6. Non-current investments Non-trade investments at cost 2,80,000 2,80,000 Subsequent to approval by court and all interested parties, the following scheme of reconstruction were agreed:- (1) Uncalled capital is to be called up in full and such shares and other fully paid -up equity shares to be reduced to ` 5 per share. (2) The preference shareholders will accept a reduction of ` 2.5 per share, in exchange the rate of dividend is to be increased to 9%. (3) Preference shareholders will forgo their claim of dividend for one year and one equity share of ` 5 each is to be issued for the remaining arrears of dividend. (4) Mr. X holds 10% debentures for ` 2,50,000. He is also a creditor for ` 50,000. He agreed to cancel 50% of his total debt, including interest on debentures, pay ` 20,000 to the company and to receive new 12% debentures for the balance amount. (5) The remaining claim of the debenture holders, including outstanding interest to be reduced to 60%. In consideration of the reduction, the debenture holders are to receive new 9% preference shares at new face value. (6) The taxation liability is to be settled at ` 1,20,000. (7) Market value of Non-current Investments is ` 2,50,000. Investments to be brought to their market value. (8) Inventory equal to ` 1,00,000 at book value will be taken over by remaining creditors in full settlement of their claim. (9) A bad debt provision of 2% is to be created on trade receivables. (10) Plant and Machinery is to be written down by 20%. (11) The company will further issue 12% debentures for such amount which is sufficient to pay off bank overdraft and other outstanding liabilities and maintain its cash/bank balance at ` 85,000. (12) The amount available by the scheme shall be utilized in writing of Goodwill, debit balance of profit and loss a/c and balance of inventory. You are required to: