The following is the summarized balance sheet of Tabu Ltd at $31$ October $2021$

Sh$.$

Sh$.$

Sh$.$

Non$-$current assets

Tangible: Freehold property

$85,000$

Plant

$10,000$

$95,000$

Intangible: Patents

$10,500$

Goodwill

$28,000$

$38,500$

$133,500$

Current assets:

Stock

$85,000$

Debtors

$97,000$

Investments $($market Sh$.25$ million$)$

$11,000$

Deferred advertising

$20,000$

$213,000$

Current Assets:

Bank overdraft

$39,000$

Creditors

$50,000$

Debentures interest payable

$4,500$

Accruals

$10,000$

Directors loans

$20,000$

$(123,500)$

$89,500$

$223,000$

Financed By:

Share capital

$6\%8$ million cumulative preference shares of

Sh$.10$ each

$80,000$

$15$ million ordinary shares of Sh$.10$ each

$150,000$

$230,000$

Revenue reserves:

Profit and loss account

$(82,000)$

Shareholders funds

$148,000$

Non$-$current liabilities:

$6\%$ debentures

$75,000$

$223,600$

The court approved a scheme of re$-$organization submitted by the debenture holders and agreed upon by other interested parties to take effect on $1$ November $2021$ as follows.

The preferences shares to be written down to Sh$.7\mathrm{.}50$ each and the ordinary shares to Sh$.$

$2\mathrm{.}00$ each; each class of share then to be consolidated into shares of Sh$.10$ each. The rate of dividend on preference shares to be increased to $10\%.$

The preference dividends are four years in arrears of which three$-$quarters are to be waived and ordinary shares are to be allocated at par for the balance.

The debenture holders to have their interest paid in cash, to take over freehold property $($book value Sh$.20$ million$)$ and a valuation of Sh$.24$ million in part prepayment of their holding and to provide additional cash capital of Sh$.26$ million secured by a floating charge on the company$$s assets at an interest rate of Sh$.12\%$ per annum.

Patents, goodwill and deferred advertising to be written off, Sh$.15$ million to be written of stock, Sh$.11\mathrm{.}7$ million to be provided for bad debts and the remaining freehold properties to be revalued at Sh$.77\mathrm{.}5$ million.

Investments to be realized.

The directors to accept settlement of their loans as to $90\%$ thereof by allotment or ordinary shares at par and as to $5\%$ in cash, the balance of $5\%$ being waived.

The trade creditors to be paid Sh$.0\mathrm{.}10$ in every shilling to maintain and obtain an extension of the credit period

The bank has sanctioned an overdraft limit of Sh$.10$ million to provide working capital

There are capital commitments amounting to Sh$.75$ million which are to be cancelled on payment of $31/3\%$ of the contract price as a penalty

The authorized capital was restored to its original amount

Required:

The capital reduction account to record the scheme of capital re$-$organization

The Statement of financial position of Tabu Limited as at $1$ November $2021$ immediately after effecting the scheme.