Question

ABC Ltd. was registered with authorised capital of 1,00,00,000 divided into 10,00,000 equity shares of ₹ 10 each. On 1st April, 2024, the company offered to the public for subscription, 1,00,000 shares. Applications for 99,000 shares were received and allotment was made in full to all the applicants. A shareholder holding 9,000 shares failed to pay the final call of ₹ 3 per share.

Answer the following questions:

1. The authorised capital of the company is
   1. ₹ 10,00,000.
   2. ₹ 9,90,000.
   3. ₹ 1,00,000.
   4. ₹ 99,45,000.
2. The issued capital of ABC Ltd. is
   1. ₹ 1,00,000.
   2. ₹ 99,000.
   3. ₹ 94,500.
   4. ₹ 10,00,000.
3. The amount of Calls-in-Arrears will be
   1. ₹ 27,000.
   2. ₹ 90,000.
   3. ₹ 2,97,000.
   4. Nil.
4. The 'Subscribed and fully paid-up capital' of ABC Ltd. will be
   1. ₹ 10,00,000.
   2. ₹ 9,00,000.
   3. ₹ 99,00,000.
   4. ₹ 98,73,000.
5. 'Subscribed but not fully paid-up capital' of ABC Ltd. will be
   1. ₹ 98,73,000.
   2. ₹ 8,73,000.
   3. ₹ 90,000.
   4. ₹ 63,000.
6. The amount of 'Share Capital' presented in the Balance Sheet of ABC Ltd. will be
   1. ₹ 9,63,000.
   2. ₹ 98,73,000.
   3. ₹ 9,90,000.
   4. ₹ 1,00,00,000.

Answer 1

(A) ₹ 1,00,000.

Explanation:

Authorised capital is the maximum capital stated in the Memorandum of Association.

10,00,000 shares × ₹ 10 = ₹ 1,00,00,000

(B) ₹ 10,00,000.

Explanation:

The company offered 1,00,000 shares of ₹ 10 each to the public.

1,00,000 × ₹ 10 = ₹ 10,00,000

(C) ₹ 27,000.

Explanation:

The holder of 9,000 shares failed to pay the final call of ₹ 3 per share.

9,000 × ₹ 3 = ₹ 27,000

(D) ₹ 9,00,000.

Explanation:

Shares subscribed = 99,000. Out of these, 9,000 shares are not fully paid.

(99,000 − 9,000) × ₹ 10 = 90,000 × ₹ 10 = ₹ 9,00,000

(E) ₹ 63,000.

Explanation:

On 9,000 shares, ₹ 3 per share is unpaid, so ₹ 7 per share has been paid.

9,000 × ₹ 7 = ₹ 63,000

(F) ₹ 9,63,000.

Explanation:

Subscribed capital is ₹ 9,90,000 and Calls-in-Arrears are ₹ 27,000.

₹ 9,90,000 − ₹ 27,000 = ₹ 9,63,000