which rs 15 is paid up into 25 000 equity shares of rs 10 each fully paid up pass jo 621917

Model: Surplus in capital reduction XYZ Co. Ltd. passed resolution and got Court permission for the reduction of its share capital by Rs.2,50,000 for the purposes mentioned in the following:

1. To write off the debit balances of P&L A/c of Rs.1,05,000
2. To reduce the value of plant & machinery by Rs.45,000 and goodwill by Rs.20,000
3. To reduce the value of investments by Rs.40,000

The reduction was made by converting 25,000 preference shares of Rs.20 each fully paid to the same number of preference shares of Rs.15 each fully paid and by converting 25,000 equity shares of Rs.20 each on which Rs.15 is paid up into 25,000 equity shares of Rs.10 each fully paid up. Pass journal entries to record the share capital reduction.