Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. 100 each, subdivided the shares into 50000 shares of Rs. Checkout Top Schools External reconstruction. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only 100 each. 100 each, converts it into stock. Share Capital A/c (10) Dr. 500000. c) X Ltd. Having a share capital 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 Company Liquidation Accounts. When a company converts its equity shares into the capital stock, then the account to be credited is: 4. endstream endobj 72 0 obj <>stream Attend Live Classes using Any Device be it Phone, Tablet or Computer, 5th Floor, North Wing, SJR 30 seconds. gHc > &E]`v6DVMH HOf`a)XL?o D It is a case of, 8. Computerized Accounting Practices. In which of the following cases, procedure of reduction of capital is not called for: 11. 22. Alteration of share capital can be affected by passing an ordinary resolution. a) authorized capital b) Called up capital c) Uncalled capital MCQ on Internal Reconstruction : Multiple choice questions and answers It is a case of, 9. Only unsuccessful companies undertake 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. objective of our platform is to assist fellow students in preparing for exams and in their Studies 0000009547 00000 n 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?$T0!8aq{e_>)I/` # A company is free to reduce or extinguish the uncalled liability of its members. 6) Internal reconstruction means a) Amalgamation in nature of merger. b) Absorption. Under which of the following circumstances can a company resort to internal 43 0 obj <>/Filter/FlateDecode/ID[<7F7D86F494A1CBF23FB2925BA8566F77>]/Index[22 34]/Info 21 0 R/Length 105/Prev 125909/Root 23 0 R/Size 56/Type/XRef/W[1 3 1]>>stream Currently, however, non-invasive language decoders . PDF Chapter - 1 : Amalgamation, Absorbtion and External Reconstruction (As We provide you study material i.e. vt00 PDFs for offline use. We take free online Practice/Mock test for exam preparation. Each MCQ is open for further discussion on discussion page. All the services offered by McqMate are free. Consent of creditors is not required if capital reduction involves the writing off of paid up capital lost or not represented by available assets. Bachelor of Business Administration (BBA). In internal reconstruction, amount sacrificed by shareholders are credited to.. Internal reconstruction is a slow and tedious process since it required the approval of : After the implementation of the scheme of internal reconstruction , any surplus in Taken over. Holding Company Accounts. |4 0000000756 00000 n Capital Reduction Account is ________ by payment of reconstruction expenses.a) credited b) debited c) Cash Account d) none of the above, 17. 20. PDFs for offline use. We take free online Practice/Mock test for exam preparation. Each MCQ is open for further discussion on discussion page. All the services offered by McqMate are free. Appreciation in the value of land & building is recorded on ________ side of Capital Reduction Account.a) credit b) debit c) both of a & b d) none of the above. 3. 11. 0000008674 00000 n 18. The scheme of internal reconstruction involves ___ company. 0000003418 00000 n Ixdp]A:DKp 7>+^wsvKC?0c oLm7{ V[H,Q~$agt8O4js_22Q|Waoq\WU Download PDF. McqMate.com is an educational platform, Which is developed BY STUDENTS, FOR STUDENTS, The only :u4$L"G0cOpe"MH3SIoIe?+-;YH1k G@bV+o 12. 5 each. 11. (a) Profit (b) Loss (a)No Profit-No Loss (a) nil 5. 10 each fully paid. 0 b) X Ltd. Having a share capital of Rs. 0000001427 00000 n In case of sub-division of share capital the total number of shares Increases Decreases Does not change. When two or more existing companies combine together to form a new company, it is termed as. Answer :- Increases 2. Amount sacrificed by shareholders are credited to: 14. Merged with another co. Valuation of Shares. (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. Accounting for Amalgamation, Absorption and External. TYBCom-Sem-VI-Financial Accounting MCQs - Studocu To carry out capital reduction, permission is required from: a) X Ltd. Having a share capital 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 A. b) Revenue Profit. 5 fully paid. Reduction of capital is unlawful except when sanctioned by the court. In a scheme of reorganization amount of shares surrendered by shareholders is transferred to: 12. In internal reconstruction, increase in the value of fixed assets is credited to. The term Internal Reconstruction means: 7. 10 each fully paid. T.Y.B.com Financial Accounting mcq with answers - Suraj Patel Education Our website uses cookies to improve your experience. (a) 1 (b) 2 (a)3 (a) many 4. A company has issued capital of 10,000 equity shares of Rs. [Solved] Capital Reduction Account is a - mcqmate.com Section 66 of the companies Act governs the internal reconstruction. 5. M.A EXAM :- https://t.me/mastudentsexam, https://www.youtube.com/channel/UCv8JIY58xfWHUIXVu9wxNHw. 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 . 