For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. trailer Amount sacrificed by shareholders are credited to: 14. 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 The Shareholders can surrender shares for ________ or ____________ .a) re-issue, cancellation b)Fresh Issue, Redemption c) none of the above, 5. 0 ] b) Revenue Profit. Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. The word And reduced cannot be added to the name of the company if no direction has been given by the court. It decides to convert its capital into 20,000 equity shares of Rs. Redemption of preference shares is a case of capital reduction. Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital of Rs. Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. 11. Suraj Patel Education is one of the best blog on Education . If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited 4~"\ 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 Accounting for Internal Reconstruction [Set 1] PDF, Accounting for Amalgamation, Absorption and External, Chapter: Accounting for Internal Reconstruction. 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. Company Liquidation Accounts. startxref vt00 Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. Number 8/2 & 9, Sarjapur Road, Bengaluru, Karnataka- 560 103. Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. The Capital reduction means reduction in ____________ value of shares. 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. 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 Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. Internal Reconstruction is also known as Capital Reduction. 5 per share thus making each share 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: (i) Share capital account 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. a) X Ltd. Having a share capital of Rs. Reduction of capital is unlawful except when sanctioned by the court. 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 divided into 5000 shares of Rs. objective of our platform is to assist fellow students in preparing for exams and in their Studies d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb 1. Amount sacrificed by shareholders are credited to: 13. a) authorized capital b) Called up capital c) Uncalled capital /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. Question 2. 10 each, consolidated the shares into 5000 shares of Rs. M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. In case of sub-division of share capital the total number of shares, 2. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. Vertical Horizontal Conglomerate Demerger A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. Eliminate the accumulated losses from the books. endstream endobj 72 0 obj <>stream Under Sec. 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. c) Super Profit. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. 0000001160 00000 n It decides to convert its capital into 20,000 equity shares 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. Irk#nf`S_Jlhf6+xx?$UZ$yZ}opP~ fCJ[1[nS+\M]_pOgut9qiWb|Tr@r`Xj 8p2_7y#@DZpNS80dJ^3S2RzP3;! McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only The term Internal Reconstruction means: 7. The scheme of internal reconstruction involves ___ company. 59 23 __________ 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. Shareholders not approving scheme is called _________ shareholders. Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. Amalgamation. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. 0000009547 00000 n The video explains important mcqs on Internal Reconstruction of company #Capital Reduction #Account No journal entry is required for cancellation of unissued share capital. Internal reconstruction. Learn more. Company Liquidation Accounts. 0000009805 00000 n 10 each fully paid decides to repay Rs. A company must pass a special resolution for reduction of capital. Follow me on YouTube - Dynamic Tutorials and Services. 5 fully paid. The reduction of capital is permitted under _____________ of Companies Act. Ans: b) Revenue Profit. Under which of the following circumstances can a company resort to internal HUn9}om # In internal reconstruction, increase in the value of fixed assets is credited to. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. Holding Company Accounts. #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. Hn0w?Gr "% 2t0 25. xref I am also working on some other websites which will be published soon. Download PDF. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. objective of our platform is to assist fellow students in preparing for exams and in their Studies State whether the following statements are True or False: According to sec. We provide you study material i.e. 31) Reconstruction includes all of the following except 32) . 0000031742 00000 n 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. Valuation of Shares. 0000000756 00000 n Accounting for Internal Reconstruction Important MCQs. 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. 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. External reconstruction. 0000006983 00000 n 0000008674 00000 n AM$|?F9 UY Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. 0 Forfeiture and Surrender of shares is a case of capital reduction. 5 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. 