-

Advanced Accounting

Internal Reconstruction

Lecture No.- 3

By- Nitin Goel

of previous lecture
1 Questions
to be covered
1 Questions
#Q1 Found Entries
Dr
.
-
25-
-

" Freehold Premises All-De 55000

55000
To Reduction Ala
Capital
C 9 % 250000
Debentures /- Du / /

50000
() c) TO Bank
Al/Cash All
72000
To Land &
Buildings 128000
To
Capital Reduction Al (Bf)

3) Capital Reduction Alc-Br 309008

70000
TO PALA/L S

55000
To Fumitur & Fintore All

89000
To Plant & All
Machiney
To 95000
Irres trave to
4) Genera Reserve Al-Sr 126000

Al 126000
Capital
To Reduction

Capital Reduction All

To
Sundries
(w/g) 30900 By Freehold Pun .
55000

9 + Debatin 128000
B
By
Gerard Res .

(B) E
126000

=
=
 Jound Entries
# QG
Dr
- Et
-

1) St
Pry Shan
Cp / (100 Dr ,
2 50 000
-
.
-

62500
(2500x25) Pry-Shan p A (25)
To 8 % -

187500
To
Capital Reduction All

2)
Equity Shan p A/c /100) Dr 500000
-

-S

1500X20) To Equil Shar p

-

Al (20) 100 000

400000
To Reduction Al
Capita

3)
Equily (20)
Shan Dr 100000
Cap All
-

Cp Al (100)
100000
To
Equil Shan -

(Being 500 consolidated

of
shans 20 each

each)
into
of
1000 share 100

1000 X 100
500 x 20 =
100000 =
-
 62500
4) 8%
Pry
.
Sh .
p
.

Al (25) -

Ar

62500
To 8 %
Pr
-
Sh .
pitel (100)
(2500 x 25 = 62500 = x 100)

- -

250000
C

5) 8 %. Debentures /-Su ~
200000
To Freehold
property All
To 50000
Reduction
Capital A/c

6) Freehold 400000
Propery Ap-su
400000
To Reduction All
Capital
(6) -

(72 CL)] -

-
300 000
7) Director Lam A/c-Dv
300 000 /

ReductionAll
S

To
Capital
 ⑨ Capital Reduction A/1-gr 1237500
50000

I
To Stock
12500
Prov Bad dest
To
for
10 00 000
TO PLA/2
,
,

To Goodwill 100 000

,

50000
To Tradenam
25000
To
se Revenue
Emp
. -

100000
9) Capital Reduction All-su
Reser 100000
To
Capital All
 Capital Reduction All

187500
To Sundries
(N/Off) By Pry-Sh Cep
8+ .

1237500
400000
By Equity cop
Sh .
.

To
Capital Resur
(B) &100000
& Debentures 50000
By
40 000
B Freehold
Pop .

300 000
B Director Coam
>
-
E
 Journed Entries
#07
Debit credit

1)
Equity Capital Alc (100) Dr 2 00 00 000
-

Share , ,
,

80 00
(40)
000
(8LX40) To
Equin Share
Cap
.
Al , ,

/2000000
To Reduction All
Capital

2) 64.
Pre shau
Cap A/c (100) Do 100 00 000
-

.
.

Shan p (60)
To 64 6000000
Pry
.
-
.

/
I

4000000
To Reduction Ale
Capital S /

5) + Debention
5
-
/ (100) -
Dr (80000 X100) 8000000
>

18000x70) To 64 Debentire Al
-
·

(70) 5600000
7

2400000
Capital
To Reduction All
 &

Trade 4000000
4)
Potts A/c-Dr

To Reduction Al (ot) 1600000

Capital
I S

2400000
Cep-A/ (6000 40)
x
To
Eg Sh -
.
.

200000
5) Provision Tan
Al-Br
for
Capitol Reduction Al-Dr(BJ) 100000
300000
-

To Bank A/2

6) Reduction Al-
1 73 00 000
Capital Dr , , ,

1200000
To P& LA/ I S

50 00000
T PPE (2-50x201) ,
/

1 00,
000
To Investments ,

11000000
(2002-90) To Current As S
S S

7) Capital Reduction Als-Dr 2600000

To Resur A & 600000

Capital S I
 (and reduced)
of
Balance Sheet Vaibhav (td .

