Problem 1 Following items appear on the liabilities side of the balance sheet of a limited company as on 1st April, 2015: $ (a)13.5% Preference Share Capital. 4,00,000 (b)Equity Share Capital-fully paid up 5,00,000 (c)Equity Share Capital -60% paid up 3,00,000 (d) Securities Premium Reserve Account 7,00,000 (e) 15% Debentures 10,00,000 Profit (before interest on debentures and tax at 60%) is 11,50,000 for the accounting year ended 31st March, 2016. The recommendation of the company's board of directors include equity divided of 15%. Pass Journal Entries to incorporate board's recommendations