Bala ltd acquired the business of bello ltd and caused the separate existence of the latter company to terminate.

Assessment: JAMB UTME - Principles of Accounts - 2018 Subject: Financial Accounting

Question 1 Report

Bala ltd acquired the business of bello ltd and caused the separate existence of the latter company to terminate. 
Answer Details
Based on the given information, the term that best describes the scenario is "merger". A merger is a business consolidation that involves the combination of two or more companies into a single new entity. In this case, Bala Ltd acquired the business of Bello Ltd, which means that Bello Ltd is no longer operating as a separate company. Instead, Bello Ltd's assets, liabilities, and operations have been merged with those of Bala Ltd to form a single new entity. It's important to note that a merger can take many forms, and the specific legal and financial details of the transaction can vary. However, the key idea is that two or more companies combine to form a new, larger entity.
Read lesson note on Company Accounts (WAEC)
Read lesson note on The Final Accounts Of A Sole Trader (JAMB)
View Answer

Related Questions

1

N N Capital 39,000 Land 20,000 Long Term Loan 15, 000 Building 30,000 Creditors 9,000 Stock 40,000 Debtors 6,000 Accrued wages 5,000 Cash 8, 000 68,000 68,00...
2

The amount called in respect of a share but not paid before or on the date fixed for payment is referred to as:
3

Advertising expenses incurred on a product in a business organization should be charged to
4

When goods are sent to branch at cost plus mark up, it means that the branch should sell at_____________
5

The office responsible for ascertaining whether all public expenditures and appropriations are in line with approved guidelines is the________
6

When goodwill is not retained in the business, the entries in the new partners books will be to debit______________
7

Use the information below to answer question Trading account for the year ended 31st December 2009 ₦ ₦ Opening Stock 32,000 Sales 48,000 Purchases 40,000 Les...
8

Use the information below to answer the question: Trading account for the year ended 31st December 2009 ₦ ₦ Opening Stock 32,000 Sales 48,000 Purchases 40,00...

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning