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Question
Vijay Ltd. was registered with an authorised capital of ₹ 15,00,000 divided into 1,50,000 equity shares of ₹ 10 each.
Company issued 1,00,000 equity shares of ₹ 10 each at a premium of ₹ 2 per share.
Company received applications for 80,000 equity shares and were allotted the shares.
Company received application money ₹ 3 per share, allotment money ₹ 4 per share (Including premium), and first call money ₹ 3 per share.
The Directors have not made final call of ₹ 2 per share. All money were received except one shareholder holding 500 shares did not pay first call.
Show Authorised Capital, Issued Capital, Subscribed Capital, Called-up Capital, Paid-up Capital, Calls in Arrears, and Share Premium amount in company balance sheet.
Solution
In the books of Vijay Ltd.
| Balance Sheet as on ______ | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Authorised Capital: | Cash at Bank | 7,98,500 | ||
| 1,50,000 equity shares of ₹ 10 each | 15,00,000 | |||
| Issued Capital: | ||||
| 1,00,000 equity shares of ₹ 10 each | 10,00,000 | |||
| Subscribed Capital: | ||||
| 80,000 equity shares of ₹ 10 each | 8,00,000 | |||
| Called-up Capital: | ||||
| 80,000 equity shares of ₹ 8 each | 6,40,000 | |||
| Paid-up Share Capital: | ||||
| (80,000 equity shares at 8 per shares) | 6,40,000 | |||
| Less: Calls-in-Arrears (500 shares at ₹ 3 per share) |
1,500 | 6,38,500 | ||
|
Share Premium / Securities A/c |
1,60,000 | |||
| 7,98,500 | 7,98,500 | |||
Working Notes :
(1) Bank balance at the end = Amount received on application + Amount received on allotment + Amount received on 1st call + Premium amount received
= 80,000 × 3 + 80,000 × 2 + 79,500 × 3 + 80,000 × 2
= 2,40,000 + 1,60,000 + 2,38,500 + 1,60,000
= ₹ 7,98,500
(2) Directors have not made final call of ₹ 2 per share means total called-up amount = ₹ 10 – ₹ 2 = ₹ 8
(3) Calls-in-Arrears on 500 shares at ₹ 3 = ₹ 1,500 of first call
(4) Share premium on 80,000 shares @ ₹ 2 received at allotment stage i.e. share premium amount = 80,000 × ₹ 2 = ₹ 1,60,000.
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Following is the Balance Sheet of J.M. Ltd. as at 31.3.2016:
|
J.M. Ltd. Balance Sheet as at 31.3.2016 |
|||
|
Particulars |
NoteNo. |
31.03.2016 (Rs) |
31.03.2015 (Rs) |
|
I. Equity and Liabilities : (1) Shareholder's Funds: |
|||
|
(a) Share Capital |
2,25,000 |
1,75,000 |
|
|
(b) Reserves and Surplus |
1 |
62,500 |
25,000 |
|
(2) Non-current Liabilities: |
|||
|
Long-Term Borrowings |
2 |
1,12,500 |
87,500 |
|
(3) Current Liabilities: |
|||
|
(a) Short-term Borrowings |
3 |
37,500 |
18,750 |
|
(b) Short-term Provisions |
4 |
50,000 |
31,250 |
|
Total |
4,87,500 |
3,37,500 |
|
|
II. Assets: |
|||
|
(1) Non-current Assets: |
|||
|
(a) Fixed Assets: |
|||
|
(i) Tangible |
5 |
3,66,250 |
2,28,750 |
|
(ii) Intangible |
6 |
25,000 |
37,500 |
|
(b) Non-current Investments |
37,500 |
25,000 |
|
|
(2) Current Assets: |
|||
|
(a) Current Investments |
|
10,000 |
17,500 |
|
(b) Inventories |
7 |
30,500 |
18,000 |
|
(c) Cash and Cash Equivalents |
18,250 |
10,750 |
|
|
Total |
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3,37,500 |
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Notes to Accounts :
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Note No. |
Particulars |
31.03.2016 (Rs) |
31.03.2015 (Rs) |
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(1) |
Reserves and Surplus |
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Long-term Borrowings |
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87,500 |
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87,500 |
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Accumulated Depreciation |
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|
3,66,250 | 2,28,750 |
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(6) |
Intangible Assets |
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|
Goodwill |
25,000 | 37,500 |
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|
25,000 |
37,500 |
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(7) |
Inventories |
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Stock in Trade |
30,500 | 18,000 |
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30,500 | 18,000 |
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Share forfeited balance is transferred to Capital Reserve Account.
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The shares on which dividend is not fixed.
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