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Question - Salman Ltd. was registered with an authorized capital of Rs. 1000,000 divided into 100,000 ordinary shares of Rs.10 each. On June 1, 2015 Salman Ltd. issued 20, 000 ordinary shares @ Rs. 10 par value per share. Out of these 20,000 shares, 3,000 shares were issued to the directors and remaining to the general public. On 15th June (the subscription date) applications were received for 15,000 shares. On 30th June, the company allotted the shares to the public and the remaining shares were taken up by the underwriters as per agreement.
Required - Pass the journal entries in the books of the company and prepare statement of financial position as at June 30th.
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