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2011 Oct. 1 * 1,50.000 9 months 12% 13,500 2012 Oct. 1 2,00,000 9 months 12% 18.000 (1) Interest credited to Interest on Own Debenture Alc 2011 Dec. 31 * 1,50,000 12 months 12% 18,000 2012 April 1 * 1,00,000 3 months 12% 3.000 2012 June 30 * 1,50,000 6 months 12% 2012 Dec. 31 2,00,000 12 months 12% 24,000 (1) Profit/Loss on cancellation/sales is difference between cost or nominal value and sales price. Illustration 7 The Summary Balance Sheet of Chanjil Ltd. at March 31, 2012 was: 9,000 Issued and fully Paid Share Capital Sundry Assets Own Debentures (Nominal 21,55,000 1,05,000 1,20,000) 50,000 6%Redeemable 'A' Pref. Cash at Bank 5,80,000 Shares of 10 each 5,00,000 40,000 7% Redeemable 'B' Pref. Shares of 10 0 each (less calls in arrear on 5,000 shares@ 1) 3,95,000 50,000 Equity shares of ? 10 each 5,00,000 Securities Premium Account 1,00,000 Capital Reserve Account 1,00,000 Profit and Loss Account 4,00,000 General Reserve Account 2,00,000 5% Debentures 4,00.000 Trade Payables 2,45,000 28,40,000 28,40,000 On September 30, 2012 following were due for redemption : (1) The 7 4,00,000 5% Debentures at a premium of 10 per cent. (2) The 75,00,000 6% 'A' Preference Shares at a premium of 1 per share. (3) The 7 4,00,000 7% 'B' Preference Shares at a premium of 5 per cent. It was decided (a) Out of the trading profits of ? 2,00,000 eared in the seven months to Oct. 31, 2012, to pay the debenture interest and preference dividends for the half year to September 30, 2012 (b) to offer to the debenture holders new 6% debentures 2012 or repayment in cash. The offer of new debentures in exchange the original holding was accepted by 50 per cent of the debenture holders including those held by Chanjil Ltd. The whole transaction was completed on September 30, 2012, (c) A transfer was made to General Reserve of a sum equivalent to the nominal value of redemption: (d) to make an issue of 60,000 Equity Shares of 10 each at a premium of 72.50 per share. This was done on August 31, 2012 and all moneys were received on that date; (e) to repay in cash both 'A' and 'B' Preference shares, and this was carried through on September 30, 2012 You are required to (1) show the ledger accounts recording the above transaction in the company books and (2) give the company's Balance Sheet at Oct. 31, 2012. Ignore expenses and taxation