Krish (CA Final ) (3331 Points)
02 May 2011Internal Reconstruction :
Balance sheet shows :
Sundry Creditors : 4,50,000
Adjustment :
a) The claim of Sundry creditors shall be reduced to 80 %
Solution :
Sundry Creditors Dr. 3,60,000 or 90,000
To Capital Reduction 3,60,000 or 90,000
What should be there ? 3,60,000 or 90,000.
Divyanshi Jain
(ca final)
(40 Points)
Replied 02 May 2011
It should be Rs. 90,000 .As the creditors claim shall be reduced to 80%. That means creditors should be shown in reconstructed balance sheet at 3,60,000(4,50,000*80%).
mounika
(semi qualified chartered accountant)
(981 Points)
Replied 08 June 2011
creditors should be shown in balance sheet at 360000. bcoz creditors has credit bal. if such creditors r reduced den reduced valve of creditors r debited and present value is shown in balance sheet. entry ll b
old creditors a/c-dr 450000
to cap. reductiona/c 90000
to creditors a/c 3600000
CAclubindia
