Below is given the balance sheet of Unlucky Ltd. as on 31 March 2011:
|
Liabilities |
Assets |
||
|
Share Capital: |
Leasehold |
18,00,000 |
|
|
Authorized |
Premises |
||
|
40,000 Pref. |
20,00,000 |
Plant |
3,20,000 |
|
Shares of Rs. 50 |
|||
|
Each |
|||
|
40,000 Equity |
20,00,000 |
Debtors |
4,00,000 |
|
Shares of Rs. 50 |
|||
|
Each |
|||
|
40,00,000 |
Stock |
2,80,000 |
|
|
Subscribed |
Preliminary |
2,00,000 |
|
|
Capital: |
Expenses |
||
|
32,000 Pref. |
16,00,000 |
P&L A/c |
4,96,000 |
|
Shares of Rs. 50 |
|||
|
Each Fully Paid |
|||
|
32,000 Equity |
16,00,000 |
Cash at Bank |
4,000 |
|
Shares of Rs. 50 each fully paid |
|||
|
Sundry Creditors |
1,60,000 |
||
|
Bank Overdraft |
1,40,000 |
||
|
35,00,000 |
35,00,000 |
Due to heavy losses, the company decided upon the following scheme of reconstruction:
- The preference shares were to be reduced to a value of Rs.30 each. The equity shares were also to be reduced to the value of Rs.30 each.
- The balance available was to be used to write off the debit balance of the P&L A/c 80,000 from stock and the full amount of preliminary expenses account. A provision of Rs.1,20,000 was to be made against sundry debtors.
The leasehold premises were to be reduced by Rs.2,64,000 and the plant account to be reduced to Rs.2,00,000.
You are required to journalize the above transactions and prepare the reconstructed balance sheet.