Question

OR The balance sheet of ABCLtd. as on 31 March 201 was as follows: Liabilities Amount(Rs.) Asset Amount(Rs.) 4000 equity shares 4,00,000 Goodwill 15000 of Rs 100 each fully paid 2000 5% preference 2,00,000 Freehold Asset 2,00,000 shares of Rs. 100 Premises each fully paid 6% Debentures 1,00,000 Plant and Machinery 3,00,000 Bank Overdraft 35,000 Stock in Trade 50.000 Sundry creditors 1,00,000 Sundry Debtors 40,000 Cash in Hand 5000 Profit and Loss A/C 2.25.000 Total 835000 Total 8.35,000 The company has got the following scheme of capital reduction approved by the court. a. Preference shares to be reduced to Rs 60 per share fully paid up and equity shares to Rs.40 per share fully paid up b. The debenture holders to take over stock in trade and book debts in full satisfaction of the Punt Arto them

please it's urgent

Answer 1

80000 240000 a.) Pref. Share Capital Cold) 200000 To Share Capital (New) 12oooo To Capital Reduction tot Best Share Capital (oud) 400000 To be share Capital (nero) 19.0000 To Capital Reduction b.) 6% Debenture husbasen To stork in trade To Sundry Debton yoooo OU To Capital Redention c.) Freehold Promises 20oool To Capital Reduction 20000 looooo 5oooo 10000 C S 10oooo Capital Reduction 100000 To Plant & Machinery Capital Recluction 1 suro 1 To Coodwill flo81 Reconstruction expense 4000 To Cash 4000 = Capital Reduction 339000 To Reconstruction Exp. 4000 TO P/L (Loss) 22 SOVO To Capital Reserve 108ooo

Bims Date: Page No. Balance Sheet Amount 122oooo Liabilities Amount Assets 4000 equity shares Freehold Asset of Rs. 40 each 1160000 Premises fully paid up Pland and 2000 Sl. pref.sh. of Rs. 60 each 120000 Cash in hand fully paid Bark Over Draht 35000 Suschy Cudlitew 100000 106000 Maching 1200000 looo Capital Reseme 1421000 1421000

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