|:a=Z&v)kgAN"6]tBzy!NS In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. 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. Accounting procedure when internal reconstruction made 36) 7. 0000001241 00000 n 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: hVN;?*:_ 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. A company has issued capital of 10,000 equity shares of Rs. For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. AM$|?F9 UY 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. The Shareholders can surrender shares for ________ or ____________ .a) re-issue, cancellation b)Fresh Issue, Redemption c) none of the above, 5. Copyright 2023 McqMate. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only Taken over. I am also working on some other websites which will be published soon. 10 each, consolidated the shares into 5000 shares of Rs. Suraj Patel Education is one of the best blog on Education . Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. 5 each. 100 each, converts it into stock. 0000009805 00000 n Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. Hn0w?Gr "% 2t0 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. 500000 divided into 5000 shares of Rs. Ans: b) Revenue Profit. 0000001534 00000 n Copyright 2023 McqMate. c) X Ltd. Having a share capital of Rs. capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). %%EOF 64 of the Companies Act, 2013 the company shall give notice of the alternation of capital to the registrar within 45 days. a) authorized capital b) Called up capital c) Uncalled capital It decides to convert its capital into 20,000 equity shares of Rs. To carry out capital reduction, permission is required from: a) X Ltd. Having a share capital of Rs. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. 26. reconstruction? more mcqs. 0000008674 00000 n Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital of Rs. 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. 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. 12. When a company converts its equity shares into the capital stock, then the account to be credited is , 4. 0000003520 00000 n The word And reduced cannot be added to the name of the company if no direction has been given by the court. 19. JD%@"i0iB*c`EX 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 . 10 each. A company has issued capital of 10,000 equity 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 internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. Redemption of preference shares is a case of capital reduction. Reduction of capital is unlawful except when sanctioned by the court. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. Accounting for Internal Reconstruction [Set 1] PDF, Accounting for Amalgamation, Absorption and External, Chapter: Accounting for Internal Reconstruction. 500000 divided into 50000 shares of Rs. Q. 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. 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. A Ltd. with a share capital of 10,000 equity shares of Rs. 30 seconds. Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. 10 each fully paid. The term Internal Reconstruction means: 7. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. Save my name, email, and website in this browser for the next time I comment. Bachelor of Business Administration (BBA). 20. HyE$=T0dd$@>%o53mXe@8f2"0(#u8WLfR>|>ug2gcA9vQ]EFk`K%>)U"ih$OVFMGo&g2y.#d4H(!V$$ r t KZCO2IJaDR,~Tt,!Oq]RA>z$\IU Turn around. t Mprq*8)i(jm8d^zmMNX3t;(e\96!w )?=jp- ]CDH-bf>~Ji}KZw]w#@tf;:HKGr?(1bXT)"Awtt,fs6og2~7Q{T! %@dJQap8?|K( q?$T0!8aq{e_>)I/` # Accounting for Amalgamation, Absorption and External. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. 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. 10 each fully paid decides to repay Rs. Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. Cancellation of unissued capital is also a case of capital reduction. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. Save my name, email, and website in this browser for the next time I comment. Accounting for Internal Reconstruction. 0000001160 00000 n (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. 0000002930 00000 n 5 each. 0000004701 00000 n Download PDF. 8) Pre-acquisition profit is a) Capital Profit. Section 66 of the companies Act governs the internal reconstruction. The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. 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. 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. 10 each. Our moto is to make Responsible Accountant and Employee of whichever is field whether student be like . 0000000016 00000 n Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. trailer The HUB, Sy. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. 100 each, converts it into stock. in Bangalore here: Software Service When an existing company takes over the business of one or more existing companies, it is called. Ans: c) Capital Reduction. 100 each, subdivided the shares into 50000 shares of Rs. 0000000756 00000 n Irk#nf`S_Jlhf6+xx?$UZ$yZ}opP~ fCJ[1[nS+\M]_pOgut9qiWb|Tr@r`Xj 8p2_7y#@DZpNS80dJ^3S2RzP3;! A company is free to reduce or extinguish the uncalled liability of its members. External reconstruction. %PDF-1.5 % Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. Under which of the following circumstances can a company resort to internal reconstruction? In case of Internal Reconstruction , the company is. Absorption. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. 30 seconds. The reduction of capital is permitted under _____________ of Companies Act. In a scheme of reorganisation amount of shares surrendered by shareholders is transferred to: 13. Answer :- Increases 2. 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 500000 divided into 5000 shares of Rs. 0 18. 100 each, subdivided the shares into 50000 shares of Rs. It decides to convert its capital into 20,000 equity shares of Rs. Only unsuccessful companies undertake capital reduction. J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ In case of sub-division of share capital the total number of shares Increases Decreases Does not change. 7) Post-acquisition Profit is a) Capital Profit. endstream endobj 72 0 obj <>stream Shareholders not approving scheme is called _________ shareholders. 500000 divided into 50000 shares of Rs. Alteration of share capital can be affected by passing an ordinary resolution. A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! 