The following information is extracted from the balance sheet of Full Moon Ltd as on 30 December 2010
|
Particulars |
|
|
Authorized Share Capital: |
|
|
20,000 9% Redeemable Preference |
20,00,000 |
|
Shares of Rs.100 Each |
|
|
4,00,000 Equity Shares of Rs.10 Each |
40,00,000 |
|
Paid-Up Capital: |
|
|
10,000 9% Redeemable Preference Shares of Rs.100 Each |
10,00,000 |
|
3,20,000 Equity Shares of Rs.10 Each, Rs.7.50 Paid Up |
24,00,000 |
|
Capital Reserve |
4,00,000 |
|
General Reserve |
14,00,000 |
|
Securities Premium |
48,000 |
|
Profit & Loss A/c |
5,00,000 |
On 6 January 2011, the preference shares were redeemed at a premium of 5% for the purpose of redemption, the company decided to:
Issue 16,000 6% debentures of Rs.100 each
- Convert the partly paid up equity shares into fully paid up without requiring the shareholders to pay for the same
- Issue of fully paid rights shares of Rs.10 each at a premium of Rs.2 per share in proportion of one share for every four shares held
Give necessary journal entries to record the above transactions.