Image caption 

The Life Saving Drugs Manufacturing Company Ltd was established during 2016 with an authorized capital of 500,000 Common Stocks of Rs. 100 each. The Company issued 400,000 Common Stocks during July, 2017 at a premium of Rs. 30 each. During July 2018 some technical and marketing staff was recruited to whom apart from salary package, the purchase of Stock Options of 20,000 shares at Rs. 150 each over a period of three years was also granted to them. The market price of shares of the company fluctuated from time to time and by the end of May 2021 the prevailing price touched the ceiling of Rs. 165 each. All the employees exercised the Stock options as committed by the company. Required a) Record all the above transactions in the accounting and memorandum record of the company. b) Present the equity section of the balance sheet of the company as at 30 June, 2021.