1. Capital reduction is implemented as per the section _____ of companies act.

Section 66

2. Balance in capital reduction should be transferred to ___ . Capital reserve

3. And reduced words are to be shown as in Balance sheet as per ____ requirement. Company law

4. XYZ limited had on 31st December 2008 ; 80,000 equity shares at Rs.10 each. It was decided to reduce
shares to Rs.8 each . The reduction is 1,60,000

5. Creditors of the company are Rs.50,00,000 one creditors for 20,00,000 decided to forego 40% of his
claim . He is allotted 30,000 equity shares of Rs.40 each in full satisfaction. The amount transferred to
capital reduction is ___ Rs.8,00,000

6. The preference shareholders agree to forego arrears of preference dividend of Rs.72,000. The amount
transferred to capital reduction account is ____. Nil

7. Creditors are Rs.300,000. They are given the option either accept 50% of their claim in case in full
settlement or to convert their claim in to equity shares of Rs.10 each. Creditors of Rs.2,00,000 opt for
shares in satisfaction of the claim . Capital reduction account is credited by _____. Rs.50,000

8. Investment costing of Rs.24000 given to Bank for bank overdraft of Rs.16,800. The capital reduction is
debited by ______. Rs.7,200

9. Y Ltd. Has 8000 equity shares of Rs.100 each fully paid. Each share is subdivided into 10 equity shares
of Rs.10 each. The number of shares after sub division will be ____. Rs.80,000

10. Provision for taxation is 100,000. The tax liability of the company is settled at Rs.80,000 And it is paid
immediately. Amount credited to capital reduction is Rs.20,000

11. 6% debentures of Rs.100 each Rs.1,00,000 to be converted into such number of 8% debentures of
Rs.50 each as to generate the same amount of interest as before. The amount of 8% debentures will be
____. Rs.75,000

12. In internal reconstruction, method of calculation of purchase consideration is by ____. No purchase

consideration required

13. On internal reconstruction, assets are written of except ___. Land and building

14. Payment of reconstruction expenses is debited to ____. Capital reduction account

15. Share capital. A/c Dr. (Rs.100)

To share capital A/c (Rs.10) the above entry in the scheme of reconstruction record_____.
Subdivision of share capital

16. Share capital. A/c Dr. (Rs.10)

To share capital A/c (Rs.100) the above entry in the scheme of reconstruction record_____.
Consolidation of share capital
17. In internal reconstruction _____. No company is liquidated

18. The existing 1000 shares of Rs.100 each altered to 10,000 shares of Rs.10 each is __. Subdivision

19. A Ltd. May alter it’s share capital to b and c

20. The cancellation of contingent liabilities is no profit no loss for company.