
rent in all types of amal gama tion depending on the type of amalgamation.
b) The diffe d) None of the above :
c) Dependent on the type of companies / 58. 0Under 'Purchase Method’, od', exce:
excess of purchase consideration
i i over the net assets taken over is accounted
ion
d) . Dependent on the purchase considerat r company become the assets and
assets and liabil ities of vendo
47, In amalgamation as a merger all the ‘ a) Goodwill b) Capital
i Rese: 7
liabilities of c) Profit and Loss Account , d) Nowe of the shove
b) Vendor Company
a) Transferee company 59. In case provision for doubtful d ebts isi aga i
d) Subsidiary company Account at gainst the debtors, the debtors are transferred to Realisation
c) Holding company any
90% of the face value of equity share capital in the Vendor Comp
48. Shareholders holding not less than a) Gross amount b) Net amount
asing company if amalgamation is
become the equity shareholders in the purch : 2 ine value ; d) None of the above .
'
a) Inthe nature of merger 60. , Fae consideration under payment method in amalgamation is :
b) In the nature of purchase of business ° aiaceee to shareholders b) Payment to debentureholders
c) In the nature of absorption ayment to preference shareholders d) Payment of expenses
d) Inthe nature of internal reconstruction ny are incorporated in the 61. ar a amalgamation profit on Relisation is transferred to
assets an d liabilities of the transferor compa
49, On amalgamation as a merger all a) Equity shareholders A/c b) Preference shareholders A/c
books of transferee company at c) Debentureholders A/c d) Creditors A/c
a) Market value 62. Under amalgamation Loss on Realisation is debited to ,
/
b) Book value a) ey shareholders Alc b) Preference shareholders A/c
is less
c) Market value or Book value which ever c) Profit and Loss Appropriation A/c d) None of the above
d) Agreed value A :
transferred to the books of 63. s per AS 14 amalgamation under Net payment method payment to creditors by Transferee coinpany
of busine! ss assets and liabilities are
50. On amalgamation as a purchase
.
transferee company at _ a) Forms part of purchase consideration
b) Book Value
a) Market Value b) Does not form part of purchase consideration
d) Cost
c) Agreed Value ny
of business the reserv es carried in the books of transferee compa c) Debited to Realisation A/c
51. Under amalgamation as a purchase . d) None of the above

SAG Pa Se ae Pen as
are [Ans.” : (1 —b),oe(2—b and d), 7 (3 —a), 9 (4—c), 2 (5—b), ? (6—d
b) General reserve 7 ), (7 ~ d), (8 — b), (9 — > ~ _
a) Statutory reserves only
d) All of the above
c) Profit and Loss Account of transferee company {0
Accou nt is opene d in the books
52. Amalgamation Adjustment Reserve (34 — 0), (35 — c), G6 —c), (37 — a), (38 —b) (39 -b te aa »,
incorporate (45 — a), (46 — b), (47 —a), (48 — a), (49 —b), (50 Gla Glo O63 “He Gheey soe
a) . Liabilities of Transferor company (56 —a), (57 —a),(58 —a), (59 —a), (60 — ued &a), ee (63 heey eee oe
b) Assets of Transferor company
any
c) Statutory reserves of transferor comp
d) ‘None of the above in its books only
ess the transferee company incorporates Conversion of currency is covered in AS
53. Under amalgamation as a purchase of busin
a) 9 b) 13 : ce) il d
Assets and liabilities of transferor company
Th =: . eqs ) i

a) e exchange difference on settlement of liability specially for purchase of fixed asset is transferred
of transferor company.
b) Assets, liabilities and statutory reserves .
transf eror company a) asset b
c) Assets, liabilities and'teserves of c)
:
depreciation
) exchange difference
: d) profit & loss
d) None of the above
 — VI)
Financial Accounting (T.Y. B.Com.) (Sem.
rea Objective Questions
ce Sheet is converted at rate
The balance in receivable as on the date of Balan 19 . Average rate is the rate
b) on the date of Balance Sheet
a) on the date of sale goods a) onthe Balance sheet date b) is the mean of the exchange rates ’
recov ery d) on the date of first recovery
c) on the date of subsequent c) is the proportion between two currencies _ d) is rate at which asset could be exchanged
on the date of Balan ce Sheet is converted at
The amount payable for purchase 20. Exchange rate is the
b) on date first payment
‘'a) on date of purchase a) rate at the Balance sheet date b) mean of the exchange rates
d) on date of Balance Sheet
c) on date of subsequent payment c) proportion between two currencies d) rate at which asset is exchanged
rted at rate
The depreciation on fixed assets is conve 21. Following is not an example of a monetary item.
average during year

