CA Final - FR - Reconstruction, realisation and reduction

n business, a takeover is the purchase of one company (the target) by another (the acquirer, ... A "hostile takeover" allows a bidder to take over a target company whose management is unwilling to agree to a merger or takeover. .... When the company gets bought out (or taken private) – at a dramatically lower price 

Take over means to to add new business with ongoing busiess It is done for many purpose

Internal reconstruction of a company is done through the reorganisation of its share capital. It is a scheme of reorganisation in which all interested parties in the capital structure volunteer to sacrifice. They are the company's shareholders, debenture holders, creditors etc.

Realisation Account: This account is prepared at the time of dissolution of a firm to know the profit/loss at the time of dissolution of the firm. All the assets except cash/bank are transferred to the

debit side of realisation account. In case any asset has a corresponding

Reconstruction is an exercise of restating assets & liabilities by company / entity ... usually involves the writing off of a debit balance on Profit and Loss Account