Question

On 1st April, 2012, Khanna Ltd. was formed with an authorised capital of Rs 20,00,000 divided into 2,00,000 equity shares of Rs 10 each. The company issued prospectus inviting applications for 1,80,000 equity shares. The company received applications for 1,70,000 equity shares. During the first year, Rs 8 per share were called, Shikha holding 2,000 share and Poonam holding 4,000 shares did not pay the first call of Rs 2 per share. Poonam's shares were forfeited after the first call and later on 3,000 of the forfeited shares re-issued at Rs 6 per share, Rs 8 called up.

Show the following:
(a) 'Share Capital' in the Balance sheet of the company as per revised Schedule VI Part I of the Companies Act, 1956.
(b) Also prepare 'Notes to Accounts'.

Answer 1

Balance Sheet                         as at April 01, 2012
Particulars	Note No.	Amount (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	13,54,000
b. Reserves and Surplus	2	12,000
2. Non-Current Liabilities
3. Current Liabilities
Total		13,66,000
II Assets
1. Non-Current Assets
2. Current Assets
Cash and Cash Equivalents	3	13,66,000
Total		13,66,000

NOTES TO ACCOUNTS
Note No.	particulars		Amount (Rs)
1	Share Capital
	Authorised Capital
	2,00,000 equity shares of Rs 10 each		20,00,000
	Issued Capital
	1,80,000 equity shares of Rs 10 each		18,00,000
	Subscribed, Called up and Paid up Capital
	1,69,000 equity shares of Rs 8 each	13,52,000
	Less: Calls-in-arrears (on 2,000 equity shares @ Rs 2 per share)	4,000
	Add: Share forfeiture (on 1,000 equity shares)	6,000	13,54,000
2	Reserves and Surplus
	Capital Reserve		12,000
8	Cash and Cash Equivalents
	Cash at Bank		13,66,000