The Directors of Hardluck Ltd. decided to recommend to the shareholders certain steps to put the affairs of the company back on the rails. On 31st March, 2016 the Balance Sheet of the company was as under:

The scheme of reconstruction, as approved by the competent authorities, was as under:
(i) The issued equity shares were reduced to 5 paise each paid up, the unpaid value of the share was subsequently called by the company and paid by all the shareholders.
(ii) The balance of unissued capital was allotted to the Bank in part discharge of the loan; the balance due was paid in cash.
(iii) The authorised capital of the company is to be increased by another 50,000 shares and these are to be issued to the existing shareholders as rights issue. The amount due from the shareholders was realised.

(iv) Trade creditors to give up 25% of their claims and the balance due to them to be converted into 12% Secured Debentures of ₹ 100 each.
(v) Interest of ₹ 6,500 on Bank Loan to be waived by the Bank and the balance Bank Loan to be paid-off.
(vi) All amounts available, including securities premium, to be utilised to write-off losses, goodwill and the value of shares in associated companies. Show the Journal Entries to record the above and also draw the Balance Sheet of the company after the scheme is fully implemented. All workings should form part of your answer.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus --- Profit and Loss Securities Premium (4) Current Liabilities: (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (a) Long-term Borrowings- Loan from Directors Balance Sheet as at 31st March, 2016 (a) Short-term Borrowings --- Bank Loan (b) Trade Payables - Sundry Creditors TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (i) Tangible Assets: Particulars (1) Freehold Property at Cost Plant and Machinery (ii) Intangible Assets ---- Goodwill (b) Non-cuirrent investments Shares in associate company Other Investments at Cost (Quoted Shares) Note No. (2) (1) Amount (3) 85,000 (68,300) 15,000 60,000 56,500 64,500 2,12,700 41,500 60,000 22,600 30,000 16,000