redraft the balance sheet of the company as on 1 april 2011 after giving effect to t 617079

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Model: Redemption by conversion The summarized balance sheet of XY as on 31 March 2011 stood as follows:

Liabilities Don't use plagiarized sources. Get Your Custom Essay on redraft the balance sheet of the company as on 1 april 2011 after giving effect to t 617079 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page Order Essay	Rs.in Lakhs	Assets	Rs. in Lakhs
Share Capital:
20,00,000 Equity Shares of 10 Each, Fully Paid	200	Fixed Assets (as Cost Less Depreciation)	640
General Reserve	300	Debenture Redemption Fund	160
Debentures Redemption Fund	200	Investment
12.5% Convertible Debentures	400	Cash and Bank Balance	200
4,00000 Debentures of 100 Each		Other Current Assets	800
Other Loans	200
Current Liabilities and Provisions	500
	1,800		1,800

The debentures are due for redemption on 1 April 2011. The terms of issue of debentures provided they were redeemable at a premium of 5% and also conferred option to the debenture holders to convent 20% of their holding into equity shares as a pre-determined price of Rs.15.75 per share and the payment in cash. Assuming that:

Except for 1,000 debenture holders holding 1,00,000 debentures in all, the rest of them exercised the option for maximum conversion
The investments realize Rs.176 lakh on sale
All the transactions are put though, without any lag, on 1 April 2011.

Redraft the balance sheet of the company as on 1 April 2011, after giving effect to the redemption. Show your calculation in respect of the number of equity shares to be allotted and the cash payment necessary.

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