—
b)
a) on date-of Balance Sheet -a) cash b) payable
, d) reopening date ofyear
c) date of purchase c) receivables d) fixed assets
date
The interest of loan is converted at rate on the 22. Following is an example of a non-monetary item
“b) of accrual of interest
a) of loan borrowed . ay . b) Creditors
d) of Balance Sheet
c) of payment ;
ce Sheet is converted at rate on date of
The interest accrued on loan as on date of Balan 23. The mean of the exchan: ge rates in
i force during
i origi is Et
a period known as
b) of Balance Sheet
a) of payment (b) and (c)
a) Average rate b) Closing rate
d) average of
c) of loan borrowed : 0 Reporting rate d) none of the above
action of export sale is transferred to
The balance in exchange difference on trans 24. eporting currency is the currency used for
b) Debtors Account
a) Sales Account a) presenting financial statements b) recording financial transactions
d) Trading Account
c) Profit & Loss Account c) setting the financial transactions d) none of the above
t of raw material is transferred to
The exchange difference arising due to impor 25, Non-monetary items are the items.
/ b) trading
a) purchase a) other than assets and liabilities
d) suppliers
c) Profit & Loss Accoun' b) assets and liability as other than monetary items ey
account is called
10. The currency of the enterprise preparing c) exchanged at fair value
b) home currency
a) foreign currency d) none of the above
d) owncurrency
c) reporting currency was received on 26. Monetary items are the assets and liabilities
goods to its USA client for $ 10.000 payment
11. On ist January, 2018; XYZ Ltd. invoiced a) to be received or paid in money
_ Ist March, 2018. b) to be received in fixed or determinable amount of money
The exchange rate was : , c) to be received or paid in fixed amount
1=% 40
1st January 2018 : $ 1 =%39. Ist March, 2018 : $ 27. As applicable for translation of foreign currency is
erred to Profit & Loss Account is__.
The amount of difference in exchange transf d) % 25,000 a) ASII b) AS 13
b) = 10,000 c) % 15,000
a) % 20,000 by 31st March , 2018; the date of c) AS14._— d) AS 19
but has not been paid for
12. H Ltd. purchased a plant on Ist January, 2018 28, The amount of exchange difference is recorded in
$ 1,00,000.
closing the books. The cost of the plant was a) Foreign Exchange Fluctuation A/c a) General Reserve A/
The exchange rates were :
: $ 1 =% 40.
b) Profit and Loss A/c c) None of the above .
Ist January, 2018: $1= % 39. 31st March, 2008 29, At the end of the year the balance on Foreign Exchange Fluctuation A/c is transferred
: ;
The exchange difference is d) %2,00,000 a) General Reserve A/c , b) Profit and Loss A/c aes
b) .%50,000° c) %1,50,000
a) %1,00,000 36.20, the rate on eer wn je d) None of the above .
% 20,00,000 which was recorded at $ 1 = =
13. A long-term loan was obtained from Z Ltd date was $ 1 =< 37 40 . The loss
rate on the Balance Sheet a), (13 —a), (14-0), (15 Op ee a eth aee , ib. Sot CLO eee
the date of the transaction. The exchange
due to exchange difference is d) 85,000 (24 —a), (25 —b), (26 —¢), (27 —a), (28 —a), (29 - by) ° . eeee o Chae
b) % 66,000 c) % 65,000
a) % 66,312
14. Following is not a monetary item :
b) Cash
a) Bills Receivable
d) Bills Payable A company is created by
c) Inventory
An exchange rate on the date of Balan ce Sheet is known as 2) . a ence Nene c) Humanbeing d) All of the above |
15.
b) closing rate
a) average rate
d) monetary rate 5 eur winding up b) Compulsory winding up
c) non-monetary rate
. eotee At fea ; : d) None of the above
16. Non-monetary items are valued at
b) current price peti ion ‘or winding up is presented by
a) marke t price
' d) fluctuating price To aaretolen we b) Contributory c) Company d) All of the above
c) historical cost
.
17. Reporting currency is the currency used in
b) presenting financial statements a) Priority claimant b) Second claimant c) Lastclaimant d) Noclaimant
a) settling financial transactions
- d) none of the above Pref. creditors are
c) recording financial transactions ‘
: a) T. Taxes b) Dues to government
18. Foreign currency is a currency n financ ial statem ents
b) in presen ting foreig c) Wages & Salaries payable ‘d) All ofthe above
a) used in recording foreign transactions
report ing curre ncy d) none of the above Voluntary transfer is made by the company within
c) other than the
a) One year b) Two years c) Three years d) Five years
 Objective Questions o's” 333
B.Com.) (Sem. — V1)
Financial Accounting (T.Y.
332 ae
prepared under section 4) 173
7. Liquidator’s statement is c) 156 Every Company issuing shares to public must collect within 15 days
b) 153 b) 90% of the i :
a) 143 a) 80% of the issue
takes place if
g. Compulsory winding up b) 45% of the issue d) 25% of the issue
luti on is passed by the company °
a) Special reso one year of its incorporatio
n The time limit for collection of minimum subscription is
commence business within b) 21 days
b) The company does not a) - 15 days
to pay its debts
c) The company is unable a 7 days . d) 5 days
d) All ofthe above or is appointed by case of shares commission cannot exceed
of com pul sor y winding up, official liquidat a) 3% of issue price b) 7.5 % of issue price_
9, Int he case
t b) The State Government
a) The Central Governmen d) The High Court c) 5% of issue price d) 2.5% of issue ee
rar of Com pan ies ae
c) The Reg ist or is appointed by In case of Debentures the commission cannot exceed.
of mem ber 's Vol untary winding up liquidat eral Meeting b) 7.5 % of issue pri
10, Int he case b) The Company 1in Gen a) 2.5% of issue price -
The Cent ral Gov ern men t of Com panies c) 5% of issue price d) 10% of issue - -
a) d) The Registra r
The Boa rd of Dire ctor s When the entire issue is underwritten it is called m
c) shown in
irs secured creditors are d) ListD
11. Inastatement of affa c) ListC 3 Labeereiie ran b) Partial Underwriting
tA b) List B d) None of the above
a) Lis of Affairs is sent to a O : n erwriting
y winding up Statement e applications which bear the stamp of underwriters are called as
12. Incase of compulsor b) . The Liquidator
r
a) The Official Liquidato “d) The High Court a) Unmarked applications ’ b) Marked application
c) The Government : c) Sealed applications d) None of the b :
is prepared as per list
13. Deficiency or surplus A/c ce) C : d) E Underwriting commission one is debited to ee
b) B b) Underwriter i ’
“a) H a) Underwriting commission A/c
c) Share Allotment A/c d) None offe above
included in list
14. ‘Preferential creditors are c) ListD d) ListE Underwriting commission is calculated on
b) ListB g up is treated as a) Issue price ofsheshares underwritten / iabili
b) Net liability vah
nths before the date of windin
a) ListC
arose within 12 mo: Firm aideroide s value ®
b) Secured Creditors .
15. Government dues that c) Marked application value d)
a) Preferential Creditors d) None of the above Unmarked applications are
c) Unsecured Creditors considered as : a) Applications bearing no stamp of the underwriter
of emp loy ees exc eed = 20,000 per employee is
b) Preferential Creditors
16. Retirement bene fit b) Firm underwriting
Unsecured Creditors
: c) Applications received by the company
a) d) None of the above
c) Secured Creditors ding up is d) Applications issued by the company
dividend on the date of win
17. Arrears of Preference b) Treated as secured creditor 10. When all the shares are underwritten it is called
share capital
a) Added to Preference d) None of the above : ea underwriting b) Partial underwriting
creditor
c) Treated as unsecured ) Full underwriting d) All of the above
ance is considered as
18. Calls received in adv b) Secured creditor 11. When some of the shares are underwritten it is called
red cre dit or b) Partial underwriting
a) Uns ecu d) None of the above 3 a ee
c) Preferential creditor
19. Acontributory is a b) Debentureholder 12. aid on ‘ Deno
# ihe % Deben
SY Lad. lubed es of are € 100 Douek dena us
each at 20% discount.
i The underwriting
iti commission will be
er
a) Sha reh old
d) Unsecured creditor
c) Sec ure d cre dit or a) %100 b) 80 c) 2120 d) ®1
loyee out of PF. is oh e cost isi = 90. The
of = 100 each at par. The MV isi % 120 :
90. Amount due to an emp b) Secured creditor - 13. SV oerdiiea
SN shares of ill
coutitiaior
Ltd. i issued peid value
a face
a) Pref eren tial cred itor
d) None of the above
a) %100! b) 120 c) 90 d) none
c) Unsecured creditor
wound up by NCLT when and shares of € 100 each at 50% premium. Underwriting commission will be paid on
21. A company may be 14. y et
a) special resolution is passed b) %90 c) €150 d) Allof the above
nst National interest
b) The company acted agai t manner 15. When the entire issue is underwritten by Mr. Premkumar, he is liable for
are conducted in a fraudulen
c) Affairs of the company . a) No. of shares applied by the public
d) Allofthe above ‘b) No. of shares underwritten
can be filed by
22. Petition of winding up b) ROC - oe eee ei less. No. of shares applied by the public
,
a) Contributory d) All of the above
pany has
c) Company of the company if the com 16. Marked applications are
men t ¢ an pres ent a peti tion to NCLT for winding
23, Central Govern a) Applications stamped by the underwriters
acted against. b) Security b) Applications signed by the public
of India
a) Sovereignty and Integrity d) All ofthe above c) Applications sealed by the company
. - b),
c) Public order
da), (4-0), 6 - d), (6 —a), (7 -©), (8
— 4), O- a), (10 — b), (11 22 — d),
d) None of the above
- a), (2 - b), 3 - — a), (20 — a), (21 - d),
[Ans. : (1 — b), (17 —a), (18 — 4), (19
— a), (16
(12 — a), (13 — a); (14 - a), (15
(23 - 4)]
 (T. Yy, B.Com.) (Sem. —
VD) Objective Questions ea" - 335

