(Issue of Shares at Par and Preparation of Cash Book).
Grand Ltd. offered 1,00,000 shares of Rs. 10 each for subscription on following terms:
Rs. 3 to be paid on application, Rs. 3 to be paid on allotment, Rs. 4 to be paid in two months after allotment.
Applications were received for 90,000 shares and allotment was made on 1st May, 2018. All the money due on allotment was received by 15th May, 2018. Call was duly made but a shareholder holding 1,500 shares failed to pay the call.
Pass entries in the Cash Book, Journal and the Ledger of the Company. Also, prepare the Balance Sheet of the company showing Share Capital.

Explanation

*Calls-in-Arrears is the amount not received on First and Final Call Rs. 6,000.
Notes:
1. If Cash Book entries are asked, cash and bank transactions are to be recorded in Cash Book and non-cash transactions in the Journal.
2. This is a case of undersubscription, that is, applications have been received for 90,000 shares as against the offer for 1,00,000 shares to the public. Therefore, Share Capital Account will be credited every time with 90,000 shares multiplied by the amount due on each instalment.