Reduction of capital is unlawful except when sanctioned by the court. The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. 5 fully paid. In a scheme of reorganisation amount of shares surrendered by shareholders is transferred to: 13. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. 0000009805 00000 n 22. 0000002930 00000 n Internal reconstruction. PDF Sample Questions For B.Com. ( Accounting & Finance) -Sem V 2019-2020 The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. 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I am also working on some other websites which will be published soon. In case of sub-division of share capital the total number of shares: 2. Internal Reconstruction is also known as Capital Reduction. xref Internal Reconstruction MCQ MCQs on other topics of Financial Accounting Cost Accounting MCQs pdf 1. objective of our platform is to assist fellow students in preparing for exams and in their Studies AM$|?F9 UY 8) Pre-acquisition profit is a) Capital Profit. 1. Shareholders not approving scheme is called _________ shareholders. 500000, Micro Economics Notes and Important Questions, Reducing share capital by returning the excess capital, Reducing the liability on account of uncalled capital. HyE$=T0dd$@>%o53mXe@8f2"0(#u8WLfR>|>ug2gcA9vQ]EFk`K%>)U"ih$OVFMGo&g2y.#d4H(!V$$ r t KZCO2IJaDR,~Tt,!Oq]RA>z$\IU In internal reconstruction, methods of calculation of purchase consideration is 33) Methods of capital reduction 34) While preparing Balance Sheet after reconstructed following points are to be kept in mind 35) 6. #2 MCQ for TYBCOM Sem 5 - Internal Reconstruction MCQ's - Financial AccountingThis lecture series contains all the MCQs related to TYBCOM Sem 5 - Financial AccountingFinancial Accounting MCQs Link:https://scholarsclasses.com/blog/preparation-of-final-accounts-of-companies-mcq/TYBCOM Sem 5 MCQs Link:https://scholarsclasses.com/blog/tybcom-sem-5-mcq/TYBCOM Sem 5 MCQs Lecture link:https://youtube.com/playlist?list=PLJ_81_DlRlyfEuIryW3MX4GvicwzWkHLKPlease like, share, and subscribeVideo Presented by :Prof. Tauseef Khan (M.Com, MBA, UGC - NET)Follow us on :Facebook: https://www.facebook.com/tauseef89/Twitter: https://twitter.com/tauseef_sirInstagram: https://www.instagram.com/tauseefsirVisit our websitehttps://www.scholarsclasses.com/blog#scholarszilla#tybcommcq#tauseefsir Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. trailer The full balance of capital is to be debited, if _____________ value is reduced.a) face b) market c) both of a & b d) none of the above, 12. endstream endobj 71 0 obj <>stream Amount sacrificed by shareholders are credited to: 14. TYBCom-Sem-VI-Financial Accounting MCQs - Studocu The Balance Sheet prepared after implementation of the scheme is to be prepared as per ____________.a) Schedule IV b) Schedule VI c) Schedule II d) Schedule III, 14. Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU Multiple Choice Questions 1)Voluntary winding up: a)If period fixed for the company is expired. 5. Agreement. 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 A company must pass a special resolution for reduction of capital. [Solved] Internal reconstruction is done due to JD%@"i0iB*c`EX b) Absorption. In ____________ , no new company is formed.a) External reconstruction b) Amalgamationc) internal reconstruction d) none of the above, 20. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. Accounting for Amalgamation, Absorption and External. Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. 5 fully paid. 20. A company is free to reduce or extinguish the uncalled liability of its members. 6) Internal reconstruction means a) Amalgamation in nature of merger. The Sub division of shares does not result in ___________ of capital.a) reduction b) added c) Compromise d) none of the above, 4. In internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. [Solved] Capital Reduction Account is a - mcqmate.com The full balance of capital is to be debited, if _____________ value is reduced. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. Corporate Accounting MCQ Question Bank Reconstruction of Companies. |4 26. Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. 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. Internal Reconstruction MCQ (Free) | Capital Reduction It is a case of: (i) Reducing share capital by returning the excess capital, (ii) Reducing the liability on account of uncalled capital. A company must pass a special resolution for reduction of capital. Our moto is to make Responsible Accountant and Employee of whichever is field whether student be like . Computerized Accounting Practices. Alteration of share capital can be affected by passing an ordinary resolution. 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. throughout their Academic career. Company Final Accounts. J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ b) X Ltd. Having a share capital of Rs. 55 0 obj <>stream 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. 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. 100 each, converts it into stock. Vertical Horizontal Conglomerate Demerger For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. Question 2. 