Section 66 of the companies Act governs the internal reconstruction. 500000, Micro Economics Notes and Important Questions, Reducing share capital by returning the excess capital, Reducing the liability on account of uncalled capital. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream 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. Amalgamation. A company must pass a special resolution for reduction of capital. 1. No journal entry is required for cancellation of unissued share capital. The full balance of capital is to be debited, if _____________ value is reduced. 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. 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Currently, however, non-invasive language decoders . The scheme of internal reconstruction involves ___ company. |:a=Z&v)kgAN"6]tBzy!NS A Ltd. with a share capital of 10,000 equity shares of Rs. endstream endobj 60 0 obj <> endobj 61 0 obj <> endobj 62 0 obj <>/ProcSet[/PDF/Text]/ExtGState<>>> endobj 63 0 obj <> endobj 64 0 obj <> endobj 65 0 obj <> endobj 66 0 obj <> endobj 67 0 obj <> endobj 68 0 obj <> endobj 69 0 obj <> endobj 70 0 obj <>stream 0000003418 00000 n A company has issued capital of 10,000 equity shares of Rs. <<0ABB1FF79DCA334A925490CD6BFFDF14>]>> endstream endobj startxref I am also working on some other websites which will be published soon. __________ 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. 0 ] Merged with another co. 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. 21.Only unsuccessful companies undertake capital reduction. 10 each. 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 . Valuation of Shares. 22. The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. 20. Forfeiture and Surrender of shares is a case of capital reduction. 59 0 obj <> endobj 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 . 22 0 obj <> endobj 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. c) X Ltd. Having a share capital of Rs. MULTIPLE CHOICE QUESTIONS 1. gHc > &E]`v6DVMH HOf`a)XL?o D If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. ,ffFP7(]Pa&i& b+ + bg %PDF-1.4 % 0000001241 00000 n Accounting procedure when internal reconstruction made 36) 7. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. Multiple Choice Questions 1)Voluntary winding up: a)If period fixed for the company is expired. 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. 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. Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. 100 each, subdivided the shares into 50000 shares of Rs. 31) Reconstruction includes all of the following except 32) . It is a case of, 8. 5 fully paid. Internal reconstruction. Hn0w?Gr "% 2t0 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 difference in revaluation of assets is to be transferred to ___________ Account.a) internal reconstruction b) Capital Reduction c) security primium d) capital reserve, 10. 55 0 obj <>stream Question 2. 4~"\ J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. |4 Accounting for Internal Reconstruction. wound up. The term Internal Reconstruction means: 7. 0000031742 00000 n HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R objective of our platform is to assist fellow students in preparing for exams and in their Studies Holding Company Accounts. External reconstruction. b) Absorption. 0000005402 00000 n 30 seconds. 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/` # A company must pass a special resolution for reduction of capital. 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. 500000 divided into 5000 shares of Rs. #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 In ____________ , no new company is formed.a) External reconstruction b) Amalgamationc) internal reconstruction d) none of the above, 20. 3. A company has issued capital of 10,000 equity shares of Rs. In internal reconstruction, increase in the value of fixed assets is credited to. 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 cancellation of contingent liability is____ for company. 1. 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 Amount sacrificed by shareholders are credited to: 13. 500000 divided into 5000 shares of Rs. Multiple Choice Questions. Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. Redemption of preference shares is a case of capital reduction. 0000001960 00000 n endstream endobj 72 0 obj <>stream 7) Post-acquisition Profit is a) Capital Profit. b) Revenue Profit. Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. Answer :- Increases 2. 0000008674 00000 n Eliminate the accumulated losses from the books. a) dissenting b) paying c) pay disentient shareholders 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 (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 hbbd```b``"A$v Important Links: In case of sub-division of share capital the total number of shares Increases Decreases Does not change. Multiple Choice Questions and Answers 1. endstream endobj 26 0 obj <>stream c) Super Profit. 0000002930 00000 n The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. Reduction of capital is unlawful except when sanctioned by the court. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. 0000003758 00000 n When a company converts its equity shares into the capital stock, then the account to be credited is: 4. 