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Internal reconstruction
Accountancy
Sir this is illustration 3 of internal reconstruction. Bal. In capital reduction account is to be transferred to capital reserve right! But why is it transferred here to p/l alc and why isn't the new balance sheet not showing reserves and surplus
Answers (2)
Sahibdeep Singh
Yes to Capital Reserve. Here they are writing off debit balance in Profit & Loss Account. No Reserves & surplus as there is nothing to show. Balance has been netted off
Oh okay sir.. I got it ... Thank you very much!