show how the amount will appear in the balance sheet

[Aakanksha]

Deviyani Ltd., invited applications for the

allotment of its 1,00,000 equity shares of Rs. 10

each at a premium of Rs.5 per share payable,

Rs.3 on application, Rs.8 (including premium) on

allotment and the balance in first and final call.

Subscription was received for 1,40,000 shares

and allotment was made on prorata among all the

applicants, adjusting the excess application

money towards allotment.

Having called up the full amount on the share,

the Co., received in full except on 1000 share the

allotment and calls money and on 600 shares

only call money. Those shares on which

allotment and call money was not received were

forfeited. Out of forfeited share 1200 shares

(which include all the 1000 shares on which

allotment and call money was due) were reissued

at Rs.9 as fully paid. Pass necessary journal

entries and also show how the amount will

appear in the balance sheet.

[Author]

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