When an existing company takes over the business of one or more existing companies, it is called. . 500000 divided into 5000 shares of Rs. 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: Ans: c) Capital Reduction. We provide you study material i.e. 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. Company Final Accounts. Accounting for Amalgamation, Absorption and External. 0000003520 00000 n A brain-computer interface that decodes continuous language from non-invasive recordings would have many scientific and practical applications. If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited Accounting for Internal Reconstruction Important MCQs. Valuation of Shares. Answer :- Increases 2. Amount sacrificed by shareholders are credited to: 13. c) Super Profit. 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. 500000 divided into 50000 shares of Rs. In case of , one existing company takes over the business of another company and no new company is formed Download PDF. 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 Multiple Choice Questions 1)Voluntary winding up: a)If period fixed for the company is expired. (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. AM$|?F9 UY 500000 divided into 5000 shares of Rs. Internal reconstruction result in the reduction of the capital of the company. a) dissenting b) paying c) pay disentient shareholders 22 0 obj <> endobj If the shares of smaller denomination-are converted into the shares of higher denomination without changing the total amount of share capital, then it is a case of, 3. Copyright 2023 McqMate. Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. 0000001534 00000 n 16. Amount sacrificed by shareholders are credited to: 14. 10 each, consolidated the shares into 5000 shares of Rs. 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M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. In internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. It is a case of: (i) Reducing share capital by returning the excess capital, (ii) Reducing the liability on account of uncalled capital. b) Revenue Profit. 15. reconstruction? 21.Only unsuccessful companies undertake capital reduction. 5 each. 500000. b) X Ltd. Having a share capital of Rs. The cancellation of contingent liability is____ for company. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. A company must pass a special resolution for reduction of capital. The word And reduced cannot be added to the name of the company if no direction has been given by the court. t Mprq*8)i(jm8d^zmMNX3t;(e\96!w )?=jp- ]CDH-bf>~Ji}KZw]w#@tf;:HKGr?(1bXT)"Awtt,fs6og2~7Q{T! %@dJQap8?|K( q?$T0!8aq{e_>)I/` # 100 each, subdivided the shares into 50000 shares of Rs. 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. 0000001160 00000 n 10 each fully paid. (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. GUD}%DQO}$m|@}L*#{`g5fd4"b~d|{\?1>c:-G $}gKYVAAy)>uvH/4SPHl"@@9HI,+XP f!M7fNG/_M=,(\q #d5*-1Kv 1,G( 4^:SiOfuN7"z~7~D`K773QspCMcJ|H"#6 r+i7.eW>Q3 sT 2g3O\b ^_T_ET_[JD=+x[oct;GYO|T-"['SRt~"7f Ans: b) Revenue Profit. c) Super Profit. hbbd```b``"A$v 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. 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 Under which of the following circumstances can a company resort to internal reconstruction? |:a=Z&v)kgAN"6]tBzy!NS Company Final Accounts. In internal reconstruction, increase in the value of fixed assets is credited to. s HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R Internal Reconstruction MCQ MCQs on other topics of Financial Accounting Cost Accounting MCQs pdf 1. 500000 divided into 5000 shares of Rs. Internal reconstruction is done due to .. Absorption. 10 each fully paid. We provide you study material i.e. Accounting for Internal Reconstruction. a) face b) market c) both of a & b d) none of the above 12. <<0ABB1FF79DCA334A925490CD6BFFDF14>]>> Holding Company Accounts. In case of sub-division of share capital the total number of shares, 2. Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. Hn0w?Gr "% 2t0 wound up. 0000009547 00000 n 5 each. %PDF-1.5 % Turn around. 12. The full balance of capital is to be debited, if _____________ value is reduced. Multiple Choice Questions. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. Holding Company Accounts. HT=s0+8xDmC?AX9jbN:w)Pgj!V-[._ KDaTJj1~' In internal reconstruction, the existing company will be . Ans: a) Capital Profit. 500000 divided into 5000 shares of Rs. The scheme of internal reconstruction involves ___ company. Under Sec. a) X Ltd. Having a share capital of Rs. 0000000016 00000 n Shareholders not approving scheme is called _________ shareholders. Company Liquidation Accounts. JD%@"i0iB*c`EX In case of Internal Reconstruction , the company is. Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. A company has issued capital of 10,000 equity shares of Rs. Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. 81 0 obj <>stream Accounting for Internal Reconstruction Multiple choice questions and answers. b) X Ltd. Having a share capital of Rs. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream When two or more existing companies combine together to form a new company, it is termed as. 