Capital Reconstruction

  • P. Stevens
  • B. Kriefman
Part of the Macmillan Work Out Series book series (MCWO)


Capital reconstruction schemes usually become necessary following periods of losses, and any or all of the following features will be present.
  1. (i)

    A debit balance will have built up on the profit and loss account.

  2. (ii)

    In addition to (i), there may be other debit balances on the books, representing a non-existent or fictitious asset — e.g. goodwill.

  3. (iii)

    The business may be unable to meet its obligations to creditors as and when payments become due. These obligations will include interest relating to loans.

  4. (iv)

    There may be arrears of dividends on cumulative preference shares.



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Copyright information

© P. Stevens and B. Kriefman 1988

Authors and Affiliations

  • P. Stevens
  • B. Kriefman

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