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. Vertical Horizontal Conglomerate Demerger Absorption. Download PDF. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. Bring down the assets to their true values. 100 each. All rights reserved. 10 each fully paid. GUD}%DQO}$m|@}L*#{`g5fd4"b~d|{\?1>c:-G $}gKYVAAy)>uvH/4SPHl"@@9HI,+XP f!M7fNG/_M=,(\q #d5*-1Kv 1,G( 4^:SiOfuN7"z~7~D`K773QspCMcJ|H"#6 r+i7.eW>Q3 sT 2g3O\b ^_T_ET_[JD=+x[oct;GYO|T-"['SRt~"7f Company Liquidation Accounts. 16. When two or more existing companies combine together to form a new company, it is termed as. Accounting Standard for amalgamation is: AS-3 AS-9 AS-12 AS-14 (AS-14 deals with accounting for amalgamation) Answer :- AS-14 (AS-14 deals with accounting for amalgamation) 2. according to AS - 14, purchase consideration is the sum of payments made to the: Debenture holders and Shareholders Shareholders Company Final Accounts. 100 each. Internal reconstruction is done due to .. JD%@"i0iB*c`EX Internal Reconstruction is also known as Capital Reduction. b) Revenue Profit. 0000009805 00000 n 0 When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction 18. Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU c) Super Profit. We provide you study material i.e. 11. In case of Internal Reconstruction , the company is. more mcqs. (a) 1 (b) 2 (a)3 (a) many 4. U,]]. Accounting for Amalgamation, Absorption and External. Shareholders not approving scheme is called _________ shareholders. #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. 0 Valuation of Shares. endstream endobj 71 0 obj <>stream A company is free to reduce or extinguish the uncalled liability of its members. Q. 5 each. 10. 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. Main aim of this blog is to provide all academic resources and information's especially for Commerce Stream Students. hVN;?*:_ The video explains important mcqs on Internal Reconstruction of company #Capital Reduction #Account Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. 0000003198 00000 n throughout their Academic career. No journal entry is required for cancellation of unissued share capital. d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` hTA0>C. startxref Holding Company Accounts. The Capital reduction means reduction in ____________ value of shares. 0000000016 00000 n The word And reduced cannot be added to the name of the company if no direction has been given by the court. 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. 100 each, converts it into stock. Irk#nf`S_Jlhf6+xx?$UZ$yZ}opP~ fCJ[1[nS+\M]_pOgut9qiWb|Tr@r`Xj 8p2_7y#@DZpNS80dJ^3S2RzP3;! hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! 0000007752 00000 n A company is free to reduce or extinguish the uncalled liability of its members. 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. 6) Internal reconstruction means a) Amalgamation in nature of merger. It decides to convert its capital into 20,000 equity shares of Rs. 12. Accounting for Internal Reconstruction. 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 Accounting for Internal Reconstruction Important MCQs. Corporate Accounting MCQ Question Bank Reconstruction of Companies. 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) . The HUB, Sy. Bachelor of Business Administration (BBA). 10 each. The Shareholders can surrender shares for ________ or ____________ .a) re-issue, cancellation b)Fresh Issue, Redemption c) none of the above, 5. in Bangalore here: Software Service According to sec. b) X Ltd. Having a share capital of Rs. Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. Ans: a) Capital Profit. Cancellation of unissued capital is also a case of capital reduction. 10 each, consolidated the shares into 5000 shares of Rs. Our website uses cookies to improve your experience. 19. 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. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. c) Capital Reduction. HUn9}om # Save my name, email, and website in this browser for the next time I comment. a) X Ltd. Having a share capital of Rs. State whether the following statements are True or False: According to sec. Alteration of share capital can be affected by passing an ordinary resolution. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. answer choices. 500000. b) X Ltd. Having a share capital of Rs. (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. 8) Pre-acquisition profit is a) Capital Profit. Alteration of share capital can be affected by passing an ordinary resolution. Ans: c) Capital Reduction. For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. 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. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. Copyright 2023 McqMate. 5 fully paid. 10 each, consolidated the shares into 5000 shares of Rs. 59 23 17. 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. 25. Agreement. 0000006175 00000 n Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. vt00 Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. Manan Prakashan 1 CHAPTER - 1 : AMALGAMATION, ABSORBTION AND EXTERNAL RECONSTRUCTION (AS - 14) MULTIPLE CHOICE QUESTIONS. 0000000756 00000 n The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. 0000009547 00000 n more mcqs. Our moto is to make Responsible Accountant and Employee of whichever is field whether student be like .