One Shot Revision - INTERNAL RECONSTRUCTION & BB OF SHARES

CA. CS.
ANSHUL AGRAWAL
Founder & Director – Ekagrata Eduserv Pvt. Ltd.
Qualified both CA & CS in First attempt
Taught thousands of students since 11+ years
Lifestyle Vlogger, Josh Talk Speaker & Motivator
Subjects Teaching CA-Foundation Accounting;
CA-Intermediate Adv. Accounting & Costing
/iamcacsanshul
MY SUCCESS MANTRAS
PATIENCE धैर्य
विश्िास TRUST
SELF-RELIANCE आत्मनिर्यरता
TEAM EKAGRATA FOR CA-INTERMEDIATE GROUP-2
Group-2 Batch as per New Syllabus
Batch Starting from: 3rd June 2024

CA CS Anshul Agrawal Mr. Jatin Dembla
CA CS Darshan Jain Cost & Mgt. Accounting
FM & SM
FM & SM Live Virtual+Backup of Recorded Classes
CA Abhishek Bansal
Audit & Ethics
Pen Drive / Google Drive also available
Face to Face Batches at INDORE
Unlimited Watch-time
Individual Subject / Combo available
Doubt Solving & Mentorship Sessions
Evaluated Tests | Test Series
Download “EKAGRATA CA” App from Google Playstore / Apple App Store | Visit our website www.ekagrata.co.in | Subscribe our YT Channel
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Date & Day: -: Thought of the Day :- Class: CA-Intermediate
Attendance PATIENCE, TRUST & SELF-RELIANCE Subject: Advanced Accounting
P: Teacher: Anshul sir
A:
T:
INTERNAL RECONSTRUCTION
To Purchases courses of Ekagrata Educators visit www.ekagrata.co.in or call on 9754455663 Study conceptually with CA Anshul Agrawal
A:
T:
On 31-12-2021, B Ltd. had 20,000, Rs. 10 Equity Shares as authorized capital and
the shares were all issued on which Rs. 8 was paid up. In June, 2022 the company
in general meeting decided to sub-divide each share into two shares of Rs. 5 with
Rs. 4 paid up. In June, 2023 the company in general meeting resolved to
consolidate 20 shares of Rs. 5, Rs. 4 per share paid up into one share of Rs. 100
each, Rs. 80 paid up. Pass entries and show how share capital will appear in notes
to Balance Sheet as on 31-12-2021, 31-12-2022 and 31-12-2023.
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BUY BACK OF SHARES
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1. What is the primary purpose of the reconstruction of companies?
(a) To change the management team
(b) To reorganize a company's financial structure due to accumulated losses or overvaluation of
assets
(c) To expand the company into new markets
(d) To implement new technology systems
2. What type of reconstruction involves altering share capital and reassessing liabilities without
forming a new company?
(a) Amalgamation
(b) External reconstruction
(c) Internal reconstruction
(d) Liquidation
A:
T:
3. Under which section of the Companies Act, 2013 are the regulations for company
reconstruction primarily outlined?
(a) Section 230-232
(b) Section 195-198
(c) Section 115-117
(d) Section 250-252
4. What is typically involved in the process of internal reconstruction?

(a) Merging with another company
(b) Revaluation of assets and reduction of share capital
(c) Creating a new company
(d) Selling off major business units
A:
T:
5. In the context of company reconstruction, what is the role of a 'Capital Reduction
Account'?
(a) To manage increased capital investment
(b) To track dividends paid out to shareholders
(c) To record adjustments related to reduction in capital
(d) To monitor the company's long-term debts
6. What does 'writing off losses' mean in the process of company reconstruction?
(a) Increasing the company's expenses
(b) Eliminating accumulated losses from the company's financial records
(c) Transferring losses to a new financial year
(d) Converting losses into share capital
A:
T:
7. Who must authorize the buy-back of shares in a company?
(a) The Board of Directors only
(b) The shareholders through a special resolu-tion
(c) The company's creditors
(d) The Securities and Exchange Board
8. Why might a company choose to buy back its shares?

(a) To increase its share capital
(b) To decrease the earnings per share
(c) To increase promoter's holding or support share price
(d) To increase the number of shareholders
A:
T:
9. What impact does the buy-back of shares have on a company's debt-equity ratio?
(a) Increases the ratio
(b) Decreases the ratio
(c) No change in the ratio
(d) The ratio becomes negative
10. What is the maximum percentage of paid-up equity capital and free reserves
that a company can buy back?
(a) 10%
(b) 15%
(c) 25%
(d) 50%
A:
T: 11. From which sources can a company finance the buy-back of its shares?
(a) Only from the proceeds of the issue of new shares
(b) Free reserves, securities premium account, or the proceeds of any shares
(c) External borrowings only
(d) Sale of the company's assets
12. What happens to the shares bought back by a company?

(a) They are redistributed to existing shareholders
(b) They are kept as treasury shares
(c) They are cancelled
(d) They are offered to new investors
A:
T:
MCQ ANSWERS
1 B 7 B
2 C 8 C
3 A 9 A
4 B 10 C
5 C 11 B
6 B 12 C
TEAM EKAGRATA FOR CA-INTERMEDIATE GROUP-2
Group-2 Batch as per New Syllabus
Batch Starting from: 3rd June 2024

CA CS Anshul Agrawal Mr. Jatin Dembla
CA CS Darshan Jain Cost & Mgt. Accounting
FM & SM
FM & SM Live Virtual+Backup of Recorded Classes
CA Abhishek Bansal
Audit & Ethics
Pen Drive / Google Drive also available
Face to Face Batches at INDORE
Unlimited Watch-time
Individual Subject / Combo available
Doubt Solving & Mentorship Sessions
Evaluated Tests | Test Series
JOIN MY TELEGRAM GROUP
“One must not determine it’s
ACTION on the basis of
OUTCOME -
Success or Failure is just an
outcome of an ACTION”.
/iamcacsanshul

One Shot Revision - INTERNAL RECONSTRUCTION & BB OF SHARES

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CA. CS.

Batch Starting from: 3rd June 2024

Face to Face Batches at INDORE

Individual Subject / Combo available

Doubt Solving & Mentorship Sessions

Evaluated Tests | Test Series

BUY BACK OF SHARES

4. What is typically involved in the process of internal reconstruction?

8. Why might a company choose to buy back its shares?

12. What happens to the shares bought back by a company?

Batch Starting from: 3rd June 2024

Face to Face Batches at INDORE

Individual Subject / Combo available

Doubt Solving & Mentorship Sessions

Evaluated Tests | Test Series

You might also like

One Shot Revision - INTERNAL RECONSTRUCTION &amp; BB OF SHARES

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One Shot Revision - INTERNAL RECONSTRUCTION &amp; BB OF SHARES

Uploaded by

Copyright:

Available Formats

CA. CS.

Batch Starting from: 3rd June 2024

Face to Face Batches at INDORE

Individual Subject / Combo available

Doubt Solving & Mentorship Sessions

Evaluated Tests | Test Series

BUY BACK OF SHARES

4. What is typically involved in the process of internal reconstruction?

8. Why might a company choose to buy back its shares?

12. What happens to the shares bought back by a company?

Batch Starting from: 3rd June 2024

Face to Face Batches at INDORE

Individual Subject / Combo available

Doubt Solving & Mentorship Sessions

Evaluated Tests | Test Series

You might also like

One Shot Revision - INTERNAL RECONSTRUCTION & BB OF SHARES

One Shot Revision - INTERNAL RECONSTRUCTION & BB OF SHARES