X Ltd. was registerd with an authorised capital of 2,00,000 shares of Rs. 10 each. It purchased assets of Y Ltd. for Rs. 3,00,000 and issued fully paid shares for purchase consideration. It also invited applications for 1,20,000 shares payable as under :
Rs. 2.50 on application
Rs. 2.50 on allotment
Rs. 2 on first call and Rs. 3 on final call.
Sarkar, who had been allotted 400 shares failed to pay the final call. His shares were forfited and re-issued at Rs. 8.50 per share as fully paid up. Pass entries in the Cash Book and Journal. Show the Share Capital in the Balance Sheet of the Company.

Explanation

Cash at Bank Rs. 12,02,200 , Capital Reserve Rs. 2,200 .