Eastern Company limited, having an authorised capital of Rs 10, 00,000 in shares of Rs 10 each, issued 50,000 shares at a premium of Rs 3 per share payable as follows: (5 marks)
| On Application |
Rs 3 per share |
| On Allotment (including premium) |
Rs 5 per share |
| On first call (due three months after allotment) and the balance as and when required. |
Rs 3 per share
|
Applications were received for 60,000 shares and the directors allotted the shares as follows:
(a) Applicants for 40,000 shares received shares, 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.
Note: In order to solve this question, applicants of category C has been assumed as 5000 instead of 500 and allotment to the applicants of this category has been taken as 2000 in place of 200.