gaa
Financial Accounting

334 are
7. The consent of designated partners is filed with the ROC in
a) Form 1 Form 2
17. Unmarked applications c) Form3 a E-Form 4
ons sta mpe d by the underwriters
a) Applicati by the company Books of accounts of LLP are to be preserved me
public directly received
b) Applications from a) 5 years 7 years
to the brokers .
c) Applications given c) 8 years 5 9 years
_ d) None of the above ion on Books of accounts of LLP are maintained on
18. ers can claim remunerat
Underwrit “b) Issue price of shares underwritten a) Cash basis Accrual basis
ten
a) Face value of shares underwrit e of the above c) Cash basis or accrual basis 3 Cash basis and accrual basis
purchased . d) Non ubscribed shares, it is
c) Face value of shares actually aii n no. of shares in addition to uns Contribution can be °
pur cha se a cert
19. When an underwriter agress to a) Tangible Intangible
ing
called as -p) Partial underwrit c) Movable / Immovable Property 3 All of the above
a) Firm underwriting d) None of the above 0,000 11. Contribution by a partner to LLP is
Debentures upto = 5,0
c) Full underwriting ng com mis sio n for Preference shares and a) Compulsory b Not compulsory
unde! rwr iti
20. Vide SEBI guidelines , c) . As specified by the agreemen 3 None of the above
should not exceed. d) 5%
c) 2.5 % ure s bey ond 12. Valuation of Contribution may be made by
b) 2.7% and Deb ent
a) 2% for Preference share s
commission a) Practicing Chartered Accountant b Practicing Cost Accountant
21. Vide SEBI guidelines underwriting Any one of the above
c) Panel member a
Z 5,00,000 should not
exceed. d) 5%
c) 2% 13. Contribution has to be refunded on
2.5% b) 15%
a) a) death insolvency
Anunderwriter is a person for the shares
22. b) Who finds buyers c) Termination of membership iH Any one of the above
underwrites the issue ve
a) Who d) None of the abo 14. Audit of LLP is compulsory when
c) Whoisa broker by.
unless he hol ds a certificate granted a) Contribution exceeds F 25,00,000
A person cannot act as an underwriter d) MCA
23.
SEBI c) ROC b) Turnover exceeds F 50,00,000
a) RBI b)
to the underwriters
underwriting is given c) Turnover less than ¥ 20,00,000
24, When the benefit of firm applications
treated as unmarked d) None of the above
a) Firm underwriting is not applications
Firm underwriting is not treated as marked 15. Designated partner must obtain DPIN from
b)
Firm underwriting isignored
a) The Central Government
c) b) The State Government
d) None of the above given to the underwriters
m underwriting is not c) The ROC
25, When the benefit of fir applications
is treated as unmarked d) Registrar of firms
a) Firm underwriting lications
is treated as marked app 16. A partner of LLP can be
b) Firm underwriting A company
is ignored a) An individual
c) Firm underwriting
abo ve — (10 - ¢), (1 - b), c) ALLP a All of the above
d) None of the (6 — b), 7 —a), (8-4), O- a),
—c), 4-4), G4 ), -c), Q1 - c), (22 -
a), 17. LLP is created by °
[Ans. : (1 — b), 2 ~ 4)» (15 — 0), (16 - a), (7 — b), (18 — 5), (19 —a), (20 LLP Act .
(12 — b), (13 - a), (14 — ¢),
a) Partnership Act
]] c) Companies Act , Co-operative Societies Act
(23 — b), (24- a), (25 —a)
18. LLP can be dissolved by the order of
a) NCLT High court
aes
este c) District Court 3 None of the above
be audited by
Se

Accounts of LLP are to , b) Cost Accountant 19. LLP has °

a) Chartered Accountant d) Master of commerce a) Perpetual succession b No perpetual succession
c) Company secretary ; ¢) Specified period of life ; None of the above
rs in LLP is No limit
2. Maximum number of partne cp 100 - 4) 20. Minimum members required to form a LLP is
b) 50
a) 20 a) 2members 5 members
in filed with MCA
3. Agreement for LLP is c) ROC d) c) 10members 2 3 15 members
ICAl b). NCLT
a) by 21. Rights / duties of partners are governed b'
tion of LLP is issued
4. Certificate of incorpora a) LLP agreement : ” Partnership Deed
a) Registrar of firms c) A/A 3 Byelaws
ies
b) Registrar of compan [Ans. : (1 —a), (2 —d), , (3 —a), ; (4). , (5 —d), (6—a), (7 — -
ive societies
c) Registrar of co- ope rat
sities
(13 —d), (14—a), (15 ~a), (16d), (17 — , as > is 00), ara] saat
d) Registrar of Univer
l cea se to be a partner on
5. A partner shal b) Retirement
a) Death d) Allofthe above
c) Winding up
LLP
6. Liability of partners in b) Unlimited
a) Limited d) None of the above
c) a&b
 Objective Questions
Financial Accounting (T.¥. B.Com.) (Sem. ~ V1) Poe
I. Multiple Choice Questions :

