List of top Commerce Questions on Accounting Standards

Which of the following statements are Incorrect for Accounting treatment to close the books of Vendor company in case of Amalgamation of Companies?
A. The assets and the liabilities of the Vendor company are transferred at the book values to a separate account called as the “Realization Account”.
B. The purchase consideration receivable is debited to the Realization Account.
C. On the Receipt of the Purchase consideration, it is credited to equity shareholders and preference shareholders account.
D. The balance of Realization Account (either profit/loss) is transferred to the equity shareholders account.

Which of the following features of Amalgamation are in the nature of Merger as per the AS-14?

(A). Taking over of select few assets and liabilities.
(B). Intention to carry on the acquired business.
(C). Amalgamation Adjustment Account is opened in the books of transferee company to maintain statutory reserves.
(D). Recording of assets and liabilities of transferor company at book values.