The following balances were extracted from the books of Fortune Ltd. as on 31 March 2011:
|
Particulars |
|
|
10,000 9% Redeemable Preference Shares of |
10,00,000 |
|
100 Each, Fully Called Up}: |
30,000 |
|
Less: Calls-in-Arrear @ Rs.20 Per Share On 1,500 Shares}: |
9,70,000 |
|
Capital Reserve |
50,000 |
|
General Reserve |
2,50,000 |
The preference shares were redeemed on 1 April 2011 at a premium of Rs.5 per share. The company issued 65,000 equity shares of Rs.10 each at par, for the purpose of redeeming the preference shares, which were fully subscribed and duly allotted.
You are required to show the journal entries showing the transactions relating to the redemption of shares and the relevant extracts on the liabilities side of the balance sheet after such redemption.