The Balance Sheet of Ultra-Modern Ltd. as at 31st March, 2011 is as follows: Liabilities Assets...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The Balance Sheet of Ultra-Modern Ltd. as at 31st March, 2011 is as follows: Liabilities Assets Share Capital Fixed Assets: Land and Building Issued and Subscribed Capital: 1,000, 9% Redeemable Plant and Machinery Preference Shares of 100 each 18,000 Equity Shares of 10 each Reserves and Surplus: Securities Premium Account General Reserve Account Profit and Loss Account Current Liabilities: Sundry Creditors Furniture and Fixtures 1,00,000 Current Assets: Stock 1,80,000 Debtors 50,000 4,50,000 Investments 20,000 Bank 60,000 40,000 2,00,000 60,000 9,000 60,000 25,000 54,000 42,000 4,50,000 The Company decided to redeem its preference shares at a premium of 5% on 1st April, 2011. A fresh issue of 3,000 equity shares of 10 each was made at 9 per share, payable in full on 1st April, 2011. These were fully subscribed and all moneys were duly collected. All the investments were sold for 50,000 to provide cash for redemption of preference shares. The directors wish that only a minimum reduction should be made in the revenue reserves. You are required to give the journal entries, including those relating to cash to record the above transactions and to draw up the balance sheet as it would appear after redemption of preference shares. The Balance Sheet of Ultra-Modern Ltd. as at 31st March, 2011 is as follows: Liabilities Assets Share Capital Fixed Assets: Land and Building Issued and Subscribed Capital: 1,000, 9% Redeemable Plant and Machinery Preference Shares of 100 each 18,000 Equity Shares of 10 each Reserves and Surplus: Securities Premium Account General Reserve Account Profit and Loss Account Current Liabilities: Sundry Creditors Furniture and Fixtures 1,00,000 Current Assets: Stock 1,80,000 Debtors 50,000 4,50,000 Investments 20,000 Bank 60,000 40,000 2,00,000 60,000 9,000 60,000 25,000 54,000 42,000 4,50,000 The Company decided to redeem its preference shares at a premium of 5% on 1st April, 2011. A fresh issue of 3,000 equity shares of 10 each was made at 9 per share, payable in full on 1st April, 2011. These were fully subscribed and all moneys were duly collected. All the investments were sold for 50,000 to provide cash for redemption of preference shares. The directors wish that only a minimum reduction should be made in the revenue reserves. You are required to give the journal entries, including those relating to cash to record the above transactions and to draw up the balance sheet as it would appear after redemption of preference shares.
Expert Answer:
Answer rating: 100% (QA)
Transaction General Journal 1 2 3 4 5 Bank Securities Premium Account Equity Share Capital to r... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
You have recently been hired as the assistant controller for Stanton Industries. Your immediate superior is the controller who, in turn, reports to the vice president of finance. The controller has...
-
How can teams without clear boundaries work effectively to be successful? If you were part of a team without clear boundaries, how did you deal with the situation and were you were successful or not...
-
What type of negotiation do you prefer? Explain how effectively this type transacts effective negotiation. Have you ever used principled negotiation? Why do you think it isn't used more often?
-
Factor completely. p(p + 2) + p(p + 2) - 6(p + 2)
-
Hughs income is currently $5,000. His utility function is shown in the accompanying table. Income Total utility (utils) $0.. 0 1,000. 100 2,000. 140 3,000. 166 4,000. 185 5,000. 200 6,000. 212 7,000....
-
Convert 742 to Mayan Long Count (modified vigesimal). Give your answer using the base-sixty convention. If the representation is not unique, give the representation in which the digit in the 20's...
-
Is sustainable development a useful, practical perspective for business to adopt? If yes, how is it useful? Explain your view, giving reasons.
-
Mulcahey Builders (MB) remodels office buildings in low-income urban areas that are undergoing economic revitalization. MB typically accepts a 25% down payment when they complete a job and a note,...
-
1.2 Highlight the role stakeholders play in a company's decisions about its ethical behaviour. (10) 1.3 Validate five common ethical issues that the Enabling Stakeholders are facing regarding...
-
The data shown in Table 10E.10 are temperature measurements made every 2 minutes on an intermediate chemical product (read down, then across from left to right). (a) Calculate the sample...
-
An AVL-tree is a binary search tree with the following property: For every node, the height of the left subtree and the height of the right subtree differ by at most 1. Note that an empty subtree has...
-
Fenwick operates a grocery store and his retail building was completely destroyed by a hurricane on August 22, Year 10. The fair market value of the building before the hurricane was $1,200,000 with...
-
Mr. Jason Prasad is the owner and Manager ofJason's fast food and takeaways, a restaurant business situated at Lot 1, Queens Road Martintar, Nadi. As the family business grew Mr. Prasad hired Ms....
-
Can answer each question below. It is due tomorrow at midnight . Activity 1: Data from Law Enforcement Agencies Answer each of the following questions: Define the terms UCR, NIBRS, SHR and NCVS ....
-
Use INDEX and MATCH functions to fill in a table that extracts the amounts shipped between each pair of cities in the accompanying data, which shows the solution to an optimization model that finds...
-
If your household/family is spending 15% of your income( list ALL incomes) on food each year, what is the highest amount of money you could spend on food per week? Based on your own values, do you...
-
With the Covid-19 crisis, the Starlight Company announced that it would stop paying dividends for the next 3 years, for its common stock. It expects to start paying a dividend of $2 per share at the...
-
A stock has had returns of 8 percent, 26 percent, 14 percent, 17 percent, 31 percent, and 1 percent over the last six years. What are the arithmetic and geometric average returns for the stock?
-
Explain the tradeoffs between precise and imprecise interrupts on a superscalar machine.
-
Some digital consumer devices need to store data, for example as files. Name a modern device that requires file storage and for which contiguous allocation would be a fine idea.
-
What happens if three CPUs in a multiprocessor attempt to access exactly the same word of memory at exactly the same instant?
-
The life \(T\) in hours of a vibration transducer is found to follow exponential distribution \[p_{T}(t)= \begin{cases}\lambda e^{-\lambda t}, & t \geq 0 \\ 0, & t <0\end{cases}\] where \(\lambda\)...
-
Fill in the Blank. If any parameter of a vibrating system is not known precisely, the resulting vibration is called ____________ vibration.
-
The probability distribution function, \(P(\widetilde{x})\), denotes a. \(P(x \leq \tilde{x})\) b. \(P(x>\widetilde{x})\) c. \(P(\tilde{x} \leq x \leq \tilde{x}+\Delta x)\)
Study smarter with the SolutionInn App