Spencer Paints Ltd. was registered with an authorised capital of Rs 50,00,000 divided in 5,00,000 equity shares of Rs 10 each. Company issued 2,00,000 equity shares at a premium of Rs 3 per share, payable as follows : Rs 4 on Application, Rs 5 on Allotment ( including premium), Rs 2 on First Call and Rs 2 on Second and Final Call.
All shares were subscribed and all the money was duly received. Share issue expenses amounted to Rs 75,000 which were fully written off against Securities Premium.
Prepare necessary Journal Entries and Bank Account.