:u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. 0000031742 00000 n Q. __________ 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. In which of the following cases, procedure of reduction of capital is not called for: 11. 0000003198 00000 n 0000009547 00000 n Internal reconstruction is done due to .. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only Section 66 of the companies Act governs the internal reconstruction. endstream endobj 72 0 obj <>stream Q. The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. When two or more existing companies combine together to form a new company, it is termed as. In case of sub-division of share capital the total number of shares, 2. Bring down the assets to their true values. 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 11. 22. According to sec. 10 each fully paid decides to repay Rs. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. The reduction of capital is permitted under _____________ of Companies Act. Alteration of share capital can be affected by passing an ordinary resolution. 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. Win vouchers worth INR 2,000 with our School Referral Program, Ranked Amongst Top 25 Companies by LinkedIn. Alteration of share capital can be affected by passing an ordinary resolution. objective of our platform is to assist fellow students in preparing for exams and in their Studies Accounting for Amalgamation, Absorption and External. 500000 divided into 5000 shares of Rs. It decides to convert its capital into 20,000 equity shares of Rs. %PDF-1.5 % In internal reconstruction, the existing company will be . /PN|]fR9RW*YGfS{5B:>$VYq&Lop WGV1="]GVR:8M A scheme of __________ or __________ mean the scheme having same effect.a) capital reduction or internal reconstruction b) Capital Reduction or External reconstructionc) none of the above. . Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. Valuation of Shares. 19. wound up. 6) Internal reconstruction means a) Amalgamation in nature of merger. All rights reserved. If the creditors are willing to reduce their claims against the company, (hen the amount of reduction in their claim will be transferred to, 9. d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb AM$|?F9 UY Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU Amount sacrificed by shareholders are credited to: 13. A company must pass a special resolution for reduction of capital. 10 each. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. Download PDF. 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 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: 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. TRpH[QU4] (kB7v 100 each, subdivided the shares into 50000 shares of Rs. The expenses for forming and implementing scheme should be debited to ____________ .a) security premium b) share capital c) Internal reconstruction d) capital reduction, 15. 22 0 obj <> endobj <<0ABB1FF79DCA334A925490CD6BFFDF14>]>> a) authorized capital b) Called up capital c) Uncalled capital Checkout Top Schools 0000002930 00000 n Turn around. xref xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl Only unsuccessful companies undertake capital reduction. Agreement. Save my name, email, and website in this browser for the next time I comment. Our moto is to make Responsible Accountant and Employee of whichever is field whether student be like . (C) Internal reconstruction (B) Absorption (D) External reconstruction While calculating purchase price, the following values of assets are considered Book value (C) Average values (B) Revised Value (D) Market values Shares received from the new company are recorded at - Face value (C) Market value (B) Average price GUD}%DQO}$m|@}L*#{`g5fd4"b~d|{\?1>c:-G $}gKYVAAy)>uvH/4SPHl"@@9HI,+XP f!M7fNG/_M=,(\q #d5*-1Kv 1,G( 4^:SiOfuN7"z~7~D`K773QspCMcJ|H"#6 r+i7.eW>Q3 sT 2g3O\b ^_T_ET_[JD=+x[oct;GYO|T-"['SRt~"7f 0000003418 00000 n 500000 divided into 50000 shares of Rs. Friends ye artical ke alava other subject Ke bhi article aapko mere website per mil jaenge jiska link me aapko niche de raha hu. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream startxref Ans: b) Revenue Profit. For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. Under which of the following circumstances can a company resort to internal reconstruction? A Ltd. with a share capital of 10,000 equity shares of Rs. A company must pass a special resolution for reduction of capital. Amalgamation. 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. Cancellation of unissued capital is also a case of capital reduction. ,ffFP7(]Pa&i& b+ + bg 500000 divided into 5000 shares of Rs. State whether the following statements are True or False: According to sec. 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. 31) Reconstruction includes all of the following except 32) . Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. 20. Multiple Choice Questions. 0000006175 00000 n (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. answer choices. In internal reconstruction, methods of calculation of purchase consideration is 33) Methods of capital reduction 34) While preparing Balance Sheet after reconstructed following points are to be kept in mind 35) 6. 0000000016 00000 n We provide you study material i.e. 1. a) face b) market c) both of a & b d) none of the above 12. 0000004701 00000 n A company is free to reduce or extinguish the uncalled liability of its members. JD%@"i0iB*c`EX Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. 15. 21.Only unsuccessful companies undertake capital reduction. The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. 100 each. Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. The word And Reduced is added to the name of the company for such period as the court deems fit. U,]]. 5. Accounting Standard for amalgamation is: AS-3 AS-9 AS-12 AS-14 (AS-14 deals with accounting for amalgamation) Answer :- AS-14 (AS-14 deals with accounting for amalgamation) 2. according to AS - 14, purchase consideration is the sum of payments made to the: Debenture holders and Shareholders Shareholders hVN;?