Telecom Ltd.' issued 20,000 Equity Shares of Rs. 10 each at a premium of Rs. 5 per share, payable as: Rs. 7 (including premium ) on application, Rs. 5 on allotment and the balance after three months of allotment. A shareholder to whom 200 shares were allotted failed to pay the allotment and call money and his shares were forfeited. 160 of the forfeited shares were reissued for Rs. 1 1,600.
Give necessary entries in company's Journal and the Balance Sheet.

Answer

Balance of Forfeited Shares A/c-Rs. 80; Capital Reserve-Rs. 320; Balance Sheet Total-Rs. 3,00,000.