The B/S of X Ltd. as at 31-3-02 is given below Rs. Share Capital: 15,000 Equity...

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The B/S of X Ltd. as at 31-3-02 is given below Rs. Share Capital: 15,000 Equity shares of Rs. 10 each 1500,12% Preference Shares of Rs. 100 each Sundry Creditors Land & Building Machinery 1,50,000 Stock Debtors 1,50,000 Cash at bank 1,00,000 Profit & Loss A/c 4,00,000 Rs. 1,45,000 35,000 25,000 40,000 5,000 1,50,000 4,00,000 It was resolved-(i)that the equity shares of Rs. 10 each and preference shares of Rs. 100 each be reduced to the same number of shares, each of Rs. 4 and Rs. 40 respectively, (ii) the amount thus realised be utilised in (a) writing down of stock by Rs. 10,000, writing off the adverse balance of the P&L A/c, and(c) in reducing the machinery by Rs.10.000. The balance left was to be used in raising a provision for bad debts against sundry debtors. Give the Journal Entries recording the above transactions in the books of the company. Give also *the Balance Sheet of the company after reduction of capital. The B/S of X Ltd. as at 31-3-02 is given below Rs. Share Capital: 15,000 Equity shares of Rs. 10 each 1500,12% Preference Shares of Rs. 100 each Sundry Creditors Land & Building Machinery 1,50,000 Stock Debtors 1,50,000 Cash at bank 1,00,000 Profit & Loss A/c 4,00,000 Rs. 1,45,000 35,000 25,000 40,000 5,000 1,50,000 4,00,000 It was resolved-(i)that the equity shares of Rs. 10 each and preference shares of Rs. 100 each be reduced to the same number of shares, each of Rs. 4 and Rs. 40 respectively, (ii) the amount thus realised be utilised in (a) writing down of stock by Rs. 10,000, writing off the adverse balance of the P&L A/c, and(c) in reducing the machinery by Rs.10.000. The balance left was to be used in raising a provision for bad debts against sundry debtors. Give the Journal Entries recording the above transactions in the books of the company. Give also *the Balance Sheet of the company after reduction of capital.