The Summarized Balance Sheet of BEE Co. Ltd. as on 31st March, 20X1 is as under:...

 

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The Summarized Balance Sheet of BEE Co. Ltd. as on 31st March, 20X1 is as under: Liabilities Rs Assets Share Capital: Authorised: 30,000 Equity Shares of Rs 10 each Issued and Subscribed: 20,000 Equity Shares of Rs 10 each fully paid Profit and Loss Account 12% Debentures Trade payables Freehold property Stock 3,00,000 Trade receivables Cash Balance at Bank 2,00,000 1,20,000 1,20,000 1.15.000 5,55,000 Rs 1,15,000 1,35,000 75,000 b) To issue one bonus share for every five shares held. c) To repay the debentures at a premium of 3%. 30,000 2,00,000 5,55,000 At the Annual General Meeting, it was resolved: a) To give existing shareholders the option to purchase one Rs.10 share at Rs.15 for every four shares (held prior to the bonus distribution), this option being taken up by all shareholders. Give the necessary journal entries and the company's Balance Sheet after these transactions are completed. The Summarized Balance Sheet of BEE Co. Ltd. as on 31st March, 20X1 is as under: Liabilities Rs Assets Share Capital: Authorised: 30,000 Equity Shares of Rs 10 each Issued and Subscribed: 20,000 Equity Shares of Rs 10 each fully paid Profit and Loss Account 12% Debentures Trade payables Freehold property Stock 3,00,000 Trade receivables Cash Balance at Bank 2,00,000 1,20,000 1,20,000 1.15.000 5,55,000 Rs 1,15,000 1,35,000 75,000 b) To issue one bonus share for every five shares held. c) To repay the debentures at a premium of 3%. 30,000 2,00,000 5,55,000 At the Annual General Meeting, it was resolved: a) To give existing shareholders the option to purchase one Rs.10 share at Rs.15 for every four shares (held prior to the bonus distribution), this option being taken up by all shareholders. Give the necessary journal entries and the company's Balance Sheet after these transactions are completed.

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Journal Entries a Dr Share Capita... View the full answer