c) Capital Reduction. PDF Sample Questions For B.Com. ( Accounting & Finance) -Sem V 2019-2020 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. 0000001160 00000 n 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 . The term Internal Reconstruction means: 7. answer choices. Our website uses cookies to improve your experience. Absorption. 0000040014 00000 n 23. Reduction of capital is unlawful except when sanctioned by the court. Company Final Accounts. In internal reconstruction, amount sacrificed by shareholders are Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. 5 each. (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 endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream [Solved] Internal reconstruction can be done by - McqMate 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 . Company Liquidation Accounts. (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. (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. Eliminate the accumulated losses from the books. c) Super Profit. For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU 1. HT=s0+8xDmC?AX9jbN:w)Pgj!V-[._ KDaTJj1~' t Mprq*8)i(jm8d^zmMNX3t;(e\96!w )?=jp- ]CDH-bf>~Ji}KZw]w#@tf;:HKGr?(1bXT)"Awtt,fs6og2~7Q{T! %@dJQap8?|K( q?$T0!8aq{e_>)I/` # 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 0000008674 00000 n 64 of the Companies Act, 2013 the company shall give notice of the alternation of capital to the registrar within 45 days. 0000001241 00000 n 30 seconds. It is a case of, 8. 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. Only unsuccessful companies undertake capital reduction. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. When a company converts its equity shares into the capital stock, then the account to be credited is , 4. Ans: b) Revenue Profit. xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl Amalgamation. It is a case of, 9. A company has issued capital of 10,000 equity shares of Rs. %PDF-1.5 % Under Sec. It decides to convert its capital into 20,000 equity shares of Rs. Company Liquidation Accounts. PDF Amalgamation, Absorption & External reconstruction - NKT Degree College HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb 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 T.Y.B.com Financial Accounting mcq with answers - Suraj Patel Education I am also working on some other websites which will be published soon. Follow me on YouTube - Dynamic Tutorials and Services. 10 each fully paid. Save my name, email, and website in this browser for the next time I comment. 10 each, consolidated the shares into 5000 shares of Rs. PDF Question Bank Corporate Restructuring Sem Vi Oct. 2020 - Rset %%EOF --------- is the account created in connection with internal reconstruction. 5 fully paid. Corporate Accounting MCQ Question Bank Reconstruction of Companies. 100 each, converts it into stock. 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. Amount sacrificed by shareholders are credited to: 14. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. 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. [Solved] Capital Reduction Account is a - mcqmate.com If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited The word And Reduced is added to the name of the company for such period as the court deems fit. 0 The Capital reduction means reduction in ____________ value of shares. 10 each. A Ltd. with a share capital of 10,000 equity shares of Rs. A company has issued capital of 10,000 equity shares of Rs. Ans: a) Capital Profit. Checkout Top Schools 5 fully paid. The reduction of capital is permitted under _____________ of Companies Act. 10 each. 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 : In case of sub-division of share capital the total number of shares, 2. 500000 divided into 5000 shares of Rs. /PN|]fR9RW*YGfS{5B:>$VYq&Lop WGV1="]GVR:8M gHc > &E]`v6DVMH HOf`a)XL?o D 0000004701 00000 n 17. Hn0w?Gr "% 2t0 U,]]. The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. A company must pass a special resolution for reduction of capital. 55 0 obj <>stream Cancellation of unissued capital is also a case of capital reduction. PDF Chapter - 1 : Amalgamation, Absorbtion and External Reconstruction (As Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. 5 per share thus making each share of Rs. 0000000016 00000 n A company must pass a special resolution for reduction of capital. Internal Reconstruction MCQ MCQs on other topics of Financial Accounting Cost Accounting MCQs pdf 1. #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 59 23 (a) 1 (b) 2 (a)3 (a) many 4. 10 each, consolidated the shares into 5000 shares of Rs. Copyright 2023 McqMate. 500000 divided into 5000 shares of Rs. endstream endobj 71 0 obj <>stream 22 0 obj <> endobj Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. 0000003418 00000 n 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. Download PDF. Friends ye artical ke alava other subject Ke bhi article aapko mere website per mil jaenge jiska link me aapko niche de raha hu. |4 Taken over. The Sub division of shares does not result in ___________ of capital.a) reduction b) added c) Compromise d) none of the above, 4. 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. s 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 5. In which of the following cases, procedure of reduction of capital is not called for: 11. Q. Under which of the following circumstances can a company resort to internal In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. We would like to show you a description here but the site won't allow us. 0000002930 00000 n PDF Amalgamation, Absorption & External reconstruction - NKT Degree College A company is free to reduce or extinguish the uncalled liability of its members. a) X Ltd. Having a share capital of Rs. Our moto is to make Responsible Accountant and Employee of whichever is field whether student be like . The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. 0000005402 00000 n 0000003758 00000 n Shareholders not approving scheme is called _________ shareholders. Solved MCQs for Accounting for Internal Reconstruction, Accounting for Internal Reconstruction MCQs with answers PDF download, Bachelor of Business Administration (BBA), Human Resource Management Principles and Functions, Reading on Indian Constitution, Secularism and Sustainable Environment, Transactions- Essential English Language Skills. Accounting for Internal Reconstruction Multiple choice questions and answers. hVN;?*:_ a) 77 b) 100 c) 66 d) 75 2. In internal reconstruction, increase in the value of fixed assets is credited to. M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. %PDF-1.4 % Internal reconstruction is done due to .. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! 100 each, subdivided the shares into 50000 shares of Rs. A Ltd. with a share capital of 10,000 equity shares of Rs. When an existing company takes over the business of one or more existing companies, it is called. 15. 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. According to sec. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. 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) a) face b) market c) both of a & b d) none of the above 12. objective of our platform is to assist fellow students in preparing for exams and in their Studies Valuation of Shares. __________ 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. 30 seconds. Internal Reconstruction of Company Capital Restructuring MCQs :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o The word And reduced cannot be added to the name of the company if no direction has been given by the court. 0000006983 00000 n b) Revenue Profit. Section 66 of the companies Act governs the internal reconstruction. 500000 divided into 5000 shares of Rs. 6) Internal reconstruction means a) Amalgamation in nature of merger. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. In internal reconstruction, the existing company will be . 0000007752 00000 n Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. 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. 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 31) Reconstruction includes all of the following except 32) . Internal Reconstruction - Advanced Accounting - MCQ Test - Teachmint
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