Software Ltd. company with registered capital of ₹ 5,00,000 in shares of ₹ 10 each issued 20,000 of such shares payable ₹ 2 on application, ₹ 4 on allotment, ₹ 2 on final call

Software Ltd. company with registered capital of ₹ 5,00,000 in shares of ₹ 10 each issued 20,000 of such shares payable ₹ 2 on application, ₹ 4 on allotment, ₹ 2 on final call. All the money payable on allotment was received but on the first call being made, one shareholder paid the entire balance on his holding of 300 sahres and five shareholders with a total holding of 1,000 sahres did not pay their dues on the first call. These shares were forfeited for non-payment of first call money. Final call was made and all the money due was received. Later on, forfeited shares were reissued @ ₹ 6 per share as fully paid-up.

Record the above in the company’s Journal and prepare the Balance Sheet.

[Ans.: Capital Reserve – ₹ 2,000; Balance Sheet Total – ₹ 2,02,000.]