Amalgamation of companies is governed by

a) AS-13 b) AS-14 a) AS-9 d) AS-11 |
_ 2. The scheme of amalgamation can involve _ companies
: a). none b) two c) one d) three
3. The amalgamation requires approval of
a) High Court b) Registrar of Companies
c) Central Government *_ 4). Directors
4. Approval by ___a shareholders is necessary for treatment as in nature of merger.
a) 51% b) 75% c) 90% d) 80%
5. . Approval by % of shareholders is required for implementation of the scheme of amalgamation.
a) 51% © b) 75% © c) 80% — d) — 90%
6. Incase of purchase method, transferee company should record assets at
a) book value b) cost
c) market value . d) agreed value
SYNOPSIS 7. — Incase of pooling of interest method, transferee company should record assets at
a) cost : . b) market value
c) agreed value d) book value
I. Multiple Choice Questions : 325-335
8. Amalgamation Adjustment Reserve Account is required in respect of
Chapter I: AS — 14 : Amalgamation, Absorption and a) general reserve b) . statutory reserve
External Reconstruction 323 c). security premium d) capital reserve iz
Chapter 2: Accounting of Transactions of Foreign Currency 329 9. The excess of net asset value over consideration is
Chapter 3 : Liquidation of Companies auf a) capital reserve _. b) © security premium
Chapter 4 : Underwriting of Shares and Debentures 344 c) profit or loss d) = goodwill
Accounting for Limited Liability Partnership ddd 10. AS—14 covers amalgamation of Sica op Gh Hhopme,
‘Chatper 5:
: a) companies hp Res b) firms
c) firms and company : d) . Directors and Partners
Il. Fill in the Blanks with suitable words : — 336— 449
11. On amalgamation, the transferer company transfer its assets to Realisation Account at
(Chapter I: AS — 14 : Amalgamation, Absorption and a) agreed value
546 b). book value
External Reconstruction
c) market value d) original cost
Accounting of Transactions of Foreign Currency ai?
12. X Ltd. And Y Ltd form into a new company XY Ltd.
Liquidation of Companies di?
X Ltd. Y Lid.
Underwriting of Shares and Debentures Jia z z
Accounting for Limited Liability Partnership 448 Net Assets 5,50,000 6,00,000
Purchase consideration 10,00,000 8,00,000
339
= ddl The purchase consideration is to be settled by issue (€ 100) of fully paid shares of XY Ltd at par. The
Hil. Match the Columns:
number of shares issued to XY Ltd. will be
AS — 14 : Amalgamation, Absorption and
a) 1,00,000 shares b) —2,00,000 shares
External Reconstruction day
c) 45,000 shares d) 55,000 shares
“Chapter 2: Accounting of Transactions of Foreign Currency da)
' 13. On 31" March, 2019; X Ltd. Acquired Y Ltd. The Balance Sheet of Y Ltd. was as follows:
Liquidation of Companies ddl Liabilities <2. Assets z
Underwriting of Shares and Debentures id] Equity Capital _ 3,00,000 ||. Fixed Assets’ 13,00,000
Chatper 5: Accounting for Limited Liability Partnership ddl | Reserves , 9,50,000 Current Assets 5,70,000
Current Liabilities _7,20,000 Preliminary Expenses 1,00,000
ddd
19,70,000 19,70,000
IV. State Whether the statements are True or False: 342
If all the assets & Liabilities are taken at Book values the Burehase consideration payable by X ome is
AS — 14 : Amalgamation, Absorption and
External Reconstruction 2
a) ® 11, 50, 000 Ot a b) F19, 770, 000
| Chapter 2: Accounting of Transactions of Foreign Currency Mi c) _%20,70,000 d) &%10,28,000
“Chapter 3 : Liquidation of Companies 144
14. Pooja Ltd. purchased Rita Ltd. and agreed to pay the following to Rita Ltd. for the acquisition :
‘Chapter 4 : Underwriting of Shares and Debentures idd i) 2 equity sharés of Pooja Ltd. for'= 20 éach, fully’ paid for every equity share of Rita Ltd. and cash
Accounting for Limited Liability Partnership jdd % 4 per share held. Total equity shares of Rita Ltd. are 5000 shares.
 Objective Questions sparse" 327
Financial Accounting (T.Y. B.Com.) (Sem, = VI)
326 go's" 27. If Santoshkumari Ltd. is taken over by Santoshkumar Lid. a new company it is called :
of 15,000 12% debentures of F 100 each External reconstruction
ii) Discharge of Rita Ltd.’s 20,000 10% Debentures by issue a) Internal reconstruction . b)
purchase consideration payable by Pooja Ltd.
of Pooja Ltd. and cash at € 5 per debenture held. The c) Absorption d) Merger
to Rita Ltd. is . , 28. On amalgamatio n business is taken over by
a) = 18,20,000 b) % 20,35,000 a) New company b) Existing company
%20,38,000 : d) % 20, 32,000 c) weak company d) Holding company
c)
Universal Ltd. 29. As per AS 14 amalgamation is of two types :
15.
Balance Sheet b) Purchase of business
a) Merger
as on 31st March, 2019
zg i c) Merger of purchase of business d) None of the above
z Assets
Liabilities On merger, vendor companies are
2,00,000 30.
Fixed Assets
10,000 Equity Shares of 1,70,000 a) Liquidated . b) Formed
= 10 each 1,00,000 || Current Assets
2,,20,000 c) Dissolved d) None of the above
Profit & Loss Account e
Creditors 50,000 31. The common feature in merger, purchase of business is
3,70,000
3,70,000 a) Liquidation of at least two companies
Ltd. took over the business of Universal Ltd. for a consideration of b) Liquidation of at least one company
On 1° April, 2019;‘Omega
% 3,75,000. Profit or loss on realization was
: c) Purchase of one company by another company
= 55, 000 (Profit) b) % 55,000 (Loss) d) Combination of at least two companies
a)
c) = 80,000 (Profit) -. dy ~~ % 50,000 (Profit) 32. As per Companies Act 1956, :
payable to a) Amalgamation includes absorption
16. Purchase consideration as per AS-14 is the amount
a) shareholders and debentureholders b) shareholders and creditors b) Absorption includes amalgamation
olders d) none of the above c) Amalgamation excludes absorption
c) .shareh
counti ng merger s, the method follow ed is . d) Internal reconstruction includes external reconstruction.
17. For‘ac
b) Equity Method 33. Accounting for amalgamation is governed by___-
a) Pooling of Interest Method
d) none of the above a) ASI b) AS14
c) Purcha se Method
g of Interes t Method , the differe nce between purchase consideration and share capital af c) AS 13 d) AS11
18. Under Poolin
: Accounting for absorption is governed by ‘
transferee company should be adjusted to 34.
:
a) General Reserve Account b) | Goodwill Account a) ASI b) AS 13
on Adjust ment Accoun t d) none of the above c) AS 14 d) AS1l
c) Amalg amati
is a method of 35. Accounting for amalgamation by merger is as per ‘
19. Poolin g of Interes t
b) valuation of inventory a) ASI b) AS 13 ("
a) providing depreciation ds
d) none of the above c) AS 14 d AS11
c) accounting for amalgamation
net assets acquired should be
"20. Under Purchase Method, any excess of purchase consideration over 36. Accounting for amalgamation by purchase is as per
b) AS 13
recognised as a) AS1
a) goodwill b) capital reserve c) AS 14 d AS1l
d) none of the above 37. As per AS 14 transferor company means the company
c) Profit & Loss Account
company to _a) which is amalagamated into another company
21. Profit on Realisation Account is transferred by transferor
b) Preference Shareholders Account b) which is newly registered -
a) Equity Shareholders Account
d) none of the above c) which is none of the above
c) Profit & Loss Account
22. The asset, which is not taken under Net Asset
Method of calculation of purchase consideration, 15 d) Into which a company is amalgamated.
38. Transferee company as per AS 14 is
b) loose tools a) Vendor company ‘ b) Purchasing company
a) discount on issue of shares
c) furniture d) _ bills receivable c) Liquidated company d) None of the above
‘
23. Companies may combine by : 39. On amalgamation preliminary expenses in Balance Sheet of Vendor Company are debited to
a) Amalgamation b) Abserption a) Realisation A/c b) Equity shareholders A/c
d) Any of the above d) Preference shareholder A/c
c) External reconstruction c) Cash A/c
Ltd. a new company it is called 40. On amalgamation Profit and Loss A/c debit balance in Balance Sheet of Vendor Company is transferred
24. If Vijay Ltd. and Vishakha Ltd. are taken over by Swati
b) External reconstruction to é '
a) Absorption
d) Internal reconstruction a) Realisation A/c b) | Cash A/c
c) Amalgamation
Ranbhi r Ltd. it is called as : c) Equity shareholders A/c d) Preference shareholders A/c
25. If Deepa Ltd. is taken over by
a) Amalgamation b) Externa l reconst ruction 41. On amalgamation Debentures Account appearing in the Balance Sheet of Vendor Company is closed by
/ d) Merger
c) Absorption ‘
taken over by Santosh Kumar Ltd a new company a) Crediting to Realisation Account, whether debentures are taken over or not
26. If Santosh Ltd. and Kumari Ltd. are
a) Santosh Ltd. and Kumari Ltd. are Vendor Compan
ies b) Crediting to Realisation Account when debentures are taken over
b) Santosh Ltd. and Santoshkumar Ltd. are Vendor Companies c) Crediting to Realisation Account when Debentures are not taken over
d) None of the above /
c) Kumari Lid. is a purchasing Company
d) Kumar Ltd. isa purchasing company
22/T.Y .B.Com.—Financial Accounting (Sem.—-V]) ,
 oan’ ae” 329
Financial Accounting (T.Y. B.Com.) (Sem. = VD Objective Questions
oan’.
is transferred to 54, Goodwill arising on amalgamation is to be
in the Balance Sheet of Vendor Company
42. On amalgamation Provident Fund Account . a) Amortized on a systematic basis
b) Adjusted against general reserves :
Realisation Account b) Purchasing co's Account
a) ~ c) Retained in the books of transferee company
