R Ltd was registered with an Authorized capital of ₹ 20,00,000 in ₹ 10 per Equity share. It invited
application for issuing 100,000 Equity shares at a premium of ₹ 2 per share. The amount was payable as
follows:
On application ₹ 4 per share ( including premium)
On Allotment ₹ 3 per share
Balance on 1st and Final Call.
Applications were received for 130,000 Shares. Applications for 10,000 shares were rejected and the
application money received on them was refunded. Pro-rata allotment was made to the remaining
applications. Amount overpaid on these applications was adjusted towards the amount due on
Allotment. Mr S, who has applied for 1200 shares, failed to pay the amount and call money. The
Company forfeited his shares, out of which 800 shares were reissued to Mr K at ₹ 9 per share fully paid
up. You are required to Prepare Balance sheet (liabilities side only) and Pass necessary Journal Entries.