10.

11.

Which of the following statements are FALSE?

1.
1.

111.

Tn India, Equity Shares can be issued at a Discount
Reserve Capital is the amount of profit set aside to meet future contingencies

Balance in the forfeited shares account after reissue, shall be transferred to the Capital
Reserve A/C

(A) Statements I and II are False (B) Statement II alone is False

(C) Statements II and III are False (D) Statements I, II, and III are False

Which of the following statements are TRUE with respect to the Internal Reconstruction of a

Company?

]. There will be a comprehensive overhauling of the financial position (assets and
liabilities)

11. The existing company is liquidated and a new company is formed to take over the
assets and liabilities

111. Paidup Share Capital is reduced and the same is used to write off accumulated losses

IV. Equity shareholders may surrender some portion of their shares, the amount of which

will be used for the settlement of outside creditors
(A) Statements I, II and III are True (B) Statements IT, II] and IV are True

(C) Statements I, II] and IV are True (D) Statements I, I, III and IV are True

Which is FALSE with respect to the redemption of Debentures out of Profits?

(A) DRR should be created atleast 10% of the outstanding nominal value of debenture

before commencing the redemption

(B) DRR Investment should be made atleast 15% of the nominal value of debentures

proposed to be redeemed during the current financial year
(C) Retained Earnings can be used for creating DRR

(D) Balance in the DRR after completing the redemption of all debentures can be
transferred to Capital Reserve A/C

5 025/2023
[P.T.0.]