Forums Homework Help show how the amount will appear in the balance sheet

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    Aakanksha
    Participant

    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.

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