Financial Accounting V

Chapter - 1
Redemption of Preference Shares
 Problem 4
Following is the Balance Sheet of Kalpana Ltd. As on 31-3-2018.
Liabilities ₹ Assets ₹
Share Capital: Cash at Bank 2,00,000
40000 Equity shares Sundry Assets 6,25,000
of ₹ 10 each 4,00,000
15000, 6% Red.
Preference Shares of
₹10 each 1,50,000
10000, 7% Red.
Preference Shares of
₹ 10 each, ₹ 7 paid. 70,000
Profit & Loss A/c 1,75,000
Creditors 30,000

8,25,000 8,25,000
On the above date preference shares at redeemed to
the extent possible at a premium of 10%. For this
purpose, the company issues, 1000 fresh equity shares
of ₹ 10 each at a premium of 10%. 
Pass the journal entries and redraft the Balance Sheet
                                                                    (Nov/Dec. 2018)
 Problem 5
Following is the Balance Sheet of Garware Ltd. As on 31-3-2018.
Liabilities ₹ Assets ₹
Share Capital: Cash at Bank 4,00,000
80000 Equity shares Sundry Assets 12,50,000
of ₹ 10 each 8,00,000
30000, 6% Red.
Preference Shares of
₹10 each 3,50,000
20000, 7% Red.
Preference Shares of
₹ 10 each, ₹ 7 paid. 1,40,000
Profit & Loss A/c 3,50,000
Creditors 60,000

16,50,000 16,50,000
On the above date preference shares at redeemed to
the extent possible at a premium of 10%. For this
purpose, the company issues, 20000 fresh equity
shares of ₹ 10 each at a premium of 10%. 
Pass the journal entries and redraft the Balance Sheet
                                                             (Nov/Dec. 2016)