Abusua Ltd. Has been trading profitably for several year but for the past four year its operations have resulted in losses. The board of directors has decided to restructure the company. The statement of Financial Position as at 30 September, 2016 GH GH Non current Assets Freehold land & building 3,788 Plant and equipment 7,020 Furniture and fixtures 3080 Investment 2,300 Deferred development exp. 7,050 Patent rights 4,200 Total 27,438 Current Assets Inventories 3,510 Trade receivables 1,600 Cash 428 5,538 Current Liabilities Bank loan 5,360 Trade payables 4,650 Sundry creditors 1,060 11,070 (5,532) Net current liabilities 22% Debentures (7,875) 14,031 Financed by: Share capital 17,625 Capital surplus 2,250 Income surplus (5,844) 14,031 You have been provided with the following additional information i) Abusua Ltds share capital consists of GH Ordinary shares 13,500 20% Cummulative Preference shares 4,125 ii) No dividend was declared on the preference shares for the year ended 30 September, 2016. iii) The following assets have net realizable values as indicated below: GH Freehold land and buildings 4,005 Plant and equipment 3,750 Furniture and fixtures 2,800 iv) The investment in Abusua Ltd is 55% holding in Obi Ltd. An offer of GH 1,350,000 has been made for it and it has been accepted by the directors. v) Following further feasibility study carried out on the project which gave rise to the deferred development expenditure, the directors have decided to discontinue the project. The project is not patented. vi) The directors have decided to sell the patent rights for a net realizable value of GH1,800,000. vii) Inventories were written down by GH 2,232,000. viii) The 22% debentures are secured on the freehold land and buildings. ix) The bank has a fixed and floating charge over the assets in respect of the loan. x) It is considered that a proposed reconstruction of the company should result in net profit after tax of GH 1,500,000 in the year ending 30 September, 2017 and GH 1,800,000 or more in each of the years thereafter. xi) The company will require a ratio of account receivable and cash to current liabilities of 0.80:1 in future to trade satisfactory. Required: As a Director of Finance of Abusua Ltd, recommend a scheme of reconstruction for consideration by the board of directors of the company and prepare a summarized statement of financial position.