Doubt ?? reconstruction

It says creditors are to be fully settled for issue of equity shares after reduction to 50 % . This means they are waving off whole creditors (50% by reconstruction & 50% by issue of shares) ..so it is a combined entry for reduction of creditors. 

next entry would be 

Share surrender Dr....36000

To Equity shares A/c  ...36000 

(shares surrendered being utilized in issuing equity shares )

Thank you so much for reply

Thanks Friend now i got the point....................But how do i recognise that question asks for Full settlement. It seems that i am not being able to cope the language of question. Is there any indication in question that the same is for fully settlement.

Originally posted by : Krish
	Thank you so much for reply Thanks Friend now i got the point....................But how do i recognise that question asks for Fully settled. It seems that i am not being able to cope the language of question. Is there any indication in question that the same is for fully settled.

you r most welcome .. When they say "such amount is to be settled" . It means they want to wave off whole amount against something. 

Now its clear..........I am very grateful to you. Thank you.

No need to thank me brother. We all are here to learn and share .

Creditors shall be reduced to  50 Percent,

Creditors a/c     dr  36,000

  To Reconstruction a/c   36000

it is to be settled by the issue of equity shares of Rs.10 each out of shared surrendered.

Share surrender Dr....36000

To Equity shares A/c  ...36000 

(shares surrendered being utilized in issuing equity shares )