Eben Ltd found itself in financial difficulty. The following is a trial balance at $31$st December,$2020$ extracted from the books of the company.GH $$Land $156,000$Building $($net$)27,000$Equipment $($net$)11,000$Goodwill $60,000$Investment in shares, quoted $27,000$Inventory and work in progress $120,000$Trade receivables $70,000$Income Surplus $40,000511,900$Ordinary shares issued at $1$ each $200,0005\%$ Cumulative preference shares of $1$ each $70,0008\%$ Debenture $80,000$Interest payable on debenture $13,000$Trade Payables $96,000$Loans from directors $16,000$Bank Overdraft $36,000511,000$The authorised share capital is $200,000$ ordinary shares of no par value and $100,0005\%$cumulative preference shares of no par value.During a meeting of shareholders and directors, it was decided to carry out a scheme of internalreconstruction. The following scheme has been agreed$\mathrm{.}1.$ The existing $70,000$ preference shares are to be exchanged for a new issue of $30,0008\%$Cumulative preference shares and $40,000$ ordinary shares, both issued at GHC$1\mathrm{.}00$ each$\mathrm{.}2.$ The Ordinary shareholders $($existing before the reconstruction scheme$)$ are to accept areduction of $50\%$ of their shareholdings. They are also to subscribe for a rights issue onthe basis of $1$ for $1($after the reduction of shareholding$)$ at a price of GHC$1\mathrm{.}00$ per share$\mathrm{.}3.$ The debenture holders are to accept $5,000$ ordinary shares credited as to GHC$1\mathrm{.}00$ each infull settlement of the interest payable, Post reconstruction debenture interest rate is to beincreased to $10\%.$ A further GH$20,000$ of the $10\%$ debenture is to be issued at a discountof $2\%$ and taken up by the existing holders$\mathrm{.}4.$ GH$6,000$ of directors loan is to be cancelled. The balance is to be settled by issue of$10,000$ ordinary shares credited as to GHC$1\mathrm{.}00$ per share$\mathrm{.}5.$ Goodwill and the income surplus deficit are to be written off$\mathrm{.}6.$ The investment in shares is to be sold at the current market price of GH$50,000\mathrm{.}7.$ The bank overdraft is to be repaid$\mathrm{.}8.$ GH$46,000$ is to be paid to trade creditors $($trade payables$)$ now and the balance to bedeferred to third quarter of year $2022\mathrm{.}9.10\%$ of the Trade receivables are to be considered irrecoverable$\mathrm{.}10.$ The remaining assets were professionally valued and should be included in the books andaccounts as follows:GHC Land $166,000$Building $60,000$Equipment $10,000$Inventory and work in$.$ progress $50,00011.$ Reconstruction expenses are expected to be GH$1,60012.$ It is expected, that due to changed conditions and new management, operating profits willbe earned at the rate of GH$50,000$ per annum after depreciation but before interest andtax. Due to losses brought forward and capital allowance it is unlikely that any taxliability will arise until $2023$ Required:Requireda. Write up the following ledger accounts: Capital Reduction; Cash; and Ordinary Shares.b$.$ Prepare the statement of financial position of the company immediately after thereconstruction.c$.$ Comment on the acceptability or otherwise of the proposed scheme from the point ofView of the ordinary shareholders $($supported by appropriate calculations$).$