The following is the Balance Sheet of Sick Ltd. as on 31.3.2016:

The following scheme of reorganisation is sanctioned :
(1) Tangible fixed assets are to be written-down by 331/3%.
(2) Current assets are to be revalued at ₹ 27,00,000.
(3) Preference shareholders decide to forego their right to arrears of dividend which are in arrears for three years.
(4) The taxation liability of the company is settled at ₹ 4,00,000.
(5) One of the creditors of the company, to whom the company owes ₹ 25,00,000, decides to forego 50% of his claim. He is allotted 1,00,000 Equity Shares of ₹ 5 each in part satisfaction of the balance of his claim.
(6) The rate of interest on debentures is increased to 11%. The debentureholders surrender their existing debentures of ~ 100 each and exchange the same for fresh Debentures of ₹ 75 each.
(7) All existing Equity Shares are reduced to ₹ 5 each.

(8) All Preference Shares are reduced to ₹ 75 each. Pass Journal Entries and show the Balance Sheet of the company after giving effect to the above.

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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) Long-term Borrowings -- 6% Debentures TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets Balance Sheet of Sick Ltd. as at 31st March, 2016 (a) Short-term Borrowings (b) Trade Payables - Sundry Creditors (c) Short-term provisions-Provision for Tax Particulars (1) (i) Tangible Assets (2) Current Assets: (a) Other Current Assets TOTAL Note No. (2) (1) Amount (3) 8,00,000 (3,00,000) 3,00,000 39,00,000 3,00,000 50,00,000 15,00,000 35,00,000 50,00,000