Question

ed asse
ssed. TI
hare shi
uch sul
for
Id, and
se surr
nce Sh
bentur
50,00
him of
d by
Hered.
surrer
ing t
draft
hast
Balance Sheet of B Ltd. as on 31 March, 2018
Liabilities
Preference Share Capital 10,00.000 Land
2.30.000
(7100 paid-up)
Building
5.20,000
Equity Share Capital 14,00,000 Plant & Machinery
6,75.000
(10 paid-up)
Trade Mark
150.000
12% Debentures
4,00,000 Goodwill
3,00.000
Creditors
5,60,000 Stocks
3,20,000
Bank Loan
4,30,000 Debtors
5.46,000
Profit and Loss Alc
10.24.000
Discount on issue of Debentures 25.000
Total 37,90,000
Total 37.90,000
Scheme as proposed by the directors is as below:
1) Bank agreed to waive interest amount outstanding of 30,000 included in the
balance subject to immediate payment of 50% of their remaining dues.
2) Value of Land was increased by 150%, and Building revalued at 5,00,000.
3) Debenture holders agreed to reduce their claim by 20% provided they are paid 20%
of the balance immediately,
4). Preference shareholders to reduce their shares to 60 fully paid-up
5) Equity whare holder to reduce their shares to 2 per share fully paid-up and
subscribe 5,00,000 new Equity Shares of 2 each at par.
6) Write off Goodwill, Profit and Loss Account and Discount on issue of Debentures.
7) Trade Mark to be revalued at 1,40,000 and Stock at R3,00,000
Give necessary Journal Entries on Implementation of above scheme of reconstruction.
ing is
Lid
Sha
​

Answer 1

Time nhi h itna padhne ka............