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1Jle followin~ was the balance sheet of Y Ltd. on 31st Maich 201 ~, ..
• I [

J. __::.;_ _----:- :--:~-- --:---- --:--__ .-:-,--- -~~-~ -_;__

LiabUities • Rs. •• • ·_ Assets - Ra.
SMJre capital: G~~ill> 60,000
3,000 1°~ preference shares of Land &·Buildings 1,50,.-000
. ~- 1 each 3;00,000 i>lant & Machinery . 3,9(),000
4,000 equity of Rs. I00 •Patents •· 30,000 .
each , A.00,~ • Stotk • 2.20,000 ·
Profit prior to incorporation • 10,~9()-, .·Sundry··<lfl,~rs 1,50,000 ,
6% Debentures • • • -· 3,~Q,000. Cash at.B&DJ( S,000
Sundry creditors • 2,00,000 •. Prelim'inmy experises ·. 2S,000 -
- • • ~Profit. & Loss Ale . 2;70~0CMt~
12,10,000 • 12,10;000

The following schtme of reconstructioQ -was duly approved: •

(a) 7% preference shares be conyerted into 90/o prefei-ence shares;~ amount
being reduced by·'Jo%·. . -
(b) Equity shares ·be reduced to fully paid shares of Rs. 50 'each.
(c) Land·& B·wJdingsl;e appreciated by 20%..
• •' I

• ,
•

. (d) Debentu~s be.red ~ by 20%·.

(e) _All in~gibl e assets~ fictitio~ asse-s including patents and~CCumulated
• • losses be. written off. Utilise profit prior to incorporation; if necessary.
(f) Equity.shareholders to subsctibe equity shares ofRs. 1,00,000, the amount·
to be utilised for acquiring new plant & machinery. Assuming the whole
scheme to have be~n put through, give journal- entries _and prepare _the
resultant balance sheet. • /B.Com., OsmtUJio, Oct. JHIJ