Abridged Balance Sheet of Z Ltd as on 31.3.2016 is as under:

Following scheme of reconstruction has been passed and approved by the Tribunal:
(i) The equity shares are to be subdivided into shares of ₹ 10 each, and each shareholder shall surrender 70% of his holdings.
(ii) Out of the surrendered shares, 50,000 shares shall be issued to preference shareholders in full settlement of their claims.
(iii) Debentureholders’ total claim shall be reduced to ₹ 7,00,000 and shall be satisfied by issue of 70,000 equity shares, out of surrendered shares.
(iv) Creditors’ claim are to be reduced by 50% and in consideration the creditors shall receive 20,000 equity shares out of the surrendered shares.
(v) The remaining surrendered shares shall be cancelled. Corporate Accounting 11.89

(vi) Goodwill and Profit and Loss Account are to be written off completely and tangible fixed assets are to be depreciated by ₹ 10,00,000. You are required to prepare journal entires in the books of Z Ltd and a Balance Sheet after effecting the scheme.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus --Profit and Loss Account (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (a) Long-term Borrowings -- 15% Debentures (4) Current Liabilities: Balance Sheet Z Ltd. as at 31st March, 2016 Particulars (1) (a) Short-term Borrowings (b) Trade Payables -- Sundry Creditors (c) Other current liabilities - Interest due on Debentures TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (2) Current Assets: (i) Tangible Assets (i) Intangible Assets -- Goodwill (a) Other current assets TOTAL Note No. (2) (1) Amount (₹) (3) 40,00,000 (15,50,000) 10,00,000 8,40,000 3,00,000 45,90,000 30,00,000 5,00,000 10,90,000 45,90,000