Question

Eastern Company Limited having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each, issued 50,000 shares at a premium of ₹ 3 per share payable as follows:
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment, excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company. Also prepare the Balance Sheet of the company.

Answer 1

Calculation of calls in arrears:

Call money arrears = 100 shares x 3 per share

= Rs 300

Called up share capital= 50000 x 10 x 8

= Rs 4,00,000

Subscribed capital= Called up share capital-Call money arrears

= 400000- 300

= Rs 3,99,700

Answer 2

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