What is meant by internal reconstruction ? state the accounting records made at the time of reconstruction of a company
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internal reconstruction is an arrangement made by the companies where by the claims of shareholders, debenture holders, creditors and other liabilities are altered reduced, so that the accumulated loss are written off assets are valued at it fair value and the balance sheet shows the true and fair view of the financial statement.
Account which are take consideration are: journal entries passed then Ajdusments are made in balance sheet the part where mostly got adjust is capital and assets.
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