0000001241 00000 n Question and answers in Accounting for Internal Reconstruction. 0000003418 00000 n To carry out capital reduction, permission is required from: a) X Ltd. Having a share capital of Rs. capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). b) Absorption. 55 0 obj <>stream It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. Accounting for Internal Reconstruction [Set 1] PDF, Accounting for Amalgamation, Absorption and External, Chapter: Accounting for Internal Reconstruction. Bring down the assets to their true values. b) X Ltd. Having a share capital of Rs. 0000009805 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. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. 0000001427 00000 n Irk#nf`S_Jlhf6+xx?$UZ$yZ}opP~ fCJ[1[nS+\M]_pOgut9qiWb|Tr@r`Xj 8p2_7y#@DZpNS80dJ^3S2RzP3;! Multiple Choice Questions. answer choices. The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. 0000008674 00000 n We provide you study material i.e. Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? Reduction of capital is unlawful except when sanctioned by the court. We provide you study material i.e. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. 3. a) face b) market c) both of a & b d) none of the above 12. xref 19. Internal reconstruction is done due to .. Follow me on YouTube - Dynamic Tutorials and Services. The video explains important mcqs on Internal Reconstruction of company #Capital Reduction #Account If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. Reduction of capital is unlawful except when sanctioned by the court. 100 each, subdivided the shares into 50000 shares of Rs. 12. 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. 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 divided into 5000 shares of Rs. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. 0000001160 00000 n 22. 0000004701 00000 n b) Revenue Profit. 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 In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. A Ltd. with a share capital of 10,000 equity shares of Rs. All rights reserved. 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 6) Internal reconstruction means a) Amalgamation in nature of merger. 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. 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. Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR 0000003758 00000 n AM$|?F9 UY When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction Taken over. 1. Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. The Sub division of shares does not result in ___________ of capital.a) reduction b) added c) Compromise d) none of the above, 4. Download PDF. 0000031742 00000 n 100 each. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. 10 each fully paid decides to repay Rs. If the creditors are willing to reduce their claims against the company, (hen the amount of reduction in their claim will be transferred to, 9. The internal reconstruction results in proper valuation of _________ and __________ of companies.a) Profit & Loss Account b) reserve & surplus c) assets and liabilities d) none of the above, 6. <<0ABB1FF79DCA334A925490CD6BFFDF14>]>> 10 each, consolidated the shares into 5000 shares of Rs. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only State whether the following statements are True or False: According to sec. 8) Pre-acquisition profit is a) Capital Profit. Download PDF. 0000001960 00000 n c) Super Profit. startxref t Mprq*8)i(jm8d^zmMNX3t;(e\96!w )?=jp- ]CDH-bf>~Ji}KZw]w#@tf;:HKGr?(1bXT)"Awtt,fs6og2~7Q{T! %@dJQap8?|K( q?$T0!8aq{e_>)I/` # 22 0 obj <> endobj 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. If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited a) authorized capital b) Called up capital c) Uncalled capital endstream endobj 72 0 obj <>stream To carry out capital reduction, permission is required from: 14. Alteration of share capital can be affected by passing an ordinary resolution. 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 : 31) Reconstruction includes all of the following except 32) . . Important Links: 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. 5 per share thus making each share of Rs. 0000005402 00000 n 0000002930 00000 n 11. It decides to convert its capital into 20,000 equity shares of Rs. Vertical Horizontal Conglomerate Demerger M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. 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. 81 0 obj <>stream hTA0>C. more mcqs. Save my name, email, and website in this browser for the next time I comment. Suraj Patel Education is one of the best blog on Education . It is a case of, 9. 100 each, subdivided the shares into 50000 shares of Rs. (a) 1 (b) 2 (a)3 (a) many 4. 0000007752 00000 n capital reduction A/C is transferred to : After the implementation of scheme of internal reconstruction, any amount left in the 0000006983 00000 n The word And reduced cannot be added to the name of the company if no direction has been given by the court. Accounting for Internal Reconstruction Important MCQs. Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. 0000040014 00000 n objective of our platform is to assist fellow students in preparing for exams and in their Studies Holding Company Accounts. Under which of the following circumstances can a company resort to internal reconstruction? In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` No journal entry is required for cancellation of unissued share capital. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. Accounting for Internal Reconstruction. 23. In internal reconstruction, the existing company will be . Absorption. 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 . 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) 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. Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. a) dissenting b) paying c) pay disentient shareholders vt00 Checkout Top Schools a) X Ltd. Having a share capital of Rs. 500000, Micro Economics Notes and Important Questions, Reducing share capital by returning the excess capital, Reducing the liability on account of uncalled capital. %PDF-1.5 % 0000003520 00000 n 5 fully paid. Merger Buyout Joint Venture De-merger 23Which merger involves firms engaged in unrelated types of activities? 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 The Shareholders can surrender shares for ________ or ____________ .a) re-issue, cancellation b)Fresh Issue, Redemption c) none of the above, 5. 500000 divided into 50000 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 A. Ans: a) Capital Profit. Multiple Choice Questions 1)Voluntary winding up: a)If period fixed for the company is expired. The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. gHc > &E]`v6DVMH HOf`a)XL?o D 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. Section 66 of the companies Act governs the internal reconstruction. U,]]. 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. 0000009547 00000 n Accounting for Internal Reconstruction Multiple choice questions and answers. The reduction of capital is permitted under _____________ of Companies Act. 