redemption of all preference shares was made on 10 october 2010you are required to s 617080

Model: Redemption by conversion—Redemption of preferecne shares combined The summarized balance sheet of Sri Vasudev Ltd. on 30 September 2010 was as follows:

Liabilities Don't use plagiarized sources. Get Your Custom Essay on redemption of all preference shares was made on 10 october 2010you are required to s 617080 Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT! Just from $10/Page Order Essay		Assets
Share Capital:		Fixed Assets	30,00,000
Issued and Fully Paid:		Investments
10,000 Equity Share of 100 Each Fully	10,00,000	Own Debentures of Nominal Value of	1,90,000
Paid		2,00,000
6% Redeemable Preference Share of	9,90,000	Other Securities	2,00,000
100 Each (Less Calls in Arrears on 400		Current Assets:
Shares )
Reserves & Surplus:
Securities Premium	2,00,000	Stock	4,00,000
Capital Reserve	2,00,000	Debtors	2,00,000
General Reserve	4,00,000	Cash at Bank	12,00,000
Profit & Loss A/c	6,00,000
10% Debentures	4,00,000
Creditors	14,00,000
	51,90,000		51,90,000

On 30 September 2010, the following were due for redemption:

10,000 6% Redeemable preference shares at a premium of Rs.25 per share.
4,000 10% Redeemable debentures shares at a premium of 10% the redemption was made on that date or subsequently this:

For half the year ending 30 September 2010, the debentures interest and preference dividend was paid out of profits of the company
On an offer made to the 10% debenture, the outsiders agreed to take new 12% debentures at par in exchange of old debentures ; the company also decided to assume the new debentures
A fresh issue of 2,000 equity shares of Rs.100 each was made at a premium of Rs.50 per shares and subscribed in full. All moneys due were received forthwith
Redemption of all preference shares was made on 10 October 2010You are required to show all journal entries for the above transactions to give the company’s opening balance sheet after giving effect to them.

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