Accounting principles for company reconstruction?

ur question is neither complete nor appropriate.

resonstruction can be done in 2 ways, one internal reconstruction and other is external.

Internal recons. is done mainly by cos which has huge accumulated losses. In it issued share capital is reduced some shaeholders are called for surrender of share and accumulated losses is written off againt it. Further more assets are accounted at their real value and all the related entries are transfered to a single account 'reconstruction account'.
When the all required adjustments have been made, the balance of reconstrucion account is transfered to capital reserve.

Accounting in case of external recons. is also done in same manner except that it is done by making a new co and the new co acquire the old co at revised value and pay to shareholders share in new co.

This is not really a question... I woudl answer if I could. Maybe you can contact me if you have some legitimate questions about finance. mark@landmark-capital.com

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