Balance sheet of M/s Joshi Ltd. as on 31 March 2011 is as follows:
|
Liabilities |
Assets |
||
|
Share Capital: |
Fixed assets |
66,00,000 |
|
|
issued, subscribed and |
Current Assets |
24,00,000 |
|
|
Fully Paid Up |
|||
|
30,000 Ordinary |
30,00,000 |
||
|
Shares of Rs. 100 |
|||
|
Each |
|||
|
15,000 |
15,00,000 |
||
|
Preference |
|||
|
Shares of Rs. 100 |
|||
|
Each |
|||
|
Capital Reserve |
3,00,000 |
||
|
Securities premium A/c |
3,00,000 |
||
|
General Reserve |
6,00,000 |
||
|
Profit & Loss A/c |
3,00,000 |
||
|
Current Liabilities |
30,00,000 |
||
|
90,00,000 |
90,00,000 |
The preference shares are to be redeemed at 10% premium. Fresh issue of equity shares is to be made to the extent required under the Company’s Act for the purpose of this redemption. The shortfall in funds for the purpose of redemption after utilizing the proceeds of the fresh issue are to be met by taking a bank loan. Show journal entries.