Following is the extract of Balance Sheet of Laxmi Ltd. as at 31st March, 2025 : Particulars ₹ Authorized capital: 4,50,000 equity shares of 10 each…

Laxmi Ltd. Journal Entries Dr. Cr. April, 1 Capital Redemption Reserve A/c Dr. 1,80,000 Securities Premium A/c Dr. 1,12,500 General Reserve A/c Dr. 5,40,000 Profit and Loss A/c (b.f.) Dr. 7,87,500 To Bonus to Equity Shareholders A/c 16,20,000 (Bonus issue @ two shares for every five shares held by utilizing various reserves as per Board’s Resolution dated...) Bonus to Shareholders A/c Dr. 16,20,000 To Equity Share Capital A/c 16,20,000 (Issue of bonus shares) Balance Sheet (Extract) as on 1st April, 2025 (after bonus issue) Particulars Notes Amount (₹) Equity and Liabilities Shareholders’ funds a Share capital 1 60,30,000 b Reserves and Surplus 2 1,12,500 Notes to Accounts (₹) 1 Share Capital Authorized share capital: 5,67,000* Equity shares of 10each 56,70,000* 37,50010% Preference shares of 10each 3,75,000 Total 60,45,000 Issued, subscribed and fully paid share capital: 5,67,000 Equity shares of 10each, fully paid (Out of above,1,62,000 equity shares @10 each were issued by way of bonus) 56,70,000 36,00010% Preference shares of 10each 3,60,000 Total 60,30,000 2 Reserves and Surplus Capital Redemption Reserve 1,80,000 Less: Utilized 1,80,000 Nil Securities Premium 1,12,500 Less: Utilised for bonus issue (₹ 1,12,500) Nil General reserve 5,40,000 Less: Utilised for bonus issue (₹ 5,40,000) Nil Profit & Loss Account 9,00,000 Less: Utilised for bonus issue (₹ 7,87,500) 1,12,500 Total 1,12,500 Note: *Authorized capital has been increased by the minimum required amount i.e.11,70,000 (₹ 56,70,000 - 45,00,000) in the above solution