A process of reconstruction, which is carried out without liquidating the company and forming a new one is called

CA Intermediate · Advanced Accounting · MTP · May 2024
A process of reconstruction, which is carried out without liquidating the company and forming a new one is called
(A) Internal reconstruction.
(B) External reconstruction.
(C) Amalgamation in the nature of merger.
(D) Amalgamation in the nature of purchase.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

Internal reconstruction.

Topics: AS 14, Amalgamation of Companies

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