Weak Ltd. had the following balance sheet as on 31 December 2010:
|
Liabilities |
Assets |
||
|
6% Preference |
6,00,000 |
Goodwill |
1,80,000 |
|
Shares of T 100 |
Fixed Assets |
9,00,000 |
|
|
Each |
Stock |
4,50,000 |
|
|
Equity Shares of |
12,00,000 |
Debtors |
1,80,000 |
|
.100 Each |
Discount on |
30,000 |
|
|
Debentures |
3,00,000 |
Debentures |
|
|
Sundry |
4,50,000 |
Bank |
3,000 |
|
Creditors |
P&L A/c |
8,07,000 |
|
|
25,50,000 |
25,50,000 |
The following reconstruction scheme was approved:
- Preference shares to be reduced to 8% pref. shares of Rs.60 each
- Equity shares to be reduced by Rs.80 each
The amount thus made available to be utilized to write off fictitious assets including goodwill and Rs.1,50,000 from fixed assets Give entries for the reconstruction and the final balance sheet.