Eastern Company Limited, with an authorised capital of Rs. 10,00,000 is divided into shares of Rs. 10 each, issued 50,000 shares at a premium of Rs. 3 per share payable as follows:
On Application – Rs. 3 per share
On Allotment (including premium) – Rs. 5 per share
Oh first call (due three months after allotment) – Rs. 3 per share and the balance as and then required.
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(a) Applicants for 40,000 shares received in full.
(b) Applicants for 15,000 shares received an allotment of 8,000 shares.
(c) Applicants for 500 shares received 200 shares on allotment, excess money being returned. All amounts due on allotment were received. The first call was duly made and the money was received with the exception of the call due on 100 shares.
Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company