A company's position of June 30, 1998, was as follows: 20,000 equity shares of $. 100 each $ 2000,000 1,000, 6% debentur

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A Company S Position Of June 30 1998 Was As Follows 20 000 Equity Shares Of 100 Each 2000 000 1 000 6 Debentur 1 (61.22 KiB) Viewed 61 times

A company's position of June 30, 1998, was as follows: 20,000 equity shares of $. 100 each $ 2000,000 1,000, 6% debentures of $. 1,000 each $ 10,00,000 Interest on above 1,20,000 The assets on that date amounted to $. 9,60,000 (valued according to their present worth). The following steps were taken with the approval of all concerned: (1) The shares were subdivided into shares of $. 5 each and 90% of the shares were surrendered. (2) The total claims of the debenture holders were reduced to $. 4,90,000 and in consideration of this, they were also allotted shares (out of the surrendered shares) amounting to $. 2,50,000. (3) The shares surrendered but not reissued were cancelled. Draft Journal entries and give the Balance Sheet of the company after reconstruction.