*:_ Merger Buyout Joint Venture De-merger 23Which merger involves firms engaged in unrelated types of activities? 61 of the companies act, 2013, a limited company can increase, sub-divide or consolidate all or part of its existing share if authorised by its articles of association. 100 each, converts it into stock. 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. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. 12. s 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, 3. PDFs for offline use. We take free online Practice/Mock test for exam preparation. Each MCQ is open for further discussion on discussion page. All the services offered by McqMate are free. 10 each fully paid. 1. c) Super Profit. Amount sacrificed by shareholders are credited to: 14. capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). In case of loss maximum remuneration is Rs.6 Lakhs in case effective capital is less than (a) 5Cr (b) 1Cr (a)25Cr (a) 50Cr 6. MULTIPLE CHOICE QUESTIONS 1. All rights reserved. 64 of the Companies Act, 2013 the company shall give notice of the alternation of capital to the registrar within 45 days. endstream endobj 26 0 obj <>stream The full balance of capital is to be debited, if _____________ value is reduced. a) 77 b) 100 c) 66 d) 75 2. endstream endobj startxref Irk#nf`S_Jlhf6+xx?$UZ$yZ}opP~ fCJ[1[nS+\M]_pOgut9qiWb|Tr@r`Xj 8p2_7y#@DZpNS80dJ^3S2RzP3;! 0000005402 00000 n Cancellation of unissued capital is also a case of capital reduction. A Ltd. with a share capital of 10,000 equity shares of Rs. 10 each. We would like to show you a description here but the site won't allow us. objective of our platform is to assist fellow students in preparing for exams and in their Studies 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 Main aim of this blog is to provide all academic resources and information's especially for Commerce Stream Students. 17. 94 of the companies act, a limited company can increase, sub-divide or consolidate all or part of its existing share if authorised by its articles of association. In case of , one existing company takes over the business of another company and no new company is formed 5 fully paid. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. 500000. b) X Ltd. Having a share capital of Rs. 59 0 obj <> endobj If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. 23. |:a=Z&v)kgAN"6]tBzy!NS Number 8/2 & 9, Sarjapur Road, Bengaluru, Karnataka- 560 103. Important Links: 0000007752 00000 n The video explains important mcqs on Internal Reconstruction of company #Capital Reduction #Account Accounting for Amalgamation, Absorption and External. Forfeiture and Surrender of shares is a case of capital reduction. --------- is the account created in connection with internal reconstruction. 0000006983 00000 n (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. In case of sub-division of share capital the total number of shares: 2. The Capital reduction means reduction in ____________ value of shares. /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` b) Revenue Profit. reconstruction? McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only c) X Ltd. Having a share capital of Rs. 100 each. Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR 0 ] 59 23 endstream endobj 71 0 obj <>stream 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 2. 500000, Micro Economics Notes and Important Questions, Reducing share capital by returning the excess capital, Reducing the liability on account of uncalled capital. Suraj Patel Education is one of the best blog on Education . HT=s0+8xDmC?AX9jbN:w)Pgj!V-[._ KDaTJj1~' If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. b) X Ltd. Having a share capital of Rs. Holding Company Accounts. a) X Ltd. Having a share capital of Rs. Appreciation in the value of land & building is recorded on ________ side of Capital Reduction Account.a) credit b) debit c) both of a & b d) none of the above. 10 each, consolidated the shares into 5000 shares of Rs. M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. No journal entry is required for cancellation of unissued share capital. MCQ on Internal Reconstruction : Multiple choice questions and answers December 18, 2021 by Abhimaynu Multiple choice questions and answers 1. 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) 4~"\ The word And reduced cannot be added to the name of the company if no direction has been given by the court. 30 seconds. 81 0 obj <>stream 500000 divided into 5000 shares of Rs. 0000003520 00000 n Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. capital reduction A/C is transferred to : After the implementation of scheme of internal reconstruction, any amount left in the Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. In case of Internal Reconstruction payment of contingent liability is debited to a) Profit & Loss A/c b) Capital Reduction A/c c) Realisation A/c d) Other 53) Any gain on payment of liability under External Reconstruction is credited to in Bangalore here: Software Service It is a case of, 8. Ans: a) Capital Profit. Shareholders not approving scheme is called _________ shareholders. Internal Reconstruction is also known as Capital Reduction. Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. hTA0>C. answer choices. 26. PDFs for offline use. We take free online Practice/Mock test for exam preparation. Each MCQ is open for further discussion on discussion page. All the services offered by McqMate are free. The cancellation of contingent liability is____ for company. 0000003758 00000 n Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. t Mprq*8)i(jm8d^zmMNX3t;(e\96!w )?=jp- ]CDH-bf>~Ji}KZw]w#@tf;:HKGr?(1bXT)"Awtt,fs6og2~7Q{T! %@dJQap8?|K( q?$T0!8aq{e_>)I/` # Company Final Accounts. Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. External reconstruction. It is a case of: (i) Reducing share capital by returning the excess capital, (ii) Reducing the liability on account of uncalled capital. 