Bios checks the memory and displays as good but I think that only checks the capacity of the memory and not the actual function then boot never happens, this means when processor starts moving data to memory it doesn't work.
The fact it starts and runs the memory check indicates the CPU is running code from the BIOS ROM, which is good. You're right, the memory check in most BIOSes is typically rudimentary and essentially only checks the amount of memory. Basically, all it does is write a pattern to each word address in memory and reads it back; if it gets back exactly what it reads, it knows there is functioning RAM available at that address; if not, it assumes that's where RAM ends. Bad memory can often result in a BIOS memory check showing a smaller amount of RAM than is fitted.
It might be worthing buying a POST diagnostic ISA card. They're fairly cheap on Amazon/eBay/AliExpress. That will be able to show a two-digit diagnostic code that indicates what stage the BIOS has got to in the boot process. If you don't have a speaker on your system, they also typically feature a speaker on the card and come with a cable to connect it to the motherboard, so you'll be able to hear any beep error codes too.
If it hangs after the memory check, there may be the possibility it is trying to seek the floppy drive but failing because the floppy controller is faulty. Have you tried removing all ISA cards except the display card? Also, is the CMOS battery present? If missing or dead, some BIOSes won't boot. But then again, I've not heard of a 286 system doing that, only later systems.
If you don't have the ability to boot from a disk, and still really want to do a RAM test, there is the
Landmark Diagnostic ROM which can be installed in place of the BIOS ROM, and performs a more thorough RAM test (in addition to many other tests). IIRC, it doesn't need fully-functional RAM to run. But you would need the appropriate equipment to burn a new EEPROM chip to use that.