(b) Distinguish between shares issued 4. Due to continuous losses suffered in the past, XYZ Ltd. decided to re-organize itself. The summarized Balance Sheet of XYZ Ltd. as at 31st March 2023 is given below. Particulars I. EQUITY AND LIABILITIES Equity Share Capital (100 each) Less: Calls in Arrear @20 per share Surplus (Negative) 10% Debentures Debenture Interest Due Loan from Director Creditors II. ASSETS Plant and Machinery Investments Stock In Trade Sundry Debtors Cash at Bank 6,00,000 (5,000) 5,95,000 (2,40,000) 4,00,000 40,000 50,000 1,10,000 9,55,000 6,50,000 52,500 1,25,000 80,000 47,500 9,55,000 The following scheme of reconstruction was formed and approved by the court : (i) Forfeit the shares on which calls are in arrears and reissue them at 30 per share. (ii) Each shareholder is to surrender 60% of the shares held by him. (iii) Sub-divide each share of 100 each into 10 shares of 10 each