0 %PDF-1.4 % 0000001160 00000 n Answer :- Increases 2. Computerized Accounting Practices. If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited A company has issued capital of 10,000 equity shares of Rs. Ans: c) Capital Reduction. 0000009805 00000 n Hn0w?Gr "% 2t0 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 . When an existing company takes over the business of one or more existing companies, it is called. 10 each fully paid. 0000002299 00000 n When a company converts its equity shares into the capital stock, then the account to be credited is , 4. 0000040014 00000 n Under Sec. Accounting procedure when internal reconstruction made 36) 7. Internal reconstruction result in the reduction of the capital of the company. Absorption. 1. 55 0 obj <>stream c) Super Profit. I am also working on some other websites which will be published soon. Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital of Rs. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. Accounting for Internal Reconstruction Multiple choice questions and answers. |4 Company Liquidation Accounts. Question and answers in Accounting for Internal Reconstruction. 5 each. Internal Reconstruction MCQ MCQs on other topics of Financial Accounting Cost Accounting MCQs pdf 1. a) dissenting b) paying c) pay disentient shareholders 0000008674 00000 n 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. 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. Redemption of preference shares is a case of capital reduction. We provide you study material i.e. 25. %%EOF Download PDF. Multiple Choice Questions and Answers 1. 100 each, converts it into stock. #2 MCQ for TYBCOM Sem 5 - Internal Reconstruction MCQ's - Financial AccountingThis lecture series contains all the MCQs related to TYBCOM Sem 5 - Financial A. Internal reconstruction definition, the hypothetical reconstruction of an earlier stage of a language or of some part of it, as its phonology, by deductions from irregularities in its present structure, as the reconstruction of a stage in English when certain instances of r were related to s in a systematic way by comparing the pair was:were to other pairs, as lose:forlorn. No journal entry is required for cancellation of unissued share capital. Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. In case of Internal Reconstruction , the company is. Our website uses cookies to improve your experience. 0000001960 00000 n hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! Accounting for Internal Reconstruction Important MCQs. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. 16. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. Eliminate the accumulated losses from the books. more mcqs. throughout their Academic career. vt00 Bachelor of Business Administration (BBA). Internal reconstruction. 0000000756 00000 n 1)66 2)paidup value 3)reduction 4)re-issue, cancellation 5)assets and liabilities 6)NCLT 7)Special 8)Capital Reduction 9)Capital Reduction 10)capital reduction or internal reconstruction, 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, MCQs on other topics of Financial Accounting, Financial Accounting Mcqs | More Than 700 Free MCQs, 12th SP Chapter 6 Solution (Correspondence with Members) Maharashtra Board Free Solution. HUn9}om # 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. Reduction of capital is unlawful except when sanctioned by the court. The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. 11. 3. gHc > &E]`v6DVMH HOf`a)XL?o D In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. c) Capital Reduction. Corporate Accounting MCQ Question Bank Reconstruction of Companies. Under which of the following circumstances can a company resort to internal The term Internal Reconstruction means: 7. Currently, however, non-invasive language decoders . Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. 10 each fully paid decides to repay Rs. Accounting for Internal Reconstruction. 30 seconds. 10 each, consolidated the shares into 5000 shares of Rs. 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 internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. b) Revenue Profit. J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. 10. more mcqs. 0000001241 00000 n HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R Question 2. 5 per share thus making each share of Rs. 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. #2 MCQ for TYBCOM Sem 5 - Internal Reconstruction MCQ's - Financial AccountingThis lecture series contains all the MCQs related to TYBCOM Sem 5 - Financial AccountingFinancial Accounting MCQs Link:https://scholarsclasses.com/blog/preparation-of-final-accounts-of-companies-mcq/TYBCOM Sem 5 MCQs Link:https://scholarsclasses.com/blog/tybcom-sem-5-mcq/TYBCOM Sem 5 MCQs Lecture link:https://youtube.com/playlist?list=PLJ_81_DlRlyfEuIryW3MX4GvicwzWkHLKPlease like, share, and subscribeVideo Presented by :Prof. Tauseef Khan (M.Com, MBA, UGC - NET)Follow us on :Facebook: https://www.facebook.com/tauseef89/Twitter: https://twitter.com/tauseef_sirInstagram: https://www.instagram.com/tauseefsirVisit our websitehttps://www.scholarsclasses.com/blog#scholarszilla#tybcommcq#tauseefsir b) Absorption. %%EOF The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. Holding Company Accounts. 0000001427 00000 n In internal reconstruction, amount sacrificed by shareholders are credited to.. 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 Copyright 2023 McqMate. To carry out capital reduction, permission is required from: 14. Company Liquidation Accounts. Copyright 2023 McqMate. 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. 0 5 each. In internal reconstruction, increase in the value of fixed assets is credited to. The difference in revaluation of assets is to be transferred to ___________ Account.a) internal reconstruction b) Capital Reduction c) security primium d) capital reserve, 10.

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