10 each. A company must pass a special resolution for reduction of capital. In ____________ , no new company is formed.a) External reconstruction b) Amalgamationc) internal reconstruction d) none of the above, 20. Q. 21.Only unsuccessful companies undertake capital reduction. xb```"WV AX,p}GynByz||kWU]{KYD$9#c'{-(&P!M cE.IJdKyAJR'![FQ[[F,r8|m5@+@nh``@P,@0yl Court Confirmation Order has to be registered with the __________ of companies.a) NCLT b) share capital c) Registrar d) none of the above, 19. Redemption of preference shares is a case of capital reduction. The full balance of capital is to be debited, if _____________ value is reduced. Absorption. Internal reconstruction result in the reduction of the capital of the company. objective of our platform is to assist fellow students in preparing for exams and in their Studies Restructuring Internal Reconstruction 22 State an arrangement whereby the assets of two ro more companies come under the control of one company? 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. For writing off the accumulated Josses under the scheme of capital reduction, we debit: 6. 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. The reduction of capital is permitted under _____________ of Companies Act.a) 77 b) 100 c) 66 d) 75, 2. Company Final Accounts. Computerized Accounting Practices. Multiple Choice Questions and Answers (MCQs), Financial Statement and Financial Statements Analysis, MCQ on Internal Reconstruction and Capital Reduction. Internal Reconstruction of Company Capital Restructuring MCQs A company resorts to internal reconstruction or capital reduction only in exceptional circumstances. CORPORATE ACCOUTNING ( MCQS WITH ANWERS) - Studocu State whether the following statements are True or False: According to sec. A company has issued capital of 10,000 equity shares of Rs. Accounting for Amalgamation, Absorption and External. 0000001241 00000 n 5 per share thus making each share of Rs. Corporate Accounting Multiple Choice Questions and Answers (MCQs When an existing company takes over the business of one or more existing companies, it is called. U,]]. 0000001160 00000 n 0000002299 00000 n Cancellation of unissued capital is also a case of capital reduction. All rights reserved. All rights reserved. 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. The word And reduced cannot be added to the name of the company if no direction has been given by the court. The Shareholders can surrender shares for ________ or ____________ .a) re-issue, cancellation b)Fresh Issue, Redemption c) none of the above, 5. Holding Company Accounts. 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. endstream endobj startxref The word And reduced cannot be added to the name of the company if no direction has been given by the court. 100 each, subdivided the shares into 50000 shares of Rs. Download PDF. PDF Sample Questions For B.Com. ( Accounting & Finance) -Sem V 2019-2020 trailer 5 per share thus making each share of Rs. 500000 divided into 5000 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 Accounting for Internal Reconstruction Important MCQs. Save my name, email, and website in this browser for the next time I comment. 0000040014 00000 n 0000001534 00000 n --------- is the account created in connection with internal reconstruction. a) face b) market c) both of a & b d) none of the above 12. capital reduction A/C will be transfer to: Business Ethics and Corporate Social Responsibility (BECSR). Eliminate the accumulated losses from the books. I am also working on some other websites which will be published soon. c) X Ltd. Having a share capital of Rs. It decides to convert its capital into 20,000 equity shares of Rs. Q. JD%@"i0iB*c`EX MCQ on Internal Reconstruction : Multiple choice questions and answers December 18, 2021 by Abhimaynu Multiple choice questions and answers 1. Multiple Choice Questions 1)Voluntary winding up: a)If period fixed for the company is expired. [Solved] Internal reconstruction is done due to Reduction of capital is unlawful except when sanctioned by the court. Shareholders not approving scheme is called _________ shareholders. Ans: b) Revenue Profit. Win vouchers worth INR 2,000 with our School Referral Program, Ranked Amongst Top 25 Companies by LinkedIn. Accounting for Internal Reconstruction. 23. Virtual Classroom and LMS Software | WizIQ Valuation of Shares. 0000006175 00000 n The cancellation of contingent liability is____ for company. Hey Guys, Myself Kumar Nirmal Prasad, a Teacher turned Full time Blogger and Investor. It is a case of, Answer :- Reducing share capital by returning the excess capital, 5. in Bangalore here: Software Service If the ABC Limited and DEF Limited are taken over by a new company XYZ Limited No journal entry is required for cancellation of unissued share capital. Accounting for Internal Reconstruction Solved MCQs - McqMate In internal reconstruction, amount sacrificed by shareholders are hb```f``c`e`icd@ Ar400kPQ{!