Balance sheet of X Ltd., as on 31^st March 2007 is as follows. 

The preference shares are to be redeemed at 10% premium. Fresh issue of equity shares is to be made to the extent required under the Companies Act for the purpose of this redemption. The short fall in funds for the purpose of redemption after utilising the proceeds of the fresh issue are to be met by taking a bank loan. Show journal entries.

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Liabilities Share Capital: Issued, subscribed and fully paid-up 10,000 Ordinary Shares of 100 each 5,000 Preference Shares of 100 each Capital Reserve Securities Premium General Reserve Profit & Loss A/c Current Liabilities 10,00,000 5,00,000 1,00,000 1,00,000 2,00,000 1,00,000 10,00,000 30,00,000 Assets Fixed Assets Current Assets 22,00,000 8,00,000 30,00,000