95 :- Panasonic Ltd. was formed on 1st April, 2024 with an authorised capital of Rs 20,00,000, divided into 20,000 Equity Shares of Rs 100 each. 10,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 10,000 shares were offered for public subscription at a premium of Rs 5 per share payable
On Application – Rs 10 per share,
On Allotment – Rs 25 per share (including premium)
On First Call – Rs 40 per share,
On Final Call – Rs 30 per share
Applications were received for 9,000 shares which were duly allotted and the allotment money was received in full. At the time of the first call, a shareholder who held 1,000 shares failed to pay the first call money and his shares were forfeited. These shares were reissued @ Rs 60 per share, Rs 70 per share paid-up. Final Call has not been made.
You are required to (i) give necessary Journal entries to record the above transactions and (ii) show how share capital would appear in the Balance Sheet of the company.
Solution :-
