Himalaya Company Limited issued for public subscription of 1,20,000 equity shares of Rs.10 each at a premium of Rs.2 per share payable as under :
|With Application||Rs. per share|
|On Allotment (including premium )||Rs.5 per share|
|On First Call ||Rs.per share|
|On second and Final call||Rs. per share|
Applications were received for 1,60,000 shares. The allotment was made on a pro-rata basis. Excess money on the application was adjusted against the amount due on allotment. Rohan, whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfeited after the second call was made. All the shares forfeited were reissued to Teena as fully paid at Rs 7 per share. Record journal entries in the books of the company to record these transactions relating to share capital. Also, show the company’s balance sheet.