which were forfeited and reissued at a discount of 20 give journal entries to record 618270

A company was formed with an authorized capital of Rs.30,00,000 divided into 1,50,000 equity shares of Rs.100 each, 15,000 9% preference shares of Rs.100 each to purchase the going concern of M/s Raju & Co. the balance sheet of which stood as follows:

Liabilities

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which were forfeited and reissued at a discount of 20 give journal entries to record 618270
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Assets

Bills Payable

21,000

Cash

27,000

Creditors

38,400

Debtors

45,000

Capital

7,92,600

Stock

2,10,000

Machinery

3,00,000

Buildings

2,70,000

8,52,000

8,52,000

The purchase price was agreed up on at Rs.10,50,000, payable as to Rs.3,00,000 in fully paid up equity shares, Rs.3,00,000 in fully paid preference shares,Rs.1,80,000 in redeemable debenture and the balance in cash.

The remaining shares were issued to and paid for by the public with the exception of Rs.30 per share on 360 equity shares which were forfeited and reissued at a discount of 20%. Give journal entries to record these transactions in the books of the company and prepare the initial balance sheet.

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