Z Ltd. was registered with an authorised capital of ₹ 60,00,000 divided in 60,000 equity shares of ₹ 100 each. Company issued 25,000 equity shares at a premium of ₹ 20 per share, payable as follows

Z Ltd. was registered with an authorised capital of ₹ 60,00,000 divided in 60,000 equity shares of ₹ 100 each. Company issued 25,000 equity shares at a premium of ₹ 20 per share, payable as follows : ₹ 30 on Application; ₹ 45 on Allotment (including premium); ₹ 20 on first call and ₹ 25 on Second and Final Call.

All shares were subscribed and all the money was duly received. Share issue expenses amounted to ₹ 40,000 which were fully written off against Securities Premium.

Prepare necessary Journal Entries and Bank Account in the books of the Company.

[Ans. Share Capital ₹ 25,00,000; Reserve and Surplus ₹ 4,60,000; Balance at Bank ₹ 29,60,000.]