The following is the balance sheet of Unfortunate Ltd. as at 31 March 2011:
|
Liabilities |
Assets |
||
|
4,00,000 Equity |
40,00,000 |
Patents |
4,00,000 |
|
Shares of Rs. 10 |
Freehold |
19,20,000 |
|
|
Each |
Premises |
||
|
2,40,000 10% |
24,00,000 |
Stock In Trade |
20,00,000 |
|
Preference |
Debtors |
15,20,000 |
|
|
Shares of Rs. 10 |
Furniture |
2,40,000 |
|
|
Each |
|||
|
Investment |
6,00,000 |
||
|
12% Debentures |
16,00,000 |
||
|
Bank |
80,000 |
||
|
Unsecured Loan |
2,88,000 |
||
|
Profit & Loss A/c |
28,40,000 |
||
|
Creditors |
11,20,000 |
||
|
Accrued Interest on Debentures |
1,92,000 |
||
|
96,00,000 |
96,00,000 |
The following scheme of external reconstruction was approved:
- A new company by the name of Unfortunate (2011) Ltd. to be formed to take over the entire business of Unfortunate Ltd.
- One equity share of Rs.10 Rs.6 paid up is to be given in exchange of every two equity shares of Unfortunate Ltd.
- One 11% pref. share of Rs.100 each is to be given in exchange for 15 pref. shares of Unfortunate Ltd.
- The claims of 12% debenture holders of Unfortunate Ltd. would be discharged by the issue of equity shares of Rs.10 each fully paid.
- The creditors will receive 60% of their dues in cash and 25% in equity shares of Rs.10 each and the balance to be foregone.
- The party paid equity shares are to be made fully paid by receiving cash from the shareholders.
- Furniture is subject to depreciation by 25%.
- The freehold premises were revalued at 20% more while the stock was revalued at 12,80,000. The investments are to be brought upto market value of Rs.7,20,000 and debtors reduced by 10%. Preliminary expenses amounted to Rs.40,000.
You are required to:
- Close the accounts in the books of Unfortunate Ltd.
- Opening entries in the books of Unfortunate (2011) Ltd.