2. If the price paid by the holding company for the shares acquired in
the subsidiary company is more than the intrinsic value of the shares
acquired, the difference is treated as .
6. Profit and Loss Appropriation Account shows the of the net
profit as disclosed by the Profit and Loss Account proper.
d. The bonus issue is not made unless the party-paid shares, if any
existing, are made fully paid-up.
12. In marginal costing are taken into account for computing the
value of stocks of work-in-progress and finished products.
13. In marginal costing the unit cost of a product means the average
cost of manufacturing the product.
15. When output is less than sales i.e. closing stock is less than
opening stock, the profit under marginal costing is than the profit
under absorption costing;
17. In case the company goes into liquidation, the amount paid as
calls-in-advance shall not be refundable except after the payment in
full to the
20. Those share holders who don’t pay on calls, have to be given at
least day notice to the defaulting shareholder calling upon him to
pay the amount due from him together with interest before a specified
date
Answers :
1.eliminated / removed 2.Goodwill 3. Minority Interest 4. revalued.
5.Distributed profits. 6. disposal 7. I, II, VI 8. B,D,E are incorrect, rest
are all correct. 9. B and C are incorrect.
10. proportion 11. one-tenth, 15% 12. Only variable costs 13. variable
14. sales 15. greater 16. variable 17. ordinary creditors. 18. Shares
Forfeited Account 19. proportionate 20. 14 days.