The following is the Balance Sheet of AB Ltd. as on 31st March, 2018: Particulars Amount (₹) I. EQUITY & LIABILITIES (1) Shareholders' Funds : (a) Share Capital : 1,500, 8% pref. shares of ₹100 each 1,50,000 4,000 eq

The following is the Balance Sheet of AB Ltd. as on 31st March, 2018: Particulars Amount (₹) I. EQUITY & LIABILITIES (1) Shareholders' Funds : (a) Share Capital : 1,500, 8% pref. shares of ₹100 each 1,50,000 4,000 equity shares of ₹100 each 4,00,000 (b) Reserves & Surplus : General reserve 50,000 (2) Non-current Liabilities : 8% Debentures 1,50,000 Interest accrued 8,000 (3) Current Liabilities : Trade Payables 2,20,000 Total 9,78,000 II. ASSETS (1) Non-Current Assets : (a) Tangible Assets : Plant 2,25,000 Less: Depreciation 35,000 1,90,000 Machinery 4,50,000 Less: Depreciation 70,000 3,80,000 (b) Intangible Assets : Computer Software 1,17,000 Patents 1,22,000 (2) Current Assets : Inventories 20,000 Trade Receivables 31,200 Cash & cash-equivalents 85,800 (3) Other Current Assets : Unamortised Preliminary expenses 32,000 Total 9,78,000 It was decided to reconstruct the company on the basis of the following scheme: Equity shares to be reduced by ₹90 each. Preference shares to be reduced by ₹10 each. The Debenture holders to waive their outstanding interest. One equity share, ₹10 fully paid will be issued for every ₹40 of preference share dividend, which was in arrear for last two years. General Reserve and all intangible and fictitious assets to be written off. Two Non-current tangible assets to be reduced proportionally by the balance available. Give journal entries to show the above scheme of Capital Reduction.