which were forfeited and reissued as fully paid as rs 20 per share the company paid 618281

The balance sheet of X, Y & Z stood as follows when they sold off the concern to a newly started joint stock company.

Liabilities

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which were forfeited and reissued as fully paid as rs 20 per share the company paid 618281
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Assets

Capital Accounts

Land & Buildings

1,68,000

X 2,70,000

Machinery

84,000

Y 1,80,000

Stock

1,56,000

Z 90.000

5,40,000

Debtors

1,08,000

Sundry Creditors

48,000

Bills Receivable

72,000

5,88,000

5,88,000

The joint stock company was started with a capital of Rs.12,00,000 divided into 12,000 shares of Rs.100 each. It also issued debentures for Rs.6,00,000 at a discount of 5%.

The entire concern of X, Y & Z was taken by the company on agreeing to pay them Rs.2,88,000 by the allotment of 2,880 shares fully paid and Rs.2,88,000 in cash.

All the debentures and the remaining shares are issued to the public which were all taken up and paid for with the exception of 1,200 shares held by Mr. C on which he did not pay the final call of Rs.40 per share which were forfeited and reissued as fully paid as Rs.20 per share. The company paid Rs.6,000 as preliminary expenses. Pass the necessary entries in the books of the company and prepare the balance sheet.

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