PROBLEM8 The Balance Sheet of Cosmos Ltd. on 31st March, 2010, was as follows: Liabilities Assets 4,000 Equity Shares of Sundry Assets 10,00,000 * 100 each, * 80 paid 3,20,000 Securities Premium Account 60,000 Capital Redemption Reserve Account 70,000 General Reserve 1,00,000 Profit and Loss Account 3,00,000 Sundry Creditors 1,50.000 10,00,000 10,00,000 The directors recommended the following with a view to capitalising whole of Securities Premium Account, General Reserve and * 50,000 out of Profit and Loss Account: (a) The existing shares be made fully paid without the shareholders having to pay anything, (b) Each shareholder to be given fully paid bonus shares at a premium of 25% for the remaining amount in proportion to his holdings. Assuming that the scheme is accepted and that all formalities are gone through, give journal entries and also show in what proportion bonus shares will be distributed among shareholders