internal reconstruction mcq

Accounting for Amalgamation, Absorption and External. (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 Holding Company Accounts. wound up. objective of our platform is to assist fellow students in preparing for exams and in their Studies 81 0 obj <>stream In a scheme of reorganisation amount of shares surrendered by shareholders is transferred to: 13. 0000000756 00000 n 30 seconds. 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. It decides to convert its capital into 20,000 equity shares of Rs. 55 0 obj <>stream In case of sub-division of share capital the total number of shares: 2. If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited . Company Final Accounts. MULTIPLE CHOICE QUESTIONS 1. b) Revenue Profit. 6) Internal reconstruction means a) Amalgamation in nature of merger. :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o 0000009805 00000 n Company Final Accounts. 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. Manan Prakashan 1 CHAPTER - 1 : AMALGAMATION, ABSORBTION AND EXTERNAL RECONSTRUCTION (AS - 14) MULTIPLE CHOICE QUESTIONS. 500000 divided into 50000 shares of Rs. Reduction of capital is unlawful except when sanctioned by the court. Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 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. 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 . Checkout Top Schools HUn9}om # 11. xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl Number 8/2 & 9, Sarjapur Road, Bengaluru, Karnataka- 560 103. b) Absorption. 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. endstream endobj startxref Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. 0 in Bangalore here: Software Service Accounting for Internal Reconstruction Multiple choice questions and answers. 5 each. a) dissenting b) paying c) pay disentient shareholders 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. 5 fully paid. In which of the following cases, procedure of reduction of capital is not called for: 11. Internal Reconstruction is also known as Capital Reduction. 5. Under which of the following circumstances can a company resort to internal 0 ] The term Internal Reconstruction means: 7. Share Capital A/c (100) Dr. 500000, Share Capital A/c (10) Cr. M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. |4 10 each fully paid. The Capital reduction means reduction in ____________ value of shares.a) authorized capital b) Called up capital c) Uncalled capital d) paidup value, 3. throughout their Academic career. d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb 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. Amount sacrificed by shareholders are credited to: 14. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: 8. No journal entry is required for cancellation of unissued share capital. 0000001241 00000 n %%EOF 11. All rights reserved. 18. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. reconstruction? Redemption of preference shares is a case of capital reduction. 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 : U,]]. A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. hVN;?*:_ In internal reconstruction, the existing company will be . Computerized Accounting Practices. 17. %PDF-1.4 % 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 All rights reserved. 0000002930 00000 n Ans: b) Revenue Profit. 10 each fully paid. 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. a) face b) market c) both of a & b d) none of the above 12. 100 each. Absorption. (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. 1. 500000 divided into 50000 shares of Rs. Holding Company Accounts. 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. 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. 0 capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). To carry out capital reduction, permission is required from: 14. Accounting for Amalgamation, Absorption and External. MCQ on Internal Reconstruction : Multiple choice questions and answers December 18, 2021 by Abhimaynu Multiple choice questions and answers 1. Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. 0000008674 00000 n 500000. b) X Ltd. Having a share capital of Rs. s #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. Shareholders not approving scheme is called _________ shareholders.a) dissenting b) paying c) pay disentient shareholders d) none of the above, 13. Follow me on YouTube - Dynamic Tutorials and Services. 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. 10 each fully paid decides to repay Rs. Section 66 of the companies Act governs the internal reconstruction. When two or more existing companies combine together to form a new company, it is termed as. b) X Ltd. Having a share capital of Rs. more mcqs. 0000031742 00000 n Main aim of this blog is to provide all academic resources and information's especially for Commerce Stream Students. 0000007752 00000 n Internal reconstruction. 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. Win vouchers worth INR 2,000 with our School Referral Program, Ranked Amongst Top 25 Companies by LinkedIn. 12. %PDF-1.5 % The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. Under which of the following circumstances can a company resort to internal reconstruction? hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! 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, 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. 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. 10 each, consolidated the shares into 5000 shares 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. 100 each. 0000003198 00000 n Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital of Rs. Only unsuccessful companies undertake capital reduction. Multiple Choice Questions. Valuation of Shares. A company has issued capital of 10,000 equity shares of Rs. TRpH[QU4] (kB7v Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. Company Liquidation Accounts. 10. Merger Buyout Joint Venture De-merger 23Which merger involves firms engaged in unrelated types of activities? 500000 divided into 5000 shares of Rs. 500000 divided into 5000 shares of Rs. 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 . Accounting for Internal Reconstruction Important MCQs. 500000 divided into 5000 shares of Rs. The video explains important mcqs on Internal Reconstruction of company #Capital Reduction #Account 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) 1. 15. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. HQJo.& ;&|&LZ$w$\bRp|)oG@4}=& C8Yn*]izM6fVjAVjEM'#Y+Lx4=_TZ%x9GbmiH2y2R In internal reconstruction, amount sacrificed by shareholders are credited to.. Internal reconstruction is a slow and tedious process since it required the approval of : After the implementation of the scheme of internal reconstruction , any surplus in xref 43 0 obj <>/Filter/FlateDecode/ID[<7F7D86F494A1CBF23FB2925BA8566F77>]/Index[22 34]/Info 21 0 R/Length 105/Prev 125909/Root 23 0 R/Size 56/Type/XRef/W[1 3 1]>>stream |:a=Z&v)kgAN"6]tBzy!NS Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. If there is any balance in the capital reduction account after writing off all the accumulated losses, then the same is transferred to: (i) Share capital account 100 each, converts it into stock. a) 77 b) 100 c) 66 d) 75 2. In case of Internal Reconstruction payment of contingent liability is debited to a) Profit & Loss A/c b) Capital Reduction A/c c) Realisation A/c d) Other 53) Any gain on payment of liability under External Reconstruction is credited to A Ltd. with a share capital of 10,000 equity shares of Rs. A company is free to reduce or extinguish the uncalled liability of its members. I am Gold educator on teachmint online live classes app, I am Post Graduate from Commerce and Direct Course of Law, We have provide all courses of Commerce as well as banking and IBPS Competitive exam Course and also provide Tally Erp 9 + GST Module at offline Training mode. We provide you study material i.e. objective of our platform is to assist fellow students in preparing for exams and in their Studies hbbd```b``"A$v Alteration of share capital can be affected by passing an ordinary resolution. Internal reconstruction is done due to .. 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?$T0!8aq{e_>)I/` # 22 0 obj <> endobj 26. 64 of the Companies Act, 2013 the company shall give notice of the alternation of capital to the registrar within 45 days. Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? Accounting for Internal Reconstruction. 10 each. 500000 divided into 5000 shares of Rs. 0000003418 00000 n Internal Reconstruction - Advanced Accounting - MCQ Test - Teachmint Test Details Internal Reconstruction All the best Starts Feb 02, 6:00 PM Duration 15 minutes Deadline Feb 02, 9:00 PM Maximum marks 20.0 marks Question type MCQ Total questions 10 questions Like Share 32 Views Kishor Suryawanshi The fictitious debit balances are to be transferred to ___________ Account.a) internal reconstruction b) security premium c) share capital d) Capital Reduction, 9. We would like to show you a description here but the site won't allow us. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. Our website uses cookies to improve your experience. 0000040014 00000 n 59 0 obj <> endobj Multiple Choice Questions and Answers 1. /PN|]fR9RW*YGfS{5B:>$VYq&Lop WGV1="]GVR:8M Ans: c) Capital Reduction. Hn0w?Gr "% 2t0 A company must pass a special resolution for reduction of capital. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only In case of , one existing company takes over the business of another company and no new company is formed 25. J%7uI 8vjYZOM}r,2s.Z 'Xj:8A3v8^X.x=a4$ (a) 1 (b) 2 (a)3 (a) many 4. Accounting for Internal Reconstruction. 0000002299 00000 n 23. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. 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. 0000009547 00000 n Corporate Accounting MCQ Question Bank Reconstruction of Companies. Bring down the assets to their true values. 7) Post-acquisition Profit is a) Capital Profit. 8) Pre-acquisition profit is a) Capital Profit. Question and answers in Accounting for Internal Reconstruction. endstream endobj 71 0 obj <>stream Download PDF. No journal entry is required for cancellation of unissued share capital. The scheme of internal reconstruction involves ___ company. 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. The expenses for forming and implementing scheme should be debited to ____________ .a) security premium b) share capital c) Internal reconstruction d) capital reduction, 15. 0000005402 00000 n Internal reconstruction result in the reduction of the capital of the company. 5 each. Amalgamation. 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. Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU The Capital reduction means reduction in ____________ value of shares. Forfeiture and Surrender of shares is a case of capital reduction. 10 each fully paid decides to repay Rs. It decides to convert its capital into 20,000 equity shares of Rs. 0000006983 00000 n Agreement. If the shares of smaller denomination-are converted into the shares of higher denomination without changing the total amount of share capital, then it is a case of: (iii) Decrease in unissued share capital. For writing off the accumulated Josses under the scheme of capital reduction, we debit, 6. 59 23 0000003520 00000 n Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. c) Super Profit. 0000001427 00000 n The word And reduced cannot be added to the name of the company if no direction has been given by the court. A company must pass a special resolution for reduction of capital. Ans: a) Capital Profit. It is a case of, 8. In case of sub-division of share capital the total number of shares Increases Decreases Does not change. The full balance of capital is to be debited, if _____________ value is reduced. In case of Internal Reconstruction , the company is. 30 seconds. 31) Reconstruction includes all of the following except 32) . Copyright 2023 McqMate. 0000000016 00000 n Q. AM$|?F9 UY answer choices. Bachelor of Business Administration (BBA). #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 Multiple Choice Questions 1)Voluntary winding up: a)If period fixed for the company is expired. Currently, however, non-invasive language decoders . ,ffFP7(]Pa&i& b+ + bg Our moto is to make Responsible Accountant and Employee of whichever is field whether student be like . Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR A company is free to reduce or extinguish the uncalled liability of its members. Merged with another co.

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