A The ledger balances of Tick Tick Ltd at 31 March 2014 were as follows:

A capital reduction scheme has been sanctioned under which the 250,000 preference shares are to be reduced to 80 peach, fully paid; and the 500,000 ordinary shares are to be reduced to 20 p each, fully paid.
Development expenditure and the debit balance of retained profits are to be written off, the balance remaining being used to reduce the book value of the plant.
Required:
Prepare the journal entries recording the reduction scheme and the statement of financial position as it would appear immediately after the reduction. Narrations are not required in connection with journal entries.

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Freehold premises Plant Inventory Accounts receivable 90,000 300,000 82,000 96,000 Development expenditure* Cash at bank Retained profits (debit balance) 500,000 ordinary shares of 1 each Accounts payable 250,000 8% preference shares of 1 each 110,000 11,000 121,000 250,000 500,000 60,000