Sunshine company limited was newly formed with an authorized capital or Rs. 500,000

divided into 50,000 equity shares of Rs. 10 each. The company issued 25,000 equity

shares at a premium of Rs. 1 per share. Applications for 30,000 shares were received. No

allotment was made to applicants for 5,000 shares and their application money was

refunded. All the allots paid the money due.

Pass the necessary journal entries. Show how the items will appear in the company's balance

sheet.