Question

Paul Ltd. invited applications for 12,000 shares of Rs. 100 each to be issued at a
premium of 10% payable as follows:
On application Rs.25
On allotment Rs.40
On First & Final call Rs.35
Applications were received for 10,000 shares and all of these were accepted. All
the money due was received except the first and final call on 100 shares which
were forfeited. 60 of these forfeited shares were reissued @Rs 90 per share
credited as fully paid.
You are required to:
(a) Pass the necessary Journal entries.
(b) Prepare the Balance Sheet of the company.

Answer 1

JOURNAL ENTRIES IN THE BOOKS OF PAUL LTD.

Explanation:

REFER TO THE ATTACHMENT FOR JOURNAL ENTRIES.