Accountancy, asked by Mitali1337, 11 months ago

Objective of internal reconstruction

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Answered by praveenpareek

0

Answer: Internal reconstruction can be defined as the reorganization of the company, without liquidating the existing company and forming a new one. In internal reconstruction, the capital of the company is reduced, and external liabilities such as debenture holders and creditors waive their claims by giving a discount.

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