0000005402 00000 n s Holding Company Accounts. Important Links: 0000006175 00000 n 0000031742 00000 n Forfeiture and Surrender of shares is a case of capital reduction. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. A brain-computer interface that decodes continuous language from non-invasive recordings would have many scientific and practical applications. xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl 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 McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only Q. Amount sacrificed by shareholders are credited to: 13. endstream endobj 26 0 obj <>stream 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. (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. Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. In case of sub-division of share capital the total number of shares: 2. 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) objective of our platform is to assist fellow students in preparing for exams and in their Studies The Capital reduction means reduction in ____________ value of shares. more mcqs. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. Amount sacrificed by shareholders are credited to: 14. 100 each. 59 23 U,]]. __________ 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. 0000009547 00000 n xref According to sec. 5. 10 each fully paid. Accounting for Amalgamation, Absorption and External. A company must pass a special resolution for reduction of capital. ,ffFP7(]Pa&i& b+ + bg 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 3. A company must pass a special resolution for reduction of capital. In case of sub-division of share capital the total number of shares, 2. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. No journal entry is required for cancellation of unissued share capital. 15. 1. Cancellation of unissued capital is also a case of capital reduction. /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` The word And Reduced is added to the name of the company for such period as the court deems fit. endstream endobj startxref Learn more. c) Capital Reduction. a) dissenting b) paying c) pay disentient shareholders Download PDF. 81 0 obj <>stream 0 When two or more existing companies combine together to form a new company, it is termed as. GUD}%DQO}$m|@}L*#{`g5fd4"b~d|{\?1>c:-G $}gKYVAAy)>uvH/4SPHl"@@9HI,+XP f!M7fNG/_M=,(\q #d5*-1Kv 1,G( 4^:SiOfuN7"z~7~D`K773QspCMcJ|H"#6 r+i7.eW>Q3 sT 2g3O\b ^_T_ET_[JD=+x[oct;GYO|T-"['SRt~"7f Checkout Top Schools The Sub division of shares does not result in ___________ of capital.a) reduction b) added c) Compromise d) none of the above, 4. Under Sec. 1)66 2)paidup value 3)reduction 4)re-issue, cancellation 5)assets and liabilities 6)NCLT 7)Special 8)Capital Reduction 9)Capital Reduction 10)capital reduction or internal reconstruction, HSC Question Paper 2023 12th Commerce (Download Free pdf), HSC OCM Paper 2023 March Maharashtra Board | Download Free Pdf, HSC SP Paper 2023 March Maharashtra Board | Download Free Pdf, HSC Hindi Paper 2023 March Maharashtra Board | Download Free Pdf, HSC English Paper 2023 March | Download Free Pdf, 11th OCM Chapter 8 Exercise (Introduction to Management) Maharashtra Board Free Resource, 11th OCM Chapter 7 Exercise (Business Environment) Maharashtra Board Free Resource, MCQs on other topics of Financial Accounting, Financial Accounting Mcqs | More Than 700 Free MCQs, 12th SP Chapter 6 Solution (Correspondence with Members) Maharashtra Board Free Solution. vt00 1. 0000002299 00000 n It is a case of, 8. 0000006983 00000 n HUn9}om # Accounting for Internal Reconstruction Multiple choice questions and answers. --------- is the account created in connection with internal reconstruction. TRpH[QU4] (kB7v 31) Reconstruction includes all of the following except 32) . In which of the following cases, procedure of reduction of capital is not called for: 11. HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? a) X Ltd. Having a share capital of Rs. 5 fully paid. hbbd```b``"A$v d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb Number 8/2 & 9, Sarjapur Road, Bengaluru, Karnataka- 560 103. Merger Buyout Joint Venture De-merger 23Which merger involves firms engaged in unrelated types of activities? 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 0000003758 00000 n Internal reconstruction. a) face b) market c) both of a & b d) none of the above 12. /PN|]fR9RW*YGfS{5B:>$VYq&Lop WGV1="]GVR:8M 100 each. 0000040014 00000 n 500000 divided into 5000 shares of Rs. A company is free to reduce or extinguish the uncalled liability of its members. hTA0>C. 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. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. 0000007752 00000 n 500000 divided into 5000 shares of Rs. It is a case of: (i) Reducing share capital by returning the excess capital, (ii) Reducing the liability on account of uncalled capital. 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. 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. 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. 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 : The expenses for forming and implementing scheme should be debited to ____________ .a) security premium b) share capital c) Internal reconstruction d) capital reduction, 15. 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 Company Final Accounts. b) Revenue Profit. Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR Bring down the assets to their true values. Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. 10. Accounting for Internal Reconstruction Important MCQs. :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. b) Revenue Profit. %%EOF #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. 6) Internal reconstruction means a) Amalgamation in nature of merger. The word And reduced cannot be added to the name of the company if no direction has been given by the court. All rights reserved. 0000001960 00000 n Agreement. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. Vertical Horizontal Conglomerate Demerger a) 77 b) 100 c) 66 d) 75 2. The scheme of internal reconstruction involves ___ company. objective of our platform is to assist fellow students in preparing for exams and in their Studies answer choices. State whether the following statements are True or False: According to sec. It is a case of, 9. Multiple Choice Questions and Answers 1. 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.