On 31^st December 1993, the balance sheet of Sundaram Ltd., stood as follows:

On the above date, the preference shares had to be redeemed. For this purpose, 1,000 equity shares of ₹100 each were issued at ₹110. The shares were immediately subscribed and paid for. The preference shares were duly redeemed. Give journal entries and balance sheet after redemption.

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Liabilities Redeemable Preference Shares Capital Equity Share Capital General Reserve Sundry Creditors 5,00,000 2,00,000 1,50,000 1,00,000 9,50,000 Assets Sundry Assets Cash at Bank 7,60,000 1,90,000 9,50,000