1 10,00,000 7,05,000 N 3 Part 1 Following is the balance sheet of ABC Ltd. BALANCE SHEET as at 31st March, 2017 1. EQUITIES AND LIABILITIES 1. Shareholders' funds (a) Share Capital (6) Reserve & Surplus 2 2. Non-Current Liability Long-term borrowings 3. Current Liability Trade payables TOTAL II. ASSETS 1. Non-current assets (a) Fixed Assets Tangible fixed assets (b) Non-Current Investment 2. Current Assets Inventories 1,00,000 Trade receivables 1,00,000 Cash and cash equivalents Balance 4,85,000 TOTAL 4,00,000 60,000 21,65,000 13,30,000 1,50,000 6,85,000 21,65,000 Notes 10,00,000 1. Share Capital Authorized Share Capital Issued, Subscribed Called-Up and Paid-Up Share Capital:- 1,00,000 shares of Rs. 10 each fully paid-up 2. Reserve and Surplus Securities Premium General Reserve 3. Long-term borrowings 14% Debentures 4. Tangible Fixed assets Land-building Plant and machinery Furniture and fitting 2,00,000 5.05.000 7,05,000 4,00,000 9,30,000 3,50,000 50,000 13,30,000 The shareholders of the ABC Ltd., on April 1, 2017, approved buyback of equity shares as follows: (1) The company would buyback 5% equity shares @ Rs 15. (ii) The buyback would be financed by issuing 12% bonds for Rs 10,000, and the rest of the amount would be taken from the general reserve. (iii) Securities premium account would be used to pay the premium on the buyback (iv) Rs 275,000 worth of investments would be sold. You are required to pass the journal entries in the books of accounts to record the above transactions. Also, prepare the balance sheet of the ABC. Ltd. post buy- back of shares. Part 2 MFG LTD. invited applications in September 2021 from the general public for 100000 equity shares of AED 10 each with a premium of AED 5 per share. The entire public issue of equity shares was underwritten by the following underwriters: Ahmed, Saeed, Rasul and Abdulla with the allocation of 30 percent, 30 percent, 20 percent, and 20 percent, respectively, with the provision of firm underwriting of 3000, 2000, 1000, and 1000 equity shares, respectively. MFG LTD. received applications for 70000 equity shares from the general public out of which applications for 19000, 10000; 21000 and 8000 shares were associated with Ahmed, Saeed, Rasul, and Abdulla, respectively. You are required to find out the liability of all the four underwriters involved in the issue of shares. Please note that the underwriting commission is 2.5%