Question - 61

Himalaya company limited issued for public subcoription of 1,20,000 equity shares of Rs. 10 each at a premium of Rs. 2 per share payable as under:

With applicaton Rs. 3 per share, on allotment (including premium) Rs. 5 per share, on first call Rs. 2 per share, on second call Rs. 2 per share.

Applications were received for 1,60,000 shares allotment was made on pro-rata basis excess money on application was adjusted against the amount due on allotment.

Rohan whom 4,800 shares were were allotted failed to pay for the two calls these shares werer subsequently forfeited after the second call was made alll the shres foreited were reissued to teena as fully paid at Rs. 7 per sahre record journal entries in the books of the company to record these transactions relating to share capital also show the company's balance sheet.

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