The Balance Sheet of P Ltd., as on 31st March, 2016 is as stated below:Dividends on preference shares are in arrear for three years. The company passes a Special Resolution to reduce its capital in accordance with the following scheme and the same is duly sanctioned by the Tribunal :
(a) The Preference Shares are converted from 6% to 8%, but revalued in a manner in which the total return on them remains unaffected. The value of Equity Shares is brought down to ₹ 8 per share.
(b) The arrears of dividend on Preference Shares are cancelled.
(c) The debit balance of the Goodwill Account is written-off entirely.
(d) Land and Building and Plant and Machinery are revalued at 85% and 80% of their respective book values.
(e) Book debts to the amount of ₹ 7,200 are treated as bad and hence, to be written-off.
(f) The company expects to earn profit @ ₹ 45,000 per annum from the current year which would be utilised entirely for reducing the debit balance of the Profit and Loss Account for three years. The remaining balance of the said account would be written-off at the time of capital reduction process.
(g) The balance of total capital reduction is to be utilised in writing-down patents.
(h) A secured loan of ₹ 2,40,000 bearing interest at 12% p.a. is to be obtained by mortgaging tangible fixed assets for procuring cash for repayment of bank overdraft and for providing additional funds for working capital. Journalise the above scheme and draw a Balance Sheet after the implementation is over.

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I. EQUITY AND LIABILITIES (1) Shareholders' Funds: (a) Share Capital (b) Reserves and Surplus-Profit and Loss Account (4) Current Liabilities: (2) Share Application Money Pending Allotment : (3) Non-current Liabilities: (a) Short-term Borrowings --- Bank Loan Balance Sheet of P Ltd. as at 31st March, 2016 (b) Trade Payables - Sundry Creditors Bills Payable TOTAL II. ASSETS (1) Non-current Assets: (a) Fixed Assets (i) Tangible Assets: Land and Buildings Plant and Machinery (ii) Intangible Assets: Particulars (1) Goodwill Patents Note No. (2) (1) Amount (3) 7,50,000 (1,50,000) 1,00,000 60,000 50,000 8,10,000 2,70,000 2,40,000 42,300 18,000