Below is given the Balance Sheet of D. Ltd. as at 31.3.2016.Due to heavy losses the company decided upon the following scheme of reconstruction:

(i) The preference shares were to be reduced to a value of ₹ 30 each. The equity shares also were to be reduced to the value of ₹ 30 each;

(ii) The balance available was to be used to write-off the debit balance of the Profit and Loss Account; ₹ 20,000 from Inventories; a provision of ₹ 30,000 was to be made against the Sundry Debtors. The leasehold premises were to be reduced by ₹ 66,000 and the Plant Account was to be reduced to ₹ 50,000. You are required to joumalise the above transactions and prepare the reconstructed Balance Sheet.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus --Profit and Loss Account (2) Share Application Money Pending Allotment : (3) Non-current Liabilities: (4) Current Liabilities: (a) Short-term Borrowings - Bank Loan (b) Trade Payables - Sundry Creditors TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets Balance Sheet of D Ltd. as at 31st March, 2016 (i) Tangible Assets: (2) Current Assets: TOTAL Particulars (1) Leasehold Premises Plant (a) Current Investments (b) Inventories (c) Trade Receivables - Sundry Debtors (d) Cash and Cash Equivalents -- Cash at Bank Note No. (2) (1) Amount (3) 8,00,000 (1,74,000) 35,000 40,000 7,01,000 4,50,000 80,000 70,000 1,00,000 1,000 7,01,000