Spotlight Ltd has issued share capital of 60,000----8% redeemable cumulative preference shares of ~ 20 each and 4,00,000 equity shares of ~ 10 each. The preference shares are redeemable at a premium of 5% on January 1, 2017. As on December 31, 2016 the company’s Balance Sheet showed the following position:

You are required to prepare :

(i) Journal Entries to record the above transactions;

(ii) A Balance Sheet as on completion of redemption.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus-Profit and Loss Account (c) Money Received against Share Warrants (2) Share Application Money Pending Allotment : (3) Non-current Liabilities: (a) Long-term Borrowings (4) Current Liabilities: Balance Sheet of Spotlight Ltd. as at 31st December, 2016 Particulars (1) (a) Short-term Borrowings (b) Trade Payables TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (2) Current Assets: (i) Tangible Assets TOTAL (a) Current Investments (b) Inventories (c) Trade Receivables (d) Cash and Cash Equivalents Note No. (2) (1) (2) Amount (₹) (3) 52,00,000 7,00,000 4,00,000 1,00,000 6,00,000 70,00,000 34,00,000 3,50,000 15,00,000 14,00,000 3,50,000 70,00,000