Applications were received for all shares which were allotted. All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company.
Solution
Better Prospect Ltd. acquired land costing Rs. 1,00,000 and in payment allotted 1,000 Equity Shares of Rs. 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public. The shares were payable as: Rs. 30 on application; Rs. 30 on allotment; Rs. 40 on first and final call.