Himalaya Company Limited issued for public subscription 1,20,000 equity shares of ₹ 10 each at a premium for ₹ 2 per share payable as under:

Himalaya Company Limited issued for public subscription 1,20,000 equity shares of ₹ 10 each at a premium for ₹ 2 per share payable as under:

On Application	₹ 3 per share,
On Allotment (including premium)	₹ 5 per share,
On First Call	₹ 2 per share,
On Second and Final Call	₹ 2 per share,

Applications were received for 1,60,000 shares. Allotment was made on pro-rata basis. Excess money on application were adjusted against the amount due on allotment. Rohan to whom 4,800 shares were allotted, failed to pay for the two calls. These shares were subsequently forfetied after the second call was made. All the shares forfeited were reissued to Teena as fully paid at ₹ 7 per share. Record Journal entries and show the transactions relating to share capital in the company’s Balance Sheet. [Ans.: Capital Reserve – ₹ 14,400; Balance Sheet Total – ₹ 14,54,400.]