Panasonic Ltd. was formed on 1st April, 2010 with an authorised capital of ₹ 2,00,000, divided into 2,000 Equity Shars of ₹ 100 each. 1,000 shares were issued as fully paid to the vendors of building for payment of the purchase consideration. The remaining 1,000 shares were offered for public subscription at a premium of ₹ 5 per share payable as:
₹ 10 per share,
₹ 25 per share, (including premium),
On First Call
₹ 40 per share,
On Final Call
₹ 30 per share,
Applications were received for 900 shares which were duly allotted and the allotment money was received in full. At the time of the first call, a shareholder who held 100 shares failed to pay the first call money and his shares were forfeited. These shares were reissued @ ₹ 60 per share, ₹ 70 per share paid-up. Final Call has not been made.
You are required to (i) give necessary Journal entries to record the above transactions and (ii) show how share capital would appear in the Balance Sheet of the company.
[Ans.: Capital Reserve – ₹ 2,000; Balance Sheet Total – ₹ 1,69,500.]