c) Equity Shareholders Account d) Preference Shareholders Account d) None of the above
Sheet of Vendor Company istransferredto
As per AS 14, payment of expenses on amalgamation _
43, Sinking Fund appearing in the Balance
t 55. . iE
a) Realisation Account c) . Preference Shareholders Accoun a) Becomes part of purchase consideration
d) Purchasing Companies Account
b) Equity Shareholders Account b) Does not become part of purchase consideration
settled at a premium, the premium is
On amalgamation if preference shares are
|
44. c) Appears in the books of transferor company only
|
a) Debited to Realisation Account d) None of the above : /
b) Credited to Realisaiton Account 56. The asset which is not considered under Net Asset method of calculation of purchase consideration is
c) Credited to securities premium Account | a
d) Debited to Profit and Loss Account b) Plant and machinery
: a) Underwriting commission 4
Accounting for amalgamation in the books of a Vendo
r Company is__.
c) Bills receivable d) | Stock
45.
The different in all types of amalgamation ; : |fl
a) The same in all types of amalgamation b) d of : ;
57. ‘Pooling of Interest’ is a metho
c) Dependent on the type of company d) Dependent on purchase consideration a) Accounting for amalgamation
ae
ny is
on in the books of purchasing compa ,
46. On amalgamation, accounting for amalgamati b) Calculation of purchase consideration :
-
a) The same in all types of amalgamations c) Stock valuation 4
depen ding on the type of amalgamation.
b) The different in all types of amalgamation d) None of the above :
net assets taken over is accounted |
c) Dependent on the type of companies 58. Under ‘Purchase Method’, excess of purchase consideration over the st . 4
d) . Dependent on the purchase consideration as.
and liabilities of vendor company become the
assets and
Capital Reserve i iH
47, In amalgamation as a merger all the assets a) Goodwill b)
1a
liabilities of d) None of the above
c) Profit and Loss Account |
a) Transferee company b) Vendor Company is agains t the debtor s, the debtors are transferred to Realisation
: 59. In case provision for doubtful debts /
. d) Subsidiary company
c) Holding company l in the Vendor Company Accountat Hi
of the face value of equity share capita Net amount 4
48. Shareholders holding not less than 90% a) Gross amount b)
4 4 |
ny ifamalgamationis__- None of the above —
become the equity shareholders in the purchasing compa c) Market value d) ; . i! 4
: , method in amalgamation is___.
a) In the nature of merger 60. Purchase consideration under payment
|
b) In the nature of purchase of business a) Payment to shareholders b) Payment to debentureholders
| i
In the nature of absorption d) Payment of expenses
c) c) Payment to preference shareholders * i wT
erred to
d) In the nature of internal reconstruction in the 61. Under amalgamation profit on Relisation is transf
ties of the transferor company are incorporated / ; | il l
49. On amalgamation as a merger all assets and liabili a) Equity shareholders A/c b) Preference shareholders A/c
|
books of transferee company at Debentureholders A/c d) Creditors A/c
c)
:
a) Market value 62. Under amalgamation Loss on Realisation is debited to |
b) Book value b) Prefe rence shareholders A/c
a) Equity shareholders A/c
c) Market value or Book value which ever is less 2 c) Profit and Loss Appropriation A/c d) None of the above
ny ly
amati on under Net payme nt metho d payment to creditors by Transferee compa
d) Agreed value 63. As per AS 14 amalg
of business assets and liabilities are transferred to the
books af 5
50. On amalgamation as a purchase ee i
:
transferee company at a) Forms part of purchase consideration
b) Book Value
a) Market Value b) Does not form part of purchase consideration ' 4
c) Agreed Value d) Cost c) Debited to Realisation A/c
ny
business. the reserves carried in the books of transferee compa .
I
51. Under amalgamation as a purchase of d) None of the above
are.
: 1
d), (8 — b), (9 — a), (10 a), (11 — b),
[Ans. : (1 —b), (2—b and d), (3 — a), (4-0), (5 —b), (6 - d), (7a),~ (19
b) General reserve — c), (20 — a), (21 — a), 22 — a), f
a) Statutory reservesonly =~
d) All ofthe above (12 —a), (13 — a), (14 — a), (15 — a), (16 — ©), (17 — a), (18 — c), 32 — a), (33 — b), |
c) Profit and Loss Account (23 — d), (24 -), (25 -c), (26 — a), (27 - b), (28 — a),
(29 -— ¢), (30 — a), G1 -
i
of transferee company le a), (43 — b), (44 — a),
52. Amalgamation Adjustment Reserve Account is opened in the books
— c), (37 — a), (38 — b), 39 — b), (40 - c), (41 — a), (42 —
(34 — c), (35 — c), (36 |
, , - c), (51 — a), 62 — c), (53 — b), (54 — a), (55 —b),
incorporate 3 (45 — a), (46 — b), (47 — a), (48 - a), (49 — b), (50 : |
(63 —b)]
a) Liabilities of Transferor company (56 —a), (57 — a),(58 — a), (59 — a), (60 — a),(61 — a), (62 — a),
b) Assets of Transferor company
c) Statutory reserves of transferor company :
:
d) ‘None of the above books only Conversion of currency is covered in AS
eree company incorporates in its {|
53. Under amalgamation as a purchase of business the transf b) 13 ce) ll d) 14
a) 9
asset is transferred
se o cies eae 2. The exchange difference on settlement of liability specially for purchase of fixed
2 a a aes taney reserves of tnnsteot
: is) “exdlinnpe dines
. a) asset.
nly
c) Assets, liabilities and reserves of transferor sonapa c) depreciation d) profit & loss
.
d) None of the abave
 we'a" Financial Accounting (T.Y. B.Com.) (Sem. —
VD)
Objective Questions ga'a" 331
Sheet is converted at rate :
The balance in receivable as on the date of Balance 19. Average rate is the rate
b) on the date of Balance Sheet b) is the mean of the exchange rates “
a) on the date of sale goods a) on the Balance sheet date
c) on the date of subsequent recovery d) on the date of first recovery d) is rate at which asset could be exchanged
c) is the proportion between two currencies
Sheet is converted at
The amount payable for purchase on the date of Balance 20. Exchange rate is the
b) on date first payment b) mean of the exchange rates
a) on date of purchase a) rate at the Balance sheet date
c) on date of subsequent payment d) on date of Balance Sheet c) proportion between two currencies d) rate at which asset is exchanged
The depreciation on fixed assets is converted at rate 21. Following is not an example of a monetary item. ,
on date-of Balance Sheet b) average during year © b) payable
a) a) cash
d) reopen ing date ofyear d) fixed assets
c) date of purchase c) receivables
The interest of loan is converted at rate on the date 22. Following is an example of a non-monetary item
~b) of accrual of interest b) Creditors
a) of loan borrowed a) Debtors
of payment d) of Balance Sheet d) Stock
c) c) Bank A/c
e Sheet is converted at rate on date of
The interest accrued on loan as on date of Balanc 23. The mean of the exchange rates in force during a period is known as
of payment b) of Balance Sheet a) Average rate b) Closing rate
a)
d) average of (b) and (c) d) none of the above
c) of loan borrowed c) Reporting rate
sale is transferred to
The balance in exchange difference on transaction of export 24. Reporting currency is the currency used for
a) Sales Account b) Debtors Account a) presenting financial statements b) recording financial transactions
Profit & Loss Account d) Trading Account c) _ setting the financial transactions d) none of the above
c) .
exchange difference arising due to import of raw material is transferred to 25. Non-monetary items are the items. ,
The
a) purchase b) trading a) other than assets and liabilities
Profit & Loss Account d) suppliers b) assets and liability as other than monetary items
c)
The currency of the enterprise preparing account is called c) exchanged at fair value ,
10.
a) foreign currency b) home currency d) none of the above
c) reporting currency d) own currency 26. Monetary items are the assets and liabilities :
ed on
On Ist January, 2018; XYZ Ltd. invoiced goods to its USA client for $ 10.000 payment was receiv a) to be received or paid in money
“U1.
1st March, 2018. b) to be received in fixed or determinable amount of money
The exchange rate was : c) to be received or paid in fixed amount
40
Ist January 2018 : $ 1 = % 39. Ist March, 2018 :$1=% 27. As applicable for translation of foreign currency is :
in exchan ge transfe rred to Profit & Loss Accountis __. b) AS 13
The amount of difference %25,000 a) AS 11
b) % 10,000 c) % 15,000 d) d) AS19
a) 20,000 of c) AS14
has not been paid for by 3 1st March, 2018, the date
12. H Ltd. purchased a plant on 1st January, 2018 but 28. The amount of exchange difference is recorded in :
0. . Reserve A/c
closing the books. The cost of the plant was $ 1,00,00 a) Foreign Exchange Fluctuation A/c a) General
The exchange rates were : b) Profit and Loss A/c c) None of the above
40.
Ist January, 2018 : $ 1 =% 39. 31st March, 2008 :$ 1=% Exchange Fluctuatio n A/c is transferred to .
29. At the end of the year the balance on Foreign
The exchange difference is 5 ;
a) General Reserve A/c : b) Profit and Loss A/c
.%50,000° c) %1,50,000 d) %2,00,000 None of the above .
a) %1,00,000 b) c) Balance sheet . d)
on
000 which was recorded at $ 1 = ¥ 36.20, the rate — b), (8 ~), (9—c), (10 —c), (11 ~ b), (12 —
13. A long-term loan was obtained from Z Ltd % 20,00, $ 1 = 37.40 . The loss [Ans. : (1 —c), (2a), 3 —b), (4—a), (S—), (6—b), (7 (19 — b), (20 - ¢), (21 — d), 22 — d), (23 ~ a),
the date of the transaction. The exchange rate on
