alleryStart learning →In a merger, cash may be paid to transferor shareholders only for what?
AFractional shares
BUnpaid call money
CPreference dues
DDeclared dividends
Answer & Solution
Correct answer: A. Fractional shares
Merger status requires payment wholly in equity shares, with cash allowed solely to settle fractions of a share.
Keep practising Accounting for Amalgamations
Browse all Accounting for Amalgamations questions for CA Inter, or explore more Accounting topics.
Related questions
In a merger, the Profit and Loss balance can alternatively go to which reserve?Consideration for amalgamation is the aggregate of securities issued and what else?AS 14 defines fair value as the amount for an asset exchange between whom?Statutory reserves keep their identity only when the transferee complies with what?When can amalgamation goodwill be amortised beyond five years?In the pooling method, conflicting accounting policies are handled how?In merger accounting, resultant assets, liabilities, capital and reserves roughly equal whIf a scheme departs from AS 14 on reserves, what must be disclosed?