780+ Corporate Accounting Solved MCQs with PDF Download - McqMate Eliminate the accumulated losses from the books. CORPORATE ACCOUTNING ( MCQS WITH ANWERS) - Studocu GUD}%DQO}$m|@}L*#{`g5fd4"b~d|{\?1>c:-G $}gKYVAAy)>uvH/4SPHl"@@9HI,+XP f!M7fNG/_M=,(\q #d5*-1Kv 1,G( 4^:SiOfuN7"z~7~D`K773QspCMcJ|H"#6 r+i7.eW>Q3 sT 2g3O\b ^_T_ET_[JD=+x[oct;GYO|T-"['SRt~"7f If the shares of smaller denomination-are converted into the shares of higher denomination without changing the total amount of share capital, then it is a case of: (iii) Decrease in unissued share capital. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction Internal Reconstruction MCQ (Free) | Capital Reduction The cancellation of contingent liability is____ for company. It decides to convert its capital into 20,000 equity shares of Rs. The word And reduced cannot be added to the name of the company if no direction has been given by the court. A company is free to reduce or extinguish the uncalled liability of its members. Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 11. Our website uses cookies to improve your experience. reconstruction? M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. hbbd```b``"A$v throughout their Academic career. A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. Currently, however, non-invasive language decoders . Hn0w?Gr "% 2t0 endstream endobj startxref PDF Amalgamation, Absorption & External reconstruction - NKT Degree College 100 each, converts it into stock. 5 each. %%EOF Important Links: 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. U,]]. Reconstruction of Companies MCQ - SlideShare Checkout Top Schools Save my name, email, and website in this browser for the next time I comment. 500000 divided into 5000 shares of Rs. We provide you study material i.e. The word And reduced cannot be added to the name of the company if no direction has been given by the court. The Capital reduction means reduction in ____________ value of shares. 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. 0000007752 00000 n Valuation of Shares. Q. 0000000016 00000 n Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR 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. 0 Holding Company Accounts. Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. Question and answers in Accounting for Internal Reconstruction. 10 each fully paid decides to repay Rs. PDF Chapter - 1 : Amalgamation, Absorbtion and External Reconstruction (As 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. Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? Download CA Inter Notes Pdf May 2022 - CA Test Series 18. c) Capital Reduction. Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. All rights reserved. Corporate Accounting Multiple Choice Questions and Answers (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. When a company converts its equity shares into the capital stock, then the account to be credited is , 4. Cancellation of unissued capital is also a case of capital reduction. Copyright 2023 McqMate. Bachelor of Business Administration (BBA). 0000003198 00000 n answer choices. #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. 30 seconds. HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R The reduction of capital is permitted under _____________ of Companies Act. 10 each fully paid. The word And Reduced is added to the name of the company for such period as the court deems fit. The scheme of internal reconstruction involves ___ company. hVN;?*:_ 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. The expenses for forming and implementing scheme should be debited to ____________ .a) security premium b) share capital c) Internal reconstruction d) capital reduction, 15. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream Accounting for Internal Reconstruction [Set 1] PDF, Accounting for Amalgamation, Absorption and External, Chapter: Accounting for Internal Reconstruction. capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). endstream endobj 26 0 obj <>stream Absorption. Irk#nf`S_Jlhf6+xx?$UZ$yZ}opP~ fCJ[1[nS+\M]_pOgut9qiWb|Tr@r`Xj 8p2_7y#@DZpNS80dJ^3S2RzP3;! Number 8/2 & 9, Sarjapur Road, Bengaluru, Karnataka- 560 103. Under which of the following circumstances can a company resort to internal In case of sub-division of share capital the total number of shares, 2. All rights reserved. 25. (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 It is a case of, 9. According to sec. Company Liquidation Accounts. PDF Question Bank Corporate Restructuring Sem Vi Oct. 2020 - Rset (a) 1 (b) 2 (a)3 (a) many 4. Accounting for Internal Reconstruction Solved MCQs - McqMate #2 MCQ for TYBCOM Sem 5 - Internal Reconstruction MCQ's - YouTube d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb 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. more mcqs. We would like to show you a description here but the site won't allow us. Manan Prakashan 1 CHAPTER - 1 : AMALGAMATION, ABSORBTION AND EXTERNAL RECONSTRUCTION (AS - 14) MULTIPLE CHOICE QUESTIONS. a) authorized capital b) Called up capital c) Uncalled capital 0000001960 00000 n Suraj Patel Education is one of the best blog on Education . Valuation of Shares. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. 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. 500000. b) X Ltd. Having a share capital of Rs. 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. 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. A company has issued capital of 10,000 equity shares of Rs. Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. Internal Reconstruction | Specialty Quiz - Quizizz Ans: b) Revenue Profit. The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. 12. 0 ] It decides to convert its capital into 20,000 equity shares of Rs. %PDF-1.4 % (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. 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 c) Super Profit. |:a=Z&v)kgAN"6]tBzy!NS hTA0>C. Section 66 of the companies Act governs the internal reconstruction. Save my name, email, and website in this browser for the next time I comment. 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 Accounting for Internal Reconstruction. %%EOF In case of , one existing company takes over the business of another company and no new company is formed 81 0 obj <>stream When two or more existing companies combine together to form a new company, it is termed as. 59 0 obj <> endobj in Bangalore here: Software Service 0000000756 00000 n 11. . 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. 16. External reconstruction. TRpH[QU4] (kB7v It is a case of, 8. Internal Reconstruction of Company Capital Restructuring MCQs Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only s 30 seconds. 0000006175 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: 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. 0000001160 00000 n 500000 divided into 50000 shares of Rs. Forfeiture and Surrender of shares is a case of capital reduction. more mcqs. 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 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 Virtual Classroom and LMS Software | WizIQ Download PDF. 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 Ltd. with a share capital of 10,000 equity shares of Rs. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. Internal Reconstruction and Capital Reduction Notes, Corporate 500000 divided into 5000 shares of Rs. Internal Reconstruction - Commerceiets 500000 divided into 5000 shares of Rs. When an existing company takes over the business of one or more existing companies, it is called. T.Y.B.com Financial Accounting mcq with answers - Suraj Patel Education 0000003520 00000 n Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. The Shareholders can surrender shares for ________ or ____________ .a) re-issue, cancellation b)Fresh Issue, Redemption c) none of the above, 5. 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. 23. Company Final Accounts. 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 Internal reconstruction is done due to .. /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` ,ffFP7(]Pa&i& b+ + bg 21.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. Download PDF. objective of our platform is to assist fellow students in preparing for exams and in their Studies Reduction of capital is unlawful except when sanctioned by the court. In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. Internal reconstruction Definition & Meaning | Dictionary.com McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only 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 Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. Answer :- Increases 2. endstream endobj 72 0 obj <>stream a) 77 b) 100 c) 66 d) 75 2. Accounting for Internal Reconstruction Multiple choice questions and answers. 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. PDF Multiple Choice Questions b) Revenue Profit. 10 each fully paid decides to repay Rs. 4~"\ MULTIPLE CHOICE QUESTIONS 1. Holding Company Accounts. 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 : 500000 divided into 50000 shares of Rs. For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. Q. 64 of the Companies Act, 2013 the company shall give notice of the alternation of capital to the registrar within 45 days. HUn9}om # 1. --------- is the account created in connection with internal reconstruction. __________ 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. 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. 0000003758 00000 n 59 23 c) X Ltd. Having a share capital of Rs. Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. 0000001427 00000 n 0000001241 00000 n 100 each. Under which of the following circumstances can a company resort to internal reconstruction? PDF Amalgamation, Absorption & External reconstruction - NKT Degree College 10. The term Internal Reconstruction means: 7. 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. Win vouchers worth INR 2,000 with our School Referral Program, Ranked Amongst Top 25 Companies by LinkedIn. 0000003418 00000 n a) face b) market c) both of a & b d) none of the above 12. Redemption of preference shares is a case of capital reduction. Merged with another co. The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. Computerized Accounting Practices. Internal reconstruction result in the reduction of the capital of the company. 1. To carry out capital reduction, permission is required from: 14. Turn around. Cancellation of unissued capital is also a case of capital reduction. Merger Buyout Joint Venture De-merger 23Which merger involves firms engaged in unrelated types of activities? answer choices. 100 each. 0000001534 00000 n 0000009547 00000 n Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. vt00 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. 10 each, consolidated the shares into 5000 shares of Rs.

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