Newtown Ltd. issued for subscription 1,35,000 Equity Shares of ₹ 10 each to the public at a premium of 10% on the following terms:

Newtown Ltd. issued for subscription 1,35,000 Equity Shares of ₹ 10 each to the public at a premium of 10% on the following terms:

(i) ₹ 30 to be paid on application; (ii) ₹ 40 to be paid on allotment; (iii) ₹ 20 to be paid two months after allotment; and (iv) ₹ 20 to be paid three months after first call.

Public applied for 1,25,000 Equity Shares, which were allotted. All money due was received on due date except from a shareholder holding 2,500 shares who failed to pay the calls money.

Pass entries in the Cash Book and Journal of the company and prepare Balance Sheet.