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Question 2 The balance sheet of Nisha Ltd as at 31 st March 2017 LIABILITIES AMOUNT(N$) ASSETS AMOUNT(N$) -Equity share of N$10 each F.P -12%
Question 2
The balance sheet of Nisha Ltd as at 31st March 2017
LIABILITIES
AMOUNT(N$)
ASSETS
AMOUNT(N$)
-Equity share of N$10 each F.P
-12% preference share of N$100 each F.p
-10%Debenture
-Outstanding interest on debenture
-Bank Overdraft
-Sundry creditor
1,200,000
1,200,000
800,000
80,000
60000
300,000
3,640,000
Goodwill
Land and Building
Plant and Machinery
Furniture
Patent and patterns
Stock
Debtors
Cash and Bank
Profit and loss account
200,000
1,200,000
1,000,000
300,000
150,000
100,000
130,000
60,000
500,000
3,640,000
Scheme of Reconstructions
a) The 12% preference share are to be converted into the same number of 15% preference share of N$75 each full paid b) The equity share are to be converted into same number of equity shares of N$5 each full paid c) Debenture holder agree to fore go interest outstanding subject to the condition that the rate of interest be incurred to 15% d) Creditors agree to fore go 25% their claim e) Land and Buildings is valued at N$1,500,000 f) The amount that made available is utilized to write off all intangible and fictitious assets and to bring down the value of plant and machinery by 40%
Question 2
The balance sheet of Nisha Ltd as at 31st March 2017
LIABILITIES | AMOUNT(N$) | ASSETS | AMOUNT(N$) |
-Equity share of N$10 each F.P -12% preference share of N$100 each F.p -10%Debenture -Outstanding interest on debenture -Bank Overdraft -Sundry creditor | 1,200,000
1,200,000
800,000 80,000
60000 300,000
3,640,000 | Goodwill Land and Building Plant and Machinery Furniture Patent and patterns Stock Debtors Cash and Bank Profit and loss account | 200,000 1,200,000 1,000,000 300,000 150,000 100,000 130,000 60,000 500,000
3,640,000 |
|
|
|
|
Scheme of Reconstructions
a) The 12% preference share are to be converted into the same number of 15% preference share of N$75 each full paid
b) The equity share are to be converted into same number of equity shares of N$5 each full paid
c) Debenture holder agree to fore go interest outstanding subject to the condition that the rate of interest be incurred to 15%
d) Creditors agree to fore go 25% their claim
e) Land and Buildings is valued at N$1,500,000
f) The amount that made available is utilized to write off all intangible and fictitious assets and to bring down the value of plant and machinery by 40%
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