23 :- Tiny Toys Ltd. issued Rs 10,00,000 shares of Rs 100 each at a premium of Rs 20 for subscription payable as :
Rs 10 per share on application;
Rs 40 per share and Rs 10 premium on allotment, and
Rs 50 per share and Rs 10 premium on final payment.
Issue was oversubscribed receiving applications for 13,000 shares. Applicants for 11,000 shares were alloted 10,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received. Pass necessary entries in the company’s books to record the above transactions. Also, show share capital in the company’s Balance Sheet on completion of the above transactions.
Solution :-
