Deep Borewell Ltd. issued to the public 20,000 Equity Shares of ₹ 10 each payable ₹ 4 on application, ₹ 2 on allotment, ₹ 2 on first call and the balance on final call

Deep Borewell Ltd. issued to the public 20,000 Equity Shares of ₹ 10 each payable ₹ 4 on application, ₹ 2 on allotment, ₹ 2 on first call and the balance on final call. Applications were received for 35,000 shares. Applications for 10,000 shares were rejected. Those totalling 15,000 shares were allotted 10,000 shares and the remaining applications were accepted in full. The excess application money was utilised towards the money due on allotment. Both the calls were made. One shareholder holding 500 shares failed to pay the two calls and as a consequence, his shares were forfeited. 200 of these shares were reissued as fully paid @ ₹ 6 per share.

Pass entries in the company’s Journal, Cash Book and prepare Balance Sheet.