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. When two or more existing companies combine together to form a new company, it is termed as. |:a=Z&v)kgAN"6]tBzy!NS b) Revenue Profit. #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 Cancellation of unissued capital is also a case of capital reduction. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital of Rs. 500000. b) X Ltd. Having a share capital of Rs. s Under Sec. Corporate Accounting MCQ Question Bank Reconstruction of Companies. A company is free to reduce or extinguish the uncalled liability of its members. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. ,ffFP7(]Pa&i& b+ + bg Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. Number 8/2 & 9, Sarjapur Road, Bengaluru, Karnataka- 560 103. 10 each fully paid. Under which of the following circumstances can a company resort to internal objective of our platform is to assist fellow students in preparing for exams and in their Studies J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ Accounting for Internal Reconstruction. hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! 1. 10 each fully paid decides to repay Rs. 59 0 obj <> endobj 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. 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. 500000 divided into 5000 shares of Rs. 10 each, consolidated the shares into 5000 shares of Rs. When a company converts its equity shares into the capital stock, then the account to be credited is , 4. hbbd```b``"A$v 100 each, converts it into stock. answer choices. %PDF-1.4 % Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU reconstruction? Ans: c) Capital Reduction. Bachelor of Business Administration (BBA). Copyright 2023 McqMate. A company has issued capital of 10,000 equity shares of Rs. Accounting for Amalgamation, Absorption and External. 30 seconds. 5 per share thus making each share of Rs. %%EOF A company has issued capital of 10,000 equity shares of Rs. JD%@"i0iB*c`EX Internal reconstruction result in the reduction of the capital of the company. (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 According to sec. 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 %%EOF 10 each. hVN;?*:_ The word And Reduced is added to the name of the company for such period as the court deems fit. Internal reconstruction. In ____________ , no new company is formed.a) External reconstruction b) Amalgamationc) internal reconstruction d) none of the above, 20. A brain-computer interface that decodes continuous language from non-invasive recordings would have many scientific and practical applications. 7) Post-acquisition Profit is a) Capital Profit. Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. Win vouchers worth INR 2,000 with our School Referral Program, Ranked Amongst Top 25 Companies by LinkedIn. Forfeiture and Surrender of shares is a case of capital reduction. Alteration of share capital can be affected by passing an ordinary resolution. The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. c) X Ltd. Having a share capital of Rs. 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. 0000000756 00000 n TRpH[QU4] (kB7v 25. 26. 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. 10 each fully paid. throughout their Academic career. Cancellation of unissued capital is also a case of capital reduction. 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 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. In case of sub-division of share capital the total number of shares: 2. Company Final Accounts. 5 each. Valuation of Shares. 1. The cancellation of contingent liability is____ for company. In which of the following cases, procedure of reduction of capital is not called for: 11. Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. 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. The term Internal Reconstruction means: 7. MULTIPLE CHOICE QUESTIONS 1. Multiple Choice Questions and Answers 1. 5 fully paid. I am also working on some other websites which will be published soon. Answer :- Increases 2. 20. __________ 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. 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 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. 0 MCQ on Internal Reconstruction : Multiple choice questions and answers December 18, 2021 by Abhimaynu Multiple choice questions and answers 1. Accounting procedure when internal reconstruction made 36) 7. Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o Computerized Accounting Practices. /PN|]fR9RW*YGfS{5B:>$VYq&Lop WGV1="]GVR:8M In internal reconstruction, increase in the value of fixed assets is credited to. Hn0w?Gr "% 2t0 In internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. trailer 0000000016 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. 10. 0000003198 00000 n 0000002299 00000 n In case of sub-division of share capital the total number of shares, 2. Only unsuccessful companies undertake capital reduction. --------- is the account created in connection with internal reconstruction. 5. xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl In case of , one existing company takes over the business of another company and no new company is formed Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. throughout their Academic career. c) Super Profit. 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 Company Liquidation Accounts. Internal Reconstruction MCQ MCQs on other topics of Financial Accounting Cost Accounting MCQs pdf 1. Learn more. 100 each, converts it into stock. The word And reduced cannot be added to the name of the company if no direction has been given by the court. 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 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: We would like to show you a description here but the site won't allow us. 100 each. The scheme of internal reconstruction can be utilized to provide ____________ for the company.a) funds b) share capital c) dividend d) none of the above, 16. Redemption of preference shares is a case of capital reduction. 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 . (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. Ans: b) Revenue Profit. Q. Internal Reconstruction is also known as Capital Reduction. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. 0 11. The scheme of internal reconstruction involves ___ company. 59 23 The full balance of capital is to be debited, if _____________ value is reduced. In case of Internal Reconstruction , the company is. A company must pass a special resolution for reduction of capital. Main aim of this blog is to provide all academic resources and information's especially for Commerce Stream Students. HUn9}om # Friends ye artical ke alava other subject Ke bhi article aapko mere website per mil jaenge jiska link me aapko niche de raha hu. 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. A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. Accounting for Amalgamation, Absorption and External. Manan Prakashan 1 CHAPTER - 1 : AMALGAMATION, ABSORBTION AND EXTERNAL RECONSTRUCTION (AS - 14) MULTIPLE CHOICE QUESTIONS. 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.
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