21.Only unsuccessful companies undertake capital reduction. %%EOF All rights reserved. Accounting for Internal Reconstruction [Set 1] PDF, Accounting for Amalgamation, Absorption and External, Chapter: Accounting for Internal Reconstruction. throughout their Academic career. Win vouchers worth INR 2,000 with our School Referral Program, Ranked Amongst Top 25 Companies by LinkedIn. Question 2. 100 each. endstream endobj 71 0 obj <>stream Corporate Accounting Multiple Choice Questions and Answers, Mumbai University B.Com - MCQs, Exam MCQs and Solved Papers, Auditing MCQs Multiple Choice Questions and Answers | Auditing MCQs For B.Com, CA, CS and CMA Exams, Management Accounting MCQs [Multiple Choice Questions and Answers], MCQ On Budget and Budgetary Control | Multiple Choice Questions and Answers, MCQ on Accounts of Holding Companies [Multiple Choice Questions and Answers], Corporate Accounting Multiple Choice Questions and Answers (MCQs) | Company Accounts MCQs. Company Liquidation Accounts. After the implementation of scheme of internal reconstruction, any amount left in the capital reduction A/C will be transfer to: For amalgamation in the nature of merger, the shareholders holding at least or more of the equity shares of the transferor company becomes the equity shareholders of the transferee company. In case of sub-division of share capital the total number of shares: 2. The term "Internal Reconstruction" means: (i) Reduction of Share Capital (ii) Variation of Shareholder's right (iii) Alternation of share capital (iv) All of the above 7. b) Absorption. The word And reduced cannot be added to the name of the company if no direction has been given by the court. Internal Reconstruction - Advanced Accounting - MCQ Test - Teachmint Test Details Internal Reconstruction All the best Starts Feb 02, 6:00 PM Duration 15 minutes Deadline Feb 02, 9:00 PM Maximum marks 20.0 marks Question type MCQ Total questions 10 questions Like Share 32 Views Kishor Suryawanshi In a scheme of reorganisation amount of shares surrendered by shareholders is transferred to: 13. 23. 19. It decides to convert its capital into 20,000 equity shares of Rs. Reduction of capital is unlawful except when sanctioned by the court. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. 0000001534 00000 n 81 0 obj <>stream In case of , one existing company takes over the business of another company and no new company is formed A brain-computer interface that decodes continuous language from non-invasive recordings would have many scientific and practical applications. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. Follow me on YouTube - Dynamic Tutorials and Services. Absorption. 43 0 obj <>/Filter/FlateDecode/ID[<7F7D86F494A1CBF23FB2925BA8566F77>]/Index[22 34]/Info 21 0 R/Length 105/Prev 125909/Root 23 0 R/Size 56/Type/XRef/W[1 3 1]>>stream Alteration of share capital can be affected by passing an ordinary resolution. 6) Internal reconstruction means a) Amalgamation in nature of merger. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. We provide you study material i.e. JD%@"i0iB*c`EX Accounting for Amalgamation, Absorption and External. 8) Pre-acquisition profit is a) Capital Profit. The full balance of capital is to be debited, if _____________ value is reduced. 0000001960 00000 n The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. Only unsuccessful companies undertake capital reduction. 0000040014 00000 n The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. Company Liquidation Accounts. The Sub division of shares does not result in ___________ of capital.a) reduction b) added c) Compromise d) none of the above, 4. Accounting for Internal Reconstruction Multiple choice questions and answers. Vertical Horizontal Conglomerate Demerger When two or more existing companies combine together to form a new company, it is termed as. The full balance of capital is to be debited, if _____________ value is reduced.a) face b) market c) both of a & b d) none of the above, 12. Eliminate the accumulated losses from the books. hbbd```b``"A$v Get the essential details like: The number of papers The frequency of exams The manner of registration and exams, Eligibility, Exemptions, and Exam Dates For ICAI Ca Inter May 2022. xref Multiple Choice Questions. 31) Reconstruction includes all of the following except 32) . 100 each. 0000007752 00000 n more mcqs. Reconstruction is a process by which affairs of a company are reorganized by revaluation of assets, reassessment of liabilities and by writing off the losses already suffered by reducing the paid up value of shares and/or varying the rights attached to different classes of shares. in Bangalore here: Software Service Under which of the following circumstances can a company resort to internal reconstruction? Alteration of share capital can be affected by passing an ordinary resolution. The HUB, Sy. Internal reconstruction. 1. 11)face 12)dissenting 13)Schedule III 14)capital reduction 15)funds 16)debited 17)accumulated losses 18)Registrar 19)internal reconstruction 20)credit, HSC Question Paper 2023 12th Commerce (Download Free pdf), HSC OCM Paper 2023 March Maharashtra Board | Download Free Pdf, HSC SP Paper 2023 March Maharashtra Board | Download Free Pdf, HSC Hindi Paper 2023 March Maharashtra Board | Download Free Pdf, HSC English Paper 2023 March | Download Free Pdf, 11th OCM Chapter 8 Exercise (Introduction to Management) Maharashtra Board Free Resource, 11th OCM Chapter 7 Exercise (Business Environment) Maharashtra Board Free Resource, Financial Accounting Mcqs | More Than 700 Free MCQs, 12th SP Chapter 6 Solution (Correspondence with Members) Maharashtra Board Free Solution. The Capital reduction means reduction in ____________ value of shares. Reduction of capital is unlawful except when sanctioned by the court. Checkout Top Schools 20. 10 each fully paid. Taken over. The cancellation of contingent liability is____ for company. c) X Ltd. Having a share capital of Rs. capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). Turn around. If the shares of smaller denomination-are converted into the shares of higher denomination without changing the total amount of share capital, then it is a case of: (iii) Decrease in unissued share capital. Our website uses cookies to improve your experience. 100 each, subdivided the shares into 50000 shares of Rs. