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[Music] foreign [Music] hi guys welcome back to our youtube channel our topic for today will be all about recapitalization and quasi reorganization so lets start with recapitalization sorry capitalization occurs when there is a change in the capital structure of the entity so cern upon well is that the old shares are actually retired once again the old shares are retired and apparently new shares will be issued brochures will be issued to our shareholders all right so sir what are the typical recapitalization well to will be the reduction of what reduction so these are the five typical re-capitalization all right so so be nothing you discuss at all number one at number two so change from part to no part and on going all you have to do here is to compare the original issue price again you compare mulan originally stated capital stated capital or power capital so here if the original issue price is higher than the par or the stated capital situation credit on our journal entry so surren
