1Medium15 marks
A Ltd. furnishes the following Balance Sheet as at 31st March, 2024 : Particulars ( in 000) ( in 000) I - Equity and Liabilities :
1. Shareholders' Funds
(a) Share Capital 6,00,000 Equity shares of 10 each fully paid up 40,000, 9% Preference shares of 100 each 6,000 4,000 10,000
(b) Reserves and Surplus Capital Reserve 20 Revenue Reserve 8,000 Securities Premium 1,00,000 Profit and Loss Account 3,600 12,620
2. Non-Current Liabilities 10% Debentures 800
3. Current Liabilities Trade Payables 80 Total 23,500 II - Assets : 1. Non-Current Assets (a) Property, Plant and Equipment 5,500 (b) Non-Current Investments (at cost) 10,000 15,500 2. Current Assets (a) Inventories 2,000 (b) Trade receivables 4,000 (c) Cash and Cash equivalents 2,000 8,000 Total 23,500 The company passed a resolution to buy back 20% of its equity capital @ 15 per share. For this purpose, it sold its investments of 60 lakhs for 50 lakhs. You are required to pass necessary journal entries in the books of A Ltd. and prepare Balance Sheet after buyback of shares.