Question

Mahadev Ltd., with an authorised capital of Rs. 5,00,000 divided into 50,000 equity shares of Rs. 10 each, issues the entire amount of the shares payable as follows :
Rs. 5 on Application (including premium of Rs. 3 per share)
Rs. 4 on Allotment, and
Rs. 4 on Call.
All share money is received in full with the exception of the allotment of 200 shares and the call money on 500 shares (including the 200 shares on which the allotment money has not been paid). The above 500 shares are duly forfeited 400 of these (including the 200 shares on which allotment money has not been paid) are re-issued at Rs. 8 per share as fully paid up. Pass journal entries (including cash transactions) and show the balances in the Balance Sheet giving effect to the above transactions.

Answer 1

Share Capital Rs. 4,99,600, Capital Reserve Rs. 800, Securities Premium Reserve Rs. 1,50,00, Cash at Bank Rs. 6,50,400.