Rama Co. issued 50,000 shares of ₹ 10 each payable as follows: ₹ 3 on Application; ₹ 3 on Allotment; ₹ 2 on First Call; ₹ 2 on Final Call.

Rama Co. issued 50,000 shares of ₹ 10 each payable as follows:

₹ 3 on Application;

₹ 3 on Allotment;

₹ 2 on First Call;

₹ 2 on Final Call.

All the shares were subscribed and allotted. Give Journal entries and show the Share Capital in the Balance Sheet assuming that all sums have been duly received. Expenses on issue of shares amounted to ₹ 10,000.

[Ans. Share Capital ₹ 5,00,000; Cash at Bank ₹ 4,90,000]