Given below is the Balance Sheet of Be-Kismat Ltd. as at 31st March, 2016: The company having

Question:

Given below is the Balance Sheet of Be-Kismat Ltd. as at 31st March, 2016:The company having turned to the corner, a scheme of reconstruction was prepared and approved as under :
(1) To bring in the books the present market value of land and buildings which had appreciated by 150%;
(2) Equity shares to be reduced to ₹ 10 per share paid by cancelling ₹ 90 per share, the face value remaining the same at ₹ 100 and the equity shareholders paying a call of ₹ 50 per share to provide funds for the company’s working;
(3) Unsecured loans to be paid immediately to the extent of ₹ 1,00,000;
(4) Unsecured creditors to be paid immediately to the extent of 10% of their claims and they accepting a remission of 20% of their claims;
(5) Development rebate reserve, being no longer required, to be transferred to Profit and Loss Account;
(6) Investments to be brought to their market value; and
(7) The amount available as a result of the scheme to be used to write-off the debit balance in Profit and Loss Account. Give Journal Entries to record the above and give the Balance Sheet after the reconstruction is effected.