7. On 1st April, 2020 the Balance sheet of Lakshmi Ltd was as under: Liabilities Authorized and subscribed share capital- 30,000, 6% cumulative preference shares of Rs.25 each fully paid 80,000 Equity shares of Rs.50 each fully paid 6% Debentures Creditors Amt. (Rs.) Assets Amt. (Rs.) Goodwill Sundry assets Cash 10,00,000 25,00,000 1,00,000 7,50,000 Profit & Loss account 19,00,000 40,00,000 5,00,000 2,50,000 55,00,000 55,00,000 A scheme of reconstruction was as under: (i) A new company called Sri Lakshmi (2021) Ltd to be formed with an authorized capital of Rs.50,00,000 all in equity shares of Rs.100 each. (ii) One equity share of Rs.100 each fully paid in the new company to be issued in exchange of three preference shares in the new company. (iii) One equity share of Rs.100 each fully paid in the new company to be exchanged for four equity shares in the old company. (iv) Debenture holders to receive 5,000 equity shares in the new company as fully paid. (v) Creditors to be taken over by the new company and immediately paid off. (vi) The new company to issue remaining equity shares for public subscription. (vii) The new company to take over old company's assets subject to revaluation of sundry assets at Rs.26,50,000. Prepare necessary ledger accounts in the books of Lakshmi Ltd and open the books of the new company by means of journal entries, assuming that the public subscription was fully subscribed & prepare Balance sheet.
7. On 1st April, 2020 the Balance sheet of Lakshmi Ltd was as under: Liabilities Authorized and subscribed share capital- 30,000, 6% cumulative preference shares of Rs.25 each fully paid 80,000 Equity shares of Rs.50 each fully paid 6% Debentures Creditors Amt. (Rs.) Assets Amt. (Rs.) Goodwill Sundry assets Cash 10,00,000 25,00,000 1,00,000 7,50,000 Profit & Loss account 19,00,000 40,00,000 5,00,000 2,50,000 55,00,000 55,00,000 A scheme of reconstruction was as under: (i) A new company called Sri Lakshmi (2021) Ltd to be formed with an authorized capital of Rs.50,00,000 all in equity shares of Rs.100 each. (ii) One equity share of Rs.100 each fully paid in the new company to be issued in exchange of three preference shares in the new company. (iii) One equity share of Rs.100 each fully paid in the new company to be exchanged for four equity shares in the old company. (iv) Debenture holders to receive 5,000 equity shares in the new company as fully paid. (v) Creditors to be taken over by the new company and immediately paid off. (vi) The new company to issue remaining equity shares for public subscription. (vii) The new company to take over old company's assets subject to revaluation of sundry assets at Rs.26,50,000. Prepare necessary ledger accounts in the books of Lakshmi Ltd and open the books of the new company by means of journal entries, assuming that the public subscription was fully subscribed & prepare Balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:External Reconstruction:
7. On 1st April, 2020 the Balance sheet of Lakshmi Ltd was as under:
Liabilities
Authorized and subscribed share
capital-
30,000, 6% cumulative preference
shares of Rs.25 each fully paid
80,000 Equity shares of Rs.50 each
fully paid
6% Debentures
Creditors
Amt. (Rs.) Assets
Goodwill
Amt. (Rs.)
10,00,000
Sundry assets
Cash
25,00,000
1,00,000
7,50,000 Profit & Loss account
19,00,000
40,00,000
5,00,000
2,50,000
55,00,000
55,00,000
A scheme of reconstruction was as under: (i) A new company called Sri Lakshmi (2021) Ltd to be formed with an
authorized capital of Rs.50,00,000 all in equity shares of Rs.100 each. (ii) One equity share of Rs.100 each fully
paid in the new company to be issued in exchange of three preference shares in the new company. (iii) One equity
share of Rs.100 each fully paid in the new company to be exchanged for four equity shares in the old company.
(iv) Debenture holders to receive 5,000 equity shares in the new company as fully paid. (v) Creditors to be taken
over by the new company and immediately paid off. (vi) The new company to issue remaining equity shares for
public subscription. (vii) The new company to take over old company's assets subject to revaluation of sundry
assets at Rs.26,50,000.
Prepare necessary ledger accounts in the books of Lakshmi Ltd and open the books of the new company by means
of journal entries, assuming that the public subscription was fully subscribed & prepare Balance sheet.
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