The Balance Sheet of Veena Ltd. as on 31st March, 2018 is as follows: Particulars I. Equity and Liabilities (1) Shareholders' Funds : (a) Share capital ₹4,20,000 (b) Reserves and Surplus ₹92,000 (2) Current Liabilities:

Journal Entries in the Books of Veena Ltd. Date Particulars L.F. Amount ₹ (Dr.) Amount ₹ (Cr.) Bank A/c Dr. 1,65,000 To Equity Share Application A/c 1,65,000 (Being application money received) Equity Share Application A/c Dr. 1,65,000 To Equity Share Capital A/c 1,10,000 To Securities Premium A/c 55,000 (Being application money due transferred to equity share capital a/c) Preference Share Capital A/c Dr. 2,00,000 Premium on Redemption of Preference Shares A/c Dr. 20,000 To Preference Share Holder A/c 2,20,000 (Being redemption of preference shares due) Securities Premium A/c Dr. 20,000 To Premium on Redemption of Preference Shares A/c 20,000 (Being writing off premium on redemption of preference shares) Bank A/c Dr. 30,000 To Investment A/c 25,000 To Profit & Loss A/c 5,000 (Being investment sold) Profit & Loss A/c Dr. 90,000 To Capital Redemption Reserve A/c 90,000 (Being transfer of amount to CRR) Preference shareholders A/c Dr. 2,20,000 To Bank A/c 2,20,000 (Being amount paid to preference shareholders) Working Note: Calculation of No. of Equity Shares to be issued: Amount payable on Redemption: ₹2,20,000 Less: Sale Price on Investments: (₹30,000) ₹1,90,000 Less: Available Bank Balance (₹75,000 - ₹50,000): (₹25,000) Fund to be raised from fresh issue of shares = ₹1,65,000 No. of Shares = ₹1,65,000 / ₹15 = 11,000 shares Amount to be transferred to Capital Redemption Reserve A/c Nominal Value of Preference Shares: ₹2,00,000 Less: Proceeds from fresh issue of shares: (₹1,10,000) Amount to be transferred to CRR: ₹90,000