The following is the abstract of Balance Sheet of Happy Ltd. as on 31stMarch, 2024 : ₹ Issued and paid-up capital 90,000 Equity shares of ₹10 each fully paid - up 9,00,000 Less : Calls-in-arrear (10,000 Equity shares of ₹ 2 each) 20,000 8,80,000 40,000 Equity shares of ₹ 10 each, ₹4 cash paid up 1,60,000 Reserves and Surplus : Capital Reserve (realized in cash) 60,000 Capital Redemption Reserve 1,60,000 Securities Premium 1,00,000 General. Reserve 1,20,000 Profit and Loss Account 7,00,000 On 1 st April, 2024, the company makes final call @ 6 each on 40000 equity shares. The call money is duly received by 30 th April, 2024. On 1stMay, 2024, the Board of Directors of the company decided: (i) To forfeit the share on which final call of ₹2 each is due ; (ii) To re- issue the forfeited share @ ₹11 each as fully paid up ; (iii) To issue fully paid bonus shares in the ratio of one fully paid bonus share for every two fully paid shares held ; and (iv) To use minimum balance of Profit and Loss Account. Pass necessary journal entries in the books of the company on the basis of the above decisions.
September 8, 2024