Varun Ltd. issued Rs. 10,00,000 shares of Rs. 100 each at a premium of Rs. 20 for subscription payable as:
Rs. 10 per share on application,
Rs. 40 per share and Rs. 10 premium on allotment, and
Rs. 50 per share and Rs. 10 premium on final payment.
Over-payments on application were to be applied towards amount due on allotment and over-payments on application exceeding amount due on allotment was to be returned. Issue was oversubscribed to the extent of 13,000 shares. Applicants for 12,000 shares were allotted only 1,000 shares and applicants for 2,000 shares were sent letters of regret. All the money due on allotment and final call was duly received. PAss necessary entries in the company's books to record the above transactions. Also, prepare company's Balance Sheet on completion of the above transactions.