Question

Following is the extract of the Balance Sheet of Vikalp Ltd. as per Schedule-III, Part-I of Companies Act as at 31^st March, 2024 along with Notes to accounts:

Vikalp Ltd. Balance Sheet as at 31st March, 2024
Particulars	Note No.	31-03-2024 (₹)	31-03-2023 (₹)
I. Equity and Liabilities
(1) Shareholders Funds
(a) Share capital	1	59,60,000	50,00,000

‘Notes to accounts’ as at 31^st March, 2023:

Note No.	Particulars	31-3-2023 (₹)
1.	Share Capital:
	Authorised capital
	9,00,000 equity shares of ₹ 10 each	90,00,000
	Issued capital:
	5,00,000 equity shares of ₹ 10 each	50,00,000
	Subscribed capital:
	Subscribed and fully paid up
	5,00,000 equity shares of ₹ 10 each	50,00,000
	Subscribed but not fully paid up	Nil
		50,00,000

‘Notes to accounts’ as at 31^st March, 2024:

Note No.	Particulars		31-3-2023 (₹)
1.	Share Capital:
	Authorised capital
	9,00,000 equity shares of ₹ 10 each		90,00,000
	Issued capital:
	6,00,000 equity shares of ₹ 10 each		60,00,000
	Subscribed capital:
	Subscribed and fully paid up
	5,80,000 equity shares of ₹ 10 each		58,00,000
	Subscribed but not fully paid up
	20,000 equity shares of ₹ 10 each,
	fully called up	2,00,000
	Less: calls in arrears 20,000 equity shares @ ₹ 2 per share	40,000	1,60,000
			59,60,000

Answer the following questions:

1. The total face value of equity shares issued during the year 2023-2024 was:
   1. ₹ 10,00,000
   2. ₹ 9,80,000
   3. ₹ 4,20,000
   4. ₹ 11,00,000
2. The number of shares on which the called up amount was not received were:
   1. 1,00,000
   2. 80,000
   3. 3,00,000
   4. 20,000
3. On 1st April, 2024 Vikalp Limited forfeited all the shares on which the called up amount was not received. On forfeiture, ‘Share Capital Account’ will be debited by:
   1. ₹ 1,60,000
   2. ₹ 40,000
   3. ₹ 2,00,000
   4. ₹ 2,40,000
4. On forfeiture, ‘Share Forfeiture Account’ will be credited with:
   1. ₹ 1,60,000
   2. ₹ 40,000
   3. ₹ 2,00,000
   4. ₹ 2,40,000
5. If all the forfeited shares are reissued at ₹ 8 per share fully paid up, the amount credited to ‘Capital Reserve A/c’ will be:
   1. ₹ 40,000
   2. ₹ 1,60,000
   3. ₹ 2,00,000
   4. ₹ 1,20,000
6. If the forfeited shares are reissued at the minimum permissible price, the amount credited to ‘Capital Reserve Account’ will be:
   1. ₹ 2,00,000
   2. ₹ 1,60,000
   3. ₹ 40,000
   4. NIL

Answer 1

1. ₹ 10,00,000
2. 20,000
3. ₹ 2,00,000
4. ₹ 1,60,000
5. ₹ 1,20,000
6. NIL

Explanation:

(i)

Face value of shares issued during the year 

= (6,00,000 – 5,00,000) × 10

= ₹ 10,00,000

(ii)

There are 20,000 shares on which ₹ 2 per share was not received.

(iii)

Share Capital account will be debited with ₹ 2,00,000 because full amount was called up.

(iv) 

Share Capital debited = ₹ 2,00,000

Less: Calls in arrears = ₹ 40,000

Amount forfeited = ₹ 1,60,000

(v)

Gain on forfeiture = ₹ 1,60,000

Less: discount on Reissue (20,000 × ₹ 2) = 40,000

Transferred to Capital Reserve = ₹ 1,20,000

(vi)

Amount forfeited = ₹ 1,60,000

Less: Maximum discount allowed = ₹ 1,60,000

Transferred to Capital Reserve = NIL