{GGCG+CP q #s*m,f.HfEZX7``~d1/s ` ! Bring down the assets to their true values. endstream endobj 23 0 obj <> endobj 24 0 obj <> endobj 25 0 obj <>stream 0000031742 00000 n 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. 17. AM$|?F9 UY Amount sacrificed by shareholders are credited to: 13. Follow me on YouTube - Dynamic Tutorials and Services. Internal Reconstruction - Commerceiets 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. 59 23 0000004701 00000 n 0000005402 00000 n AMALGAMATION, ABSORPTION & EXTERNAL RECONSTRUCTION - Quiz [Solved] Internal reconstruction can be done by - McqMate 1. 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. Hn0w?Gr "% 2t0 Under which of the following circumstances can a company resort to internal reconstruction? Under Sec. 500000. b) X Ltd. Having a share capital of Rs. Any loss on revaluation of the assets at the time of internal reconstruction, will be charged from. Latest Reconstruction of companies MCQ Objective Questions - Testbook b) Revenue Profit. %PDF-1.4 % 19. MCQ on Amalgamation and External Reconstruction - CMA TUTORS Consent of creditors is required if capital reduction involves diminution of liability regarding uncalled capital or return of paid up capital. Vertical Horizontal Conglomerate Demerger 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. 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 In which of the following cases, procedure of reduction of capital is not called for: (iii) Surrender of shares or gift of shares. (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 MULTIPLE CHOICE QUESTIONS 1. 8) Pre-acquisition profit is a) Capital Profit. In internal reconstruction, the existing company will be 500000 divided into 50000 shares of Rs. Alteration of share capital can be affected by passing an ordinary resolution. Question 2. endstream endobj 71 0 obj <>stream In case of Internal Reconstruction , the company is. 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. Internal Reconstruction MCQ (Free) | Capital Reduction September 29, 2021 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. In internal reconstruction, the existing company will be . Turn around. %%EOF c) Capital Reduction. The scheme of internal reconstruction requires approval of ____________ .a) Shareholders b) Central Government c) NCLT d) all the above, 7. TRpH[QU4] (kB7v Suraj Patel Education is one of the best blog on Education . d:b%aE2ag,jO=7^Mq*YTW%s\QQ]7,Z >cDu061`xxg]Q9*!:z5~m^&Wi=DJ?^rt3@Ey7ogblH@Pb 500000 divided into 5000 shares of Rs. 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. 25. Equity share capital A/c Dr. 500000, Equity Stock A/c Cr. 15. HyE$=T0dd$@>%o53mXe@8f2"0(#u8WLfR>|>ug2gcA9vQ]EFk`K%>)U"ih$OVFMGo&g2y.#d4H(!V$$ r t KZCO2IJaDR,~Tt,!Oq]RA>z$\IU A company must pass a special resolution for reduction of capital. wound up. Let's take a quick look at the CA Inter Course before diving into the specifics of the ICAI CA Inter Mcq Notes 2022. 0000001960 00000 n 10 each. s Learn more. Redemption of preference shares in accordance with the provisions of section 80 is reduction of preference share capital. 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 780+ Corporate Accounting Solved MCQs with PDF Download - McqMate /FV.)|[%;$3 >% LMhLI3kve^v2zWl:{ eM>"2+hY$Jddt'i;|` c) Super Profit. Question and answers in Accounting for Internal Reconstruction. Save my name, email, and website in this browser for the next time I comment. more mcqs. 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 HUn9}om # 7) Post-acquisition Profit is a) Capital Profit. Manan Prakashan 1 CHAPTER - 1 : AMALGAMATION, ABSORBTION AND EXTERNAL RECONSTRUCTION (AS - 14) MULTIPLE CHOICE QUESTIONS. 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. In case of sub-division of share capital the total number of shares: 2. 59 0 obj <> endobj Main aim of this blog is to provide all academic resources and information's especially for Commerce Stream Students. To carry out capital reduction, permission is required from: 14. HT=s0+8xDmC?AX9jbN:w)Pgj!V-[._ KDaTJj1~' 81 0 obj <>stream 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 . Here we are providing Notes , MCQs , Question Bank , Notes on Current Affairs & Many More. hbbd```b``"A$v ,ffFP7(]Pa&i& b+ + bg A company is free to reduce or extinguish the uncalled liability of its members. In case of , one existing company takes over the business of another company and no new company is formed MCQ - Internal Reconstruction and Capital Reduction | Multiple Choice Internal reconstruction Definition & Meaning | Dictionary.com In internal reconstruction neither the existing company is liquidated, nor is a new company incorporated. Internal reconstruction. GUD}%DQO}$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 In case of sub-division of share capital the total number of shares, 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. PDF Amalgamation, Absorption & External reconstruction - NKT Degree College reconstruction? When a company converts its equity shares into the capital stock, then the account to be credited is , 4. 100 each. 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.