Solution-Prepare the balance sheet after reconstruction

Prepare the balance sheet after reconstruction

Reference no: EM132202308

Question - The Balance Sheet of Nirupama Co. Ltd., as on 31.3.2010 was as follows:

Liabilities	Rs.	Assets	Rs.
Share Capital 10000 Equity shares of Rs.10 each	1,00,000	Goodwill	10,000
10,000 7% preference shares of Rs.10 each	1,00,000	Fixed Assets	90,000
		Stock	25,000
		Debtors	30,000
		Profit & Loss A/c	45,000
	2,00,000		2,00,000

The following scheme of reconstruction was approved.

a) The equity share of Rs.10 each to be reduced to Rs.6 each.

b) 7% preference shares of Rs.10 each to be reduced to Rs.6 each.

c) The amount available can be utilized to write off goodwill, profit and loss account and the balance fixed assets.

d) The arrear of preference dividend for the last three years are cancelled.

Required - Pass necessary journal entries and prepare the balance sheet after reconstruction.

Reference no: EM132202308

Questions Cloud

Discuss what the marketing mix : Discuss what the marketing mix is as well as why it is important to a business.

Prepare a correcting entry on december : On May 1, Patterson Company purchased Supplies on account, $510. Prepare a correcting entry on December 30

Pass the physical ability test sufficient justification : Was the fact that Deborah Merritt did not pass the physical ability test sufficient justification for firing her? Why or why not?

Core qualification involves the ability to build coalitions : Building Coalition: This core qualification involves the ability to build coalitions internally and with other Federal agencies, State and local governments,

Prepare the balance sheet after reconstruction : The arrear of preference dividend for the last three years are cancelled. Pass necessary journal entries and prepare the balance sheet after reconstruction

Toward meeting the organization vision-mission and goals : This a core qualification that involves the ability to lead people toward meeting the organization's vision, mission, and goals.

Physicians play key role in US health care delivery system : Primary care physicians play a key role in the US health care delivery system. What aspects do you think are particularly important?

Generate staggering number of investigations : As Chinese President Xi Jinping’s anti-corruption campaign continues to generate a staggering number of investigations,

After calculating the economic order quantity : After calculating the economic order quantity, you start to worry if the estimates for the fixed cost and for the holding cost are accurate.

User Account

All Pages

Prepare the balance sheet after reconstruction

Reference no: EM132202308

Reference no: EM132202308

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

On march 1 2012 chance company entered into a contract to

Find the resulting input offset voltage

Fiberform industries produces a line of motorboats the

Mls company has five employees

Compute the operating leverage factor

Evaluate the return on equity of your company

Explain to tanya what depreciation is and how it works

Show effect of each on accounting equation for corporation

Calculate their taxable income supposing they file jointly

Which payment option should jayne choose

Calculate its book value at the end of year 6

How much is the companys interest expense for the loan

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT