MCQ for CA Intermediate Adv. Accounts - Chapter 6 - INTERNAL RECONSTRUCTION

Sample Multiple Choice Questions (MCQ's) for CA Intermediate - Paper 5 - ADVANCED ACCOUNTING Chapter 6: INTERNAL RECONSTRUCTION - For Practice relevant for May/November 23 Examinations


Q1.  When the object of reconstruction is usually to re-organise capital or to compound with creditors or to effect economies then such type of reconstruction is called

  1. Internal reconstruction with liquidation 
  2. Internal reconstruction without liquidation of the company
  3. External reconstruction

Answer: 2

Q2.  The accumulated losses under scheme of internal reconstruction are written off against

  1. Capital Reduction account
  2. Share Capital account
  3. Shareholder’s account

Answer: 1

Q3.  Reconstruction is a process by which affairs of a company are reorganized by

  1. Revaluation of assets and Reassessment of liabilities
  2. 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.
  3. Both (a) and (b). 

Answer: 3

Q4.  For reduction of the share capital, the permission has to be sought from

  1. Court.
  2. Controller.
  3. State government.

Answer: 1

Q4.  In case of internal reconstruction

  1. Only one company is liquidated 
  2. Two or more companies are liquidated 
  3. No company is liquidated

Answer: 3

Q5.  A process of reconstruction, which is carried out without liquidating the company and forming a new one is called

  1. Internal reconstruction.
  2. External reconstruction.
  3. Amalgamation.

Answer: 1


CA Intermediate ADV. ACCOUNTS - MCQ for Chapter 7 -   

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