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the freehold premises were revalued at 20 more while the stock was revalued at 12 80 620772

The following is the balance sheet of Unfortunate Ltd. as at 31 March 2011:

Liabilities

Assets

4,00,000 Equity

40,00,000

Patents

4,00,000

Shares of Rs. 10

Freehold

19,20,000

Each

Premises

2,40,000 10%

24,00,000

Stock In Trade

20,00,000

Preference

Debtors

15,20,000

Shares of Rs. 10

Furniture

2,40,000

Each

Investment

6,00,000

12% Debentures

16,00,000

Bank

80,000

Unsecured Loan

2,88,000

Profit & Loss A/c

28,40,000

Creditors

11,20,000

Accrued Interest on Debentures

1,92,000

96,00,000

96,00,000

The following scheme of external reconstruction was approved:

  1. A new company by the name of Unfortunate (2011) Ltd. to be formed to take over the entire business of Unfortunate Ltd.
  2. One equity share of Rs.10 Rs.6 paid up is to be given in exchange of every two equity shares of Unfortunate Ltd.
  3. One 11% pref. share of Rs.100 each is to be given in exchange for 15 pref. shares of Unfortunate Ltd.
  4. The claims of 12% debenture holders of Unfortunate Ltd. would be discharged by the issue of equity shares of Rs.10 each fully paid.
  5. The creditors will receive 60% of their dues in cash and 25% in equity shares of Rs.10 each and the balance to be foregone.
  6. The party paid equity shares are to be made fully paid by receiving cash from the shareholders.
  7. Furniture is subject to depreciation by 25%.
  8. The freehold premises were revalued at 20% more while the stock was revalued at 12,80,000. The investments are to be brought upto market value of Rs.7,20,000 and debtors reduced by 10%. Preliminary expenses amounted to Rs.40,000.

You are required to:

  1. Close the accounts in the books of Unfortunate Ltd.
  2. Opening entries in the books of Unfortunate (2011) Ltd.

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