The Balance Sheet of A Co. Ltd. as on 31.3.2016 is as follows: The Tribunal approved a

Question:

The Balance Sheet of A Co. Ltd. as on 31.3.2016 is as follows:

The Tribunal approved a Scheme of re-organisation to take effect on 1.4.2016 whereby:
(i) Preference Shares to be written-down to ₹ 75 each and Equity Shares to ₹ 2 each.
(ii) Preference Dividends are in arrears for 4 years, 75% to be waived and Equity Shares of ₹ 2 each to be allotted for the remaining quarter.
(iii) Accrued Debenture Interest to be paid in cash.
(iv) Debentureholders agreed to take over Freehold Property (Book Value ---- ₹ 1,00,000) at a valuation of ₹ 1,50,000 in part repayment of their holdings and to provide additional Cash of ₹ 1,30,000 secured by a floating charge on the Company’s assets at an interest rate of 10% p.a.
(v) Inventories to be written-off fully.
(vi) ₹ 2,33,000 to be provided as bad debts.
(vii) Remaining freehold property to be revalued at ₹ 4,00,000.
(viii) Investments sold out for ₹ 1,50,000.
(ix) In settlement of their loans, Directors are to accept Equity Shares of ₹ 2 each for 90% of their loans, waiving 10% of the balance of their loan amount.
(x) Capital commitments contracts totalling ₹ 3,00,000 are to be cancelled by payment of penalty @ 5% of contract value.
(xi) Taxation and Cost of scheme are to be ignored. Show Journal Entries reflecting the effect of the above transactions (including cash transactions) and draw-up the Balance Sheet after effecting the scheme.