Particulars Dr. Cr. 945 Rs. Rs. 4,500 2,250 2.250 8,250 Equity Share Capital Account Dr. To Equity Share First and Final Call Account To Forfeited Shares Account (Being forfeiture of 450 equity shares with Q for non-payment of call) Bank Dr. To Equity Share Capital Account To Securities premium Account (Being reissue of 750 equity shares as fully paid-up @ Rs. 11 per share) Forfeited Shares Account Dr. To Capital Reserve (Being transfer of forfeited shares account to capital reserve) 7.500 750 3,450 3,450 7,00,000 Provisional Balance Sheet of P Ltd. as at 31st March, 2001 was as under: 2.21 BALANCE SHEET as at 31st March, 2001 Liabilities Rs. Rs. Assets Rs. Share Capital: Fixed Assets (at cost less depreciation) 50,000 Equity Shares of Rs. 10 each, Rs. 7 per share called up 3,50,000 Cash & Bank balances Less: Calls in arrear on 10,000 Other Current Assets shares @ Rs. 2 per share 20,000 3,30,000 Add: Calls in advance on 40,000 shares @ Rs. 3 per share 1,20,000 4,50,000 10% Redeemable 20,000 Preference Shares of Rs. 10 each fully paid-up 2,00,000 Reserves & Surplus: General Reserve 3,00,000 Profit & Loss Account 2,70,000 Current Liabilities 2,80,000 15,00,000 2,00,000 6,00,000 15,00,000 Calls in arrear are outstanding for 6 months. Calls in advance were also received 6 months back. Interest @ 10% p.a. on calls in advance and 12% p.a. on calls in arrear are allowed/charged. The Board of Directors have recommended that: Dividend for the year 2000-01 be allowed @ 20% on equity shares. (ii) Money on calls in advance be refunded and partly paid equity shares be converted as fully paid- up by declaring bonus dividend to shareholders. (iii) The preference shares, which are redeemable at a premium of 10% any time after 31st March, 2001 may be redeemed by issue of 10% Debentures of Rs. 100 in cash. Show Journal Entries to give effect to the above proposals including payment and receipt of cash and redraft the Profit and Loss Account and Balance Sheet of P Ltd