The following was the Balance Sheet of Poonam Ltd. as on 31-3-2018
Balance Sheet as on 31-3-2018
|Share Capital :||Goodwill||60,000|
|10,000 Equity Shares of Rs. 20 each||2,00,000||Buildings||80,000|
|Preference Shares of Rs. 20 each||Stock|
|fully paid||Sundry Debtors||50,000|
The scheme of reconstruction was agreed as follows :
(a) A new company to be formed "Sonam Ltd with an authorised capital of Rs. 6,00,000 all in equity shares of Rs.10 each.
(b) Two equity shares of Rs. 5 'paid-up in the new company issued for every one equity share in the old company.
(c) Four equity shares of rS. 5 paid-up in the. new company to be issued· for every Preference share in the old company.
( d) Debentureholders to be allotted 8,000 equity shares as fully paid-up in the new company.
(e) Sundry creditors to .be taken over by new company.·
(f) The remaining equity shares to be issued to the public and duly collected in full.
(g) The Assets of the, old company to be taken over subject writing down the value of machinery. by f 10,000.
Show the necessary ledger accounts in the b.ooks of the old company.
Books of Poonam Ltd.
|To Sundry Assets A/c||3,60,000||By Creditors||20,000|
|By Sonam Ltd A/c||3,00,000|
|By Equity Shareholder A/c (Loss)||40,000|
Sonam Ltd A/c
|To Realisation A/c||3,00,000||By Equity Shares A/c||3,00,000|
Preference Shareholder A/c
|To Equity Shares in Sonam Ltd.||1,20,000||By Preference Share Capital A/c||1,20,000|
|To Equity Shares in Sonam Ltd.||80,000||By Debentures A/c||80,000|
Equity Shareholder A/c
|To Preliminary Expenses||6,000||By Equity Share Capital A/c||2,00,000|
|To Profit and Loss A/c||54,000|
|To Relisation A/c (Loss)||40,000|
|To Equity Shares in Sonam Ltd.||1,,00,000|
Opening Journal Entnes in the Books of Sonam Ltd.
|31-3-2018||Building A/c Dr.||80,000|
|Machinery A/c Dr.||1,20,000|
|Stock A/c Dr.||50,000|
|Debtors A/c Dr.||30,000|
|Cash A/c Dr.||10,000|
|Goodwill A/c (Balancing Figure) Dr.||30,000|
|To Creditors A/c||20,000|
|To Liquidators of Sonam Ltd. A/c||3,00,000|
|(Being assets and liabilities are taken over from poonam Ltd)|
|31-3-2018||Liquidators of Poonam Ltd. Dr.||3,00,000|
|To Equity Share Capital A/c||3,00,000|
|(Being issued 44,000 equity shares of Rs 10 each as to Rs 5 per share paid-up and 8,000 equity shares of Rs 10 each as fully paid in settlement of purchase price)|
|31-3-2018||Bank A/c Dr.||80,000|
|To Equity Share Application and
|(Being received application and allotment money to Share Capital A/c ) Dr.|
|3.1-3-2018||Equity Share Application and Allotment A/C||80,000|
|To Equity Share Capital A/C||80,000|
|(Being transfer of application and allotment money to Share Capital A/c)|