a 36 8. Dr. 4,000 and equity shares bought back). Note: Balance in General reserve as on 01.04.09 (4550 - 4500) = Rs. 50. Equity shareholders A/c To Bank A/C (Being payment of amount due to equity shareholders). Note: Cash at Bank [1650+3150+2000-2750-4000) = Rs.50 4,000 Rs 14,000 50 8,250 Balance Sheet of Diamond Ltd., as on 01.04.09 Liabilities Rs. Assets Share capital Fixed assets Issued, subscribed and paid up 6,000 Current asset, Loans and equity shares of Rs. 10 each Advances Reserves and surplus Capital Redemption Reserve 5,500 Cash at Bank (1000 + 4500) Other Current assets General Reserves 50 Profit and Loss A/c (300+ 150) 450 Secured Loans 9% Debentures 5,000 Bank Loan 2,000 Current liabilities and Provisions Sundry creditors 2,300 Provisions 1,000 Total 22,300 Total 22,300 Illustration - 45 Rs. in Crores 300 a XYZ Ltd. has the following capital structure on of 31st March 2009 Particulars Equity Share capital (Shares of Rs. 10 each) b. Reserves: General Reserve Security Premium Profit and Loss A/C Export Reserve (Statutory reserve) Loan Funds 270 100 50 80 800 The shareholders have on recommendation of Board of Directors approved vide special resolution at their meeting on 10th April 2009 a proposal to buy back maximum permissible equity shares considering the huge cash surplus following A/c of one of its divisions. The market price was hovering in the range of Rs. 25/- and in order to induce existing shareholders to offer their shares for buy back, it was decided to offer a price of 20% above market. Advice the company on maximum number of shares that can be bought back and record journal entries for the same assuming the buy back has been completed in full within the next 3 months. If borrowed funds were Rs. 1200 Lakhs, and 1500 Lakhs respectively would your answer change