3. https://www.surajpateleducation.com/2021/01/marketing-research-tybcom-mcq-pdf.html, https://www.surajpateleducation.com/2020/12/human-resource-management-tybcom-mcq.html, https://www.surajpateleducation.com/2020/12/cost-accounting-tybcom-mcq-pdf.html, https://www.surajpateleducation.com/2020/10/mcom-tybcom-indirect-tax-20-most.html, https://www.surajpateleducation.com/2020/09/direct-tax-sem-v-atkt-question-bank-2020.html, Strategic Management Question Bank Than Pay Rs 100 Only, Dosto Agar App Vedio Dekhana Chate Ho Related Education To Aap Mere Youtube Channel Par Jaskate Ho Dosto Niche Link Derha Hu, DIRECT TAX SEM V (ATKT) Question Bank-2020, F.Y.B.COM Environmental Studies MCQ PDF | Environmental Studies MCQ, T.Y.B.COM MCQ | T.Y.B.COM Mumbai University All Subject MCQ, ADVANCED CORPORATE ACCOUNTING M.COM PART 1 MCQ. 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. hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! We would like to show you a description here but the site won't allow us. 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. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. 10 each. Question and answers in Accounting for Internal Reconstruction. When a company converts its equity shares into the capital stock, then the account to be credited is , 4. 11. 100 each, converts it into stock. 81 0 obj <>stream Internal Reconstruction MCQ MCQs on other topics of Financial Accounting Cost Accounting MCQs pdf 1. Company Final Accounts. A company is free to reduce or extinguish the uncalled liability of its members. HT=s0+8xDmC?AX9jbN:w)Pgj!V-[._ KDaTJj1~' It is a case of, 8. Important Links: MCQ on Internal Reconstruction : Multiple choice questions and answers December 18, 2021 by Abhimaynu Multiple choice questions and answers 1. Copyright 2023 McqMate. Section 66 of the companies Act governs the internal reconstruction. ,ffFP7(]Pa&i& b+ + bg 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. a) 77 b) 100 c) 66 d) 75 2. TRpH[QU4] (kB7v 10 each fully paid. Ans: c) Capital Reduction. U,]]. Q. Internal reconstruction result in the reduction of the capital of the company. 0000000016 00000 n capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). 0000001534 00000 n 100 each. |:a=Z&v)kgAN"6]tBzy!NS 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. 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/` # Accounting for Internal Reconstruction. Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. 0000005402 00000 n 10 each, consolidated the shares into 5000 shares of Rs. %%EOF 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. capital reduction A/C is transferred to : After the implementation of scheme of internal reconstruction, any amount left in the 5 per share thus making each share of Rs. When two or more existing companies combine together to form a new company, it is termed as. 10 each. hTA0>C. The word And reduced cannot be added to the name of the company if no direction has been given by the court. Q. (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 1. gHc > &E]`v6DVMH HOf`a)XL?o D A company has issued capital of 10,000 equity shares of Rs. 20. <<0ABB1FF79DCA334A925490CD6BFFDF14>]>> a) face b) market c) both of a & b d) none of the above 12. 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 word And Reduced is added to the name of the company for such period as the court deems fit. 55 0 obj <>stream 59 0 obj <> endobj 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: endstream endobj 26 0 obj <>stream xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl In internal reconstruction, amount sacrificed by shareholders are credited to.. Internal reconstruction is a slow and tedious process since it required the approval of : After the implementation of the scheme of internal reconstruction , any surplus in 500000 divided into 50000 shares of Rs. Currently, however, non-invasive language decoders . No journal entry is required for cancellation of unissued share capital. Alteration of share capital can be affected by passing an ordinary resolution. answer choices. GUD}%DQO}$m|@}L*#{`g5fd4"b~d|{\?1>c:-G $}gKYVAAy)>uvH/4SPHl"@@9HI,+XP f!M7fNG/_M=,(\q #d5*-1Kv 1,G( 4^:SiOfuN7"z~7~D`K773QspCMcJ|H"#6 r+i7.eW>Q3 sT 2g3O\b ^_T_ET_[JD=+x[oct;GYO|T-"['SRt~"7f Save my name, email, and website in this browser for the next time I comment. %PDF-1.4 % Companies may combine in following ways (i) absorption (ii) amalgamation (iii)external reconstruction (iv)internal reconstruction (v) merger (a) any of above (b) none of above (c) any except (iv) (d) any except (v) 2. reconstruction? 15. 26. JD%@"i0iB*c`EX The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. Accounting for Internal Reconstruction Multiple choice questions and answers. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? %%EOF Company Final Accounts. Internal reconstruction definition, the hypothetical reconstruction of an earlier stage of a language or of some part of it, as its phonology, by deductions from irregularities in its present structure, as the reconstruction of a stage in English when certain instances of r were related to s in a systematic way by comparing the pair was:were to other pairs, as lose:forlorn. 0000007752 00000 n A Ltd. with a share capital of 10,000 equity shares of Rs. Agreement. more mcqs. Reduction of capital is unlawful except when sanctioned by the court. Turn around. Accounting for Amalgamation, Absorption and External. :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o answer choices. 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. To carry out capital reduction, permission is required from: 14. 0000002930 00000 n The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. c) X Ltd. Having a share capital of Rs. 21.Only unsuccessful companies undertake capital reduction. Answer :- Increases 2. The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. b) Revenue Profit. 0000006175 00000 n MULTIPLE CHOICE QUESTIONS 1. Holding Company Accounts. The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. 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.