The following is the summarized balance sheet of X Ltd. as on 31 March 2011:
|
Liabilities |
Assets |
||
|
Equity Share |
15,00,000 |
Sundry Assets |
21,00,000 |
|
Capital |
6,00,000 |
Bank |
7,50,000 |
|
Redeemable Pref. |
4,50,000 |
||
|
Share Capital |
3,00,000 |
||
|
Profit & Loss A/c |
|||
|
Sundry Creditors |
|||
|
28,50,000 |
28,50,000 |
On that date, the preference shares had to be redeemed. For this purpose 30,000 equity shares of Rs.10 each were issued as Rs.11. The company also issued 9% debentures totaling Rs.4,50,000. The shares and debentures were immediately subscribed and paid for. The preference shares were duly redeemed. You are required to pass journal entries in the books of X Ltd. and prepare the balance sheet after redemption.