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

The Preference Shares carry the right to a prior return of capital, together with all arrears of dividends. Debentures carry a floating charge on all the assets of the company. The business has passed through a depression but the worse seems to have been over. Preference dividends for past four years have not been paid. No depreciation has been provided on the Fixed Assets for the past three years. The arrear depreciation is estimated to be ₹ 2,20,000. The company is assured of a good future. Do you think any reorganisation of capital is desirable, and if so, what form would you suggest ? Give a draft Balance Sheet assuming that your recommendations are acceptable.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus --Profit and Loss Account (2) Share Application Money Pending Allotment: (3) Non-current Liabilities: (4) Current Liabilities: (a) Long-term Borrowings--9% Debentures Balance Sheet of Alpha Ltd. as at 31st March, 2016 Particulars (1) (a) Short-term Borrowings (b) Trade Payables -- Sundry Creditors (c) Other Current Liabilities -- Outstanding Expenses TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (2) Current Assets: TOTAL (i) Tangible Assets (ii) Intangible Assets -- Goodwill (a) Current Investments (b) Inventories (c) Trade Receivables - Debtors (d) Cash and Cash Equivalents - Cash in Hand - Note No. (2) (1) Amount (₹) (3) 10,00,000 (2,60,000) 2,00,000 - 1,50,000 50,000 11,40,000 7,40,000 1,60,000 1,00,000 1,35,000 5,000 11,40,000