The balance sheet of Suraj Ltd., as on 31 st December 2011, was as under. The company passed the following
The balance sheet of Suraj Ltd., as on 31st December 2011, was as under.
The company passed the following resolutions on 1st January 2012.
(a). To redeem the entire preference share capital at a premium of 10%.
(b). To issue 2,000 equity shares of ₹10 each, at a premium of ₹2 per share, which have been fully subscribed.
(c). To sell the investment at ₹15,000.
(d). To issue the bonus shares as fully paid in the ratio of 2:1 to the existing shareholders, including the fresh issue.
Draft the journal entries and prepare the balance sheet, as on 1st January 2012.
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