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Consolidation of 20 shares of ₹5 each (fully paid) into 1 share of ₹100 each (fully paid):
ANo change in paid-up capital — only denomination changes
BReduces paid-up capital
CCancels capital
DTriggers a CRR transfer
Answer & Solution
Correct answer: A. No change in paid-up capital — only denomination changes
1. Step 1: Consolidation is a denomination change.
2. Step 2: 20 × ₹5 = ₹100; 1 × ₹100 = ₹100. Paid-up capital unchanged.
3. Step 3: Hence (B).
_Source: ICAI BoS CA Inter Paper 1, Ch 14 "Internal Reconstruction"_