On 31 March 2022 the following was the statement of financial position of Fight Hard Ltd.

Statement of financial position

		Ghc	Ghc
Non-current assets
Goodwill and trademarks as valued		225,000
Plant and machinery (at cost less depreciation)		214,800
Furniture and fittings (at cost less depreciation)		12,600
		452,400
Current assets:
Inventory		170,850
Receivables		65,100
Cash in hand		150
		236,100
Total assets		688,500
Authorized capital:
150,000 7 per cent preference shares of Ghc 1 each		150,000
2100000 ordinary shares at Ghc 0.5 each		1,050,000
		1,200,000
Issued and fully paid capital
150,000 7 per cent preference shares of Ghc 1 each		150,000
1200000 ordinary shares at Ghc 0.5 each		600,000
		750,000
Capital reserve		48,000
		798,000
Deduct: Retained earnings (debit balance)		(183,900)
		614,100
Current liabilities:
Sundry Payables		31,800
Bank overdraft		42,600
		688,500

The following scheme of capital reduction was sanctioned by the shareholders:

Preference shares were to be reduced to Ghc 0.75 each.

Ordinary shares were to b reduced to Ghc 0.2 each

The capital reserve was to be eliminated.

The reduced shares of both classes were to be consolidated ino new ordinary shares of Ghc 1 each

An issue of Ghc150,000 8 per cent debentures at par was to be made to provide fresh working capital.

The sum written off the issued capital of the company and th capital reserve to be used to write off the debit balance of the retained earnings account and to reduce non-current assets by the following amounts:

		Ghc
Goodwill and trademarks		210,000
Plant and machinery		45,000
Furniture and fittings		6,600

The bank overdraft was to be paid off out of the proceeds of the debenture which were duly issued and paid in full.

A further resolution was passed to restore the authorized capital of the company to 1200000 ordinary shares of Ghc 1 each.

Required:

Prepare journal entries (cash transactions to be journalized) to give effect to the above scheme and draw up the statement of financial position of the company after the completion of the scheme.