Question

reconstruction expenses are debited to​

Answer 1

Answer:

An appreciation in the value of an asset or reduction in the amount of a liability should be debited to the account concerned and credited to Capital Reduction Account (or Reconstruction Account).

Explanation:

Internal reconstruction is basically concerned with the complete overhauling of financial position of a firm. The main purpose is to improve the profitability of the existing company. ... Thus,reorganize the company by revaluing the assets,reduction in liabilities and capital through internal reconstruction.

Internal Reconstruction. • Meaning. It is an arrangement made by the companies whereby the claims of. shareholders, debenture holders, creditors and other liabilities are altered/ reduced, so that the accumulated loss are written off, asset are valued at its fair.

There are two methods of reconstruction which are internal reconstruction and external reconstruction.

Answer 2

Answer:

Capital Reduction Amount.

Explanation:

Reconstruction Expenses means, concerning a Loss Occurrence, collectively, all costs and expenses that are:

• Incurred by company owner to reconstruct or otherwise repair the Northern Pass Transmission Line following such Loss Occurrence, net of insurance proceeds and other amounts received by company Owner in connection therewith excluding any proceeds of any liability insurance policy or any insurance proceeds or other amounts payable to any Financing Party, unless such amounts payable are permitted under the applicable Loan Documents to be applied to such Loss Occurrence.

• Recoverable under the Formula Rate b Article 8.

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