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The Summary Balance Sheet of Chanjit Ltd. at March 31, 2006 was Rs Issued and fully Paid Sundry Assets Share Capital: 50,000 6% Own Debentures
The Summary Balance Sheet of Chanjit Ltd. at March 31, 2006 was Rs Issued and fully Paid Sundry Assets Share Capital: 50,000 6% Own Debentures (Nominal Rs. 21,55,000 C28 Redeemable 'A' Pret. Shares Rs 1,20,000) 1,05,000 of Rs. 10 each 5,00,000 Cash at Bank 5,80,000 40,000 7% Redeemable 'B' Prel. Shares of Rs. 10 each (less calls in arrear on 5,000 shares) 3,95,000 50,000 Equity shares of Rs. 10 each 5,00,000 Share Premium Account 1,00,000 Capital Reserve Account 1,00,000 Profit and Loss Account 4,00.000 General Reserve Account 2,00,000 5% Debentures, 2007 4,00,000 Creditors 245.000 2840.000 28.40,000 On September 30, 2006 following were due for redemption (1) The Rs. 4,00,000 5% Debentures at a premium of 10 per cent (2) The Rs. 5,00,000 6% 'A' Preference Shares at a premium of Re. 1 per share (3) The Rs. 4,00,000 7% 'B' Preference Shares at a premium of 5 per cent It was decided (a) Out of the trading profits of Rs 2,00,000 earned in the seven months to Oct 31, 2006, to pay the debenture interest and preference dividends for the half year to September 30, 2006 (b) to offer to the debenture holders new 6% debentures 2006 or repayment in cash. The offer of new debentures in exchange for the original holding was accepted by 50 per cent of the debenture holders including those held by Chanjit Ltd. The whole transaction was completed on September 30, 2006, and a transfer was made to General Reserve of a sum equivalent to the cash applied on redemption; (c) to make an issue of 60,000 Equity Shares of Rs. 10 each at a premium of Rs. 250 per share. This was done on August 31, 2006 and all moneys were received on that date (d) to repay in cash both 'A' and 'B' Preference shares, and this was carried through on September 30, 2006. You are required to (1) show the ledger accounts recording the above transaction in the company
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