Exam 1: Amalgamations and Takeovers in Business

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

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

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

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

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

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

In case of .............., one existing company takes over the business of another company and no new company is formed

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

Shares received from the new company are recorded at -

Which of the following statement is correct?