Corporate Accounting

11

Internal Reconstruction

LEARNING OBJECTIVES

After studying this chapter you should be able to understand:

1. The nature of internal reconstruction.

2. The need for internal reconstruction.

3. Sections 94 to 97 of the Companies Act relating to alteration of share capital.

4. Sections 100 to 105 of the Companies Act with respect to reduction of share capital.

5. Section 106 relating to variation of shareholders’ rights.

6. Section 391 to 393 and Section 394A of the Companies Act pertaining to compromise/ arrangement.

7. Significance of surrender of shares.

8. The accounting entries for the methods of reconstruction.

9. The construction of balance sheet after internal reconstruction.

10. The preparation of reconstruction account.

11. The important key terms associated with ...