Internal Reconstruction

This query is : Open

manan kansal (Querist)
Follow

27 February 2017 In internal Reconstruction , Do we have to write off all fictitious and intangible assets even if not said in the question ?

Tony John

Tony John (Expert)
Follow

27 February 2017 Yes you must write off fictitious assets and losses such as preliminary expenses provided there is sufficient credit balance in Reconstruction A/c. Goodwill, patents etc shown in Balance Sheet should also be written off, the logic being that a company that is being internally reconstructed can in no way have goodwill !!!

Tony John

Tony John (Expert)
Follow

27 February 2017 Moreover you may give a note to this effect in your answer.

manan kansal

manan kansal (Querist)
Follow

27 February 2017 thank you so much sir . its so nice to see such an

manan kansal

manan kansal (Querist)
Follow

27 February 2017 its so nice to see such an explanatory reply . Thanks

manan kansal

manan kansal (Querist)
Follow

28 February 2017 Sir please reply to my another query relating to proposed dividend which i posted earlier.