Internal Reconstruction MCQ (Free) | Capital Reduction

11. 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. Shareholders not approving scheme is called _________ shareholders.
a) dissenting
b) paying
c) pay disentient shareholders
d) none of the above

13. 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. 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. Capital Reduction Account is ________ by payment of reconstruction expenses.
a) credited
b) debited
c) Cash Account
d) none of the above

17. The objective of reconstruction is to write off ___________ .
a) profit
b) accumulated losses
c) nil
d) none of the above

18. Court Confirmation Order has to be registered with the __________ of companies.
a) NCLT
b) share capital
c) Registrar
d) none of the above

19. In ____________ , no new company is formed.
a) External reconstruction
b) Amalgamation
c) internal reconstruction
d) none of the above

20. 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

Answers: 11)face 12)dissenting 13)Schedule III 14)capital reduction 15)funds 16)debited 17)accumulated losses 18)Registrar 19)internal reconstruction 20)credit