the Balance Sheet date was
a), (13 a), (14 —c), (15 —b), (16 —), (17 —b), (18 — ©),
due to exchange differe nce is .
d) %85,000 (24 —a), (25 —b), (26 — ¢), (27 — a), (28 — a), (29 — b)]
a) % 66,312 b) 66,000 c) % 65,000
14. Following is not a monetary item :
a) Bills Receivable b) Cash
d) Bills Payable A company is created by
c) Inventory c) Humanbeing 4) All of the above
e Sheet is known as a) Law b) Nature
15. An exchange rate on the date of Balanc
b) closing rate Winding up by NCLT is called as
a) average rate b) Compulsory winding up
d) moneta ry rate a) Voluntary winding up
c) non-monetary rate : d) None of the above
c) (a) &(b)
16. Non-monetary items are valued at up is presented by ‘
b) current price The petition for winding
a) market price b) Contribut ory c) Company d) All of the above
d) fluctuating price a) Creditors
c) historical cost
Equity shareholders are
17. Reporting currency is the currency used in b) Second claimant c) Last claimant d) Noclaimant
a) settling financial transactions b) presenting financial statements a) Priority claimant
d) none of the above Pref. creditors are
c) recording financial transactions b) Dues to government
: . a) Taxes
18. Foreign currency is a currency d) All of the above
used in recording foreign transactions b) in presenting foreign financial statements c) Wages & Salaries payable
- a)
d) none of the above Voluniary transfer is made by the company within
¢) other than the reporting currency b) Two years c) Three years d) Five years
a) One year
 aaa” 333
m.) (Sem. — V1) Objective Questions
Financial Accounting (T.Y. B.Co
332 o's”
under section
Liquidator’s statement isprepared c) 156 d) 173 very Company issuing shares to public must collect within 15 days
a) 143 b) 153 90% of the issue
a) 80% of the issue b)
e if
Compulsory winding up takes plac b) 45% of the issue d) 25% of the issue
luti on is pass ed by the company
a) Special reso of its incorporation The time limit for collectio n of minimum subscript ion is
mence business within one year
b) The company does not com a) - 15 days b) 21 days
pay its debts
c) The company is unable to c) 7 days d) 5 days
e 5
d) All of the abov d by In case of shares commission cannot exceed
up, official liquidator is appointe
In the case of compulsory winding The State Government a) 3% of issue price b) 7.5 % of issue price_
b)
a) The Central Government d) The High Court c) 5% of issue price d) 2.5% of issue price
c) The Registrar of Companies appointed by In case of Debentures the commission cannot exceed.
ntary winding up liquidator is
10. In the case of member’s Volu b) The Company in General Meeting a) 2.5 % of issue price b) 7.5 % of issue price
a) The Central Government d) 10% of issue price
d) The Registrar of Companies c) 5% of issue price
c) The Board of Directors When the entire issue is underwritten it is called
red creditors are shown in
11. Ina statement of affairs secu c) ListC d) ListD a). Full underwriting b) Partial Underwriting
a) ListA b) ListB d) None of the above
Statement of Affairs is sent to c) No Underwriting
12. In case of compulsory winding up The applications which bear the stamp of underwriters are called as
b) . The Liquidator
a) The Official Liquidator d) The High Court a) Unmarked applications , b) Marked applications
c) The Government . c) Sealed applications d) None of the above
ared as per list
13. Deficiency or surplus A/c is prep C : d) E Underwriting commission one is debited to
b) B c)
a) H a) Underwriting commission A/c b) Underwriter’s A/c
c) Share Allotment A/c d) None of the above
in list
14. ‘Preferential creditors are included c) ListD d) ListE Underwriting commission is calculated on
a) ListC b) ListB b) Net liability value
winding up is treated as a) Issue price of shares underwritten
in 12 months before the date of
15. Government dues that arose with b): Secured Creditors : c) Marked applicati on value d) Firm underwriting value -
a) Preferential Creditors
d) None of the above Unmarked applications are
c) Unsecured Creditors considered as : a) Applications bearing no stamp of the underwriter
exceed & 20,000 per employee is
16. Retirement benefit of employees Preferential Creditors b) Firm underwriting iil i
“) \ |
a) Unsecured Creditors d) None of the above c) Applications received by the company
c) Secured Creditors ; d) Applications issued by the company
on the date of winding up is
17. Arrears of Preference dividend Trea ted as secured creditor 10. When all the shares are underwritten it is called
tal b)
a) “Added to Preference share capi d) None of the above a) Firm underwriting b) Partial underwriting
c) Treated as unsecure d credi tor
c) Full underwriting d) All ofthe above
ed as
18. Calls received in advance is consider When some of the shares are underwritten it is called
b) Secured creditor 11.
a) Unsecured creditor b) Partial underwriting
d) None of the above a) Full underwriting
c) Preferential creditor c) Firm underwriting d) None of the above
commission will be
19. A contributory is a b) Debentureholder 12. Salen issued a 10% Debentures of = 100 each at 20% discount. The underwriting
a) Shareholder id on
d) Unsecured creditor
c) Secured creditor b) 80 c) 120 d) 150
is a) %100
20. Amount due to an employee out of PF. b) Secured creditor - 13. SV Lid. issued shares of a face value of € 100 each at par. The MV is =
120 cost is % 90. The
a) Preferential creditor None of the above underwriting commission will paid on
d) none
c) Unsecured creditor a) %100 _ bp F120 c) 90 d)
by NCLT when
21. A company may be wound up 14. SV Ltd. issued shares of 100 each at 50% premium. Underwriting commission will be paid on
a) special resolution is passed %100 b) %90 c) *150 d) All of the above
a)
National interest
b) The company acted against 15. When the entire issue is underwritten by Mr. Premkumar, he is liable
for ;
conducted in a fraudulent manner
c) Affairs of the company are : a) No. of shares applied by the public
d) All of the above b) No. of shares underwritten
filed by
22. Petition of winding up can be b) ROC c) No. of shares underwritten less. No. of shares applied by the public
a) Contribu tory
d) All of the above d) None of the above
c) Company company if the company has Marked applications are
rnme nt can pres ent a petit ion to NCLT for winding of the 16.
23. Central Gove a) Applications stamped by the underwriters
acted against. Security b) Applications signed by the public
b)
a) Sovereignty and Integrity of India All of the above c) Applications sealed by the company
. d)
c) Public order a), (10 — b), (11 — b),
—d), (4-0 ), 6 - d), (6 - a), (7 - ©), 8 - d), (9 — d) None of the above
[Ans. : (1 — a), (2 - b), (3 (20 — a), (21 — 4), @2 - d),
— a), (13 — a), (4 — a), (15 — a), (16 - b), (17 — a), (18 — a), (19 — a),
(12
(23 — d)}
 Objective Questions ae” - 335
ees” Financial Accounting (T.Y. B.Com.) (Sem. — VI)
g
7. The consent of designated partners is filed with the ROC in . be
17. Unmarked applications are a) Form 1 : b) Form 2
a) Applications stamped by the underwriters c) Form3 d) E-Form4
b) Applications from public directly received by the company 8. Books of accounts of LLP are to be preserv ed for
c) Applications given to the brokers | a) 5 years b) °7 years
d) None of the above ‘ d) 9 years
c) 8 years
Underwriters can claim remuneration on ; .
18. 9. Books of accounts of LLP are maintained on
a) Face value of shares underwritten b) Issue price of shares underwritten Accrual basi
a) Cash basis b).
Face value of shares actually purchased d) None of the above , d) Cash basis nad al basi
c)
in addition to unsubscribed shares, it is c) Cash basis or accrual basis ee
19. When an underwriter agress to purchase a cértain no. of shares 10. Contribution can be
b) Intangible
called as a) Tangible
--b) Partial underwriting 4) All sete b
a) Firm underwriting c) Movable / Immovable Property ,
d) None of the above nea : .
c) Full underwriting upto & 5,00,000 11. Contribution by a partner to LLP is :
Preference shares and Debentures
20. Vide SEBI guidelines underwriting commission for a) Compul
pulsory . b) Not compulso:
should not exceed.
. c) As specified by the agreem ent d) None of th abe
a) 2% _ b) 2.7% ce) 2.5% d) 5% beyond 12. Valuation of Contribution may be made by
commission for Preference shares and Debentures
21. Vide SEBI guidelines underwriting a) Practicing Chartered Accountant b) Practici
Panel member racticing Cost Accountant
= 5,00,000 should not exceed. d) 5% ; ©)
b) 1.5% c) 2% d) ) An y one of the above
a) 2.5% #13. Contribution has to be refunded on
Pe * . gy
22. An underwriter is a person buyers for the shares
a) death : 7
b) Who finds i pape
a) Who underwrites the issue Q) Tennindtion ofiienibership —
d) None of the above y one of the above
c) Who isa broker 14. Audit of LLP is compulsory when
a certificate granted by
23. A person cannot act as an underwriter unless he holds a) Contribution exceeds F 25,00,000
|
b) SEBI i. c) ROC ; d) MCA b) Turnover exceeds & 50,00 00 0
a) RBI the underwr iters
When the benefit of firm underwriting is given to Turnover less than 20 0 0 000
24. c)
applications
a) Firm underwriting is not treated as unmarked d) None of the above ea
b) Firm underwriting is not treated as marked applications
15. Designated partner must obtain DPIN from
c) Firm underwriting 1s ignored a) The Central Government
None of the above oo, ; : b) The State Government
d) given to the underwriters
it

