The following is the Balance Sheet of Purple Limited as at 31st March, 2022: ParticularsNotesAmount in ₹ I. Equity and Liabilities (1) Shareholders' Funds (a) Share Capital115,00,000 (b) Reserves & Surplus2(3,00,000) (2) Current Liabilities (a) Trade Payables2,20,000 (b) Short Term Borrowings – Bank Overdraft2,00,000 Total16,20,000 II. Assets (1) Non-Current Assets (a) Property, Plant and Equipment310,20,000 (b) Intangible Assets41,20,600 (2) Current Assets (a) Inventories1,70,000 (b) Trade Receivables3,01,800 (c) Cash and cash equivalents7,600 Total16,20,000 Notes to Accounts Notes to Accounts₹₹ (1) Share Capital 90,000 Equity Shares of ₹10 each fully paid9,00,000 6% Preference Share Capital6,00,00015,00,000 (2) Reserves & Surplus Profit & Loss account(3,00,000) (3) Property, Plant and Equipment Land and Building5,40,000 Plant and Machinery4,80,00010,20,000 (4) Intangible Assets Goodwill84,600 Patents36,0001,20,600 Dividends on preference shares are in arrears for 3 years. On the above date, the company adopted the following scheme of reconstruction: (i) The preference shares are converted from 6% to 8% but revalued in a manner in which the total return on them remains unaffected. (ii) The value of equity shares is brought down to ₹8 per share. (iii) The arrears of dividend on preference shares are cancelled. (iv) The debit balance of Goodwill account is written off entirely. (v) Land and Building and Plant and Machinery are revalued at 85% and 80% of their respective book values. (vi) Book debts amounting to ₹14,400 are to be treated as bad and hence to be written off. (vii) The company expects to earn a profit at the rate of ₹90,000 per annum from the current year which would be utilized entirely for reducing the debit balance of Profit and loss accounts for 3 years. The remaining balance of the said account would be written off at the time of capital reduction process. (viii) The balance of total capital reduction is to be utilized in writing down Patents. (ix) A secured loan of ₹4,80,000 bearing interest at 12% per annum is to be obtained by mortgaging tangible fixed assets for repayment of bank overdraft and for providing additional funds for working capital. You are required to give journal entries incorporating the above scheme of reconstruction, capital reduction account and prepare the reconstructed Balance Sheet.