Question

Question:
Share Capital A/c Dr. (Rs. 100 * 10) To
Share Capital A/c (Rs. 10 * 100) The
above entry in the scheme of
reconstruction records?​

Answer 1

Answer:

Problem 1] The following is the Balance Sheet of Sai Ltd. as on 31-3-2011 :

Liabilities Rs. Assets Rs.

Share Capital : Goodwill 70,000

4,000 Eq. shares of Rs.100 each 4,00,000 L & Buildings 1,50,000

8% Pref. Shares of Rs. 100 each 3,00,000 P & Machinery 3,50,000

Profit Prior to Incorporation 10,000 Patents 20,000

4% Debentures 3,00,000 Stock 3,20,000

Sundry Creditors 2,00,000 Cash at bank 5,000

Preliminary Expenses 21,000

Profit and Loss A/c 2,74,000

12,10,000 12,10,000