Following is the balance sheet of Crescent Ltd. as on 30 June 2011:
|
Liabilities |
Assets |
||
|
Preference Share |
Fixed Assets |
36,00,000 |
|
|
capital |
Investments |
3,00,000 |
|
|
15,000 Shares of |
15,00,000 |
Bank |
5,40,000 |
|
Rs.100 Each, Fully |
|||
|
Called Up |
|||
|
Less: Final Call of Z 20 Per Share |
12,000 |
||
|
Unpaid |
|||
|
14,88,000 |
|||
|
Equity Share capital: |
|||
|
1,80,000 Shares of Rs. 10 Each, |
18,00,000 |
||
|
Fully Paid Up |
|||
|
Profit & Loss A/c |
9,00,000 |
||
|
Securities |
|||
|
Premium A/c |
90,000 |
||
|
Sundry Creditors |
1,62,000 |
||
|
44,40,000 |
44,40,000 |
On that date, the Board of Directors decided to redeem the preference shares at a premium of 10% and to sell investments at its market price of Rs.2,40,000. All payments were made except to shareholders holding 300 shares who could not be traceable.
They also decided to issue sufficient number of equity shares of Rs.10 each at a premium of Re 1 per share, required after utilizing the P&L A/c leaving a balance of Rs.3,00,000. Premium on redemption is required to be set off against security premium account. You are required to show the journal entries and the balance sheet of the company after redemption.