PARTICULARS Rs.

EQUITY AND LIABILITIES

1. Shareholders Funds
a. Share capital 290,000
b. Reserves and surplus 48,000
2. Current Liabilities
Trade payables 76,000
TOTAL 414,000
ASSETS
1. Fixed Assets
a. Tangible assets 355,000
b. Non-current Investments 25,000
2. Current Assets
Cash and cash equivalents 34000
TOTAL 414,000
Date
Particulars
Bank A/C Dr.
To Share Application A/C
(Being application money received; 625*60)

Share Application A/C Dr.

To Equity Share Capital A/C
To Securities Premium A/C
(Being application money due)

Preference Share Capital A/C Dr.

Premium on redemption of preference shares A/C Dr.
To Preference shareholders A/C
(Being amount on redemption due)

Profit and Loss A/C Dr.

To Premium on redemption of preference shares A/C
(Being premium on redemption written off)

Bank A/C Dr.

Profit and Loss A/C Dr.
To Investment A/C
(Being sale of investments)

Profit and Loss A/C Dr.

To Capital Redemption reserve
(Being nominal value of preference shres transfered to
CRR; 65,000-31,250)

Preference Shareholders A/C Dr.

To Bank A/C
(Being preference shareholders paid)
Dr. Cr.
37,500
37,500

37,500
31,250
6,250

65,000
6,500
71,500

6,500
6,500

15,000
10,000
25,000

33,750
33,750

71,500
71,500
PARTICULARS Rs.
EQUITY AND LIABILITIES
1. Shareholders Funds
a. Share capital 256,250
b. Reserves and surplus 37,750
2. Current Liabilities
Trade payables 76,000
TOTAL 370,000
ASSETS
1. Fixed Assets
a. Tangible assets 355,000
2. Current Assets
Cash and cash equivalents 15,000
TOTAL 370,000
 Notes to accounts

1 Share Capital
Equity share capital (22500+31250) 256250
2 Reserves and surplus
CRR 33750
Securty premium 6250
P/L A/C (48000-10000-6500-33750) -2250 37750
3 Cash and cash equivalents
(34000+15000+37500-71500-19000) 15000