The following is the Balance Sheet of Mercury Limited as on 31st March, 2020.

Liabilities	Amount	Assets	Amount
100000 Equity Shares of Rs 5 each	500000	Goodwil	200000
		Land and Buildings	400000
30000 8% Preference Shares of Rs 10 each	300000	Machinery	250000
		tools	100000
		Stock	100000
S Creditors	300000	Debtors	65000
14%Debentures	200000	Cash	10000
		P&L A/C	175000
	1300000		1300000

The following reconstruction Scheme was approved and sanctioned:

1. The Existing equity Shares be written down from Rs. 5 to Rs.1 each

2. Each existing 8% Preference Shares be written down from Rs.10 to Rs.5 per share, of which Rs. 4 will be represented by 12% Preference Shares & Rs. 4 by Equity Shares

3. Creditors are to accept 14% debentures to the extent of half their dues & the balance to be repaid after six months.

4. Debit balance in P/L account & goodwill to be written off.

5. Assets be revalued as under: Land & Buildings reduced by Rs.79,000, machinery by Rs.40,000 and tools by Rs.48,000.

6. Reserve for Bad Debts (RBD) to be created for Rs.8,000.

Question: 1. Prepare a reconstructed Balance Sheet. (10 Marks)