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The Following Was the Balance Sheet of Poonam Ltd. as on 31-3-2018 - Financial Accounting(Financial Accounting and Auditing 9)

The following was the Balance Sheet of Poonam Ltd. as on 31-3-2018 

Balance Sheet as on 31-3-2018

 

Liabilities Rs Assets Rs
Share Capital :    Goodwill 60,000
10,000 Equity Shares of Rs. 20 each 2,00,000 Buildings 80,000
6,000, 8%Cumulative 1,20,000 Machinery 1,30,000
Preference Shares of Rs. 20 each   Stock  
fully paid   Sundry Debtors 50,000
Debentures 80,000 Cash 30,000
Sundry Creditors 20,000   10,000
    Preliminary Expenses 6,000
    Profit and'Loss 54,000
  4,20,000   4,20,000

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.

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Solution

Books of Poonam Ltd. 
Realisation A/c

Particulars Rs Particulars Rs
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
  3,60,000   3,60,000

Sonam Ltd A/c

Particulars Rs. Particulars Rs
To Realisation A/c 3,00,000 By Equity Shares A/c 3,00,000
  3,00,000   3,00,000

Preference Shareholder A/c

Particulars Rs. Particulars Rs
To Equity Shares in Sonam Ltd. 1,20,000 By Preference Share Capital A/c 1,20,000
  1,20,000   1,20,000

Debentureholder A/c

Particulars Rs. Particulars Rs
To Equity Shares in Sonam Ltd. 80,000 By Debentures A/c 80,000
  80,000   80,000

Equity Shareholder A/c

Particulars Rs. Particulars Rs.
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    
  2,00,000   2,00,000

Opening Journal Entnes in the Books of Sonam Ltd.

Date Particulars L.F Debit Credit
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
Allotment A/c
    80,000
(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)       
Concept: External Reconstruction
  Is there an error in this question or solution?
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