Accountancy, asked by manishgowda4952, 10 months ago

Why is internal reconstruction preferable over external reconstruction?

Answers

Answered by itzBrainlyBoy
25

Answer:

In the case of Internal Reconstruction, the company is able to set off its past losses against future profits. Whereas,inthe case of External Reconstruction, the past losses of the old company can't be set off against the future profits of the new company.

Explanation:

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