Quiz 4

Internal reconstruction is a slow and tedious process since it required the approval of

• Court

• Shareholders

• Creditors

• All of the Above

If the preference shareholder agree to sacrifice the arrear off preference dividend, it is credited to

• Capital Reduction A/C

• Preference Shareholders A/C

• Goodwill A/c

• Profit& Loss A/C

After the implementation of the scheme of internal reconstruction , any surplus in capital reduction A/C is transferred to

• Capital A/C

• Profit & Loss A/C

• Shareholders A/C

• Capital reserve A/C

……………………reconstruction refers to the reduction of capital to cancel any paid up capital.

• External

• Internal

• Amalagamation

• Absorption

Reduction of share capital is possible by the company, if it is authorized by its

• Articles

• Special resolution.

• Confirmation of the court.

• All of the Above.