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. 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When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction Section 66 of the companies Act governs the internal reconstruction. To carry out capital reduction, permission is required from: 14. Bachelor of Business Administration (BBA). 500000 divided into 5000 shares of Rs. 100 each, subdivided the shares into 50000 shares of Rs. %PDF-1.5 % In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. In internal reconstruction, the existing company will be . 25. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only We would like to show you a description here but the site won't allow us. It is a case of: (i) Reducing share capital by returning the excess capital, (ii) Reducing the liability on account of uncalled capital. Ans: b) Revenue Profit. Companies may combine in following ways (i) absorption (ii) amalgamation (iii) external reconstruction (iv) internal reconstruction (v) merger (a) any of above (b) none of above (c) any except (iv) (d) any except (v) 0000002930 00000 n 100 each, converts it into stock. Cancellation of unissued capital is also a case of capital reduction. Download PDF. The scheme of internal reconstruction involves ___ company. __________ resolution is to be passed by shareholders for approval of scheme of reconstruction.a) ordinary b) Special c) both a & b d) none of the above, 8. Bring down the assets to their true values. 500000 divided into 50000 shares of Rs. The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. To carry out capital reduction, permission is required from: a) X Ltd. Having a share capital of Rs. After the implementation of the scheme of internal reconstruction , any surplus in capital reduction A/C is transferred to : Reduction of share capital is possible by the company, if it is authorized by its: MCQs for Related Topics Zeitgeist- Reading on Contemporary Culture . 5. s 22 0 obj <> endobj 10 each, consolidated the shares into 5000 shares of Rs. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. wound up. Internal reconstruction is a slow and tedious process since it required the approval of : After the implementation of the scheme of internal reconstruction , any surplus in capital reduction A/C is transferred to : After the implementation of scheme of internal reconstruction, any amount left in the capital reduction A/C will be transfer to: HT=s0+8xDmC?AX9jbN:w)Pgj!V-[._ KDaTJj1~' Ans: c) Capital Reduction. The internal reconstruction results in proper valuation of _________ and __________ of companies.a) Profit & Loss Account b) reserve & surplus c) assets and liabilities d) none of the above, 6. Save my name, email, and website in this browser for the next time I comment. c) Capital Reduction. 59 23 a) authorized capital b) Called up capital c) Uncalled capital /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. 1.If there is any balance in the capital reduction account after writing off all the accumulated losses then the same is transferred to ; (A) Share Capital Account (B) Capital Reserve Account (C) General Reserve Account (D . 0000003418 00000 n HUn9}om # Copyright 2023 McqMate. Save my name, email, and website in this browser for the next time I comment. Amalgamation. Companies may combine in following ways (i) absorption (ii) amalgamation (iii)external reconstruction (iv)internal reconstruction (v) merger (a) any of above (b) none of above (c) any except (iv) (d) any except (v) 2. 0000004701 00000 n answer choices. If the creditors are willing to reduce their claims against the company, (hen the amount of reduction in their claim will be transferred to, 10. A company has issued capital of 10,000 equity shares of Rs. J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. Latest Reconstruction of companies MCQ Objective Questions Top Reconstruction of companies MCQ Objective Questions Exam Preparation Simplified Learn, practice, analyse and improve Get Started for Free Download App Trusted by 3.9 Crore+ Students Related MCQ Merger& Amalgamation MCQ Exams TNPSC Group 1 TNPSC Group 2 RRB Group D RRB NTPC 30 seconds. (ii) Internal Reconstruction: Internal reconstruction means a recourse undertaken to make necessary changes in the capital structure of a company without liquidating the existing company. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. The Balance Sheet prepared after implementation of the scheme is to be prepared as per ____________.a) Schedule IV b) Schedule VI c) Schedule II d) Schedule III, 14. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. b) X Ltd. Having a share capital of Rs. Manan Prakashan 1 CHAPTER - 1 : AMALGAMATION, ABSORBTION AND EXTERNAL RECONSTRUCTION (AS - 14) MULTIPLE CHOICE QUESTIONS. 12. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: (i) Share capital account Amount sacrificed by shareholders are credited to: 14. Download PDF. Copyright 2023 McqMate. 5 each. b) Revenue Profit. I am Gold educator on teachmint online live classes app, I am Post Graduate from Commerce and Direct Course of Law, We have provide all courses of Commerce as well as banking and IBPS Competitive exam Course and also provide Tally Erp 9 + GST Module at offline Training mode. endstream endobj 26 0 obj <>stream 0000031742 00000 n endstream endobj startxref It is a case of, 9. 10 each fully paid decides to repay Rs. We provide you study material i.e. Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. 18. Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. A company must pass a special resolution for reduction of capital. Cancellation of unissued capital is also a case of capital reduction. 4~"\ 55 0 obj <>stream (C) Internal reconstruction (B) Absorption (D) External reconstruction While calculating purchase price, the following values of assets are considered Book value (C) Average values (B) Revised Value (D) Market values Shares received from the new company are recorded at - Face value (C) Market value (B) Average price For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. A company is free to reduce or extinguish the uncalled liability of its members. No journal entry is required for cancellation of unissued share capital. Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital.
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