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

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

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.