The following is the summarized balance sheet of a company as on 31 December 2010:
|
Liabilities |
Assets |
||
|
Share Capital: |
Fixed assets |
2,60,000 |
|
|
Authorized: |
Current assets |
1,61,000 |
|
|
3,500 Equity |
3,50,000 |
||
|
Shares of Rs. 100 |
|||
|
Each |
|||
|
1,0009% |
1,00,000 |
||
|
Redeemable |
|||
|
Preference Shares of Z 100 Each |
|||
|
Issued & |
|||
|
Subscribed: 1,950 |
1,95,000 |
||
|
Equity Shares of |
|||
|
Z 100 Each Fully |
|||
|
Paid |
|||
|
8009% |
80,000 |
||
|
Redeemable Pref. |
|||
|
Shares of Rs. 100 |
|||
|
Each |
|||
|
Reserves & |
|||
|
Surplus: |
|||
|
Profit & Loss A/c |
1,00,000 |
||
|
Sundry Creditors |
46,000 |
||
|
4,21,000 |
4,21,000 |
The preference shares were redeemed on 1 January 2011 at a premium of Rs.20 per share, the whereabouts of the holders of 60 such shares not being known. At the same time, a bonus issue of equity shares was made at par, one share being issued for every three shares held out of the capital redemption reserve A/c.
You are required to pass the journal entries to record the above transactions and prepare the balance sheet after redemption: