H. limited issued a prospectus inviting applications for 20,000 shares of Rs. 10 each at a premium of Rs. 2 per share payable
as follows:
On application Rs. 2; on allotment Rs. 5 (including premium); on first call Rs. 3 on second and final call Rs. 2
Applications were received for 30,000 shares and pro rata allotment was made on the applications for 24,000 shares. Money
overpaid on applications was adjusted against amount due on allotment.
Ramesh, to whom 400 shares were allotted, failed to pay the allotment money and on his subsequent failure to pay first call
his shares were forfeited. Mohan, the holder of 600 shares, failed to pay two calls and his shares were forfeited after the
second call.
Of the shares forfeited, 800 shares were sold to Krishna credited as fully paid for Rs. 9 per share, the whole of Ramesh?s
shares being included. Pass journal entries and prepare the balance sheet.