line with the provisions of the relevant accounting standard The conpany is in urgent need to capital to meet existing liabilities and the necessary new investment in plant and working capital A scheme for financial reorganization has been drawn up for the consideration of shareholders and creditors. The terms are as follows: (a) The shares of GHel each are to be written down to 20Gp per share and subsequently every five shares of 20Gp each are to be consolidated into one fully paid share of GHel. 6) The existing shareholders are to subscribe for a rights issue of two new equity shares, issued at Gel, for every share held after the proposed reduction and consolidation (1) A major supplier agrees to exchange a debt of GH6270,000 included in payables for 270,000 equity shares of GHel each fully paid. (d) In full settlement of the GHe 1.030,500 owing the bank agrees to accept an immediate payment of GHe 130,500 and to consolidate the balance of GHc900,000 into a loan carrying interest of 40% per annum, repayable in five equal instalments commencing 31 December 2020 The loan to be secured by a fixed charge on the land and buildings and a floating charge on the company's other assets. (e) The credit balance on the capital surplus account and the debit balance on the retained earnings account and goodwill are considered valueless and are to be written off The assets listed below are to be restated at the following amounts. GHE Plant and machinery 187,500 Inventory 315,000 Receivables 750,000 Land and buildings 480,000 A group of dissatisfied shareholders plan to oppose the scheme on the grounds that they have to bear the whole burden of the reorganization whereas the bank loses nothing. The company has received a cash offer of GHe 1,680,000 for its non-curent and curent assets. Required: (A). Make journal entries (including cash transactions) to give effect to the proposed scheme of reconstruction