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: 11. a) authorized capital b) Called up capital c) Uncalled capital 0 Computerized Accounting Practices. (a) 1 (b) 2 (a)3 (a) many 4. Save my name, email, and website in this browser for the next time I comment. We would like to show you a description here but the site won't allow us. Follow me on YouTube - Dynamic Tutorials and Services. more mcqs. It decides to convert its capital into 20,000 equity shares of Rs. 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 5 per share thus making each share of Rs. 10 each fully paid decides to repay 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. 59 0 obj <> endobj 0000007752 00000 n Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital of Rs. 10 each, consolidated the shares into 5000 shares of Rs. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. Alteration of share capital can be affected by passing an ordinary resolution. It is a case of, 9. Amalgamation. A company is free to reduce or extinguish the uncalled liability of its members. 0000006983 00000 n TRpH[QU4] (kB7v 0000008674 00000 n 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. --------- is the account created in connection with internal reconstruction. 30 seconds. 0000005402 00000 n Only unsuccessful companies undertake capital reduction. 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 Valuation of Shares. /PN|]fR9RW*YGfS{5B:>$VYq&Lop WGV1="]GVR:8M 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) Merger Buyout Joint Venture De-merger 23Which merger involves firms engaged in unrelated types of activities? 100 each. The HUB, Sy. 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. 0000003418 00000 n To carry out capital reduction, permission is required from: a) X Ltd. Having a share capital of Rs. Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. %PDF-1.4 % 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 in Bangalore here: Software Service The expenses for forming and implementing scheme should be debited to ____________ .a) security premium b) share capital c) Internal reconstruction d) capital reduction, 15. 10 each fully paid decides to repay Rs. 10. answer choices. c) Capital Reduction. 1. 0000002299 00000 n 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. b) Revenue Profit. Internal Reconstruction is also known as Capital Reduction. endstream endobj 72 0 obj <>stream A Ltd. with a share capital of 10,000 equity shares of Rs. 0000006175 00000 n 8) Pre-acquisition profit is a) Capital Profit. 7) Post-acquisition Profit is a) Capital Profit. objective of our platform is to assist fellow students in preparing for exams and in their Studies Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. In case of sub-division of share capital the total number of shares: 2. throughout their Academic career. 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. Question and answers in Accounting for Internal Reconstruction. Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. 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. 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. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to , 7. 19. 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. Suraj Patel Education is one of the best blog on Education . A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. 0000001427 00000 n 500000 divided into 50000 shares of Rs. 100 each, converts it into stock. Multiple Choice Questions and Answers 1. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only Cancellation of unissued capital is also a case of capital reduction. 0000001241 00000 n xref Download PDF. 55 0 obj <>stream 6) Internal reconstruction means a) Amalgamation in nature of merger. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. 25. xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl Q. gHc > &E]`v6DVMH HOf`a)XL?o D startxref :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. 26. 5. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. The video explains important mcqs on Internal Reconstruction of company #Capital Reduction #Account Q. 5 fully paid. 10 each. Question 2. 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 17. The objective of reconstruction is to write off ___________ .a) profit b) accumulated losses c) nil d) none of the above, 18. 10 each. According to sec. Under which of the following circumstances can a company resort to internal To carry out capital reduction, permission is required from: 14. hVN;?*:_ 11. 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. 0000003198 00000 n Forfeiture and Surrender of shares is a case of capital reduction. Copyright 2023 McqMate. trailer It decides to convert its capital into 20,000 equity shares of Rs. HUn9}om # Computerized Accounting Practices. 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. When a company converts its equity shares into the capital stock, then the account to be credited is , 4. Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. HyE$=T0dd$@>%o53mXe@8f2"0(#u8WLfR>|>ug2gcA9