External Reconstruction:

On $1^{st}$ April, $2020$ the Balance sheet of Lakshmi Ltd was as under:

A scheme of reconstruction was as under: $($i$)$ A new company called Sri Lakshmi$(2021)$ Ltd to be formed with an

authorized capital of Rs$\mathrm{.}50,00,000$ all in equity shares of Rs$.100$ each. $($ii$)$ One equity share of Rs$.100$ each fully

paid in the new company to be issued in exchange of three preference shares in the new company. $($iii$)$ One equity

share of Rs$.100$ each fully paid in the new company to be exchanged for four equity shares in the old company.

$($iv$)$ Debenture holders to receive $5,000$ equity shares in the new company as fully paid. $($v$)$ Creditors to be taken

over by the new company and immediately paid off. $($vi$)$ The new company to issue remaining equity shares for

public subscription. $($vii$)$ The new company to take over old company's assets subject to revaluation of sundry

assets at Rs$\mathrm{.}26,50,000.$

Prepare necessary ledger accounts in the books of Lakshmi Ltd and open the books of the new company by means

of journal entries, assuming that the public subscription was fully subscribed & prepare Balance sheet.