Question

The Kalyan Cotton Mills Ltd.was registered on 1st January,2011 with a capital of ₹10,00,000 divided into 1,00,000 shares of ₹ 10 each . The company issued 42,000 shares of which 40,000 shares were taken up by the public and ₹ 1 per share was received with application. On 1st February , these shares were allotted and ₹ 2 per share was duly received on 28th February as allotment money. A first call of ₹ 3 per share was made on 1st March and the call money on all shares with the exception of 100 shares was received . The final call of ₹ 4 per share was made on 1st June and the amount due, with the exception of 400 shares , was received by 30th June. Pass necessary journal ands Cash Book entries and prepare the Balance Sheet as at 30th June, 2011.

Answer 1

Authorised Capital 1,00,000 shares of Rs 10 each

Issued Capital 42,000 shares of Rs 10 each

Applied 40,000 shares

Payable as:

Rs 1 on application

Rs 2 on allotment

Rs 3 on first call

Rs 4 on final call

Books of Kalyan Cotton Mills Ltd.
Cash Book

Date		Particulars	L.F.	Bank Rs	Date	Particulars	L.F.	Bank Rs
2011					2011
Feb 01		Share Application		40,000
Feb 28		Share Allotment		80,000
May 01		Share First Call		1,19,700
June 30		Share Final Call		1,58,400		Balance c/d		3,98,100
				3,98,100				3,98,100

Journal

Date	Particulars		L.F.	Debit Amount Rs	Credit  Amount  Rs
2011
Feb 01	Share Application A/c	Dr.		40,000
	To Share Capital A/c				40,000
	(Share application of 40,000 shares at Re 1 each transferred to Share Capital Account)
Feb 01	Share Allotment A/c	Dr.		80,000
	To Share Capital A/c				80,000
	(Share allotment due on 40,000 shares at Rs 2 each)
Mar 01	Share First Call A/c	Dr.		1,20,000
	To Share Capital A/c				1,20,000
	(Share first call due on 40,000 shares at Rs 3 each)
May 30	Calls-in-Arrears A/c	Dr.		300
	To Share First Call A/c				300
	(Share first call outstanding on 100 shares at Rs 3 each)
June 01	Share Final Call A/c	Dr.		1,60,000
	To Share Capital A/c				1,60,000
	(Share final call due on 40,000 shares of Rs 4 each)
June 30	Calls-in-Arrears A/c	Dr.		1,600
	To Share Final Call A/c				1,600
	(Share final call outstanding on 400 shares at Rs 4 each)

As per the Schedule III of Companies Act, 2013, the Company's Balance Sheet is presented as follows. 

Kalyan Cotton Mills Ltd.
Balance Sheet

Particulars	Note No.	Amount  (Rs)
I. Equity and Liabilities
1. Shareholders’ Funds
a. Share Capital	1	3,98,100
2. Non-Current Liabilities
3. Current Liabilities
Total		3,98,100
II. Assets
1. Non-Current Assets
2. Current Assets
a. Cash and Cash Equivalents	2	3,98,100
Total		3,98,100

NOTES TO ACCOUNTS 

Note No.	Particulars		Amount (Rs)
1	Share Capital
	Authorised Share Capital
	1,00,000 shares of Rs 10 each		10,00,000
	Issued Share Capital
	42,000 shares of Rs 10 each		4,20,000
	Subscribed, Called-up and Paid-up Share Capital
	40,000 shares of Rs 10 each	4,00,000	3,98,100
	Less: Calls-in-Arrears	(1,900)
2	Cash and Cash Equivalents
	Cash at Bank		3,98,100