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Question
Narmada Ltd. has an authorised capital of ₹ 10,00,000 divided into equity shares of ₹ 10 each. The company issued a prospectus inviting applications for issuing 80,000 equity shares. The company received applications for 75,000 equity shares. All calls were made and were duly received except the first and final call of ₹ 2 per share on 5,000 shares held by Arti. These shares were forfeited.
- Present the share capital in the Balance Sheet of the company as per Schedule III, Part I of the Companies Act, 2013.
- Also prepare 'Notes to Accounts' for the same.
Solution
| Extract of Balance Sheet of Narmada Ltd as at..... |
||||
| Particulars | Note No. | Current Year (₹) | Previous Year (₹) | |
| I. | EQUITY AND LIABILITIES | |||
| 1. | Shareholder's Funds | |||
| Share Capital | 1 | 7,40,000 | ||
Notes to Accounts:
| Note No. | Particulars | Amount (₹) | Amount (₹) |
| 1. | Share Capital | ||
| Authorised Capital | |||
| 1,00,000 equity shares of ₹ 10 each | 10,00,000 | ||
| Issued Capital | |||
| 80,000 equity shares of ₹ 10 each | 8,00,000 | ||
| Subscribed and fully paid capital | |||
| 70,000 equity shares of ₹ 10 each | 7,00,000 | 7,40,000 | |
| Add: Share forfeiture A/c ( 5,000 × ₹ 8) | 40,000 |
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