The Balance Sheet of A Ltd. as at 31-3-2016 is as follows : I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : Authorised Share Capital 1,50,000 Equity Shares of $ 10 each 15,00,000 Issued, Subscribed and Paid-up Capital 80,000 Equity Shares of $10 each, $ 7.50 each called up and paid up (b) Reserves and Surplus Ca vital Redemption Reserve Plant Revaluation Reserve Securities Premium Reserve A/c Development Rebate Reserve Investment Allowance Reserve General Re-erve 6,00,000 1,50,000 20,000 1,50,000 2,30,000 2,50,000 3,00,000 Total 17,00,000 II. Assets Sundry Assets 17,00,000 Total 17,00,000 The Company wanted to issue bonus shares to its shareholders at the rate of one share for every two shares held. Necessary resolutions were passed; requisite legal requirements were complied with: (a) You are required to give effect to the proposal by passing Journal Entries in the books of A Ltd. (b) Show the amended Balance Sheet.

The Balance Sheet of A Ltd. as at 31-3-2016 is as follows : I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital : Authorised Share Capital 1,50,000 Equity Shares of $ 10 each 15,00,000 Issued, Subscribed and Paid-up Capital 80,000 Equity Shares of $10 each, $ 7.50 each called up and paid up (b) Reserves and Surplus Ca vital Redemption Reserve Plant Revaluation Reserve Securities Premium Reserve A/c Development Rebate Reserve Investment Allowance Reserve General Re-erve 6,00,000 1,50,000 20,000 1,50,000 2,30,000 2,50,000 3,00,000 Total 17,00,000 II. Assets Sundry Assets 17,00,000 Total 17,00,000 The Company wanted to issue bonus shares to its shareholders at the rate of one share for every two shares held. Necessary resolutions were passed; requisite legal requirements were complied with: (a) You are required to give effect to the proposal by passing Journal Entries in the books of A Ltd. (b) Show the amended Balance Sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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