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Less: written oft under the scheme of reconstrucion 69 10.000 1.80.000 60,000 (60.000) 119 (6) Intangible assets Goodwill Less: written off under the scheme of
Less: written oft under the scheme of reconstrucion 69 10.000 1.80.000 60,000 (60.000) 119 (6) Intangible assets Goodwill Less: written off under the scheme of reconstruction 5. Non-current investments Investments Less: Sold during the year 6. Cash and cash equivalents Cash at Bank 27,000 127.000) 45,387 Illustration 11 The Summarised Balance Sheet of Revise Limited as at 31st March, 2012 was as follows: Liabilities Assets Authorised and subscribed capital: Fixed Assets : 10,000 Equity shares of Machineries 1,00,000 * 100 each fully paid 10,00,000 Current assets : Unsecured Loans : Inventory 3,20,000 12% Debentures 2,00,000 Trade receivables 2,70,000 Accrued interest 24,000 Bank 30,000 Current liabilities Profit and loss account Trade payables 72,000 Provision for income tax 24.000 6,00,000 13,20,000 13,20,000 It was decided to reconstruct the company for which necessary resolution was passed and sanctions were obtained from appropriate authorities. Accordingly, it was decided that (a) Each share is sub-divided into ten fully paid up equity shares of 10 each. (b) After sub-division, each shareholder shall surrender to the company 50% of his holding, for the purpose of re-issue to debenture holders and trade payables as necessary (c) Out of shares surrendered, 10,000 shares of 7 10 each shall be converted into 12% preference shares of 10 each, fully paid up. (d) The claims of the debenture-holders shall be reduced by 75 per cent. In consideration of the reduction, the debenture holders shall receive preference shares of 1,00,000 which are converted out of shares surrendered. (e) Trade payables claim shall be reduced to 50 per cent, it is to be settled by the issue of equity shares of 10 each out of shares surrendered (0 Balance of profit and loss account to be written off. (g) The shares surrendered and not re-issued shall be cancelled. You are required to show the joumal entries giving effect to the above and the resultant Balance Sheet
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