New Company Ltd. has a nominal capital of Rs. 2,50,000 in shares of Rs. 10. Of these, 4,000 shares were issued as fully paid in payment of building purchased, 8,000 shares were subscribed by the public and during the first year Rs. 5 per share were called-up, payable Rs. 2 on application, Rs. 1 on allotment, Rs. 1 on first call and Rs. 1 on second call. The amounts received in respect on these shares were:
`{:("On 6,000 shares",,"Full amount called,"),("On 1,250 shares",,"Rs. 4 per share,"),("On 500 shares",,"Rs 3 per share,"),("On 250 shares",,"Rs. 2 per share."):}`
The Directors forfeited the750 shares on which less than Rs. 4 had been paid. The shares were subsequently reissued at Rs. 3 per share.
Pass Journal entries recording the above transactions and prepare the company's Balance Sheet.

Answer

Capital Reserve-Rs. 500; Balance Sheet Total -Rs. 79,250.