The Balance Sheet of Tripathi Ltd. dated 31.3.2016 is as follows:

The fixed Assets are much over-valued. The Debentureholders are prepared to accept modification of their claims in consideration of a substantial interest in Share Capital. A scheme of reconstruction is accordingly prepared as follows:
(i) Each equity share shall be sub-divided into twenty fully paid equity shares of ₹ 5 each.
(ii) After sub-division each shareholder shall surrender to the company 95% of the holding for the purpose of re-issue to Debentureholders and Creditors, so far as required and otherwise for cancellation.
(iii) The Debentureholders’ total claims shall be reduced to ₹ 1,15,000 in consideration for which the Debentureholders shall receive from the company 23,000 equity shares of ₹ 5 each in full satisfaction of their claims.
(iv) The claims of creditors of ₹ 2,25,000 shall be reduced by 4/5th of the amount and the balance shall be satisified by allotting them equity shares of ₹ 5 each from the shares surrendered.
(v) Shares surrendered and not re-issued shall be cancelled. Journalise the transactions and prepare a Balance Sheet showing the effect of the scheme.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: Balance Sheet of Tripathi Ltd. as at 31st March, 2016 (a) Share Capital --- 40,000 Equity Shares of 100 each fully paid (b) Reserves and Surplus-Profit and Loss Account (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (4) Current Liabilities: Particulars (1) (a) Long-term Borrowings-10% Debentures (a) Short-term Borrowings (b) Trade Payables -- Sundry Creditors (c) Other current liabilities - Income tax TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets Interest accrued on Debentures (i) Tangible Assets --- Land and Buildings (ii) Intangible Assets Note No. (2) Amount (₹) (3) 4,00,000 (5,35,000) 6,70,000 2,25,000 5,000 20,000 7,85,000 7,15,000