Question

Usha Ltd. was formed with a capital of ₹ 10,00,000 divided into shares of ₹ 100 each. It offered 90% shares to public for subscription. The amount per share was payable as 40% on application, 20% on allotment and the balance on first and final call. The applicants paid ₹ 3,60,000 on application and ₹ 1,69,000 on allotment. The call has not yet been made. Calculate:

1. Authorised Capital,
2. Issued Capital,
3. Subscribed Capital,
4. Called-up Capital,
5. Paid-up Capital, and
6. Calls-in-Arrears

Answer 1

Authorised Capital: ₹ 10,00,000

Face value per share: ₹ 100

Number of authorised shares:

₹ 10,00,000 ÷ ₹ 100 = 10,000 shares

The company offered 90% of the shares to the public:

10,000 × 90% = 9,000 shares

Amount payable per share:

Application: 40% of ₹ 100 = ₹ 40

Allotment: 20% of ₹ 100 = ₹ 20

First and Final Call: Balance ₹ 40, not yet called

(a) Authorised Capital

₹10,00,000

(b) Issued Capital

9,000 × ₹ 100 = ₹ 9,00,000

(c) Subscribed Capital

Application money received:

₹ 3,60,000 ÷ ₹ 40 = 9,000 shares

Thus, all issued shares were subscribed.

9,000 × ₹ 100 = ₹ 9,00,000

(d) Called-up Capital

Only application and allotment have been called:

₹ 40 + ₹ 20 = ₹ 60 per share

9,000 × ₹ 60 = ₹ 5,40,000

(e) Paid-up Capital

Allotment money due:

9,000 × ₹ 20 = ₹ 1,80,000

Allotment money received = ₹ 1,69,000

Calls-in-Arrears:

₹ 1,80,000 − ₹ 1,69,000 = ₹ 11,000

Therefore:

₹ 5,40,000 − ₹ 11,000 = ₹ 5,29,000

(f) Calls-in-Arrears

₹ 11,000​