Doubt ? Please help

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%).

IN THE BALANCE SHEET IT SHOULD BE SHOWN AS 360000

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