PROBLEM 7 Following items appear in the Balance Sheet of a limited company : Share Capital Authorised : 20,000 Equity Shares of 7 10 each 2,00,000 Issued and paid up : 10,000 Equity Shares of 10 each 38 per share paid up 80,000 Reserves and Surplus : Securities Premium 2.000 Capital Redemption Reserve Account 4,000 General Reserve 40,000 4,000 The company passed the following resolution : (a) That the general reserve be utilised in making the partly paid shares as fully paid up (b) That further 1,000 fully paid Equity Bonus Shares of 10 cach be issued to the existing shareholders. For this purpose, general reserve should be utilised to the minimum extent. You are required to pass the Journal Entries to record the above, and show the necessary items in the Balance Sheet as would appear after giving effect in the resolution. (Schedule V particulars may not be given)