Question

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.

Answer 1

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)