Question

INILU
13. SRAR CLASSES
Q.17. Following is the Balance Sheet
Liabilities
8000 - 7 %% preference
shares 100 each fully
poid
TD-PAST EXAM QUESTIONS
Sheet of XYZ Ltd, as on 31" March, 2010:
Assets
Plant and Machinery
Furniture and Fittings
8,00.000 Patents and Copy right
Goodwill
Investments (at cost)
10,00,000
Sundry debtors
1.65.000 Stock
15,000 Cash in hand
6,20,000 Profit & Loss A/C
1.80,000 Equity shares @
< 10 each fully paid
11% Debentures
Bank overdraft
Loan from director
Trade creditors
8.50.000
1.60.000
60.000
35,000
65,000
12.00.000
13,00,000
12.000
7.18.000
44,00,000
18.00.000
reconstruction
44,00.000
s and overvaluation of Assets, the following scheme of reco
ve been allotters
ccept plant and
deholder will surrender their 20% shares and they have be
or remaining amount.
having charge on plant and machinery would accept
Due to heavy losses and overva
was finalised:
() Preference shareholder will
9% (new) preference shares for remaining
(1) Debenture holders having charge on
machinery in full settlement.
Trade creditors accepted to take o
(iv) Equity shareholders are to accept redu
(V) Investment is to be valued at market prie
(vi) Sundry debtors and remaining stock is to
(VII) Directors have to forgo their loan in full.
(vii) Patents and Copy Right and Goodwill hav
Pass necessary Journal entries in the
formalities have been completed. Prepare Capi
of the company after reduction.
the stock up to the value of 6.20,000
are to accept reduction of 4 per share.
ed at market price i.e. * 60,000
o remaining stock is to be valued at 90% of their book val,
and Goodwill have no more value
Journal entries in the books of XYZ Ltd. assuming that all the
en completed. Prepare Capital reduction account and Balanc
all the Legal
Balance Sheer
(May 2010)

Answer 1

Explanation:

Trade creditors

8.50.000

1.60.000

60.000

35,000

65,000

12.00.000

13,00,000

12.000

7.18.000

44,00,000

18.00.000

reconstruction