Question

On 1st April, 2023, Blue Heaven Ltd. was formed with an authorised capital of ₹20,00,000 divided into 2,00,000 equity shares of ₹10 each. The company issued prospectus inviting applications for 1,50,000 equity shares. The company received applications for 1,40,000 equity shares. During the first year, ₹7 per share were called. Arun holding 4,000 shares and Varun holding 3,000 shares did not pay the first call of ₹2 per share. Varun's shares were forfeited after the first call and later on 1,800 of the forfeited shares were re-issued at ₹5 per share, ₹7 called up.

Show the following:

1. Share Capital in the Balance Sheet of the company as per Schedule III Pait I of the Companies Act, 2013.
2. Also prepare ‘Notes to Accounts’ for the same.

Answer 1

Balance Sheet (Extract)

as at 31st March, 2024

Equity and Liabilities
Particulars	Note No.	Amount (₹)
1. Shareholders’ Funds
(a) Share Capital	1	9,69,600

Notes to Accounts

Note 1: Share Capital

Particulars	Amount (₹)
Authorised Capital
2,00,000 Equity Shares of ₹10 each	20,00,000
Issued Capital
1,50,000 Equity Shares of ₹10 each	15,00,000
Subscribed Capital
1,40,000 Equity Shares of ₹10 each	14,00,000
Called-up Capital (₹7 per share called)	9,80,000
Less: Calls in Arrears
(Arun – 4,000 shares × ₹2 = ₹8,000; Varun – 3,000 × ₹2 = ₹6,000)	(14,000)
Subscribed but Not Fully Paid-up Capital	9,66,000
Less: Amount on 3,000 shares forfeited (Varun)	(21,000)
Net Subscribed Capital	9,45,000
Add: Reissued Capital (1,800 shares @ ₹7 each)	12,600
Total Share Capital	9,69,600

Note 2: Forfeited Shares Account

Particulars	Amount (₹)
Amount received on 3,000 forfeited shares (₹5 per share)	15,000
Less: Loss on Reissue (1,800 × ₹2)	(3,600)
Balance in Forfeited Shares A/c	11,400