Following is the extract of Balance Sheet of Sky Ltd. as at 31st March, 2025 : ₹ Authorized capital: 3,00,000 equity shares of 10 each - 30,00,000…

In the books of Sky Ltd. Journal Entries Particulars Dr. ₹ Cr. ₹ April, 1 Capital Redemption Reserve A/c Dr. 1,20,000 Securities Premium A/c Dr. 75,000 General Reserve A/c Dr. 3,60,000 Profit and Loss A/c (b.f.) Dr. 5,25,000 To Bonus to Equity Shareholders A/c 10,80,000 (Being 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. 10,80,000 To Equity Share Capital A/c 10,80,000 (Being bonus shares issued) Balance Sheet (Extract) as on 1st April, 2025 (after bonus issue) Particulars Notes Amount (₹) Equity and Liabilities Shareholders’ funds a Share capital 1 40,20,000 b Reserves and Surplus 2 75,000 Notes to Accounts 1 Share Capital (₹) Authorized share capital: 3,78,000* Equity shares of 10each 37,80,000* 25,00010% Preference shares of 10each 2,50,000 Total 40,30,000 Issued, subscribed and fully paid share capital: 3,78,000 Equity shares of 10each, fully paid (Out of above,1,08,000 equity shares @10 each were issued by way of bonus) 37,80,000 24,00010% Preference shares of 10each 2,40,000 Total 40,20,000 2 Reserves and Surplus Capital Redemption Reserve 1,20,000 Less: Utilized (₹ 1,20,000) Nil Securities Premium 75,000 Less: Utilised for bonus issue (75, 000) Nil General reserve 3,60,000 Less: Utilised for bonus issue (₹ 3,60,000) Nil Profit & Loss Account 6,00,000 Less: Utilised for bonus issue (₹ 5,25,000) 75,000 Total 75,000 Note: * Authorized capital has been increased by the minimum required amount i.e.7,80,000 (₹ 37,80,000 - 30,00,000) in the above solution.