25. When the benefit of firm underwriting is not c) The ROC “ie
ed applications
a) Firm underwriting is treated as unmark d) Registrar of firms
applications
b) Firm underwriting is treated as marked 16. A partner of LLP can be
Firm underwriting is ignored b) A compa
c) a) An individual _
None of the above
10 o), t= c) ALLP De
d)
[Ans, ? (1 (13-b),— a),(2-2), 3-0, 4-c),.(16a) —(5 a),— a),(17 (6— b),-D),(18(7 — ~2),
b),
@ -~ a),a), (20O —a)
(19 —c), (21 —¢), Q2 - 4), 17. : LLPi
is created by
d) All of the above
(144 - ©), (15 —
(12 — b), a) Partnership A b) LLP Act
(23 -b), (24a), 25 -a)]] yc TShip a
c companies Act d) Co-operative Societies me
c Jeera
18. LLP can be dissolved by the order of
‘ a) NCLT b) High court
thos
‘Accounts of LLP are to be audited by d) None of the above
ce) District Court
b) Cost Accountant
a) Chartered Accountant 19. LLP has
d) Master of commerce b) No perpetual succession
c) Company secretary a) Perpetual succession
Maximum number of partners in LLP is c) Specified period of life 4) None of the above
by 50 _ ¢) 100 -d) No limit
a) 20 20. Minimum members required to form a LLP is
Agreement for LLP is in filed with b) 5 members
d) MCA a) 2 members
b) NCLT c) ROC . d) 15 members
a) ICAI c) 10 members
Certificate of incorporation of LLP is issued by
21. Rights / duties of partners are governed by
a) Registrar of firms
a) LLP agreement b) . Partnership Deed
b) Registrar of companies d) Byelaws
Registrar of co-operative societies
oc) AIA
-©), (9 —c), (10
[Ams, : (1 —a), (2— 4), (3 ~a); (4b), (5 —d), (6 —a), (7-4),2), (8mee
c)
d) Registrar of Universities 3 dy G4 a), G5 a) (led), (7-6) U8 9), 19 e
:
A partner shall cease to be a partner on
b) Retirement
a) Death
d) Allof the above
c) Winding up
Liability of partners in LLP
b) Unlimited
a) Limited
d) None of the above
c) a&b
 Objective Questions aa: 337

