(a) Equity shares paid up value to be reduced to R75 each and to meet working capital 10,000 equity shares of 5 ench issued to public for subscriptton and was fully subscribed and received. (h) Land and building should be valued at 2,20,000. Good will to be write off. Plant and machinery to be depreciated by 10%. (c) Trade creditors have agreed to forego liability up to 25% on condition 25% of net liability to be paid iimmediately (d) Investments are taken over by Bank in full settlement of overdraft cost of re-construction amount to 5,000. e) Preference shareholders have agreed to give up right on dividend arrears and converied 9% preference shares into 11% preference shares of 100 each. Balance Sheet.
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