The balance sheet of SAMIA Ltd as at $30$th June $2001$ was as follow:

$100,000,6\%$ Cumm Preference shares $100,000$

$300,000$ Ordinary shares, TZS $\mathrm{.}5$ each $150,000$

Profit and Loss a$/$c $(98,000)$

$7\%$ Debentures $60,000$

Interest on Debentures $4,200$

Bank Overdraft $20,000$

Creditors $50,000$

$286,200$

Land and Buildings $34,000$

Plant $96,000$

Tools $27,300$

Investments $15,000$

Stocks $42,500$

Debtors $53,400$

R&D expenditure $18,000$

Debtors $286,200$

Additional Information

$1.$ The following assets are to be revalued as shown below:

Plant $59,000$

Tools $15,000$

Stocks $30,000$

Debtors $48,700$

$2.$ The R&D expenditure and in the P&L a$/$c are to be written off.

$3.$ A piece of land recorded in the books at TZS $6,000$ is revalued to TZS $14,000$ and is to be taken over by the debenture holders in part repayment of principle. The remaining land and building are to be revalued at TZS $40,000.$

$4.$ A creditor for TZS $18,000$ has agreed to accept a second mortgage debenture of $10\%$ per annum secured on the plant for TZS $15,500$ in settlement of his debt.

$5.$ The investment at a valuation of TZS $22,000$ are to be taken over by the bank.

C$1$: CORPORATE REPORTING REVIEW QUESTIONS$-$CAPITAL RE$-$ORGANIZATION

$6.$ The ascertained loss is to be met by writing down the ordinary share to TZS $0.05$ each and the preference to TZS $0\mathrm{.}8$ each. The authorized capital to be increased immediately to the original amount.

$7.$ The ordinary shareholders agreed to subscribe for two new ordinary shares at par for every share held. This cash is all received.

$8.$ The cost of the scheme are TZS $3,500.$ These have been paid and are to be written off. The debenture interest has also been paid.

Required.

a$)$ Journal entries to the above transactions in the books

b$)$ Balance sheet of the company immediately after the completion of the scheme.