The following is the summarized balance sheet of Sri Sai Ltd. as on 31 December 2010:
|
Liabilities |
Assets |
||
|
Share Capital: |
Sundry Assets |
49,60,000 |
|
|
Authorized |
|||
|
1,20,0009% |
12,00,000 |
Bank |
16,80,000 |
|
Redeemable |
|||
|
Preference |
|||
|
Shares of Rs. 10 each |
|||
|
4,00,000 Equity |
40,00,000 |
||
|
Shares of Rs. 10 |
|||
|
Each |
|||
|
Paid-Up Capital: |
|||
|
88,0009% |
8,80,000 |
||
|
Redeemable |
|||
|
Preference |
|||
|
Shares of Rs. 10 |
|||
|
Each |
|||
|
2,40,000 Equity |
24,00,000 |
||
|
Shares of Rs. 10 |
|||
|
Each Fully Paid |
|||
|
Profit & Loss A/c |
16,00,000 |
||
|
Reserve Fund |
16,00,000 |
||
|
Sundry Creditors |
1,60,000 |
||
|
66,40,000 |
66,40,000 |
On 7 January 2011, the preference shares were redeemed at a premium of Rs.4 per share. The Company could not trace the holders of 9,600 preference shares. On 10 January 2011, a bonus issue of one fully paid equity share for four shares held was made. Show the journal entries to record the above transactions and also prepare balance sheet, after redemption.