Question

Deep Borewell Ltd. offered to the public 20,000 Equity Shares of rupees10 each payable ? 4 on application
2 on allotment,2 on first call and the balance on final call. Applications were received for
35,000 shares. Applications for 10,000 shares were rejected. Those totalling 15,000 shares were allo
10,000 shares and the remaining applications were accepted in full. The excess application mon
utilised towards the money due on allotment. Both the calls were made. One shareholder holding
500 shares failed to pay the two calls and as a consequence his shares were forfeited. 200 of the
shares were reissued as fully paid @ 6per share.
Pass entries in the company's Journal, Cash Book and prepare Balance Sheet.
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Answer 1

JOURNAL ENTRIES IN THE BOOKS OF DEEP BOREWELL LTD.

Explanation:

REFER TO THE ATTACHMENT FOR THE JOURNAL ENTRIES.