‘au a

1 currency is the currency stated while presenting in final account.

2 currency is the currency stated by other party to transaction.
3. Exchange rate is the ratio of of two currencies. . 1
—— 4. As per AS-11 the exchange difference arising on date of settlement of monetary item should be i
1.° Amalgamation is covered under in the period to which it relate. |
2. Amalgamationsareof___ oe “ 0, netted 5. As per revised AS—11 The exchange difference on settlement of liabilities relating to purchase of fixed -
3. Amalgamation needs to be approved by —_—*” of share . asset is transferred to :
4. AS-—14 covers only amalgamation of ; cote 6. The receivable amount in foreign currency on the date of Balance.Sheet is converted at rate. in
5. The payment made to debenture holders should _ be included in considFiangn, 7. The liabilities in foreign currency are to be carried forward to next year by conversion at rate.
The approval by___ of shareholders is necessary for amalgamation in the nature of __. 8. The receivable and payable in foreign currency are called items.
6.
company. / 9 Average rate is the -of exchange rate. ae : mil
1. The two methods of accounting for amalgamation are relevant for
10. The transactions in foreign currency recorded in the books of accounts at. on date on which +|
8 method provides that assets and liabilities should be recorded at book value by a new company. id
9, Purchase method requires accounting for assets and liabilities at by transferee company. transactions takes place.
° \ tion Adjustment Account is applicable per method of accounting. 11. Fixed assets are carried in books for conversion as on the date of
10, Amalgam a : étruction. . : 12. Settlement date is the date on which are to be collected. : ris Lal
_ 13. The date on which liability is to be paid is called date. : _
ee ae “is not pa dund ‘AS 14
12. Amalgamation of ____ is not covered under AS— 1". fscadrialesitnation 14. The interest on foreign currency loans is to be converted at the rate on the date of ‘4 VA
13. Arrangement between ___ or more companies 1s necessary 8 , 15. The depreciation on fixed assets is to be converted at the rate.on date of : eM Hl
14. Merger or absorption are schemes: of ___.
. ‘
: .
ting.
16. ————
is the mean of the exchange rate during a period. sind i il
17: is the rate at the Balance Sheet date. Lal
15. Reserves of transferor company 1s required to be adjusted under_____ method of accounting
16. Unrecorded assets cannot be accounted per__ method. 18. AS-11 should be applied in accounting for transactions in currencies. J
17. Amalgamation which does not fulfill conditions of merger is called _. 19. Debtors and cash balance should be reported at date. e
a variety of amalgamation. : . 20. Foreign currency is the currency other than the currency of a firm. ; |
18. Capital Reduction is
manner irrespective of type of amalgamation. 21. items are money held and assets to be received. 4
19. The accounting for transferor company is in
: 22. items are assets and liabilities other than monetary items. i rie . } |
20. Goodwill or capital reserve can arise under method of accounting.
21. . all assets and liabilities
Inmerger, an are taken over at . , 23. ____ currency used inpresenting the financial statements. \]
: : 24.. Accounts payable is a items. F 2 - 4 | 9
22. In amalgamation, the purchasing company 1s calledas_—_s company. 5 saad ‘ aoave iit .
company. 25. Fixe ; assets, inventories are Me exalpies OF items. : | |)
I Inamalglgamation, ° the vendor iscompany is called as
23. followed for accounting merger 26. Contingent liability denominated in foreign currency at the Balance Sheet date by using the rate. ||
24. Fs wien pa dour consideration. 27. Exchange difference can arise only in respect of items. :
25. Paymentto____ does not 10 , 28. Fixed asset is a item. ha
ith _ 29. Inventory is a |
26. Payment of liquidation expenses does not form pattof
30. Investment in equity shares isa J
27. As per AS-14, goodwill arising on amalgamation should bs written off within a ade
28. Dissolution expenses paid by purchasing company are debited to eu 1D) e 31. Debtors A/cisa.
. . : j debited to — in merger. 32. . Creditors
Creditors A/c A/c isi a
29, Dissolution expenses paid by purchasing company are . Ki ‘ ; j|
% of the face value of equity shares become equity shareholdel# 44° Gach is a . ra
30. In merger, shareholders holding
of the transferee company. ‘ ‘ 34. Exchange rate on the date of transaction is a ‘ /
31. Preliminary expenses are transferred to Shareholders Account. i [Anms. :. (1) Reporting, (2) Foreign, GQ) price / value, (4) accounted, (5) Profit.& Loss Account, ra
32, In merger, vendor companies are : (6) current (closing), (7) current (closing), (8) monetary, (9) mean, (10) exchange rate, (11) acquisition
company. of assets, (12) proceeds, (13) settlement, (14) accrual / payment, (15) acquisition of assets, (16) Average 3
33. The company amalgamated into another company is
. 3 : rate, (17) Closing rate, (18) foreign, (19) reporting, (20) reporting, (21) Monetary, (22) Nou-monetary,
. 4 * 4 *
34. Purchasing company
. liminary expenses company.
1s called as
are debited to : (23) Reporting, (24) monetary, (25) non-monetary, (26) closing, (27) monetary, (28) Non-monetary, }
°
(29) Non-monetary, (30) Non-monetary, (31) monetory item, (32) monetory item, (33) monetory item, m
os . Fie on
oePremium caaalehed of oreferedice shares is debited to _ fey Alc.
(33) monetory item, (34) spot rate ]
37. Amalgamation Adjustment Reserve A/c appears in the Balance sheetunder_
*ntion i A Ie. “
38. Profit on Realisation is transferred to
[Ams : (1) AS-14, (2) two, (3) 75%, (4) companies, (5) not, (6) 90%, merger, (7) transferee, (8) Poolli pak td
of Interest, (9) agreed / revised, (10) purchase, (11) external, (12) firms, (13) one, (14) ania’ camen ae 1. There are two types of winding up viz. (a) (b) ; —
b Section provide for compulsory windag-up..
(15) pooling of interest, (16) pooling of interest, (17) purchase method, (1 8) not, (19) same,
(20) purchase, (21) book value, (22) Transferee, (23) transferor, (24) Pooling of Intereal 3. Official liquidator is appointed by the
25
(25) | idatedpurchase
32 Lic (26)
debentureholdets co., consideration,
(33) (28) Goodwill,
(34) 5,transferee,
transferor, (27) (29) G.R.
(35) equity
Ale, (30) 90,
shareholder's Ale, %4.
bh Liquid a
iquidator is
:
appointe
i fs inits
rea
meeting. 2 oe
(31) Equity, (32) Liqui Surplus, (38) equity shareholders A/c] 5. The Statement of Affairs is required to be submitted to the in case of compulsory winding
(36) Realisation, (37) Reserves & Surplus, (38) equity up.
6. Deficiency or surplus A/c is given in list
7. Assets specifically pledged are given in list :
Preferential creditors are given in list
 Objective Questions #'R'R” 339
) (Sem. — V1)
Financial Accounting (T.Y. B.Com. 13. LLP has succession,
338 ee”
14. LLP is a entity.
9. Bills payable are given in list 15. Rights of partners are governed by Agreement.
10. Over-riding preferential payments are : .
16. Contribution is specified in
isa _ of.
14. Liquidators final statements of A/c 17. Contribution may be or S
tion of the liquidator is fixed by the
12. Incase of compulsory winding up remunera in to debentureholders having a float
ing 18. Statement of Account & Solvency is si; igned by partner.
are-paid
on 326 September, (6) X 40,00,000, (7) 8, (8) 60, (9) 55
13. Preferential creditors subject to secti ae Pe (2) 24, (3) 8, (4) 31% March, (5) 30"
asset s of the comp any. » (7 ) esigned, (12) LLP, (13) Perpetual, (14) Legal, (15) LLP, (16) LLP Agre t
charge on of ;
14. Incase of solvency of the company
interest on debentures is to be paid
upto the
(17) Tangible; Intangible, (18) Designated] ¥ “_—
creditors. .
15. Government dues are employee isa creditor.
exce edin g * 20,00 0 per
16. Retirement benefit of employees
creditor. TI. Match the Columns :
17. Calls received in advance is an / :
: E :
18. Avcontributory is a ution is passed.
T when _- resol
19. Acompany may be wound up by NCL
by ‘
20. Petition for winding up can be filed g
can prese nt petit ion to NCL T when the company acts against —
21. Central Government nt, (4) Comp any, General,
(2) 433 to 465, (3) Central Governme 1. : Group 'A' Group 'B'
[Ans. : (1) Compulsory, Voluntary, ies, (11) Summ ary of Cash book,
B, (8) C,.(9) E, (10) Wages & Salar . a) . Pooling of interest
(5) Official Liquidator, (6) H, (7) ce credi tors, (16) Pref eren ce creditor, : Me
Payment, (15) Preferen |
(12) Court, (13) Priority, (14) Date, order] ; erger type b) Purchase type
der, (19) Speci al, (20) Contributory, (21) Public
(17) Unsecured, (18) Sharehol 3. Consideration c) AS-14
4. Approval by 90% shareholders ‘. |d) Merger type
5. Approval by 75% shareholders _- e) . Payment for shareholders
ription of
anies to complete mininium subsc [Ans. : (1 —c); (2~a); (3 -e); (4-d);G—D)]
1. Indian companies Act, requires comp of under—subscription |
wher eby one party unde rtak es to subscribe for shares, in the event
2, A contract
Group 'A'
7 Gi y v
of shares. .
known as
the shares, in the event of under
— subscriptions is known a : : a) Book value =e
The person undertaking to subsc ribe 1. Purchase Method
3.
ting the 2 Amalgamation Adjustment Reserve Account |b) Revised value
to commission to be paid for underwri
places certain restrictions with reference
Séétion ; md Mahe j : c) Excess of consideration
: Excess of net asset taken over,
shares. . 7 u Se ethod | : d)
cannot exceed °% of the issue price of shares. / : |e). Purchase Method
Seg Commission . |5. Goodwi
% of the issue price of debentures.
6. Commission cannot exceed known as [Ans. : (1 —b); (2—e); (3 —d); (4—a); 5-¢) ] :
by each underwriter individually is
given
de Total-shares for which guarantee is isknownas_
comm itme nt by the unde rwri ters to take specified number of shares
“8 a ” Definite of certa in unde rwriter is known as _ Group 'A' | Group ‘B'
appli catio ns recei ved by the company with seal or stamp
“Orese : UL Transferor company -|a) Covered as amalgamation
applications. _. price of shares. 2. Transferee company b) Can be only one
on
10. Underwriting commission is calculated . c) Not covered as amalgamation
writer. ; Can be one or more
11. Applications bear stamp of the under
all the share s are under written. . Absorption ofcompany _ . d) To be liquidated
12. In underwriting on will be calculated 0s
at 20% premium underwriting commissi 5. Sale of specific asset : . |e) Transferor company
13. When shares of & 100 each are issued

14. Underwriter’s A/c is by commission due. ;

[Ans. : (1d); @-b), Ge @-9 6-9]
by the shares alloted to them.
15. Underwriter’s A/c is 2% %, (7) Gross liabillly
, (3) Underwriter, (4) 76, (5) 5%, (6) ted! Group 'A' -_Group 'B'
price, (11) Marked, (12) Full, (13) 100, (14) Credi
[Ans. = (1) 90%, (2) Unde rwri ting
(8) Firm Underwriting, (9) Marked, (10) Issue , eee eee capital ; a)
‘|-b)
Credit Equity Shareholders’ A/c
Debit Equity Shareholders A/c
(15) Debited] - : sean reserve
: na it & ~ A/c debit balance “ c) Credit Realisation Account
Di nsecured loans : d) Credit Preference Shareholders Account
Fi -__Bank Account (not taken over) e)- Debit Bank Account
to obtain
1. Every Designated partner will have
of LLP prescribes the book s of accou nts. [Ans. : (1 —d); (2 —a); (3 —b); (4-0); G —e)]
2. Rule
years.
3. The books of LLP are to be retained for Group 'B!
Z Group ‘At
4. The accounting year for LLP ends on every year.
a stat emen t of acco unts on orbefore 1. Amalgamation Adjustment Reserve A/c a) Debited to Goodwill Account
5. Every LLP has to prepare ed
of LLP exceeds @ a / capital reserve : b) Arises under Purchase Method
6. Audit is compulsory if the turnover *
Form No. ___-
Solvency statement is filed with ROC in 5 olution expenses paidi by purchasing|c)
eonnany i Amount payable to shareholders
7.
days of the end of the year.
8. Annual Return of LLP is filed within
of partnership into LLP.
9. Sec of LLP Act provides for conversion : Purchase consideration ; d) Disclosed under Reserves & Surplus
LLP. ;
10. Atleast persons are required to form Two types of amalgamation under AS—14 e). Merger and purchase
in LLP to ROC.
ii. partners have to notify the changes [Ans. : (1 —d); (2 —b); (3 —a); (4-0); (5-e)]
LLP is registered under Act. 2008.
12.