Bharat Ltd. was incorporated with a capital of ₹ 20,00,000 divided into shares of ₹ 10 each, 20,000 shares were offered for subscription and out of these, 18,000 shares were applied for and allotted

Bharat Ltd. was incorporated with a capital of ₹ 20,00,000 divided into shares of ₹ 10 each, 20,000 shares were offered for subscription and out of these, 18,000 shares were applied for and allotted. ₹ 3 per share (including ₹ 1 premium) was payable on application, ₹ 4 per share (including ₹ 1 premium) on allotment, ₹ 2 per share on first call and ₹ 3 per share on final call. All the money was received. Give necessary Journal entries and show share capital in the Balance Sheet.

[Ans.: Subscribed Share Capital – ₹ 1,80,000.]