Note No
. Amount

Equity & libilitie

) Shareholder
funds I 16400000

repiral
shar
as 2
2600000
5) Resumes & Surflos

Cictilities
2) Not Curre
3 5600000
as long Term
Borrowings
3) Correct Lisilines 6000000
(1002- 404)
a) Trade
Payths TOTAL
-

30600000
I S

Assets

I Not current Assess

Assess
Intagible
a) PPE &
Y 20000000
i) PPE
1900000
bj Not Current Fra
87000000
2) Current Assets (902-3L) - -

TOTAL 30600000
-
S
-
Notes to ACCOUN
SoL

1) Share
Capital 24L
6000000
-

Go each
Pr of
Shane 104L
100000 6 %
·
-
-
,

10 400000 - 40

of
260000 40 each
equil share
/ /

2 .
60L

COut
of
abot
,
60
, 000
equil
shares issued
for -

consideration other than

cesh) -

1640800
--

2) Reserves & Suchlus

2600000
MCSU
Capital
3) LTB
5 600
80000 70
of
6 % Debentures each
,

4) PPE
PPE 25000000

15000000 20000000
w1oJf under the scheme
-

&
-
207
-

settled at 300
,

libility of company
is 000
Tanation
wording
S

↓
-

① (Interpreted as
paid)
Prov G L
for Tan
A/c-Dr
IL
Capital Red Als-fr
3L
To Bank All

②
③
1) Cap -
Red.
Al-Ar IL
1) ProrforTan /
22

To Poor 12 12
for
+an
Capital
Red /Ar
Tan 3
lstility for
To
Prov 3L
2) for TA-Dr

To Bank 3L 2) Lies
for
Tan Al-Dr
32

3L
To Bank /
Sera
-

wordings included
Provision be
for
tan is to
Tanation settled 300000 &
listicity
is at

accordingly
.

12
Reduction Al- Ar
: Capital
IL
Tay
To provision
for
 Jound Entries
#US
Debit Credit

I Equity Share
Cap- Alc (100) -
Dr 3500000
/

To
Equin
Share
Cp-Ak (25) 875000

To
Capital
Reduction All S
2) 10 +
Pry Shar
Cap Alc (100) D. 1500000
·
. -

(5000 x 75) To 10 %·
Pry
.
Share
Cp
.

/ (75) 1125000

To
Capital Reduction A/v 0

3) 1125000
Pry Cp / (75)
Dr
10 % -
Share .
-

750000
(15000 50) To 13 +-
Preg share
up (50)
.
·

375000
(15000 x 25) To
Equil Stan
up (25)
.
 Pry
No
4) .
Dividend Waired :
entry
5) Capital Reduction /C-Dr ↳
150000
S

All 150000
To
Equity
Share
Capital E
/

(15(x10 +
) X I

500000
6) 7 % Debentures Al-De
/2 250000
To 13 %
Pry Share
Cap Al
·
.

[ (90 +)
To Bank 225000
All
1/2
S ,

To
Capital Reduction A/c (10 %
) ↓
25000
S

[
7) Capital Reduction All-Dr 150
S
000
/

AK/Lid
To 150000
Liability for sline
gal All

[Dimer
-

150000
an ele
150000
To Reduction Alc
Capital
Combine Shi dad sakte no
 300000
9) Land &
Building All-Du
To Reduction All
↳
300
000 ,

Capital
/

1000000
10) BannAK-5v (40000 x 25)
1000000
Allotest Ala
To Share Appl & -

1) Shalate & Allotment Al-Du 1000000

10000000
To
Equity shel
CpAl
12)
Unduwrity form
All-Dr 40000
·

40000
To Bak A/c
(10(x 4 +
)

(3) Capital Reduction A/c

-
A
D
15000

To Bann Al 15000

(Expense)
(4) Capital Reduction Al-Du 00 S

40000
To
underwriting
corn .
S

350
, 000
To Goodwill

400000
To Plant & Mach.

100000
To Stock

To Trad RCC .
150 000
,
I

To P&CAK 1950000 S
J

15) Capital Reduction A-D 1,7

0000
/

To Rescue A l
Capital 170 000 ,
 &

Homework

H/nQues
5 6 7
, , ,
2 Min Summary

Basic
concepts & Questions