PQR Limited issued 2,00,000 equity shares of 10 each payable as Rs.3 per share on application, Rs.5. per share (including Rs.2 as premium) on allotment and Rs.4 per share on call. All these shares were subscribed. Money due on all shares was fully received except from Mr. J, holding 5,000 shares who failed to pay the allotment and call money and Mr. K, holding 10,000 shares, who failed to pay the call money. All these 15,000 shares were forfeited. Out of the forfeited shares, 10,000 shares (including whole of J’s shares) were subsequently re-issued to Mr. L as fully paid up at a discount of Rs. 1 per share.
Pass necessary journal entries in the books of PQR Limited: Also prepare balance sheet and notes to accounts of the company.
[2022 December – 15 Marks]