The balance sheet of Raman Ltd., as on 31^st March 1987, is as follows:

Redeemable preference shares were due for payment on 1^st April 1987 at a premium of 10%. The company sent a reminder for the final call on the remaining 300 redeemable preference shares and could collect money from shareholders holding 200 shares at ₹20 per share, and forfeited the defaulting 100 shares. The company sold all investments and could recover 90% of the cost of such investment. The company issued adequate number of new equity shares at par, to the extent available profits were insufficient to backup the redemption.

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Liabilities 10,000 Equity Shares of 10 each, fully paid-up 11% Redeemable Preference Shares of 100 each, fully paid-up Less: Calls-in-Arrears at 20 per share 1,00,000 6,000 10% Preference Shares of 10 each, fully paid Capital Reserve Securities Premium General Reserve Profit & Loss A/c Creditors 1,00,000 94,000 1,00,000 30,000 5,000 40,000 20,000 27,000 4,16,000 Assets Fixed Assets Debtors Investment Stock Bank 2,62,000 90,000 30,000 30,000 4,000 4,16,000