Question

On 1st April 2012, Mayank Ltd. was formed with an authorised capital of  Rs 25,00,000 divided into 50,000 equity shares of Rs 50 each. The company issued a prospectus inviting applications for 45,000 shares. The issue price was payable as under :

On Application: Rs 15
On Allotment: Rs 20
On Call: Balance amount

The issue was fully subscribed and the company allotted shares to all the applicants. The company did not make the call during the year. 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' for the same.

Answer 1

Journal
Date	Particulars	L.F.	Dr. Rs	Cr. Rs
	Bank A/c                              Dr.       To Share Application A/c (Being application for 45,000 shares received) Share Application A/c             Dr.      To share capital A/c (Being share application money accepted)		6,75,000     6,75,000	6,75,000     6,75,000

 

Balance Sheet (Extract)
Particulars	Note No.	Rs
I. Equity and Liabilities     1. Shareholders’ fund        a. Share capital	1	6,75,000    6,75,000

Note to Account

Note No.	Particulars	Rs
	Share capital 50,000 share of Rs 50 each Issued capital 45,000 share of  Rs 50 each Subscribed Capital 45,000 share of Rs 50 each Called and paid –up capital 45,000 share of Rs 15 each	25,00,000   22,50,000   22,50,000   6,75,000