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 :

Question

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 :

asked Aug 3, 2018 in Accounts by Sakil Alam (64.4k points)

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.