Following is the balance sheet of Kalpataru Construction Ltd. as on 31^st M arch, 2011.

Liabilities	Rs	Rs
20,000 12% preference shares of 50 each fully called-up	10,00,000
Less: Calls unpaid ( 10 per share)	20,000	9,80,000
1,00,000 equity shares of 10 each; 7.50 per share called-up	7,50,000
Less: Calls unpaid	7,500	7,42,500
Securities premium		50,000
General Reserve		6,00,000
Calls in advance (final call on equity shares)		2,500
Assets:
Fixed assets		12,25,000
Investment		2,00,000
Cash and bank balance		9,50,000
		23,75,000

On 1st April, 2011 the Board of directors decide that:

(a) The fully paid preference shares are to be redeemed at a premium of 5% in May, 2011 and for that purpose 50,000 equity shares of Rs.10 each are to be issued at par in the month of April, 2011.

(b) The 1,000 equity shares owned by A an existing shareholder, who has failed to pay the allotment money and the 1st call money @ 2.50 each share are to be forfeited in the month of June, 2011.

(c) The final call of Rs.2.50 per share is to be made in the month of July, 2011.

All the above are duly complied with according to the time schedule. The amount due on the issue of fresh equity shares and on final call are also duly received except from B who had failed to pay the 1st call money for his 1,000 shares holding, has again failed to pay the final call also. These shares of B have been forfeited, in the month of August, 2011. On the total shares forfeited, 1,500 shares are sold to X in September, 2011 credited as fully paid for Rs.9 per share, the whole of A?s shares being included.

Show the necessary journal entries and prepare the balance sheet of the company as on 30th September, 2011.

Answer rating: 100% (QA)

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